CS/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; deleting a restriction on the
39reemployment of certain personnel by the Florida School
40for the Deaf and the Blind; authorizing developmental
41research schools and charter schools to reemploy certain
42retired members under specified conditions; revising
43limitations on the payment of retirement benefits for
44certain retired persons who are reemployed by an employer
45participating in a state-administered retirement program;
46prohibiting certain persons holding public office from
47enrolling in the Florida Retirement System; deleting a
48provision authorizing an employing agency to reemploy a
49retired member as a firefighter or paramedic after a
50specified period; providing applicability; revising
51provisions relating to reemployment of retirees of the
52Public Employee Optional Retirement Program; providing
53that certain members who delay DROP participation lose a
54month of DROP participation for each month delayed;
55clarifying that DROP participation cannot be canceled;
56clarifying maximum DROP participation; providing for the
57suspension of DROP benefits to a participant who is
58reemployed; deleting obsolete provisions; revising
59employer contribution requirements; authorizing the
60Division of Retirement to issue benefits pursuant to a
61qualified domestic relations order directly to the
62alternate payee; amending s. 121.1115, F.S.; revising
63provisions relating to receiving retirement credit for
64out-of-state service; providing that a member is not
65eligible for and may not receive a benefit based on such
66service; amending s. 121.1122, F.S.; revising provisions
67relating to receiving retirement credit for in-state
68service; providing that certain members may not be
69eligible to purchase service credit; amending s. 121.122,
70F.S.; providing that certain retirees initially reemployed
71on or after a specified date are ineligible for renewed
72membership in the system; revising conditions under which
73a retiree is entitled to certain additional retirement
74benefits; amending s. 121.136, F.S.; revising provisions
75relating to the annual statement of benefits provided to
76certain active members of the system; amending s.
77121.1905, F.S.; deleting a provision describing the
78mission of the Division of Retirement; amending s. 121.23,
79F.S.; requiring the State Retirement Commission to use
80certain requirements used by the Secretary of Management
81Services before approving a disability retirement benefit;
82amending s. 121.24, F.S.; requiring a quorum of three
83members for all appeal hearings held by the commission;
84amending s. 121.35, F.S.; revising a compulsory membership
85exception for certain members failing to elect membership
86in the optional retirement program; providing a cross-
87reference; defining the term "retiree" for purposes of the
88State University System Optional Retirement Program;
89amending s. 121.4501, F.S.; revising the definition of
90"eligible employee" for purposes of the Public Employee
91Optional Retirement Program; amending s. 121.591, F.S.;
92providing a cross-reference; amending s. 1012.33, F.S.;
93deleting a provision preventing persons who have retired
94from the public school system from renewing membership in
95the Florida Retirement System or Teachers' Retirement
96System upon reemployment by the school system; repealing
97s. 121.093, F.S., relating to instructional personnel
98reemployment after retirement from a developmental
99research school or the Florida School for the Deaf and the
100Blind; repealing s. 121.094, F.S., relating to
101instructional personnel reemployment after retirement from
102a charter school; repealing s. 121.45, F.S., relating to
103interstate compacts relating to pension portability;
104providing a declaration of important state interest;
105providing an effective date.
106
107Be It Enacted by the Legislature of the State of Florida:
108
109     Section 1.  Subsections (10), (11), (18), (29), (39), (52),
110and (53) of section 121.021, Florida Statutes, are amended, and
111subsections (63) and (64) are added to that section, to read:
112     121.021  Definitions.--The following words and phrases as
113used in this chapter have the respective meanings set forth
114unless a different meaning is plainly required by the context:
115     (10)  "Employer" means any agency, branch, department,
116institution, university, institution of higher education, or
117board of the state, or any county agency, branch, department,
118board, district school board, city, metropolitan planning
119organization, or special district of the state, or any city of
120the state which participates in the system for the benefit of
121certain of its employees, or a charter school or charter
122technical career center that participates as provided in s.
123121.051(2)(d). Employers are not agents of the department, the
124state board, or the Division of Retirement, and the department,
125the state board, and the division are not responsible for
126erroneous information provided by representatives of employers.
