CS/HB 479

1
A bill to be entitled
2An act relating to retirement; amending s. 121.021, F.S.;
3redefining the terms "employer," "officer or employee,"
4"past service," "normal retirement date," "termination,"
5"regularly established position," and "temporary
6position"; defining the terms "state board" and
7"trustees"; amending s. 121.031, F.S.; requiring
8promotional materials that refer to the Florida Retirement
9System to include a disclaimer unless approval is obtained
10from the Department of Management Services or the State
11Board of Administration; amending s. 121.051, F.S.;
12conforming a cross-reference; clarifying when a State
13Community College System Optional Retirement Program
14participant is considered a retiree; revising provisions
15relating to participation in the Florida Retirement System
16by certain employers; excluding the participation of
17certain entities under a lease agreement; amending s.
18121.052, F.S.; revising membership criteria for members of
19the Elected Officers' Class; revising the dates for when a
20governing body of a municipality or special district may
21elect to designate its elected positions for inclusion in
22the Elected Officers' Class; amending s. 121.053, F.S.;
23revising provisions relating to participation in the
24Elected Officers' Class for retired members; amending s.
25121.055, F.S.; revising provisions relating to
26participation in the Senior Management Service Class;
27revising benefit payment procedures for the Senior
28Management Service Optional Annuity Program; clarifying
29when a participant is considered retired; amending s.
30121.071, F.S.; providing an additional mechanism for the
31payment of employee contributions to the system; amending
32s. 121.081, F.S.; providing for receipt of credit for past
33or prior service by charter school and charter technical
34career center employees; prohibiting a member from
35receiving credit for service covered and reported by both
36a public employer and a private employer; amending s.
37121.091, F.S.; revising and clarifying provisions relating
38to retirement benefits; revising positions in which
39retired members may be reemployed by a district school
40board; deleting a restriction on the reemployment of
41certain personnel by the Florida School for the Deaf and
42the Blind; authorizing developmental research schools and
43charter schools to reemploy certain retired members under
44specified conditions; revising limitations on the payment
45of retirement benefits for certain retired persons who are
46reemployed by an employer participating in a state-
47administered retirement program; prohibiting certain
48persons holding public office from enrolling in the
49Florida Retirement System; deleting a provision
50authorizing an employing agency to reemploy a retired
51member as a firefighter or paramedic after a specified
52period; providing applicability; providing that certain
53members who delay DROP participation lose a month of DROP
54participation for each month delayed; clarifying that DROP
55participation cannot be canceled; clarifying maximum DROP
56participation; providing for the suspension of DROP
57benefits to a participant who is reemployed; deleting
58obsolete provisions; revising employer contribution
59requirements; authorizing the Division of Retirement to
60issue benefits pursuant to a qualified domestic relations
61order directly to the alternate payee; amending s.
62121.1115, F.S.; revising provisions relating to receiving
63retirement credit for out-of-state service; providing that
64a member is not eligible for and may not receive a benefit
65based on such service; amending s. 121.1122, F.S.;
66revising provisions relating to receiving retirement
67credit for in-state service; providing that certain
68members may not be eligible to purchase service credit;
69amending s. 121.122, F.S.; providing that certain retirees
70initially reemployed on or after a specified date are
71ineligible for renewed membership in the system; revising
72conditions under which a retiree is entitled to certain
73additional retirement benefits; amending s. 121.136, F.S.;
74revising provisions relating to the annual statement of
75benefits provided to certain active members of the system;
76amending s. 121.1905, F.S.; deleting a provision
77describing the mission of the Division of Retirement;
78amending s. 121.23, F.S.; requiring the State Retirement
79Commission to use certain requirements used by the
80Secretary of Management Services before approving a
81disability retirement benefit; amending s. 121.24, F.S.;
82requiring a quorum of three members for all appeal
83hearings held by the commission; amending s. 121.35, F.S.;
84revising a compulsory membership exception for certain
85members failing to elect membership in the optional
86retirement program; providing a cross-reference; defining
87the term "retiree" for purposes of the State University
88System Optional Retirement Program; amending s. 121.4501,
89F.S.; revising the definition of "eligible employee" for
90purposes of the Public Employee Optional Retirement
91Program; amending s. 121.591, F.S.; providing a cross-
92reference; amending s. 1012.33, F.S.; deleting a provision
93preventing persons who have retired from the public school
94system from renewing membership in the Florida Retirement
95System or Teachers' Retirement System upon reemployment by
96the school system; repealing s. 121.093, F.S., relating to
97instructional personnel reemployment after retirement from
98a developmental research school or the Florida School for
99the Deaf and the Blind; repealing s. 121.094, F.S.,
100relating to instructional personnel reemployment after
101retirement from a charter school; repealing s. 121.45,
102F.S., relating to interstate compacts relating to pension
103portability; providing a declaration of important state
104interest; providing an effective date.
105
106Be It Enacted by the Legislature of the State of Florida:
107
108     Section 1.  Subsections (10), (11), (18), (29), (39), (52),
109and (53) of section 121.021, Florida Statutes, are amended, and
110subsections (63) and (64) are added to that section, to read:
111     121.021  Definitions.--The following words and phrases as
112used in this chapter have the respective meanings set forth
113unless a different meaning is plainly required by the context:
114     (10)  "Employer" means any agency, branch, department,
115institution, university, institution of higher education, or
116board of the state, or any county agency, branch, department,
117board, district school board, city, metropolitan planning
118organization, or special district of the state, or any city of
119the state which participates in the system for the benefit of
120certain of its employees, or a charter school or charter
121technical career center that participates as provided in s.
122121.051(2)(d). Employers are not agents of the department, the
123state board, or the Division of Retirement, and the department,
124the state board, and the division are not responsible for
125erroneous information provided by representatives of employers.
126     (11)  "Officer or employee" means any person receiving
127salary payments for work performed in a regularly established
128position and, if employed by a city, a metropolitan planning
129organization, or a special district, employed in a covered
130group. The term does not apply to state employees covered by a
131leasing agreement under s. 110.191, other public employees
132covered by a leasing agreement, or a co-employer relationship.
133     (18)  "Past service" of any member, as provided in s.
134121.081(1), means the number of years and complete months and
135any fractional part of a month, recognized and credited by an
136employer and approved by the administrator, during which the
137member was in the active employ of a governmental an employer
138and for which the employee is not entitled to a benefit prior to
139his or her date of participation.
140     (29)  "Normal retirement date" means the first day of any
141month following the date a member attains normal retirement age
142and is vested, which is determined as follows one of the
143following statuses:
144     (a)  If a Regular Class member, a Senior Management Service
145Class member, or an Elected Officers' Class the member:
146     1.  The first day of the month the member completes 6 or
147more years of creditable service and attains age 62; or
148     2.  The first day of the month following the date the
149member completes 30 years of creditable service, regardless of
150age, which may include a maximum of 4 years of military service
151credit as long as such credit is not claimed under any other
152system.
153     (b)  If a Special Risk Class member, the member:
154     1.  The first day of the month the member completes 6 or
155more years of creditable service in the Special Risk Class and
156attains age 55;
157     2.  The first day of the month following the date the
158member completes 25 years of creditable service in the Special
159Risk Class, regardless of age; or
160     3.  The first day of the month following the date the
161member completes 25 years of creditable service and attains age
16252, which service may include a maximum of 4 years of military
163service credit as long as such credit is not claimed under any
164other system and the remaining years are in the Special Risk
165Class.
166     (c)  If a Senior Management Service Class member, the
167member:
168     1.  Completes 6 years of creditable service in the Senior
169Management Service Class and attains age 62; or
170     2.  Completes 30 years of any creditable service,
171regardless of age, which may include a maximum of 4 years of
172military service credit as long as such credit is not claimed
173under any other system.
174     (d)  If an Elected Officers' Class member, the member:
175     1.  Completes 6 years of creditable service in the Elected
176Officers' Class and attains age 62; or
177     2.  Completes 30 years of any creditable service,
178regardless of age, which may include a maximum of 4 years of
179military service credit as long as such credit is not claimed
180under any other system.
181
182"Normal retirement age" is attained on the "normal retirement
183date."
184     (39)(a)  "Termination" occurs, except as provided in
185paragraph (b), when:
186     1.  For retirements effective before January 1, 2010, a
187member ceases all employment relationships with employers under
188this system, as defined in subsection (10), but in the event a
189member should be employed by any such employer within the next
190calendar month, termination shall be deemed not to have
191occurred. A leave of absence shall constitute a continuation of
192the employment relationship, except that a leave of absence
193without pay due to disability may constitute termination for a
194member, if such member makes application for and is approved for
195disability retirement in accordance with s. 121.091(4). The
196department or state board may require other evidence of
197termination as it deems necessary.
198     2.  For retirements effective on or after January 1, 2010,
199a member ceases all employment relationships with employers
200under this system, as defined in subsection (10), but in the
201event a member should be employed by any such employer within
202the next 12 calendar months, termination shall be deemed not to
203have occurred. A leave of absence shall constitute a
204continuation of the employment relationship, except that a leave
205of absence without pay due to disability may constitute
206termination for a member, if such member makes application for
207and is approved for disability retirement in accordance with s.
208121.091(4). The department or state board may require other
209evidence of termination as it deems necessary.
210     (b)  "Termination" for a member electing to participate
211under the Deferred Retirement Option Program (DROP) occurs when
212the Deferred Retirement Option Program participant ceases all
213employment relationships with employers under this system in
214accordance with s. 121.091(13), but:
215     1.  For DROP termination dates occurring before January 1,
2162010, in the event the DROP Deferred Retirement Option Program
217participant should be employed by any such employer within the
218next calendar month, termination will be deemed not to have
219occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
220absence shall constitute a continuation of the employment
221relationship.
222     2.  For DROP termination dates occurring on or after
223January 1, 2010, in the event the DROP participant should be
224employed by any such employer within the next 12 calendar
225months, termination will be deemed not to have occurred, except
226as provided in s. 121.091(13)(b)4.c. A leave of absence shall
227constitute a continuation of the employment relationship.
228     (52)  "Regularly established position" is defined as
229follows:
230     (a)  With respect to employment for In a state employer
231agency, the term means a position that which is authorized and
232established pursuant to law and is compensated from a salaries
233and benefits appropriation pursuant to s. 216.011(1)(mm)(dd), or
234an established position that which is authorized pursuant to s.
235216.262(1)(a) and (b) and is compensated from a salaries account
236as provided in s. 216.011(1)(nn) by rule.
237     (b)  With respect to employment for In a local employer
238agency (district school board, county agency, community college,
239city, metropolitan planning organization, charter school,
240charter technical career center, or special district), the term
241means a regularly established position that which will be in
242existence for a period beyond 6 consecutive months, except as
243provided by rule.
244     (53)  "Temporary position" is defined as follows:
245     (a)  With respect to employment for In a state employer
246agency, the term means a an employment position that which is
247compensated from an other personal services (OPS) account, as
248provided for in s. 216.011(1)(dd).
249     (b)  With respect to employment for In a local employer
250agency, the term means a an employment position that which will
251exist for less than 6 consecutive months, or other employment
252position as determined by rule of the division, regardless of
253whether it will exist for 6 consecutive months or longer.
254     (63)  "State board" means the State Board of
255Administration.
256     (64)  "Trustees" means the Board of Trustees of the State
257Board of Administration.
258     Section 2.  Subsection (6) is added to section 121.031,
259Florida Statutes, to read:
260     121.031  Administration of system; appropriation; oaths;
261actuarial studies; public records.--
262     (6)  Unless prior written approval is obtained from the
263department or state board, any promotional materials or
264advertisements that, directly or indirectly, refer to the
265"Florida Retirement System" or the "FRS" must contain a
266disclaimer that the information is not approved or endorsed by
267the Florida Retirement System.
268     Section 3.  Paragraph (a) of subsection (1) and paragraphs
269(c) and (f) of subsection (2) of section 121.051, Florida
270Statutes, are amended to read:
271     121.051  Participation in the system.--
272     (1)  COMPULSORY PARTICIPATION.--
273     (a)  The provisions of this law are shall be compulsory as
274to all officers and employees, except elected officers who meet
275the requirements of s. 121.052(3), who are employed on or after
276December 1, 1970, by of an employer other than those referred to
277in paragraph (2)(b), and each officer or employee, as a
278condition of employment, shall become a member of the system as
279of his or her date of employment, except that a person who is
280retired from any state retirement system and is reemployed on or
281after December 1, 1970, may not renew his or her membership in
282any state retirement system except as provided in s.
283121.091(4)(h) for a person who recovers from disability, and as
284provided in s. 121.091(9)(b)10.8. for a person who is elected to
285public office, and, effective July 1, 1991, as provided in s.
286121.122 for all other retirees. Officers and employees of the
287University Athletic Association, Inc., a nonprofit association
288connected with the University of Florida, employed on and after
289July 1, 1979, may shall not participate in any state-supported
290retirement system.
291     1.  Any person appointed on or after July 1, 1989, to a
292faculty position in a college at the J. Hillis Miller Health
293Center at the University of Florida or the Medical Center at the
294University of South Florida which has a faculty practice plan
295provided by rule adopted by the Board of Regents may not
296participate in the Florida Retirement System. Effective July 1,
2972008, any person appointed thereafter to a faculty position,
298including clinical faculty, in a college at a state university
299that has a faculty practice plan authorized by the Board of
300Governors may not participate in the Florida Retirement System.
301A faculty member so appointed shall participate in the optional
302retirement program for the State University System
303notwithstanding the provisions of s. 121.35(2)(a).
304     2.  For purposes of this paragraph, the term "faculty
305position" is defined as a position assigned the principal
306responsibility of teaching, research, or public service
307activities or administrative responsibility directly related to
308the academic mission of the college. The term "clinical faculty"
309is defined as a faculty position appointment in conjunction with
310a professional position in a hospital or other clinical
311environment at a college. The term "faculty practice plan"
312includes professional services to patients, institutions, or
313other parties which are rendered by the clinical faculty
314employed by a college that has a faculty practice plan at a
315state university authorized by the Board of Governors.
316     (2)  OPTIONAL PARTICIPATION.--
317     (c)  Employees of public community colleges or charter
318technical career centers sponsored by public community colleges,
319as designated in s. 1000.21(3), who are members of the Regular
320Class of the Florida Retirement System and who comply with the
321criteria set forth in this paragraph and in s. 1012.875 may
322elect, in lieu of participating in the Florida Retirement
323System, to withdraw from the Florida Retirement System
324altogether and participate in an optional retirement program
325provided by the employing agency under s. 1012.875, to be known
326as the State Community College System Optional Retirement
327Program. Pursuant thereto:
328     1.  Through June 30, 2001, the cost to the employer for
329such annuity shall equal the normal cost portion of the employer
330retirement contribution which would be required if the employee
331were a member of the Regular Class defined benefit program, plus
332the portion of the contribution rate required by s. 112.363(8)
333that would otherwise be assigned to the Retiree Health Insurance
334Subsidy Trust Fund. Effective July 1, 2001, each employer shall
335contribute on behalf of each participant in the optional program
336an amount equal to 10.43 percent of the participant's gross
337monthly compensation. The employer shall deduct an amount to
338provide for the administration of the optional retirement
339program. The employer providing the optional program shall
340contribute an additional amount to the Florida Retirement System
341Trust Fund equal to the unfunded actuarial accrued liability
342portion of the Regular Class contribution rate.
343     2.  The decision to participate in such an optional
344retirement program shall be irrevocable for as long as the
345employee holds a position eligible for participation, except as
346provided in subparagraph 3. Any service creditable under the
347Florida Retirement System shall be retained after the member
348withdraws from the Florida Retirement System; however,
349additional service credit in the Florida Retirement System shall
350not be earned while a member of the optional retirement program.
351     3.  An employee who has elected to participate in the
352optional retirement program shall have one opportunity, at the
353employee's discretion, to choose to transfer from the optional
354retirement program to the defined benefit program of the Florida
355Retirement System or to the Public Employee Optional Retirement
356Program, subject to the terms of the applicable optional
357retirement program contracts.
358     a.  If the employee chooses to move to the Public Employee
359Optional Retirement Program, any contributions, interest, and
360earnings creditable to the employee under the State Community
361College System Optional Retirement Program shall be retained by
362the employee in the State Community College System Optional
363Retirement Program, and the applicable provisions of s.
364121.4501(4) shall govern the election.
365     b.  If the employee chooses to move to the defined benefit
366program of the Florida Retirement System, the employee shall
367receive service credit equal to his or her years of service
368under the State Community College System Optional Retirement
369Program.
370     (I)  The cost for such credit shall be an amount
371representing the present value of that employee's accumulated
372benefit obligation for the affected period of service. The cost
373shall be calculated as if the benefit commencement occurs on the
374first date the employee would become eligible for unreduced
375benefits, using the discount rate and other relevant actuarial
376assumptions that were used to value the Florida Retirement
377System defined benefit plan liabilities in the most recent
378actuarial valuation. The calculation shall include any service
379already maintained under the defined benefit plan in addition to
380the years under the State Community College System Optional
381Retirement Program. The present value of any service already
382maintained under the defined benefit plan shall be applied as a
383credit to total cost resulting from the calculation. The
384division shall ensure that the transfer sum is prepared using a
385formula and methodology certified by an enrolled actuary.
386     (II)  The employee must transfer from his or her State
387Community College System Optional Retirement Program account and
388from other employee moneys as necessary, a sum representing the
389present value of that employee's accumulated benefit obligation
390immediately following the time of such movement, determined
391assuming that attained service equals the sum of service in the
392defined benefit program and service in the State Community
393College System Optional Retirement Program.
394     4.  Participation in the optional retirement program shall
395be limited to those employees who satisfy the following
396eligibility criteria:
397     a.  The employee must be otherwise eligible for membership
398or renewed membership in the Regular Class of the Florida
399Retirement System, as provided in s. 121.021(11) and (12) or s.
400121.122.
401     b.  The employee must be employed in a full-time position
402classified in the Accounting Manual for Florida's Public
403Community Colleges as:
404     (I)  Instructional; or
405     (II)  Executive Management, Instructional Management, or
406Institutional Management, if a community college determines that
407recruiting to fill a vacancy in the position is to be conducted
408in the national or regional market, and:
409     (A)  The duties and responsibilities of the position
410include either the formulation, interpretation, or
411implementation of policies; or
412     (B)  The duties and responsibilities of the position
413include the performance of functions that are unique or
414specialized within higher education and that frequently involve
415the support of the mission of the community college.
416     c.  The employee must be employed in a position not
417included in the Senior Management Service Class of the Florida
418Retirement System, as described in s. 121.055.
419     5.  A participant who receives a program distribution
420funded by employer contributions shall be deemed to be retired
421from a state-administered retirement system in the event of
422subsequent employment with any employer that participates in the
423Florida Retirement System. Participants in the program are
424subject to the same reemployment limitations, renewed membership
425provisions, and forfeiture provisions as are applicable to
426regular members of the Florida Retirement System under ss.
427121.091(9), 121.122, and 121.091(5), respectively.
428     6.  Eligible community college employees shall be
429compulsory members of the Florida Retirement System until,
430pursuant to the procedures set forth in s. 1012.875, a written
431election to withdraw from the Florida Retirement System and to
432participate in the State Community College System Optional
433Retirement Program is filed with the program administrator and
434received by the division.
435     a.  Any community college employee whose program
436eligibility results from initial employment shall be enrolled in
437the State Community College System Optional Retirement Program
438retroactive to the first day of eligible employment. The
439employer retirement contributions paid through the month of the
440employee plan change shall be transferred to the community
441college for the employee's optional program account, and,
442effective the first day of the next month, the employer shall
443pay the applicable contributions based upon subparagraph 1.
444     b.  Any community college employee whose program
445eligibility results from a change in status due to the
446subsequent designation of the employee's position as one of
447those specified in subparagraph 4. or due to the employee's
448appointment, promotion, transfer, or reclassification to a
449position specified in subparagraph 4. shall be enrolled in the
450program upon the first day of the first full calendar month that
451such change in status becomes effective. The employer retirement
452contributions paid from the effective date through the month of
453the employee plan change shall be transferred to the community
454college for the employee's optional program account, and,
455effective the first day of the next month, the employer shall
456pay the applicable contributions based upon subparagraph 1.
457     7.  Effective July 1, 2003, through December 31, 2008, any
458participant of the State Community College System Optional
459Retirement Program who has service credit in the defined benefit
460plan of the Florida Retirement System for the period between his
461or her first eligibility to transfer from the defined benefit
462plan to the optional retirement program and the actual date of
463transfer may, during his or her employment, elect to transfer to
464the optional retirement program a sum representing the present
465value of the accumulated benefit obligation under the defined
466benefit retirement program for such period of service credit.
467Upon such transfer, all such service credit previously earned
468under the defined benefit program of the Florida Retirement
469System during this period shall be nullified for purposes of
470entitlement to a future benefit under the defined benefit
471program of the Florida Retirement System.
472     (f)1.  If Whenever an employer that participates in the
473Florida Retirement System undertakes the transfer, merger, or
474consolidation of governmental services or assumes the functions
475and activities of an employing governmental entity that was not
476an employer under the system, the employer must notify the
477department at least 60 days prior to such action and shall
478provide documentation as required by the department. The
479transfer, merger, or consolidation of governmental services or
480assumption of governmental functions and activities must occur
481between public employers. The current or former employer may pay
482the employees' past service cost, unless prohibited under this
483chapter. This subparagraph does not apply to the transfer,
484merger, or consolidation of governmental services or assumption
485of functions and activities of a public entity under a leasing
486agreement having a co-employer relationship. Employers and
487employees of a public governmental employer whose service is
488covered by a leasing agreement under s. 110.191, any other
489leasing agreement, or a co-employer relationship are not
490eligible to participate in the Florida Retirement System.
491     2.  If When the agency to which a member's employing unit
492is transferred, merged, or consolidated does not participate in
493the Florida Retirement System, a member may shall elect in
494writing to remain in the Florida Retirement System or to
495transfer to the local retirement system operated by the such
496agency. If the such agency does not participate in a local
497retirement system, the member shall continue membership in the
498Florida Retirement System. In either case, the membership
499continues shall continue for as long as the member is employed
500by the agency to which his or her unit was transferred, merged,
501or consolidated.
502     Section 4.  Paragraph (f) of subsection (2) and paragraph
503(e) of subsection (3) of section 121.052, Florida Statutes, are
504amended to read:
505     121.052  Membership class of elected officers.--
506     (2)  MEMBERSHIP.--The following holders of elective office,
507hereinafter referred to as "elected officers," whether assuming
508elective office by election, reelection, or appointment, are
509members of the Elected Officers' Class, except as provided in
510subsection (3):
511     (f)1.  Any elected officer of a municipality or special
512district on or after July 1, 1997, through December 31, 2009, as
513provided in paragraph (3)(e).
514     2.  Any elected officer of a municipality or special
515district on or after January 1, 2010, when the governing body of
516a municipality or special district, at the time it joins the
517Florida Retirement System for its elected officers, elects by
518majority vote to designate all its elected positions for
519inclusion in the Elected Officers' Class.
520     (3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
521July 1, 1990, participation in the Elected Officers' Class shall
522be compulsory for elected officers listed in paragraphs (2)(a)-
523(d) and (f) assuming office on or after said date, unless the
524elected officer elects membership in another class or withdraws
525from the Florida Retirement System as provided in paragraphs
526(3)(a)-(d):
527     (e)1.  Effective July 1, 1997, the governing body of a
528municipality or special district may, by majority vote, elect to
529designate all its elected positions for inclusion in the Elected
530Officers' Class. Such election shall be made between July 1,
5311997, and December 31, 1997, and shall be irrevocable. The
532designation of such positions shall be effective the first day
533of the month following receipt by the department of the
534ordinance or resolution passed by the governing body.
535     2.  Effective July 1, 2001, the governing body of a
536municipality or special district may, by majority vote, elect to
537designate all its elected positions for inclusion in the Elected
538Officers' Class. Such election shall be made between July 1,
5392001, and December 31, 2001, and shall be irrevocable. The
540designation of such positions shall be effective the first day
541of the month following receipt by the department of the
542ordinance or resolution passed by the governing body.
543     3.  Effective July 1, 2009, the governing body of a
544municipality or special district may, by majority vote, elect to
545designate all its elected positions for inclusion in the Elected
546Officers' Class. Such election shall be made between July 1,
5472009, and December 31, 2009, and shall be irrevocable. The
548designation of such positions shall be effective the first day
549of the month following receipt by the department of the
550ordinance or resolution passed by the governing body.
551     Section 5.  Subsections (1) and (2) of section 121.053,
552Florida Statutes, are amended to read:
553     121.053  Participation in the Elected Officers' Class for
554retired members.--
555     (1)(a)1.  Any retiree of a state-administered retirement
556system who initially serves in an elective office in a regularly
557established position with a covered employer on or after January
5581, 2010, shall not be enrolled in the Florida Retirement System.
559     2.  An elected officer who is elected or appointed to an
560elective office and is participating in the Deferred Retirement
561Option Program is subject to termination as provided in s.
562121.021(39)(b), and reemployment limitations as provided in s.
563121.091(9), upon completion of his or her DROP participation
564period.
565     (b)  Before January 1, 2010, any member who retired under
566any existing system as defined in s. 121.021(2), and receives a
567benefit thereof, and who serves in an office covered by the
568Elected Officers' Class for a period of at least 6 years, shall
569be entitled to receive an additional retirement benefit for such
570elected officer service prior to July 1, 1990, under the Elected
571Officers' Class of the Florida Retirement System, as follows:
572     1.  Upon completion of 6 or more years of creditable
573service in an office covered by the Elected Officers' Class, s.
574121.052, such member shall notify the administrator of his or
575her intent to purchase elected officer service prior to July 1,
5761990, and shall pay the member contribution applicable for the
577period being claimed, plus 4 percent interest compounded
578annually from the first year of service claimed until July 1,
5791975, and 6.5 percent interest compounded annually thereafter,
580until full payment is made to the Florida Retirement System
581Trust Fund; however, such member may purchase retirement credit
582under the Elected Officers' Class only for such service as an
583elected officer.
584     2.  Upon payment of the amount specified in subparagraph
5851., the employer shall pay into the Florida Retirement System
586Trust Fund the applicable employer contribution for the period
587of elected officer service prior to July 1, 1990, being claimed
588by the member, plus 4 percent interest compounded annually from
589the first year of service claimed until July 1, 1975, and 6.5
590percent interest compounded annually thereafter, until full
591payment is made to the Florida Retirement System Trust Fund.
592     (c)(b)  Any retired member of the Florida Retirement
593System, or any existing system as defined in s. 121.021(2), who,
594on or after July 1, 1990, through December 31, 2009, is serving
595in, or is elected or appointed to, an elective office covered by
596the Elected Officers' Class shall be enrolled in the appropriate
597subclass of the Elected Officers' Class of the Florida
598Retirement System, and applicable contributions shall be paid
599into the Florida Retirement System Trust Fund as provided in s.