127     (11)  "Officer or employee" means any person receiving
128salary payments for work performed in a regularly established
129position and, if employed by a city, a metropolitan planning
130organization, or a special district, employed in a covered
131group. The term does not apply to state employees covered by a
132leasing agreement under s. 110.191, other public employees
133covered by a leasing agreement, or a co-employer relationship.
134     (18)  "Past service" of any member, as provided in s.
135121.081(1), means the number of years and complete months and
136any fractional part of a month, recognized and credited by an
137employer and approved by the administrator, during which the
138member was in the active employ of a governmental an employer
139and for which the employee is not entitled to a benefit prior to
140his or her date of participation.
141     (29)  "Normal retirement date" means the first day of any
142month following the date a member attains normal retirement age
143and is vested, which is determined as follows one of the
144following statuses:
145     (a)  If a Regular Class member, a Senior Management Service
146Class member, or an Elected Officers' Class the member:
147     1.  The first day of the month the member completes 6 or
148more years of creditable service and attains age 62; or
149     2.  The first day of the month following the date the
150member completes 30 years of creditable service, regardless of
151age, which may include a maximum of 4 years of military service
152credit as long as such credit is not claimed under any other
153system.
154     (b)  If a Special Risk Class member, the member:
155     1.  The first day of the month the member completes 6 or
156more years of creditable service in the Special Risk Class and
157attains age 55;
158     2.  The first day of the month following the date the
159member completes 25 years of creditable service in the Special
160Risk Class, regardless of age; or
161     3.  The first day of the month following the date the
162member completes 25 years of creditable service and attains age
16352, which service may include a maximum of 4 years of military
164service credit as long as such credit is not claimed under any
165other system and the remaining years are in the Special Risk
166Class.
167     (c)  If a Senior Management Service Class member, the
168member:
169     1.  Completes 6 years of creditable service in the Senior
170Management Service Class and attains age 62; or
171     2.  Completes 30 years of any creditable service,
172regardless of age, which may include a maximum of 4 years of
173military service credit as long as such credit is not claimed
174under any other system.
175     (d)  If an Elected Officers' Class member, the member:
176     1.  Completes 6 years of creditable service in the Elected
177Officers' Class and attains age 62; or
178     2.  Completes 30 years of any creditable service,
179regardless of age, which may include a maximum of 4 years of
180military service credit as long as such credit is not claimed
181under any other system.
182
183"Normal retirement age" is attained on the "normal retirement
184date."
185     (39)(a)  "Termination" occurs, except as provided in
186paragraph (b), when:
187     1.  For retirements effective before January 1, 2010, a
188member ceases all employment relationships with employers under
189this system, as defined in subsection (10), but in the event a
190member should be employed by any such employer within the next
191calendar month, termination shall be deemed not to have
192occurred. A leave of absence shall constitute a continuation of
193the employment relationship, except that a leave of absence
194without pay due to disability may constitute termination for a
195member, if such member makes application for and is approved for
196disability retirement in accordance with s. 121.091(4). The
197department or state board may require other evidence of
198termination as it deems necessary.
199     2.  For retirements effective on or after January 1, 2010,
200a member ceases all employment relationships with employers
201under this system, as defined in subsection (10), but in the
202event a member should be employed by any such employer within
203the next 12 calendar months, termination shall be deemed not to
204have occurred. A leave of absence shall constitute a
205continuation of the employment relationship, except that a leave
206of absence without pay due to disability may constitute
207termination for a member, if such member makes application for
208and is approved for disability retirement in accordance with s.
209121.091(4). The department or state board may require other
210evidence of termination as it deems necessary.
211     (b)  "Termination" for a member electing to participate
212under the Deferred Retirement Option Program (DROP) occurs when
213the Deferred Retirement Option Program participant ceases all
214employment relationships with employers under this system in
215accordance with s. 121.091(13), but:
216     1.  For DROP termination dates occurring before January 1,
2172010, in the event the DROP Deferred Retirement Option Program
218participant should be employed by any such employer within the
219next calendar month, termination will be deemed not to have
220occurred, except as provided in s. 121.091(13)(b)4.c. A leave of
221absence shall constitute a continuation of the employment
222relationship.