600121.052(7). Pursuant thereto:
601     1.  Any such retired member shall be eligible to continue
602to receive retirement benefits as well as compensation for the
603elected officer service for as long as he or she remains in an
604elective office covered by the Elected Officers' Class.
605     2.  If any such member serves in an elective office covered
606by the Elected Officers' Class and becomes vested under that
607class, he or she shall be entitled to receive an additional
608retirement benefit for such elected officer service.
609     3.  Such member shall be entitled to purchase additional
610retirement credit in the Elected Officers' Class for any
611postretirement service performed in an elected position eligible
612for the Elected Officers' Class prior to July 1, 1990, or in the
613Regular Class for any postretirement service performed in any
614other regularly established position prior to July 1, 1991, by
615paying the applicable Elected Officers' Class or Regular Class
616employee and employer contributions for the period being
617claimed, plus 4 percent interest compounded annually from the
618first year of service claimed until July 1, 1975, and 6.5
619percent interest compounded thereafter, until full payment is
620made to the Florida Retirement System Trust Fund. The
621contribution for postretirement Regular Class service between
622July 1, 1985, and July 1, 1991, for which the reemployed retiree
623contribution was paid, shall be the difference between such
624contribution and the total applicable contribution for the
625period being claimed, plus interest. The employer of such member
626may pay the applicable employer contribution in lieu of the
627member. If a member does not wish to claim credit for all of the
628postretirement service for which he or she is eligible, the
629service the member claims must be the most recent service.
630     4.  Creditable service for which credit was received, or
631which remained unclaimed, at retirement may not be claimed or
632applied toward service credit earned following renewed
633membership. However, service earned in accordance with the
634renewed membership provisions in s. 121.122 may be used in
635conjunction with creditable service earned under this paragraph,
636provided applicable vesting requirements and other existing
637statutory conditions required by this chapter are met.
638     5.  An elected officer who is elected or appointed to an
639elective office and is participating in the Deferred Retirement
640Option Program before January 1, 2010, is not subject to
641termination as provided in s. 121.021(39)(b), or reemployment
642limitations as provided in s. 121.091(9), until the end of his
643or her current term of office or, if the officer is
644consecutively elected or reelected to an elective office
645eligible for coverage under the Florida Retirement System, until
646he or she no longer holds such an elective office, as follows:
647     a.  At the end of the 60-month DROP period:
648     (I)  The officer's DROP account shall accrue no additional
649monthly benefits, but shall continue to earn interest as
650provided in s. 121.091(13).
651     (II)  No retirement contributions shall be required of the
652employer of the elected officer and no additional retirement
653credit shall be earned under the Florida Retirement System.
654     b.  Nothing herein shall prevent an elected officer from
655voluntarily terminating his or her elective office at any time
656and electing to receive his or her DROP proceeds. However, until
657termination requirements are fulfilled as provided in s.
658121.021(39), any elected officer whose termination limitations
659are extended by this section shall be ineligible for renewed
660membership in the system and shall receive no pension payments,
661DROP lump sum payments, or any other state payment other than
662the statutorily determined salary, travel, and per diem for the
663elective office.
664     c.  Upon termination, the officer shall receive his or her
665accumulated DROP account, plus interest, and shall accrue and
666commence receiving monthly retirement benefits, which shall be
667paid on a prospective basis only.
668
669However, an officer electing to participate in the Deferred
670Retirement Option Program on or before June 30, 2002, shall not
671be required to terminate and shall remain subject to the
672provisions of this subparagraph as adopted in section 1 of
673chapter 2001-235, Laws of Florida.
674     (2)  Upon attaining his or her normal retirement date and
675payment of the amount specified in paragraphs (1)(b) and (c)
676(1)(a) and (b), and upon application to the administrator of the
677intent to retire, the member shall receive a monthly benefit
678under this section, in addition to any benefits already being
679received, which shall commence on the last day of the month of
680retirement and be payable on the last day of the month
681thereafter during his or her lifetime. The amount of such
682monthly benefit shall be the total percentage of retirement
683credit purchased under this section multiplied by the member's
684average monthly compensation as an elected officer, adjusted
685according to the option selected at retirement under s.
686121.091(6).
687     Section 6.  Paragraph (f) of subsection (1) and paragraphs
688(c) and (e) of subsection (6) of section 121.055, Florida
689Statutes, are amended to read:
690     121.055  Senior Management Service Class.--There is hereby
691established a separate class of membership within the Florida
692Retirement System to be known as the "Senior Management Service
693Class," which shall become effective February 1, 1987.
694     (1)
695     (f)  Effective July 1, 1997:
696     1.  Except as provided in subparagraph 3., any elected
697state officer eligible for membership in the Elected Officers'
698Class under s. 121.052(2)(a), (b), or (c) who elects membership
699in the Senior Management Service Class under s. 121.052(3)(c)
700may, within 6 months after assuming office or within 6 months
701after this act becomes a law for serving elected state officers,
702elect to participate in the Senior Management Service Optional
703Annuity Program, as provided in subsection (6), in lieu of
704membership in the Senior Management Service Class.
705     2.  Except as provided in subparagraph 3., any elected
706county officer of a local agency employer eligible for
707membership in the Elected Officers' Class under s. 121.052(2)(d)
708who elects membership in the Senior Management Service Class
709under s. 121.052(3)(c) may, within 6 months after assuming
710office, or within 6 months after this act becomes a law for
711serving elected county officers of a local agency employer,
712elect to withdraw from the Florida Retirement System participate
713in a lifetime monthly annuity program, as provided in
714subparagraph (b)2., in lieu of membership in the Senior
715Management Service Class.
716     3.  Any retiree of a state-administered retirement system
717who is initially reemployed on or after January 1, 2010, as an
718elected official eligible for Elected Officers' Class membership
719shall not be eligible for renewed membership in the Senior
720Management Service Optional Annuity Program as provided in
721subsection (6) or to withdraw from the Florida Retirement System
722as a renewed member as provided in subparagraph (b)2., as
723applicable, in lieu of Senior Management Service Class
724membership.
725     (6)
726     (c)  Participation.--
727     1.  Any eligible employee who is employed on or before
728February 1, 1987, may elect to participate in the optional
729annuity program in lieu of participation in the Senior
730Management Service Class. Such election shall be made in writing
731and filed with the department and the personnel officer of the
732employer on or before May 1, 1987. Any eligible employee who is
733employed on or before February 1, 1987, and who fails to make an
734election to participate in the optional annuity program by May
7351, 1987, shall be deemed to have elected membership in the
736Senior Management Service Class.
737     2.  Except as provided in subparagraph 6., any employee who
738becomes eligible to participate in the optional annuity program
739by reason of initial employment commencing after February 1,
7401987, may, within 90 days after the date of commencement of
741employment, elect to participate in the optional annuity
742program. Such election shall be made in writing and filed with
743the personnel officer of the employer. Any eligible employee who
744does not within 90 days after commencement of such employment
745elect to participate in the optional annuity program shall be
746deemed to have elected membership in the Senior Management
747Service Class.
748     3.  A person who is appointed to a position in the Senior
749Management Service Class and who is a member of an existing
750retirement system or the Special Risk or Special Risk
751Administrative Support Classes of the Florida Retirement System
752may elect to remain in such system or class in lieu of
753participation in the Senior Management Service Class or optional
754annuity program. Such election shall be made in writing and
755filed with the department and the personnel officer of the
756employer within 90 days of such appointment. Any eligible
757employee who fails to make an election to participate in the
758existing system, the Special Risk Class of the Florida
759Retirement System, the Special Risk Administrative Support Class
760of the Florida Retirement System, or the optional annuity
761program shall be deemed to have elected membership in the Senior
762Management Service Class.
763     4.  Except as provided in subparagraph 5., an employee's
764election to participate in the optional annuity program is
765irrevocable as long as such employee continues to be employed in
766an eligible position and continues to meet the eligibility
767requirements set forth in this paragraph.
768     5.  Effective from July 1, 2002, through September 30,
7692002, any active employee in a regularly established position
770who has elected to participate in the Senior Management Service
771Optional Annuity Program has one opportunity to choose to move
772from the Senior Management Service Optional Annuity Program to
773the Florida Retirement System defined benefit program.
774     a.  The election must be made in writing and must be filed
775with the department and the personnel officer of the employer
776before October 1, 2002, or, in the case of an active employee
777who is on a leave of absence on July 1, 2002, within 90 days
778after the conclusion of the leave of absence. This election is
779irrevocable.
780     b.  The employee will receive service credit under the
781defined benefit program of the Florida Retirement System equal
782to his or her years of service under the Senior Management
783Service Optional Annuity Program. The cost for such credit shall
784be an amount representing the present value of that employee's
785accumulated benefit obligation for the affected period of
786service.
787     c.  The employee must transfer the total accumulated
788employer contributions and earnings on deposit in his or her
789Senior Management Service Optional Annuity Program account. If
790the transferred amount is not sufficient to pay the amount due,
791the employee must pay a sum representing the remainder of the
792amount due. In no case may the employee retain any employer
793contributions or earnings thereon from the Senior Management
794Service Optional Annuity Program account.
795     6.  Any retiree of a state-administered retirement system
796who is initially reemployed on or after January 1, 2010, shall
797not be eligible for renewed membership in the Senior Management
798Service Optional Annuity Program.
799     (e)  Benefits.--
800     1.  Benefits shall be payable under the Senior Management
801Service Optional Annuity Program only to participants in the
802program, or their beneficiaries as designated by the participant
803in the contract with a provider company, and such benefits shall
804be paid by the designated company in accordance with the terms
805of the annuity contract or contracts applicable to the
806participant. A participant must be terminated from all
807employment with all Florida Retirement System employers as
808provided in s. 121.021(39) to begin receiving the employer-
809funded benefit. Benefits funded by employer contributions shall
810be payable under the terms of the contract only as a lifetime
811annuity to the participant, his or her beneficiary, or his or
812her estate, in addition to except for:
813     a.  A lump-sum payment to the beneficiary upon the death of
814the participant;
815     b.  A cash-out of a de minimis account upon the request of
816a former participant who has been terminated for a minimum of 6
817months from the employment that entitled him or her to optional
818annuity program participation. A de minimis account is an
819account with a provider company containing employer
820contributions and accumulated earnings of not more than $5,000
821made under the provisions of this chapter. Such cash-out must be
822a complete liquidation of the account balance with that company
823and is subject to the provisions of the Internal Revenue Code;
824     c.  A mandatory distribution of a de minimis account of a
825former participant who has been terminated for a minimum of 6
826months from the employment that entitled him or her to optional
827annuity program participation as authorized by the department;
828or
829     d.c.  A lump-sum direct rollover distribution whereby all
830accrued benefits, plus interest and investment earnings, are
831paid from the participant's account directly to the custodian of
832an eligible retirement plan, as defined in s. 402(c)(8)(B) of
833the Internal Revenue Code, on behalf of the participant.
834
835As used in this subparagraph, a "de minimis account" means an
836account with a provider company containing employer
837contributions and accumulated earnings of not more than $5,000
838made under this chapter.
839     2.  The benefits payable to any person under the Senior
840Management Service Optional Annuity Program, and any
841contribution accumulated under such program, shall not be
842subject to assignment, execution, or attachment or to any legal
843process whatsoever.
844     3.  Except as provided in subparagraph 4., a participant
845who terminates employment and receives optional annuity program
846benefits funded by employer contributions shall be deemed to be
847retired from a state-administered retirement system in the event
848of subsequent employment with any employer that participates in
849the Florida Retirement System.
850     4.  A participant who receives optional annuity program
851benefits funded by employer contributions as a mandatory
852distribution of a de minimis account authorized by the
853department will not be considered a retiree.
854     Section 7.  Paragraph (a) of subsection (6) of section
855121.071, Florida Statutes, is amended to read:
856     121.071  Contributions.--Contributions to the system shall
857be made as follows:
858     (6)(a)  Required employee contributions for all service
859other than current service, including, but not limited to, prior
860service, past service, military service, leave-of-absence
861service, out-of-state service, and certain non-Florida
862Retirement System in-state service, shall be paid by cash,
863personal check, cashier's check, or money order, or a direct
864rollover or transfer from a qualified plan as provided under the
865Internal Revenue Code. The payment must only; shall be
866accompanied by a statement identifying the service for which
867payment is made; and shall be made in a lump sum for the total
868amount due or in annual payments of not less than $100, except
869for the final payment if less than $100, unless another method
870of payment is authorized by law or rule.
871     Section 8.  Paragraphs (a), (b), (e), (f), and (h) of
872subsection (1) of section 121.081, Florida Statutes, are amended
873to read:
874     121.081  Past service; prior service;
875contributions.--Conditions under which past service or prior
876service may be claimed and credited are:
877     (1)(a)  Past service, as defined in s. 121.021(18), may be
878claimed as creditable service by officers or employees of a
879city, metropolitan planning organization, charter school,
880charter technical career center, or special district who that
881become a covered group under this system. The governing body of
882a covered group in compliance with s. 121.051(2)(b) may elect to
883provide benefits with respect to past service earned prior to
884January 1, 1975, in accordance with this chapter, and the cost
885for such past service shall be established by applying the
886following formula: The member contribution for both regular and
887special risk members shall be 4 percent of the gross annual
888salary for each year of past service claimed, plus 4-percent
889employer matching contribution, plus 4-percent interest thereon
890compounded annually, figured on each year of past service, with
891interest compounded from date of annual salary earned until July
8921, 1975, and 6.5-percent interest compounded annually thereafter
893until date of payment. Once the total cost for a member has been
894figured to date, then after July 1, 1975, 6.5-percent compounded
895interest shall be added each June 30 thereafter on any unpaid
896balance until the cost of such past service liability is paid in
897full. The following formula shall be used in calculating past
898service earned prior to January 1, 1975: (Annual gross salary
899multiplied by 8 percent) multiplied by the 4-percent or 6.5-
900percent compound interest table factor, as may be applicable.