223     2.  For DROP termination dates occurring on or after
224January 1, 2010, in the event the DROP participant should be
225employed by any such employer within the next 12 calendar
226months, termination will be deemed not to have occurred, except
227as provided in s. 121.091(13)(b)4.c. A leave of absence shall
228constitute a continuation of the employment relationship.
229     (52)  "Regularly established position" is defined as
230follows:
231     (a)  With respect to employment for In a state employer
232agency, the term means a position that which is authorized and
233established pursuant to law and is compensated from a salaries
234and benefits appropriation pursuant to s. 216.011(1)(mm)(dd), or
235an established position that which is authorized pursuant to s.
236216.262(1)(a) and (b) and is compensated from a salaries account
237as provided in s. 216.011(1)(nn) by rule.
238     (b)  With respect to employment for In a local employer
239agency (district school board, county agency, community college,
240city, metropolitan planning organization, charter school,
241charter technical career center, or special district), the term
242means a regularly established position that which will be in
243existence for a period beyond 6 consecutive months, except as
244provided by rule.
245     (53)  "Temporary position" is defined as follows:
246     (a)  With respect to employment for In a state employer
247agency, the term means a an employment position that which is
248compensated from an other personal services (OPS) account, as
249provided for in s. 216.011(1)(dd).
250     (b)  With respect to employment for In a local employer
251agency, the term means a an employment position that which will
252exist for less than 6 consecutive months, or other employment
253position as determined by rule of the division, regardless of
254whether it will exist for 6 consecutive months or longer.
255     (63)  "State board" means the State Board of
256Administration.
257     (64)  "Trustees" means the Board of Trustees of the State
258Board of Administration.
259     Section 2.  Subsection (6) is added to section 121.031,
260Florida Statutes, to read:
261     121.031  Administration of system; appropriation; oaths;
262actuarial studies; public records.--
263     (6)  Unless prior written approval is obtained from the
264department or state board, any promotional materials or
265advertisements that, directly or indirectly, refer to the
266"Florida Retirement System" or the "FRS" must contain a
267disclaimer that the information is not approved or endorsed by
268the Florida Retirement System.
269     Section 3.  Paragraph (a) of subsection (1) and paragraphs
270(c) and (f) of subsection (2) of section 121.051, Florida
271Statutes, are amended to read:
272     121.051  Participation in the system.--
273     (1)  COMPULSORY PARTICIPATION.--
274     (a)  The provisions of this law are shall be compulsory as
275to all officers and employees, except elected officers who meet
276the requirements of s. 121.052(3), who are employed on or after
277December 1, 1970, by of an employer other than those referred to
278in paragraph (2)(b), and each officer or employee, as a
279condition of employment, shall become a member of the system as
280of his or her date of employment, except that a person who is
281retired from any state retirement system and is reemployed on or
282after December 1, 1970, may not renew his or her membership in
283any state retirement system except as provided in s.
284121.091(4)(h) for a person who recovers from disability, and as
285provided in s. 121.091(9)(b)10.8. for a person who is elected to
286public office, and, effective July 1, 1991, as provided in s.
287121.122 for all other retirees. Officers and employees of the
288University Athletic Association, Inc., a nonprofit association
289connected with the University of Florida, employed on and after
290July 1, 1979, may shall not participate in any state-supported
291retirement system.
292     1.  Any person appointed on or after July 1, 1989, to a
293faculty position in a college at the J. Hillis Miller Health
294Center at the University of Florida or the Medical Center at the
295University of South Florida which has a faculty practice plan
296provided by rule adopted by the Board of Regents may not
297participate in the Florida Retirement System. Effective July 1,
2982008, any person appointed thereafter to a faculty position,
299including clinical faculty, in a college at a state university
300that has a faculty practice plan authorized by the Board of
301Governors may not participate in the Florida Retirement System.
302A faculty member so appointed shall participate in the optional
303retirement program for the State University System
304notwithstanding the provisions of s. 121.35(2)(a).