901The resulting product equals cost to date for each particular
902year of past service.
903     (b)  Past service earned after January 1, 1975, may be
904claimed by officers or employees of a city, metropolitan
905planning organization, charter school, charter technical career
906center, or special district who become that becomes a covered
907group under this system. The governing body of a covered group
908may elect to provide benefits with respect to past service
909earned after January 1, 1975, in accordance with this chapter,
910and the cost for such past service shall be established by
911applying the following formula: The employer shall contribute an
912amount equal to the contribution rate in effect at the time the
913service was earned, multiplied by the employee's gross salary
914for each year of past service claimed, plus 6.5-percent interest
915thereon, compounded annually, figured on each year of past
916service, with interest compounded from date of annual salary
917earned until date of payment.
918     (e)  Past service, as defined in s. 121.021(18), may be
919claimed as creditable service by a member of the Florida
920Retirement System who formerly was an officer or employee of a
921city, metropolitan planning organization, charter school,
922charter technical career center, or special district,
923notwithstanding the status or form of the retirement system, if
924any, of that city, metropolitan planning organization, charter
925school, charter technical career center, or special district and
926irrespective of whether officers or employees of that city,
927metropolitan planning organization, charter school, charter
928technical career center, or special district now or hereafter
929become a covered group under the Florida Retirement System. Such
930member may claim creditable service and be entitled to the
931benefits accruing to the regular class of members as provided
932for the past service claimed under this paragraph by paying into
933the retirement trust fund an amount equal to the total actuarial
934cost of providing the additional benefit resulting from such
935past-service credit, discounted by the applicable actuarial
936factors to date of retirement.
937     (f)  If When any person, either prior to this act or
938hereafter, becomes entitled to and participates does participate
939in one of the retirement systems under consolidated within or
940created by this chapter through the consolidation or merger of
941governments or the transfer of functions between units of
942government, either at the state or local level or between state
943and local units, or through the assumption of functions or
944activities by a state or local unit from an employing
945governmental entity that which was not an employer under the
946system, and such person becomes a member of the Florida
947Retirement System, such person is shall be entitled to receive
948past-service credit as defined in s. 121.021(18) for the time
949the such person performed services for, and was an employee of,
950such state or local unit or other governmental employing entity
951prior to the transfer, merger, consolidation, or assumption of
952functions and activities. Past-service credit allowed by this
953paragraph is shall also be available to any person who becomes a
954member of an existing system, as defined in s. 121.021(2), prior
955to December 1, 1970, through the transfer, merger,
956consolidation, or assumption of functions and activities set
957forth in this paragraph and who subsequently becomes a member of
958the Florida Retirement System. However, credit for the past
959service may not be granted until contributions are made in the
960manner provided in this subsection. If a person rejected Florida
961Retirement System membership at the time of the transfer,
962merger, or consolidation, or assumption of governmental
963functions and activities, the required contributions shall be at
964total actuarial cost as specified in paragraph (e). Such
965contributions or accrued interest may not be paid from any
966public state funds.
967     (h)  The following provisions apply to the purchase of past
968service:
969     1.  Notwithstanding any of the provisions of this
970subsection, past-service credit may not be purchased under this
971chapter for any service that is used to obtain a pension or
972benefit from a any local retirement system. Eligibility to
973receive or the receipt of contributions to a retirement plan
974made by the employer on behalf of the employee is considered a
975benefit.
976     2.  A member may not receive past service credit under
977paragraphs (a), (b), (e), or (f) for any leaves of absence
978without pay, except that credit for active military service
979leaves of absence may be claimed under paragraphs (a), (b), and
980(f), in accordance with s. 121.111(1).
981     3.  A member may not receive past service credit for co-
982employer service. Co-employer service or a co-employer
983relationship is employment in a single position simultaneously
984covered and reported by both a public employer and a private
985employer.
986     4.3.  If a member does not want desire to receive credit
987for all of his or her past service, the period the member claims
988must be the most recent past service prior to his or her
989participation in the Florida Retirement System.
990     5.4.  The cost of past service purchased by an employing
991agency for its employees may be amortized over the such period
992of time as is provided in the agreement, but not to exceed 15
993years, calculated in accordance with rule 60S-1.007(5)(f),
994Florida Administrative Code.
995     6.5.  The retirement account of each member for whom past
996service is being provided by his or her employer shall be
997credited with all past service the employer agrees to purchase
998as soon as the agreement between the employer and the department
999is executed. Pursuant thereto:
1000     a.  Each such member's account shall also be posted with
1001the total contribution his or her employer agrees to make on in
1002the member's behalf for past service earned prior to October 1,
10031975, excluding those contributions representing the employer's
1004matching share and the compound interest calculation on the
1005total contribution. However, a portion of any contributions paid
1006by an employer for past service credit earned on and after
1007October 1, 1975, may not be posted to the a member's account.
1008     b.  A refund of contributions payable after an employer has
1009made a written agreement to purchase past service for employees
1010of the covered group includes shall include contributions for
1011past service which are posted to the a member's account.
1012However, contributions for past service earned on and after
1013October 1, 1975, are not refundable.
1014     Section 9.  Paragraph (b) of subsection (9) and subsections
1015(13) and (14) of section 121.091, Florida Statutes, are amended
1016to read:
1017     121.091  Benefits payable under the system.--Benefits may
1018not be paid under this section unless the member has terminated
1019employment as provided in s. 121.021(39)(a) or begun
1020participation in the Deferred Retirement Option Program as
1021provided in subsection (13), and a proper application has been
1022filed in the manner prescribed by the department. The department
1023may cancel an application for retirement benefits when the
1024member or beneficiary fails to timely provide the information
1025and documents required by this chapter and the department's
1026rules. The department shall adopt rules establishing procedures
1027for application for retirement benefits and for the cancellation
1028of such application when the required information or documents
1029are not received.
1030     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1031     (b)1.  Any person who is retired under this chapter, except
1032under the disability retirement provisions of subsection (4),
1033may be reemployed by any private or public employer after
1034retirement and receive retirement benefits and compensation from
1035the his or her employer without limitation any limitations,
1036except that the a person may not receive both a salary from
1037reemployment with any agency participating in the Florida
1038Retirement System and retirement benefits under this chapter for
1039a period of 12 calendar months immediately after meeting
1040subsequent to the definition of termination in s. 121.021(39)
1041date of retirement. However, a DROP participant may shall
1042continue employment and receive a salary during the period of
1043participation in DROP the Deferred Retirement Option Program, as
1044provided in subsection (13).
1045     2.  Any person to whom the limitation in subparagraph 1.
1046applies who violates such reemployment limitation and who is
1047reemployed with any agency participating in the Florida
1048Retirement System after he or she has been retired and met the
1049definition of termination in s. 121.021(39) but before
1050completion of the 12-month limitation period must shall give
1051timely notice of this fact in writing to the employer and to the
1052Division of Retirement and shall have his or her retirement
1053benefits suspended while employed during for the balance of the
105412-month limitation period unless the person exceeds the 780-
1055hour limitation in subparagraph 4. or subparagraph 5. Any person
1056employed in violation of this subparagraph paragraph and any
1057employing agency that which knowingly employs or appoints such
1058person without notifying the division of Retirement to suspend
1059retirement benefits are shall be jointly and severally liable
1060for reimbursement to the retirement trust fund of any benefits
1061paid during the reemployment limitation period. To avoid
1062liability, the such employing agency must shall have a written
1063statement from the retiree that he or she is not retired from a
1064state-administered retirement system. Any retirement benefits
1065received by a retired member while reemployed during this
1066reemployment limitation period must shall be repaid to the
1067Florida Retirement System Trust Fund, and retirement benefits
1068shall remain suspended until such repayment is has been made.
1069Benefits suspended beyond the reemployment limitation shall
1070apply toward repayment of benefits received in violation of the
1071reemployment limitation.
1072     3.  A district school board may reemploy a retired member
1073as a substitute or hourly teacher or an, education
1074paraprofessional, as defined in s. 1012.01(2)(e), transportation
1075assistant, bus driver, or food service worker on a
1076noncontractual basis after he or she has been retired and met
1077the definition of termination for 1 calendar month, in
1078accordance with s. 121.021(39). A district school board may
1079reemploy a retired member as instructional personnel, as defined
1080in s. 1012.01(2)(a), on an annual contractual basis after he or
1081she has met the definition of termination been retired for 1
1082calendar month, in accordance with s. 121.021(39). Any other
1083retired member who is reemployed before meeting the definition
1084of termination voids within 1 calendar month after retirement
1085shall void his or her application for retirement benefits. A
1086district school board that reemploys boards reemploying such
1087teachers or, education paraprofessionals is, transportation
1088assistants, bus drivers, or food service workers are subject to
1089the retirement contribution required by subparagraph 9. 7.
1090     4.  A community college board of trustees may reemploy a
1091retired member as an adjunct instructor, that is, an instructor
1092who is noncontractual and part-time, or as a participant in a
1093phased retirement program within the Florida Community College
1094System, after he or she has been retired and met the definition
1095of termination for 1 calendar month, in accordance with s.
1096121.021(39). Any retired member who is reemployed within 12 1
1097calendar months month after retirement voids shall void his or
1098her application for retirement benefits. A board Boards of
1099trustees that reemploys reemploying such instructors is are
1100subject to the retirement contribution required in subparagraph
11019. 7. A retired member may be reemployed as an adjunct
1102instructor for no more than 780 hours during the first 12
1103calendar months after meeting the definition of termination
1104retirement. Any retired member reemployed for more than 780
1105hours during the first 12 months of retirement must shall give
1106timely notice in writing to the employer and to the Division of
1107Retirement of the date he or she will exceed the limitation. The
1108division shall suspend his or her retirement benefits for the
1109remainder of the 12-month limitation period first 12 months of
1110retirement. Any person employed in violation of this
1111subparagraph and any employing agency that which knowingly
1112employs or appoints such person without notifying the division
1113of Retirement to suspend retirement benefits are shall be
1114jointly and severally liable for reimbursement to the retirement
1115trust fund of any benefits paid during the reemployment
1116limitation period. To avoid liability, the such employing agency
1117must shall have a written statement from the retiree that he or
1118she is not retired from a state-administered retirement system.
1119Any retirement benefits received by a retired member while
1120reemployed in excess of 780 hours during the 12-month limitation
1121period must first 12 months of retirement shall be repaid to the
1122Florida Retirement System Trust Fund, and retirement benefits
1123shall remain suspended until repayment is made. Benefits
1124suspended beyond the end of the 12-month limitation period
1125retired member's first 12 months of retirement shall apply
1126toward repayment of benefits received in violation of the 780-
1127hour reemployment limitation.
1128     5.  The State University System may reemploy a retired
1129member as an adjunct faculty member or as a participant in a
1130phased retirement program within the State University System
1131after the retired member has met the definition of termination
1132been retired for 1 calendar month, in accordance with s.
1133121.021(39). Any retired member who is reemployed before meeting
1134the definition of termination voids within 1 calendar month
1135after retirement shall void his or her application for
1136retirement benefits. The State University System is subject to
1137the retired contribution required in subparagraph 9. 7., as
1138appropriate. A retired member may be reemployed as an adjunct
1139faculty member or a participant in a phased retirement program
1140for no more than 780 hours during the first 12 calendar months
1141after meeting the definition of termination of his or her
1142retirement. Any retired member reemployed for more than 780
1143hours during the 12-month limitation period must first 12 months
1144of retirement shall give timely notice in writing to the
1145employer and to the Division of Retirement of the date he or she
1146will exceed the limitation. The division shall suspend his or
1147her retirement benefits for the remainder of the 12-month
1148limitation period first 12 months of retirement. Any person
1149employed in violation of this subparagraph and any employing
1150agency that which knowingly employs or appoints such person
1151without notifying the division of Retirement to suspend
1152retirement benefits are shall be jointly and severally liable
1153for reimbursement to the retirement trust fund of any benefits
1154paid during the reemployment limitation period. To avoid
1155liability, such employing agency must shall have a written
1156statement from the retiree that he or she is not retired from a
1157state-administered retirement system. Any retirement benefits
1158received by a retired member while reemployed in excess of 780
1159hours during the first 12 months of retirement must shall be
1160repaid to the Florida Retirement System Trust Fund, and
1161retirement benefits shall remain suspended until repayment is
1162made. Benefits suspended beyond the end of the retired member's
116312-month limitation period first 12 months of retirement shall
1164apply toward repayment of benefits received in violation of the
1165780-hour reemployment limitation.
1166     6.  The Board of Trustees of the Florida School for the
1167Deaf and the Blind may reemploy a retired member as a substitute
1168teacher, substitute residential instructor, or substitute nurse
1169on a noncontractual basis after he or she has met the definition
1170of termination been retired for 1 calendar month, in accordance
1171with s. 121.021(39). The Board of Trustees of the Florida School
1172for the Deaf and the Blind may reemploy a retired member as
1173instructional personnel, as defined in s. 1012.01(2)(a), on an
1174annual contractual basis after he or she has been retired and
1175met the definition of termination in s. 121.021(39). Any retired
1176member who is reemployed before meeting the definition of
1177termination voids within 1 calendar month after retirement shall
1178void his or her application for retirement benefits. The Board
1179of Trustees of the Florida School for the Deaf and the Blind
1180reemploying such teachers, residential instructors, or nurses is
1181subject to the retirement contribution required by subparagraph
11829. 7. Reemployment of a retired member as a substitute teacher,
1183substitute residential instructor, or substitute nurse is
1184limited to 780 hours during the first 12 months of his or her
1185retirement. Any retired member reemployed for more than 780
1186hours during the first 12 months of retirement shall give timely
1187notice in writing to the employer and to the division of the
1188date he or she will exceed the limitation. The division shall
1189suspend his or her retirement benefits for the remainder of the
1190first 12 months of retirement. Any person employed in violation
1191of this subparagraph and any employing agency which knowingly
1192employs or appoints such person without notifying the Division
1193of Retirement to suspend retirement benefits shall be jointly
1194and severally liable for reimbursement to the retirement trust
1195fund of any benefits paid during the reemployment limitation
1196period. To avoid liability, such employing agency shall have a
1197written statement from the retiree that he or she is not retired
1198from a state-administered retirement system. Any retirement
1199benefits received by a retired member while reemployed in excess
1200of 780 hours during the first 12 months of retirement shall be
1201repaid to the Retirement System Trust Fund, and his or her
1202retirement benefits shall remain suspended until payment is
1203made. Benefits suspended beyond the end of the retired member's
1204first 12 months of retirement shall apply toward repayment of
1205benefits received in violation of the 780-hour reemployment
1206limitation.
1207     7.  A developmental research school may reemploy a retired
1208member as a substitute or hourly teacher or an education
1209paraprofessional, as defined in s. 1012.01(2)(e), on a
1210noncontractual basis after he or she has been retired and met
1211the definition of termination in s. 121.021(39). A developmental
1212research school may reemploy a retired member as instructional
1213personnel, as defined in s. 1012.01(2)(a), on an annual
1214contractual basis after he or she has been retired and met the
1215definition of termination in s. 121.021(39). Any other retired
1216member who is reemployed within 12 calendar months after
1217retirement voids his or her application for retirement benefits.
1218A developmental research school that reemploys retired teachers
1219and education paraprofessionals is subject to the retirement
1220contribution required by subparagraph 9.
1221     8.  A charter school may reemploy a retired member as a
1222substitute or hourly teacher on a noncontractual basis after he
1223or she has been retired and met the definition of termination in
1224s. 121.021(39). A charter school may reemploy a retired member
1225as instructional personnel, as defined in s. 1012.01(2)(a), on
1226an annual contractual basis after he or she has been retired and
1227met the definition of termination in s. 121.021(39). Any other
1228retired member who is reemployed within 12 calendar months after
1229retirement voids his or her application for retirement benefits.
1230A charter school that reemploys such members is subject to the
1231retirement contribution required by subparagraph 9.
1232     9.a.7.  The employment by an employer of a any retiree or
1233DROP participant of a any state-administered retirement system
1234does not affect shall have no effect on the average final
1235compensation or years of creditable service of the retiree or
1236DROP participant.
1237     b.  Prior to July 1, 1991, upon employment of any person,
1238other than an elected officer as provided in s. 121.053, who is
1239has been retired under a any state-administered retirement
1240program, the employer shall pay retirement contributions in an
1241amount equal to the unfunded actuarial liability portion of the
1242employer contribution which would be required for regular
1243members of the Florida Retirement System. Effective July 1,
12441991, contributions shall be made as provided in s. 121.122 for
1245retirees who have with renewed membership or as provided in
1246subsection (13) for with respect to DROP participants.
1247     c.  Any person who is retired under a state-administered
1248retirement program and who is initially reemployed on or after
1249January 1, 2010, may not renew membership in the Florida
1250Retirement System. The employer shall pay retirement
1251contributions in an amount equal to the unfunded actuarial
1252liability portion of the employer contribution that would be
1253required for active members of the Florida Retirement System in
1254addition to the contributions required by s. 121.76.
1255     10.a.8.  Any person who has previously retired and who is
1256holding an elective public office or an appointment to an
1257elective public office eligible for the Elected Officers' Class
1258on or after July 1, 1990, through December 31, 2009, shall be
1259enrolled in the Florida Retirement System as provided in s.
1260121.053(1)(c)(b) or, if holding an elective public office that
1261does not qualify for the Elected Officers' Class on or after
1262July 1, 1991, through December 31, 2009, shall be enrolled in
1263the Florida Retirement System as provided in s. 121.122, and
1264shall continue to receive retirement benefits as well as
1265compensation for the elected officer's service for as long as he
1266or she remains in elective office. However, any retired member
1267who served in an elective office prior to July 1, 1990,
1268suspended his or her retirement benefit, and had his or her
1269Florida Retirement System membership reinstated shall, upon
1270retirement from such office, have his or her retirement benefit
1271recalculated to include the additional service and compensation
1272earned.
1273     b.  Any person who has retired and who is holding an
1274elective public office or an appointment to an elective public
1275office initially eligible for the Elected Officers' Class on or
1276after January 1, 2010, shall not be enrolled in the Florida
1277Retirement System as provided in s. 121.053(1)(c) or, if holding
1278an elective public office that does not qualify for the Elected
1279Officers' Class and is initially eligible on or after January 1,
12802010, shall not be enrolled in the Florida Retirement System as
1281provided in s. 121.122, and shall not continue to receive
1282retirement benefits during the first 12 calendar months after
1283meeting the definition of termination in s. 121.021(39).
1284     11.9.  Any person who is holding an elective public office
1285which is covered by the Florida Retirement System and who is
1286concurrently employed in nonelected covered employment may elect
1287to retire while continuing employment in the elective public
1288office if, provided that he or she terminates shall be required
1289to terminate his or her nonelected covered employment. Any
1290person who exercises this election shall receive his or her
1291retirement benefits in addition to the compensation of the
1292elective office without regard to the time limitations otherwise
1293provided in this subsection. A No person who seeks to exercise
1294the provisions of this subparagraph, as they the same existed
1295prior to May 3, 1984, may not shall be deemed to be retired
1296under those provisions, unless such person is eligible to retire
1297under the provisions of this subparagraph, as amended by chapter
129884-11, Laws of Florida.
1299     12.  The limitations of this paragraph apply to
1300reemployment in any capacity with an employer irrespective of
1301the category of funds from which the person is compensated.
1302     13.  The provisions of this paragraph regarding
1303reemployment after retirement apply to DROP participants
1304effective upon termination from employment and the end of DROP
1305participation.
1306     10.  The limitations of this paragraph apply to
1307reemployment in any capacity with an "employer" as defined in s.
1308121.021(10), irrespective of the category of funds from which
1309the person is compensated.
1310     11.  An employing agency may reemploy a retired member as a
1311firefighter or paramedic after the retired member has been
1312retired for 1 calendar month, in accordance with s. 121.021(39).
1313Any retired member who is reemployed within 1 calendar month
1314after retirement shall void his or her application for
1315retirement benefits. The employing agency reemploying such
1316firefighter or paramedic is subject to the retired contribution
1317required in subparagraph 8. Reemployment of a retired
1318firefighter or paramedic is limited to no more than 780 hours
1319during the first 12 months of his or her retirement. Any retired
1320member reemployed for more than 780 hours during the first 12
1321months of retirement shall give timely notice in writing to the
1322employer and to the division of the date he or she will exceed
1323the limitation. The division shall suspend his or her retirement
1324benefits for the remainder of the first 12 months of retirement.
1325Any person employed in violation of this subparagraph and any
1326employing agency which knowingly employs or appoints such person
1327without notifying the Division of Retirement to suspend
1328retirement benefits shall be jointly and severally liable for
1329reimbursement to the Retirement System Trust Fund of any
1330benefits paid during the reemployment limitation period. To
1331avoid liability, such employing agency shall have a written
1332statement from the retiree that he or she is not retired from a
1333state-administered retirement system. Any retirement benefits
1334received by a retired member while reemployed in excess of 780
1335hours during the first 12 months of retirement shall be repaid
1336to the Retirement System Trust Fund, and retirement benefits
1337shall remain suspended until repayment is made. Benefits
1338suspended beyond the end of the retired member's first 12 months
1339of retirement shall apply toward repayment of benefits received
1340in violation of the 780-hour reemployment limitation.
1341     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1342subject to the provisions of this section, the Deferred
1343Retirement Option Program, hereinafter referred to as the DROP,
1344is a program under which an eligible member of the Florida
1345Retirement System may elect to participate, deferring receipt of
1346retirement benefits while continuing employment with his or her
1347Florida Retirement System employer. The deferred monthly
1348benefits shall accrue in the Florida Retirement System Trust
1349Fund on behalf of the participant, plus interest compounded
1350monthly, for the specified period of the DROP participation, as
1351provided in paragraph (c). Upon termination of employment, the
1352participant shall receive the total DROP benefits and begin to
1353receive the previously determined normal retirement benefits.
1354Participation in the DROP does not guarantee employment for the
1355specified period of DROP. Participation in the DROP by an
1356eligible member beyond the initial 60-month period as authorized
1357in this subsection shall be on an annual contractual basis for
1358all participants.
1359     (a)  Eligibility of member to participate in the DROP.--All
1360active Florida Retirement System members in a regularly
1361established position, and all active members of either the
1362Teachers' Retirement System established in chapter 238 or the
1363State and County Officers' and Employees' Retirement System
1364established in chapter 122, which systems are consolidated
1365within the Florida Retirement System under s. 121.011, are
1366eligible to elect participation in the DROP if provided that:
1367     1.  The member is not a renewed member of the Florida
1368Retirement System under s. 121.122, or a member of the State
1369Community College System Optional Retirement Program under s.
1370121.051, the Senior Management Service Optional Annuity Program
1371under s. 121.055, or the optional retirement program for the
1372State University System under s. 121.35.
1373     2.  Except as provided in subparagraph 6., election to
1374participate is made within 12 months immediately following the
1375date on which the member first reaches normal retirement date,
1376or, for a member who reaches normal retirement date based on
1377service before he or she reaches age 62, or age 55 for Special
1378Risk Class members, election to participate may be deferred to
1379the 12 months immediately following the date the member attains
138057, or age 52 for Special Risk Class members. A member who
1381delays DROP participation during the 12-month period immediately
1382following his or her maximum DROP deferral date, except as
1383provided in subparagraph 6., loses a month of DROP participation
1384for each month delayed. For a member who first reached normal
1385retirement date or the deferred eligibility date described above
1386prior to the effective date of this section, election to
1387participate shall be made within 12 months after the effective
1388date of this section. A member who fails to make an election
1389within the such 12-month limitation period forfeits shall
1390forfeit all rights to participate in the DROP. The member shall
1391advise his or her employer and the division in writing of the
1392date on which the DROP begins shall begin. The Such beginning
1393date may be subsequent to the 12-month election period, but must
1394be within the original 60-month participation or, with respect
1395to members who are instructional personnel employed by the
1396Florida School for the Deaf and the Blind and who have received
1397authorization by the Board of Trustees of the Florida School for
1398the Deaf and the Blind to participate in the DROP beyond 60
1399months, or who are instructional personnel as defined in s.
14001012.01(2)(a)-(d) in grades K-12 and who have received
1401authorization by the district school superintendent to
1402participate in the DROP beyond 60 months, the 96-month
1403limitation period as provided in subparagraph (b)1. When
1404establishing eligibility of the member to participate in the
1405DROP for the 60-month or, with respect to members who are
1406instructional personnel employed by the Florida School for the
1407Deaf and the Blind and who have received authorization by the
1408Board of Trustees of the Florida School for the Deaf and the
1409Blind to participate in the DROP beyond 60 months, or who are
1410instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1411grades K-12 and who have received authorization by the district
1412school superintendent to participate in the DROP beyond 60
1413months, the 96-month maximum participation period, the member
1414may elect to include or exclude any optional service credit
1415purchased by the member from the total service used to establish
1416the normal retirement date. A member who has with dual normal
1417retirement dates is shall be eligible to elect to participate in
1418DROP within 12 months after attaining normal retirement date in
1419either class.
1420     3.  The employer of a member electing to participate in the
1421DROP, or employers if dually employed, shall acknowledge in
1422writing to the division the date the member's participation in
1423the DROP begins and the date the member's employment and DROP
1424participation will terminate.
1425     4.  Simultaneous employment of a participant by additional
1426Florida Retirement System employers subsequent to the
1427commencement of participation in the DROP is shall be
1428permissible if provided such employers acknowledge in writing a
1429DROP termination date no later than the participant's existing
1430termination date or the maximum participation 60-month
1431limitation period as provided in subparagraph (b)1.
1432     5.  A DROP participant may change employers while
1433participating in the DROP, subject to the following:
1434     a.  A change of employment must take place without a break
1435in service so that the member receives salary for each month of
1436continuous DROP participation. If a member receives no salary
1437during a month, DROP participation shall cease unless the
1438employer verifies a continuation of the employment relationship
1439for such participant pursuant to s. 121.021(39)(b).
1440     b.  Such participant and new employer shall notify the
1441division of the identity of the new employer on forms required
1442by the division as to the identity of the new employer.
1443     c.  The new employer shall acknowledge, in writing, the
1444participant's DROP termination date, which may be extended but
1445not beyond the maximum participation original 60-month or, with
1446respect to members who are instructional personnel employed by
1447the Florida School for the Deaf and the Blind and who have
1448received authorization by the Board of Trustees of the Florida
1449School for the Deaf and the Blind to participate in the DROP
1450beyond 60 months, or who are instructional personnel as defined
1451in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1452authorization by the district school superintendent to
1453participate in the DROP beyond 60 months, the 96-month period
1454provided in subparagraph (b)1., shall acknowledge liability for
1455any additional retirement contributions and interest required if
1456the participant fails to timely terminate employment, and is
1457shall be subject to the adjustment required in sub-subparagraph
1458(c)5.d.