305     2.  For purposes of this paragraph, the term "faculty
306position" is defined as a position assigned the principal
307responsibility of teaching, research, or public service
308activities or administrative responsibility directly related to
309the academic mission of the college. The term "clinical faculty"
310is defined as a faculty position appointment in conjunction with
311a professional position in a hospital or other clinical
312environment at a college. The term "faculty practice plan"
313includes professional services to patients, institutions, or
314other parties which are rendered by the clinical faculty
315employed by a college that has a faculty practice plan at a
316state university authorized by the Board of Governors.
317     (2)  OPTIONAL PARTICIPATION.--
318     (c)  Employees of public community colleges or charter
319technical career centers sponsored by public community colleges,
320as designated in s. 1000.21(3), who are members of the Regular
321Class of the Florida Retirement System and who comply with the
322criteria set forth in this paragraph and in s. 1012.875 may
323elect, in lieu of participating in the Florida Retirement
324System, to withdraw from the Florida Retirement System
325altogether and participate in an optional retirement program
326provided by the employing agency under s. 1012.875, to be known
327as the State Community College System Optional Retirement
328Program. Pursuant thereto:
329     1.  Through June 30, 2001, the cost to the employer for
330such annuity shall equal the normal cost portion of the employer
331retirement contribution which would be required if the employee
332were a member of the Regular Class defined benefit program, plus
333the portion of the contribution rate required by s. 112.363(8)
334that would otherwise be assigned to the Retiree Health Insurance
335Subsidy Trust Fund. Effective July 1, 2001, each employer shall
336contribute on behalf of each participant in the optional program
337an amount equal to 10.43 percent of the participant's gross
338monthly compensation. The employer shall deduct an amount to
339provide for the administration of the optional retirement
340program. The employer providing the optional program shall
341contribute an additional amount to the Florida Retirement System
342Trust Fund equal to the unfunded actuarial accrued liability
343portion of the Regular Class contribution rate.
344     2.  The decision to participate in such an optional
345retirement program shall be irrevocable for as long as the
346employee holds a position eligible for participation, except as
347provided in subparagraph 3. Any service creditable under the
348Florida Retirement System shall be retained after the member
349withdraws from the Florida Retirement System; however,
350additional service credit in the Florida Retirement System shall
351not be earned while a member of the optional retirement program.
352     3.  An employee who has elected to participate in the
353optional retirement program shall have one opportunity, at the
354employee's discretion, to choose to transfer from the optional
355retirement program to the defined benefit program of the Florida
356Retirement System or to the Public Employee Optional Retirement
357Program, subject to the terms of the applicable optional
358retirement program contracts.
359     a.  If the employee chooses to move to the Public Employee
360Optional Retirement Program, any contributions, interest, and
361earnings creditable to the employee under the State Community
362College System Optional Retirement Program shall be retained by
363the employee in the State Community College System Optional
364Retirement Program, and the applicable provisions of s.
365121.4501(4) shall govern the election.
366     b.  If the employee chooses to move to the defined benefit
367program of the Florida Retirement System, the employee shall
368receive service credit equal to his or her years of service
369under the State Community College System Optional Retirement
370Program.
371     (I)  The cost for such credit shall be an amount
372representing the present value of that employee's accumulated
373benefit obligation for the affected period of service. The cost
374shall be calculated as if the benefit commencement occurs on the
375first date the employee would become eligible for unreduced
376benefits, using the discount rate and other relevant actuarial
377assumptions that were used to value the Florida Retirement
378System defined benefit plan liabilities in the most recent
379actuarial valuation. The calculation shall include any service
380already maintained under the defined benefit plan in addition to
381the years under the State Community College System Optional
382Retirement Program. The present value of any service already
383maintained under the defined benefit plan shall be applied as a
384credit to total cost resulting from the calculation. The
385division shall ensure that the transfer sum is prepared using a
386formula and methodology certified by an enrolled actuary.
387     (II)  The employee must transfer from his or her State
388Community College System Optional Retirement Program account and
389from other employee moneys as necessary, a sum representing the
390present value of that employee's accumulated benefit obligation
391immediately following the time of such movement, determined
392assuming that attained service equals the sum of service in the
393defined benefit program and service in the State Community
394College System Optional Retirement Program.