1459     6.  Effective July 1, 2001, for instructional personnel as
1460defined in s. 1012.01(2), election to participate in the DROP
1461may shall be made at any time following the date on which the
1462member first reaches normal retirement date. The member shall
1463advise his or her employer and the division in writing of the
1464date on which DROP begins the Deferred Retirement Option Program
1465shall begin. When establishing eligibility of the member to
1466participate in the DROP for the 60-month or, with respect to
1467members who are instructional personnel employed by the Florida
1468School for the Deaf and the Blind and who have received
1469authorization by the Board of Trustees of the Florida School for
1470the Deaf and the Blind to participate in the DROP beyond 60
1471months, or who are instructional personnel as defined in s.
14721012.01(2)(a)-(d) in grades K-12 and who have received
1473authorization by the district school superintendent to
1474participate in the DROP beyond 60 months, the 96-month maximum
1475participation period, as provided in subparagraph (b)1., the
1476member may elect to include or exclude any optional service
1477credit purchased by the member from the total service used to
1478establish the normal retirement date. A member who has with dual
1479normal retirement dates is shall be eligible to elect to
1480participate in either class.
1481     (b)  Participation in the DROP.--
1482     1.a.  Except as provided in sub-subparagraph b., an
1483eligible member may elect to participate in the DROP for a
1484period not to exceed a maximum of 60 calendar months. or, with
1485respect to
1486     b.  Members who are instructional personnel employed by the
1487Florida School for the Deaf and the Blind and authorized who
1488have received authorization by the Board of Trustees of the
1489Florida School for the Deaf and the Blind to participate in the
1490DROP beyond 60 months, or who are instructional personnel as
1491defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1492who have received authorization by the district school
1493superintendent to participate in the DROP beyond 60 calendar
1494months, or who are instructional personnel as defined in s.
14951012.01(2)(a) employed by a developmental research school and
1496authorized by the school's director, or if the school has no
1497director, by the school's principal, may participate in DROP for
1498up to 36 calendar months beyond the 60-month period specified in
1499sub-subparagraph a. 96 calendar months immediately following the
1500date on which the member first reaches his or her normal
1501retirement date or the date to which he or she is eligible to
1502defer his or her election to participate as provided in
1503subparagraph (a)2. However, a member who has reached normal
1504retirement date prior to the effective date of the DROP shall be
1505eligible to participate in the DROP for a period of time not to
1506exceed 60 calendar months or, with respect to members who are
1507instructional personnel employed by the Florida School for the
1508Deaf and the Blind and who have received authorization by the
1509Board of Trustees of the Florida School for the Deaf and the
1510Blind to participate in the DROP beyond 60 months, or who are
1511instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1512grades K-12 and who have received authorization by the district
1513school superintendent to participate in the DROP beyond 60
1514calendar months, 96 calendar months immediately following the
1515effective date of the DROP, except a member of the Special Risk
1516Class who has reached normal retirement date prior to the
1517effective date of the DROP and whose total accrued value exceeds
151875 percent of average final compensation as of his or her
1519effective date of retirement shall be eligible to participate in
1520the DROP for no more than 36 calendar months immediately
1521following the effective date of the DROP.
1522     2.  Upon deciding to participate in the DROP, the member
1523shall submit, on forms required by the division:
1524     a.  A written election to participate in the DROP;
1525     b.  Selection of the DROP participation and termination
1526dates that, which satisfy the limitations stated in paragraph
1527(a) and subparagraph 1. The Such termination date must shall be
1528in a binding letter of resignation to with the employer,
1529establishing a deferred termination date. The member may change
1530the termination date within the limitations of subparagraph 1.,
1531but only with the written approval of the his or her employer;
1532     c.  A properly completed DROP application for service
1533retirement as provided in this section; and
1534     d.  Any other information required by the division.
1535     3.  The DROP participant is shall be a retiree under the
1536Florida Retirement System for all purposes, except for paragraph
1537(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1538and 121.122. DROP participation is final and cannot be canceled
1539by the participant after the first payment is credited during
1540the DROP participation period. However, participation in the
1541DROP does not alter the participant's employment status, and the
1542member is such employee shall not be deemed retired from
1543employment until his or her deferred resignation is effective
1544and termination occurs as provided in s. 121.021(39).
1545     4.  Elected officers are shall be eligible to participate
1546in the DROP subject to the following:
1547     a.  An elected officer who reaches normal retirement date
1548during a term of office may defer the election to participate in
1549the DROP until the next succeeding term in that office. An Such
1550elected officer who exercises this option may participate in the
1551DROP for up to 60 calendar months or a period of no longer than
1552the such succeeding term of office, whichever is less.
1553     b.  An elected or a nonelected participant may run for a
1554term of office while participating in DROP and, if elected,
1555extend the DROP termination date accordingly;, except, however,
1556if such additional term of office exceeds the 60-month
1557limitation established in subparagraph 1., and the officer does
1558not resign from office within such 60-month limitation, the
1559retirement and the participant's DROP is shall be null and void
1560as provided in sub-subparagraph (c)5.d.
1561     c.(I)  For DROP participation ending before January 1,
15622010, an elected officer who is dually employed and elects to
1563participate in DROP must meet shall be required to satisfy the
1564definition of termination in s. 121.021(39) within the original
156560-month period or maximum participation, with respect to
1566members who are instructional personnel employed by the Florida
1567School for the Deaf and the Blind and who have received
1568authorization by the Board of Trustees of the Florida School for
1569the Deaf and the Blind to participate in the DROP beyond 60
1570months, or who are instructional personnel as defined in s.
15711012.01(2)(a)-(d) in grades K-12 and who have received
1572authorization by the district school superintendent to
1573participate in the DROP beyond 60 months, the 96-month
1574limitation period as provided in subparagraph 1. for the
1575nonelected position and may continue employment as an elected
1576officer as provided in s. 121.053. The elected officer shall
1577will be enrolled as a renewed member in the Elected Officers'
1578Class or the Regular Class, as provided in ss. 121.053 and
1579121.122, on the first day of the month after termination of
1580employment in the nonelected position and termination of DROP.
1581Distribution of the DROP benefits shall be made as provided in
1582paragraph (c).
1583     (II)  For DROP participation ending on or after January 1,
15842010, an elected officer who is dually employed and elects to
1585participate in DROP must meet the definition of termination in
1586s. 121.021(39) within the original 60-month period or maximum
1587participation period as provided in subparagraph 1.
1588     (c)  Benefits payable under the DROP.--
1589     1.  Effective on with the date of DROP participation, the
1590member's initial normal monthly benefit, including creditable
1591service, optional form of payment, and average final
1592compensation, and the effective date of retirement are shall be
1593fixed. The beneficiary established under the Florida Retirement
1594System shall be the beneficiary eligible to receive any DROP
1595benefits payable if the DROP participant dies prior to the
1596completion of the period of DROP participation. If In the event
1597a joint annuitant predeceases the member, the member may name a
1598beneficiary to receive accumulated DROP benefits payable. The
1599Such retirement benefit, the annual cost of living adjustments
1600provided in s. 121.101, and interest shall accrue monthly in the
1601Florida Retirement System Trust Fund. The Such interest shall
1602accrue at an effective annual rate of 6.5 percent compounded
1603monthly, on the prior month's accumulated ending balance, up to
1604the month of termination or death.
1605     2.  Each employee who elects to participate in the DROP may
1606shall be allowed to elect to receive a lump-sum payment for
1607accrued annual leave earned in accordance with agency policy
1608upon beginning participation in the DROP. The Such accumulated
1609leave payment certified to the division upon commencement of
1610DROP shall be included in the calculation of the member's
1611average final compensation. The employee electing the such lump-
1612sum payment is upon beginning participation in DROP will not be
1613eligible to receive a second lump-sum payment upon termination,
1614except to the extent the employee has earned additional annual
1615leave which, combined with the original payment, does not exceed
1616the maximum lump-sum payment allowed by the employing agency's
1617policy or rules. An Such early lump-sum payment shall be based
1618on the hourly wage of the employee at the time he or she begins
1619participation in the DROP. If the member elects to wait and
1620receive a such lump-sum payment upon termination of DROP and
1621termination of employment with the employer, any accumulated
1622leave payment made at that time may not cannot be included in
1623the member's retirement benefit, which was determined and fixed
1624by law when the employee elected to participate in the DROP.
1625     3.  The effective date of DROP participation and the
1626effective date of retirement of a DROP participant shall be the
1627first day of the month selected by the member to begin
1628participation in the DROP, provided such date is properly
1629established, with the written confirmation of the employer, and
1630the approval of the division, on forms required by the division.
1631     4.  Normal retirement benefits and any interest thereon
1632shall continue to accrue in the DROP until the established
1633termination date of the DROP, or until the participant
1634terminates employment or dies prior to such date. Although
1635individual DROP accounts shall not be established, a separate
1636accounting of each participant's accrued benefits under the DROP
1637shall be calculated and provided to participants.
1638     5.  At the conclusion of the participant's DROP, the
1639division shall distribute the participant's total accumulated
1640DROP benefits, subject to the following provisions:
1641     a.  The division shall receive verification by the
1642participant's employer or employers that the such participant
1643has terminated employment as provided in s. 121.021(39)(b).
1644     b.  The terminated DROP participant or, if deceased, the
1645such participant's named beneficiary, shall elect on forms
1646provided by the division to receive payment of the DROP benefits
1647in accordance with one of the options listed below. If For a
1648participant or beneficiary who fails to elect a method of
1649payment within 60 days after of termination of the DROP, the
1650division shall will pay a lump sum as provided in sub-sub-
1651subparagraph (I).
1652     (I)  Lump sum.--All accrued DROP benefits, plus interest,
1653less withholding taxes remitted to the Internal Revenue Service,
1654shall be paid to the DROP participant or surviving beneficiary.
1655     (II)  Direct rollover.--All accrued DROP benefits, plus
1656interest, shall be paid from the DROP directly to the custodian
1657of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1658the Internal Revenue Code. However, in the case of an eligible
1659rollover distribution to the surviving spouse of a deceased
1660participant, an eligible retirement plan is an individual
1661retirement account or an individual retirement annuity as
1662described in s. 402(c)(9) of the Internal Revenue Code.
1663     (III)  Partial lump sum.--A portion of the accrued DROP
1664benefits shall be paid to the DROP participant or surviving
1665spouse, less withholding taxes remitted to the Internal Revenue
1666Service, and the remaining DROP benefits shall be transferred
1667directly to the custodian of an eligible retirement plan as
1668defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1669However, in the case of an eligible rollover distribution to the
1670surviving spouse of a deceased participant, an eligible
1671retirement plan is an individual retirement account or an
1672individual retirement annuity as described in s. 402(c)(9) of
1673the Internal Revenue Code. The proportions shall be specified by
1674the DROP participant or surviving beneficiary.
1675     c.  The form of payment selected by the DROP participant or
1676surviving beneficiary must comply complies with the minimum
1677distribution requirements of the Internal Revenue Code.
1678     d.  A DROP participant who fails to terminate employment as
1679defined in s. 121.021(39)(b) shall be deemed as not to be
1680retired, and the DROP election is shall be null and void.
1681Florida Retirement System membership shall be reestablished
1682retroactively to the date of the commencement of the DROP, and
1683each employer with whom the participant continues employment
1684must shall be required to pay to the Florida Retirement System
1685Trust Fund the difference between the DROP contributions paid in
1686paragraph (h) (i) and the contributions required for the
1687applicable Florida Retirement System class of membership during
1688the period the member participated in the DROP, plus 6.5 percent
1689interest compounded annually.
1690     6.  The retirement benefits of any DROP participant who
1691meets the definition of termination in s. 121.021(39)(b) but is
1692in violation of the reemployment provisions as provided in
1693subsection (9) shall be suspended during those months in which
1694the member is in violation. Any member employed in violation of
1695this subparagraph and any employing agency that employs or
1696appoints such member without notifying the Division of
1697Retirement to suspend retirement benefits are jointly and
1698severally liable for any benefits paid during the reemployment
1699limitation period. To avoid liability, the employing agency must
1700have a written statement from the retiree that he or she is not
1701retired from a state-administered retirement system. Any
1702retirement benefits received by a retired member while employed
1703in violation of the reemployment limitations during the first 12
1704months after meeting termination in s. 121.021(39) must be
1705repaid to the Florida Retirement System Trust Fund, and his or
1706her retirement benefits shall remain suspended until payment is
1707made. Benefits suspended beyond the end of the retired member's
1708first 12 calendar months after meeting the definition of
1709termination in s. 121.021(39)(b) shall apply toward repayment of
1710benefits received in violation of the reemployment limitation.
1711     7.6.  The accrued benefits of any DROP participant, and any
1712contributions accumulated under the such program, are shall not
1713be subject to assignment, execution, attachment, or to any legal
1714process whatsoever, except for qualified domestic relations
1715orders by a court of competent jurisdiction, income deduction
1716orders as provided in s. 61.1301, and federal income tax levies.
1717     8.7.  DROP participants are shall not be eligible for
1718disability retirement benefits as provided in subsection (4).
1719     (d)  Death benefits under the DROP.--
1720     1.  Upon the death of a DROP participant, the named
1721beneficiary shall be entitled to apply for and receive the
1722accrued benefits in the DROP as provided in sub-subparagraph
1723(c)5.b.
1724     2.  The normal retirement benefit accrued to the DROP
1725during the month of a participant's death shall be the final
1726monthly benefit credited for such DROP participant.
1727     3.  Eligibility to participate in the DROP terminates upon
1728death of the participant. If the participant dies on or after
1729the effective date of enrollment in the DROP, but prior to the
1730first monthly benefit being credited to the DROP, Florida
1731Retirement System benefits shall be paid in accordance with
1732subparagraph (7)(c)1. or subparagraph 2.