395     4.  Participation in the optional retirement program shall
396be limited to those employees who satisfy the following
397eligibility criteria:
398     a.  The employee must be otherwise eligible for membership
399or renewed membership in the Regular Class of the Florida
400Retirement System, as provided in s. 121.021(11) and (12) or s.
401121.122.
402     b.  The employee must be employed in a full-time position
403classified in the Accounting Manual for Florida's Public
404Community Colleges as:
405     (I)  Instructional; or
406     (II)  Executive Management, Instructional Management, or
407Institutional Management, if a community college determines that
408recruiting to fill a vacancy in the position is to be conducted
409in the national or regional market, and:
410     (A)  The duties and responsibilities of the position
411include either the formulation, interpretation, or
412implementation of policies; or
413     (B)  The duties and responsibilities of the position
414include the performance of functions that are unique or
415specialized within higher education and that frequently involve
416the support of the mission of the community college.
417     c.  The employee must be employed in a position not
418included in the Senior Management Service Class of the Florida
419Retirement System, as described in s. 121.055.
420     5.  A participant who receives a program distribution
421funded by employer contributions shall be deemed to be retired
422from a state-administered retirement system in the event of
423subsequent employment with any employer that participates in the
424Florida Retirement System. Participants in the program are
425subject to the same reemployment limitations, renewed membership
426provisions, and forfeiture provisions as are applicable to
427regular members of the Florida Retirement System under ss.
428121.091(9), 121.122, and 121.091(5), respectively.
429     6.  Eligible community college employees shall be
430compulsory members of the Florida Retirement System until,
431pursuant to the procedures set forth in s. 1012.875, a written
432election to withdraw from the Florida Retirement System and to
433participate in the State Community College System Optional
434Retirement Program is filed with the program administrator and
435received by the division.
436     a.  Any community college employee whose program
437eligibility results from initial employment shall be enrolled in
438the State Community College System Optional Retirement Program
439retroactive to the first day of eligible employment. The
440employer retirement contributions paid through the month of the
441employee plan change shall be transferred to the community
442college for the employee's optional program account, and,
443effective the first day of the next month, the employer shall
444pay the applicable contributions based upon subparagraph 1.
445     b.  Any community college employee whose program
446eligibility results from a change in status due to the
447subsequent designation of the employee's position as one of
448those specified in subparagraph 4. or due to the employee's
449appointment, promotion, transfer, or reclassification to a
450position specified in subparagraph 4. shall be enrolled in the
451program upon the first day of the first full calendar month that
452such change in status becomes effective. The employer retirement
453contributions paid from the effective date through the month of
454the employee plan change shall be transferred to the community
455college for the employee's optional program account, and,
456effective the first day of the next month, the employer shall
457pay the applicable contributions based upon subparagraph 1.
458     7.  Effective July 1, 2003, through December 31, 2008, any
459participant of the State Community College System Optional
460Retirement Program who has service credit in the defined benefit
461plan of the Florida Retirement System for the period between his
462or her first eligibility to transfer from the defined benefit
463plan to the optional retirement program and the actual date of
464transfer may, during his or her employment, elect to transfer to
465the optional retirement program a sum representing the present
466value of the accumulated benefit obligation under the defined
467benefit retirement program for such period of service credit.
468Upon such transfer, all such service credit previously earned
469under the defined benefit program of the Florida Retirement
470System during this period shall be nullified for purposes of
471entitlement to a future benefit under the defined benefit
472program of the Florida Retirement System.
473     (f)1.  If Whenever an employer that participates in the
474Florida Retirement System undertakes the transfer, merger, or
475consolidation of governmental services or assumes the functions
476and activities of an employing governmental entity that was not
477an employer under the system, the employer must notify the
478department at least 60 days prior to such action and shall
479provide documentation as required by the department. The
480transfer, merger, or consolidation of governmental services or
481assumption of governmental functions and activities must occur
482between public employers. The current or former employer may pay
483the employees' past service cost, unless prohibited under this
484chapter. This subparagraph does not apply to the transfer,
485merger, or consolidation of governmental services or assumption
486of functions and activities of a public entity under a leasing
487agreement having a co-employer relationship. Employers and
488employees of a public governmental employer whose service is
489covered by a leasing agreement under s. 110.191, any other
490leasing agreement, or a co-employer relationship are not
491eligible to participate in the Florida Retirement System.