1733     4.  A DROP participant's participants' survivors shall not
1734be eligible to receive Florida Retirement System death benefits
1735as provided in paragraph (7)(d).
1736     (e)  Cost-of-living adjustment.--On each July 1, the
1737participant's participants' normal retirement benefit shall be
1738increased as provided in s. 121.101.
1739     (f)  Retiree health insurance subsidy.--DROP participants
1740are not eligible to apply for the retiree health insurance
1741subsidy payments as provided in s. 112.363 until such
1742participants have terminated employment and participation in the
1743DROP.
1744     (g)  Renewed membership.--DROP participants shall not be
1745eligible for renewed membership in the Florida Retirement System
1746under ss. 121.053 and 121.122 until termination of employment is
1747effectuated as provided in s. 121.021(39)(b).
1748     (g)(h)  Employment limitation after DROP
1749participation.--Upon satisfying the definition of termination of
1750employment as provided in s. 121.021(39)(b), DROP participants
1751shall be subject to such reemployment limitations as other
1752retirees. Reemployment restrictions applicable to retirees as
1753provided in subsection (9) shall not apply to DROP participants
1754until their employment and participation in the DROP are
1755terminated.
1756     (h)(i)  Contributions.--
1757     1.  All employers paying the salary of a DROP participant
1758filling a regularly established position shall contribute 8.0
1759percent of such participant's gross compensation for the period
1760of July 1, 2002, through June 30, 2003, and the percentage 11.56
1761percent of such compensation required by s. 121.71 thereafter,
1762which shall constitute the entire employer DROP contribution
1763with respect to such participant. Such contributions, payable to
1764the Florida Retirement System Trust Fund in the same manner as
1765required in s. 121.071, shall be made as appropriate for each
1766pay period and are in addition to contributions required for
1767social security and the Retiree Health Insurance Subsidy Trust
1768Fund. Such employer, social security, and health insurance
1769subsidy contributions are not included in the DROP.
1770     2.  The employer shall, in addition to subparagraph 1.,
1771also withhold one-half of the entire social security
1772contribution required for the participant. Contributions for
1773social security by each participant and each employer, in the
1774amount required for social security coverage as now or hereafter
1775provided by the federal Social Security Act, shall be in
1776addition to contributions specified in subparagraph 1.
1777     3.  All employers paying the salary of a DROP participant
1778filling a regularly established position shall contribute the
1779percent of such participant's gross compensation required in s.
1780121.071(4), which shall constitute the employer's health
1781insurance subsidy contribution with respect to such participant.
1782Such contributions shall be deposited by the administrator in
1783the Retiree Health Insurance Subsidy Trust Fund.
1784     (i)(j)  Forfeiture of retirement benefits.--Nothing in this
1785section shall be construed to remove DROP participants from the
1786scope of s. 8(d), Art. II of the State Constitution, s.
1787112.3173, and paragraph (5)(f). DROP participants who commit a
1788specified felony offense while employed will be subject to
1789forfeiture of all retirement benefits, including DROP benefits,
1790pursuant to those provisions of law.
1791     (j)(k)  Administration of program.--The division shall make
1792such rules as are necessary for the effective and efficient
1793administration of this subsection. The division shall not be
1794required to advise members of the federal tax consequences of an
1795election related to the DROP but may advise members to seek
1796independent advice.
1797     (14)  PAYMENT OF BENEFITS.--This subsection applies to the
1798payment of benefits to a payee (retiree or beneficiary) under
1799the Florida Retirement System:
1800     (a)  Federal income tax shall be withheld in accordance
1801with federal law, unless the payee elects otherwise on Form W-
18024P. The division shall prepare and distribute to each recipient
1803of monthly retirement benefits an appropriate income tax form
1804that reflects the recipient's income and federal income tax
1805withheld for the calendar year just ended.
1806     (b)  Subject to approval by the division in accordance with
1807rule 60S-4.015, Florida Administrative Code, a payee receiving
1808retirement benefits under the Florida Retirement system may also
1809have the following payments deducted from his or her monthly
1810benefit:
1811     1.  Premiums for life and health-related insurance policies
1812from approved companies.
1813     2.  Life insurance premiums for the State Group Life
1814Insurance Plan, if authorized in writing by the payee and by the
1815department of Management Services.
1816     3.  Repayment of overpayments from the Florida Retirement
1817System Trust Fund, the State Employees' Health Insurance Trust
1818Fund, or the State Employees' Life Insurance Trust Fund, upon
1819notification of the payee.
1820     4.  Payments to an alternate payee for alimony or, child
1821support pursuant to an income deduction order under s. 61.1301,
1822or division of marital assets pursuant to a qualified domestic
1823relations order under s. 222.21 or an income deduction order
1824under s. 61.1301.
1825     5.  Payments to the Internal Revenue Service for federal
1826income tax levies, upon notification of the division by the
1827Internal Revenue Service.
1828     (c)  A payee must shall notify the division of any change
1829in his or her address. The division may suspend benefit payments
1830to a payee if correspondence sent to the payee's mailing address
1831is returned due to an incorrect address. Benefit payments shall
1832be resumed upon notification to the division of the payee's new
1833address.
1834     (d)  A payee whose retirement benefits are reduced by the
1835application of maximum benefit limits under s. 415(b) of the
1836Internal Revenue Code, as specified in s. 121.30(5), shall have
1837the portion of his or her calculated benefit in the Florida
1838Retirement System defined benefit plan which exceeds such
1839federal limitation paid through the Florida Retirement System
1840Preservation of Benefits Plan, as provided in s. 121.1001.
1841     (e)  The Division of Retirement may issue retirement
1842benefits payable for division of marital assets pursuant to a
1843qualified domestic relations order directly to the alternate
1844payee, any court order to the contrary notwithstanding, in order
1845to meet Internal Revenue Code requirements.
1846     (f)(e)  A No benefit may not be reduced for the purpose of
1847preserving the member's eligibility for a federal program.
1848     (g)(f)  The division shall adopt rules establishing
1849procedures for determining that the persons to whom benefits are
1850being paid are still living. The division shall suspend the
1851benefits being paid to any payee if when it is unable to contact
1852such payee and to confirm that he or she is still living.
1853     Section 10.  Section 121.1115, Florida Statutes, is amended
1854to read:
1855     121.1115  Purchase of retirement credit for out-of-state or
1856and federal service.--Effective January 1, 1995, a member of the
1857Florida Retirement System may purchase creditable service for
1858periods of public employment in another state and receive
1859creditable service for such periods of employment. Service with
1860the Federal Government, including any active military service,
1861may be claimed. Upon completion of each year of service earned
1862under the Florida Retirement System, a member may purchase up to
18631 year of retirement credit for his or her out-of-state service,
1864subject to the following provisions:
1865     (1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1866out-of-state service:
1867     (a)  The out-of-state service being claimed must have been:
1868     1.  Performed in a position of employment with the state or
1869a political subdivision thereof or with the Federal Government;
1870     2.  Covered by a retirement or pension plan provided by the
1871state or political subdivision, or by the Federal Government, as
1872appropriate; and
1873     3.  Performed prior to a period of membership in the
1874Florida Retirement System.
1875     (b)  The member must have completed a minimum of 6 years of
1876creditable service under the Florida Retirement System,
1877excluding out-of-state service and in-state service claimed and
1878purchased under s. 121.1122.
1879     (c)  Not more than 5 years of creditable service may be
1880claimed for creditable service aggregated under the provisions
1881of this section and s. 121.1122.
1882     (d)  The out-of-state service credit claimed under this
1883section shall be credited only as service in the Regular Class
1884of membership, and any benefit or pension based thereon is shall
1885be subject to the limitations and restrictions of s. 112.65.
1886     (e)  The member is not eligible for and may not receive a
1887pension or benefit from a retirement or pension plan based on or
1888including the out-of-state service. Eligibility for or the
1889receipt of contributions to a retirement plan made by the
1890employer on behalf of the employee is considered a benefit.
1891     (f)(e)  A member shall be eligible To receive service
1892credit for out-of-state service performed after leaving the
1893Florida Retirement System, the member must complete only upon
1894return to membership and completion of at least 1 year of
1895creditable service in the Florida Retirement System following
1896the out-of-state service.
1897     (2)  COST.--For each year claimed, the member must pay into
1898the Florida Retirement System Trust Fund an amount equal to 20
1899percent of the member's annual compensation for the first full
1900work year of creditable service earned under the Florida
1901Retirement System, but not less than $12,000, plus interest at
19026.5 percent compounded annually from the date of first annual
1903salary earned until full payment is made. The employer may pay
1904all or a portion of the cost of this service credit.
1905     Section 11.  Subsection (2) of section 121.1122, Florida
1906Statutes, is amended to read:
1907     121.1122  Purchase of retirement credit for in-state public
1908service and in-state service in accredited nonpublic schools and
1909colleges, including charter schools and charter technical career
1910centers.--Effective January 1, 1998, a member of the Florida
1911Retirement System may purchase creditable service for periods of
1912certain public or nonpublic employment performed in this state,
1913as provided in this section.
1914     (2)  LIMITATIONS AND CONDITIONS.--
1915     (a)  A member is not eligible to receive credit for in-
1916state service under this section until he or she has completed 6
1917years of creditable service under the Florida Retirement System,
1918excluding service purchased under this section and out-of-state
1919service claimed and purchased under s. 121.1115.
1920     (b)  A member may not purchase and receive credit for more
1921than 5 years of creditable service aggregated under the
1922provisions of this section and s. 121.1115.
1923     (c)  Service credit claimed under this section shall be
1924credited only as service in the Regular Class of membership and
1925is shall be subject to the provisions of s. 112.65.
1926     (d)  Service credit may not be purchased under this section
1927if the member is eligible to receive or is receiving a pension
1928or benefit from a retirement or pension plan based on or
1929including the service. Eligibility for or the receipt of
1930contributions to a retirement plan made by the employer on
1931behalf of the employee is considered a benefit.
1932     (e)(d)  A member is shall be eligible to receive service
1933credit for in-state service performed after leaving the Florida
1934Retirement System only after upon returning to membership and
1935completing at least 1 year of creditable service in the Florida
1936Retirement System following the in-state service.
1937     (f)(e)  The service claimed must have been service covered
1938by a retirement or pension plan provided by the employer.
1939     Section 12.  Section 121.122, Florida Statutes, is amended
1940to read:
1941     121.122  Renewed membership in system.--
1942     (1)  Any retiree of a state-administered retirement system
1943who is initially reemployed on or after January 1, 2010, shall
1944not be eligible for renewed membership.
1945     (2)  Except as provided in s. 121.053, effective July 1,
19461991, through December 31, 2009, any retiree of a state-
1947administered retirement system who is initially reemployed
1948employed in a regularly established position with a covered
1949employer shall be enrolled as a compulsory member of the Regular
1950Class of the Florida Retirement System or, effective July 1,
19511997, through December 31, 2009, any retiree of a state-
1952administered retirement system who is initially reemployed
1953employed in a position included in the Senior Management Service
1954Class shall be enrolled as a compulsory member of the Senior
1955Management Service Class of the Florida Retirement System as
1956provided in s. 121.055, and shall be entitled to receive an
1957additional retirement benefit, subject to the following
1958conditions:
1959     (1)(a)  Such member shall resatisfy the age and service
1960requirements as provided in this chapter for initial membership
1961under the system, unless such member elects to participate in
1962the Senior Management Service Optional Annuity Program in lieu
1963of the Senior Management Service Class, as provided in s.
1964121.055(6).
1965     (b)  Such member shall not be entitled to disability
1966benefits as provided in s. 121.091(4).
1967     (c)  Such member must meet the reemployment after
1968retirement limitations as provided in s. 121.091(9), as
1969applicable.
1970     (3)(2)  Upon renewed membership or reemployment of a
1971retiree, the employer of such member shall pay the applicable
1972employer contributions as required by ss. 121.71, 121.74,
1973121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1974     (4)(3)  The retiree of a state-administered retirement
1975system who is initially reemployed before January 1, 2010, Such
1976member shall be entitled to purchase additional retirement
1977credit in the Regular Class or the Senior Management Service
1978Class, as applicable, for any postretirement service performed
1979in a regularly established position as follows:
1980     (a)  For regular class service prior to July 1, 1991, by
1981paying the Regular Class applicable employee and employer
1982contributions for the period being claimed, plus 4 percent
1983interest compounded annually from first year of service claimed
1984until July 1, 1975, and 6.5 percent interest compounded
1985thereafter, until full payment is made to the Florida Retirement
1986System Trust Fund; or
1987     (b)  For Senior Management Service Class prior to June 1,
19881997, as provided in s. 121.055(1)(j).
1989
1990The contribution for postretirement service between July 1,
19911985, and July 1, 1991, for which the reemployed retiree
1992contribution was paid, shall be the difference between such
1993contribution and the total applicable contribution for the
1994period being claimed, plus interest. The employer of such member
1995may pay the applicable employer contribution in lieu of the
1996member. If a member does not wish to claim credit for all of the
1997postretirement service for which he or she is eligible, the
1998service the member claims must be the most recent service.
1999     (5)(4)  No creditable service for which credit was
2000received, or which remained unclaimed, at retirement may be
2001claimed or applied toward service credit earned following
2002renewed membership. However, for retirees initially reemployed
2003before January 1, 2010, service earned as an elected officer
2004with renewed membership in the Elected Officers' Class may be
2005used in conjunction with creditable service earned under this
2006section, provided the applicable vesting requirements and other
2007existing statutory conditions required by this chapter are met.
2008     (6)(5)  Notwithstanding any other limitations provided in
2009this section, a participant of the State University System
2010Optional Retirement Program, the State Community College
2011Optional Retirement Program, or the Senior Management Service
2012Optional Annuity Program who terminated employment and commenced
2013receiving a distribution an annuity under the provisions of the
2014optional program, who initially renews membership before January
20151, 2010, in the Regular Class as required by this section upon
2016reemployment after retirement, and who had previously earned
2017creditable Florida Retirement System service that was not
2018included in any retirement benefit may include such previous
2019service toward vesting and service credit in the second career
2020benefit provided under renewed membership.
2021     (7)(6)  Any renewed member who is not receiving the maximum
2022health insurance subsidy provided in s. 112.363 shall be
2023entitled to earn additional credit toward the maximum health
2024insurance subsidy. Any additional subsidy due because of such
2025additional credit shall be received only at the time of payment
2026of the second career retirement benefit. In no case shall the
2027total health insurance subsidy received by a retiree receiving
2028benefits from initial and renewed membership exceed the maximum
2029allowed in s. 112.363.
2030     Section 13.  Section 121.136, Florida Statutes, is amended
2031to read:
2032     121.136  Annual benefit statement to members.--In Beginning
2033January 1, 1993, and each January of each year thereafter, the
2034department shall provide each active member of the Florida
2035Retirement System with 5 or more years of creditable service an
2036annual statement of benefits that provides. Such statement
2037should provide the member with basic data about the member's
2038retirement account. At a minimum Minimally, it must shall
2039include the member's retirement plan, accrued service credit the
2040amount of funds on deposit in the retirement account, and an
2041estimate of retirement benefits.
2042     Section 14.  Section 121.1905, Florida Statutes, is amended
2043to read:
2044     121.1905  Division of Retirement; creation.--
2045     (1)  There is created the Division of Retirement within the
2046Department of Management Services.
2047     (2)  The mission of the Division of Retirement is to
2048provide quality and cost-effective retirement services as
2049measured by member satisfaction and by comparison with
2050administrative costs of comparable retirement systems.
2051     Section 15.  Paragraph (a) of subsection (2) of section
2052121.23, Florida Statutes, is amended to read:
2053     121.23  Disability retirement and special risk membership
2054applications; Retirement Commission; powers and duties; judicial
2055review.--The provisions of this section apply to all proceedings
2056in which the administrator has made a written final decision on
2057the merits respecting applications for disability retirement,
2058reexamination of retired members receiving disability benefits,
2059applications for special risk membership, and reexamination of
2060special risk members in the Florida Retirement System. The
2061jurisdiction of the State Retirement Commission under this
2062section shall be limited to written final decisions of the
2063administrator on the merits.
2064     (2)  A member shall be entitled to a hearing before the
2065State Retirement Commission pursuant to ss. 120.569 and
2066120.57(1) on the merits of any written adverse decision of the
2067administrator, if he or she files with the commission a written
2068request for such hearing within 21 days after receipt of such
2069written decision from the administrator. For the purpose of such
2070hearings, the commission shall be an "agency head" as defined by
2071s. 120.52.
2072     (a)  The commission may shall have the authority to issue
2073orders as a result of the a hearing that are shall be binding on
2074all parties to the dispute and. The commission may order any
2075action that it deems appropriate. Any disability retirement
2076order of the commission that issued pursuant to this subsection
2077which sustains the application of the member may include an
2078amount, to be determined by the commission, for reasonable
2079attorney's fees and taxable costs, which shall be calculated in
2080accordance with the statewide uniform guidelines for taxation of
2081costs in civil actions. The amount of the attorney's fees fee
2082may not exceed 50 percent of the initial yearly benefit awarded
2083under s. 121.091(4). In cases involving disability retirement,
2084the State Retirement commission shall require the member to
2085present substantial competent medical evidence that meets the
2086requirements of s. 121.091(4)(c)2. and 3., and may require
2087vocational evidence, before awarding disability retirement
2088benefits.
2089     Section 16.  Paragraph (a) of subsection (1) of section
2090121.24, Florida Statutes, is amended to read:
2091     121.24  Conduct of commission business; legal and other
2092assistance; compensation.--
2093     (1)  The commission shall conduct its business within the
2094following guidelines:
2095     (a)  For purposes of hearing appeals under s. 121.23, the
2096commission may meet in panels consisting of no not fewer than
2097three members. For the purpose of meeting in these panels, a
2098quorum shall be not fewer than two members. For all other
2099purposes, A quorum shall consist of three members. The
2100concurring vote of a majority of the members present is shall be
2101required to reach a decision, issue orders, and conduct the
2102business of the commission.
2103     Section 17.  Paragraph (h) of subsection (3) and paragraphs
2104(a) and (e) of subsection (5) of section 121.35, Florida
2105Statutes, are amended, and paragraph (g) is added to subsection
2106(5) of that section, to read:
2107     121.35  Optional retirement program for the State
2108University System.--
2109     (3)  ELECTION OF OPTIONAL PROGRAM.--
2110     (h)  A participant in the optional retirement program may
2111not participate in more than one state-administered retirement
2112system, plan, or class simultaneously. Except as provided in s.
2113121.052(6)(d), a participant who is or becomes dually employed
2114in two or more positions covered by the Florida Retirement
2115System, one of which is eligible for the optional program and
2116one of which is not, may remain a member of the optional program
2117and contributions shall be paid as required only on the salary
2118earned in the position eligible for the optional program during
2119such period of dual employment; or, within 90 days after
2120becoming dually employed, he or she may elect membership in the
2121Regular Class of the Florida Retirement System in lieu of the
2122optional program and contributions shall be paid as required on
2123the total salary received for all employment. At retirement, the
2124average final compensation used to calculate any benefits for
2125which the member becomes eligible under the Florida Retirement
2126System shall be based on all salary reported for both positions
2127during such period of dual employment. When such member ceases
2128to be dually employed, he or she may, within 90 days, elect to
2129remain in the Florida Retirement System class for which he or
2130she is eligible or to again become a participant in the optional
2131retirement program. Failure to elect membership in the optional
2132program within 90 days shall result in compulsory membership in
2133the Florida Retirement System, except that a member filling a
2134faculty position at under a college with a faculty practice plan
2135at the University of Florida or filling a faculty position at
2136the medical center of a state university at the University of
2137South Florida shall again participate in the optional retirement
2138program as required in s. 121.051(1)(a).
2139     (5)  BENEFITS.--
2140     (a)  Benefits shall be payable under the optional
2141retirement program only to vested participants in the program,
2142or their beneficiaries as designated by the participant in the
2143contract with a provider company, and such benefits shall be
2144paid only by the designated company in accordance with s. 403(b)
2145of the Internal Revenue Code and in accordance with the terms of
2146the annuity contract or contracts applicable to the participant.
2147Benefits shall accrue in individual accounts that are
2148participant-directed, portable, and funded by employer
2149contributions and the earnings thereon. The participant must be
2150terminated from all employment with all Florida Retirement
2151System employers, as provided in s. 121.021(39), to begin
2152receiving the employer-funded benefit. Benefits funded by
2153employer contributions shall be payable in accordance with the
2154following terms and conditions:
2155     1.  Benefits shall be payable only to a participant, to his
2156or her beneficiaries, or to his or her estate, as designated by
2157the participant.
2158     2.  Benefits shall be paid by the provider company or
2159companies in accordance with the law, the provisions of the
2160contract, and any applicable department board rule or policy.
2161     3.  In the event of a participant's death, moneys
2162accumulated by, or on behalf of, the participant, less
2163withholding taxes remitted to the Internal Revenue Service, if
2164any, shall be distributed to the participant's designated
2165beneficiary or beneficiaries, or to the participant's estate, as
2166if the participant retired on the date of death, as provided in
2167paragraph (c). No other death benefits shall be available for
2168survivors of participants under the optional retirement program
2169except for such benefits, or coverage for such benefits, as are
2170separately afforded by the employer, at the employer's
2171discretion.
2172     (e)  A participant who chooses to receive his or her
2173benefits upon termination of employment as defined in s.
2174121.021(39) shall have responsibility to notify the provider
2175company of the date on which he or she wishes benefits funded by
2176employer contributions to begin. Benefits may be deferred until
2177such time as the participant chooses to make such application.
2178     (g)  For purposes of this section, "retiree" means a former
2179participant of the optional retirement program who has
2180terminated employment and has taken a distribution as provided
2181in this subsection, except for a mandatory distribution of a de
2182minimis account authorized by the department.
2183     Section 18.  Paragraph (f) of subsection (2) of section
2184121.4501, Florida Statutes, is amended to read:
2185     121.4501  Public Employee Optional Retirement Program.--
2186     (2)  DEFINITIONS.--As used in this part, the term:
2187     (f)  "Eligible employee" means an officer or employee, as
2188defined in s. 121.021(11), who:
2189     1.  Is a member of, or is eligible for membership in, the
2190Florida Retirement System, including any renewed member of the
2191Florida Retirement System initially enrolled before January 1,
21922010; or
2193     2.  Participates in, or is eligible to participate in, the
2194Senior Management Service Optional Annuity Program as
2195established under s. 121.055(6), the State Community College
2196System Optional Retirement Program as established under s.
2197121.051(2)(c), or the State University System Optional
2198Retirement Program established under s. 121.35.
2199
2200The term does not include any member participating in the
2201Deferred Retirement Option Program established under s.
2202121.091(13), a retiree of a state-administered retirement system
2203initially reemployed on or after January 1, 2010, or a mandatory
2204participant of the State University System Optional Retirement
2205Program established under s. 121.35.
2206     Section 19.  Paragraph (b) of subsection (1) of section
2207121.591, Florida Statutes, is amended to read:
2208     121.591  Benefits payable under the Public Employee
2209Optional Retirement Program of the Florida Retirement
2210System.--Benefits may not be paid under this section unless the
2211member has terminated employment as provided in s.
2212121.021(39)(a) or is deceased and a proper application has been
2213filed in the manner prescribed by the state board or the
2214department. The state board or department, as appropriate, may
2215cancel an application for retirement benefits when the member or
2216beneficiary fails to timely provide the information and
2217documents required by this chapter and the rules of the state
2218board and department. In accordance with their respective
2219responsibilities as provided herein, the State Board of
2220Administration and the Department of Management Services shall
2221adopt rules establishing procedures for application for
2222retirement benefits and for the cancellation of such application
2223when the required information or documents are not received. The
2224State Board of Administration and the Department of Management
2225Services, as appropriate, are authorized to cash out a de
2226minimis account of a participant who has been terminated from
2227Florida Retirement System covered employment for a minimum of 6
2228calendar months. A de minimis account is an account containing
2229employer contributions and accumulated earnings of not more than
2230$5,000 made under the provisions of this chapter. Such cash-out
2231must either be a complete lump-sum liquidation of the account
2232balance, subject to the provisions of the Internal Revenue Code,
2233or a lump-sum direct rollover distribution paid directly to the
2234custodian of an eligible retirement plan, as defined by the
2235Internal Revenue Code, on behalf of the participant. If any
2236financial instrument issued for the payment of retirement
2237benefits under this section is not presented for payment within
2238180 days after the last day of the month in which it was
2239originally issued, the third-party administrator or other duly
2240authorized agent of the State Board of Administration shall
2241cancel the instrument and credit the amount of the instrument to
2242the suspense account of the Public Employee Optional Retirement
2243Program Trust Fund authorized under s. 121.4501(6). Any such
2244amounts transferred to the suspense account are payable upon a
2245proper application, not to include earnings thereon, as provided
2246in this section, within 10 years after the last day of the month
2247in which the instrument was originally issued, after which time
2248such amounts and any earnings thereon shall be forfeited. Any
2249such forfeited amounts are assets of the Public Employee
2250Optional Retirement Program Trust Fund and are not subject to
2251the provisions of chapter 717.
2252     (1)  NORMAL BENEFITS.--Under the Public Employee Optional
2253Retirement Program:
2254     (b)  If a participant elects to receive his or her benefits
2255upon termination of employment as defined in s. 121.021(39), the
2256participant must submit a written application or an equivalent
2257form to the third-party administrator indicating his or her
2258preferred distribution date and selecting an authorized method
2259of distribution as provided in paragraph (c). The participant
2260may defer receipt of benefits until he or she chooses to make
2261such application, subject to federal requirements.
2262     Section 20.  Subsection (8) of section 1012.33, Florida
2263Statutes, is amended to read:
2264     1012.33  Contracts with instructional staff, supervisors,
2265and school principals.--
2266     (8)  Notwithstanding any other provision of law, a retired
2267any member who has retired may interrupt retirement and be
2268reemployed in any public school. A Any member so reemployed by
2269the same district from which he or she retired may be employed
2270on a probationary contractual basis as provided in subsection
2271(1); however, no regular retirement employee shall be eligible
2272to renew membership under a retirement system created by chapter
2273121 or chapter 238.
2274     Section 21.  Sections 121.093, 121.094, and 121.45, Florida
2275Statutes, are repealed.
2276     Section 22.  The Legislature finds that a proper and
2277legitimate state purpose is served when employees and retirees
2278of the state and its political subdivisions, as well as the
2279dependents, survivors, and beneficiaries of such employees and
2280retirees, are extended the basic protections afforded by
2281governmental retirement systems that provide fair and adequate
2282benefits and that are managed, administered, and funded in an
2283actuarially sound manner as required by s. 14, Art. X of the
2284State Constitution and part VII of chapter 112, Florida
2285Statutes. Therefore, the Legislature determines and declares
2286that the amendment of s. 121.091, Florida Statutes, by this act
2287fulfills an important state interest.
2288     Section 23.  This act shall take effect July 1, 2009.


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