492     2.  If When the agency to which a member's employing unit
493is transferred, merged, or consolidated does not participate in
494the Florida Retirement System, a member may shall elect in
495writing to remain in the Florida Retirement System or to
496transfer to the local retirement system operated by the such
497agency. If the such agency does not participate in a local
498retirement system, the member shall continue membership in the
499Florida Retirement System. In either case, the membership
500continues shall continue for as long as the member is employed
501by the agency to which his or her unit was transferred, merged,
502or consolidated.
503     Section 4.  Paragraph (f) of subsection (2) and paragraph
504(e) of subsection (3) of section 121.052, Florida Statutes, are
505amended to read:
506     121.052  Membership class of elected officers.--
507     (2)  MEMBERSHIP.--The following holders of elective office,
508hereinafter referred to as "elected officers," whether assuming
509elective office by election, reelection, or appointment, are
510members of the Elected Officers' Class, except as provided in
511subsection (3):
512     (f)1.  Any elected officer of a municipality or special
513district on or after July 1, 1997, through December 31, 2009, as
514provided in paragraph (3)(e).
515     2.  Any elected officer of a municipality or special
516district on or after January 1, 2010, when the governing body of
517a municipality or special district, at the time it joins the
518Florida Retirement System for its elected officers, elects by
519majority vote to designate all its elected positions for
520inclusion in the Elected Officers' Class.
521     (3)  PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
522July 1, 1990, participation in the Elected Officers' Class shall
523be compulsory for elected officers listed in paragraphs (2)(a)-
524(d) and (f) assuming office on or after said date, unless the
525elected officer elects membership in another class or withdraws
526from the Florida Retirement System as provided in paragraphs
527(3)(a)-(d):
528     (e)1.  Effective July 1, 1997, the governing body of a
529municipality or special district may, by majority vote, elect to
530designate all its elected positions for inclusion in the Elected
531Officers' Class. Such election shall be made between July 1,
5321997, and December 31, 1997, and shall be irrevocable. The
533designation of such positions shall be effective the first day
534of the month following receipt by the department of the
535ordinance or resolution passed by the governing body.
536     2.  Effective July 1, 2001, the governing body of a
537municipality or special district may, by majority vote, elect to
538designate all its elected positions for inclusion in the Elected
539Officers' Class. Such election shall be made between July 1,
5402001, and December 31, 2001, and shall be irrevocable. The
541designation of such positions shall be effective the first day
542of the month following receipt by the department of the
543ordinance or resolution passed by the governing body.
544     3.  Effective July 1, 2009, the governing body of a
545municipality or special district may, by majority vote, elect to
546designate all its elected positions for inclusion in the Elected
547Officers' Class. Such election shall be made between July 1,
5482009, and December 31, 2009, and shall be irrevocable. The
549designation of such positions shall be effective the first day
550of the month following receipt by the department of the
551ordinance or resolution passed by the governing body.
552     Section 5.  Subsections (1) and (2) of section 121.053,
553Florida Statutes, are amended to read:
554     121.053  Participation in the Elected Officers' Class for
555retired members.--
556     (1)(a)1.  Any retiree of a state-administered retirement
557system who initially serves in an elective office in a regularly
558established position with a covered employer on or after January
5591, 2010, shall not be enrolled in the Florida Retirement System.
560     2.  An elected officer who is elected or appointed to an
561elective office and is participating in the Deferred Retirement
562Option Program is subject to termination as provided in s.
563121.021(39)(b), and reemployment limitations as provided in s.
564121.091(9), upon completion of his or her DROP participation
565period.
566     (b)  Before January 1, 2010, any member who retired under
567any existing system as defined in s. 121.021(2), and receives a
568benefit thereof, and who serves in an office covered by the
569Elected Officers' Class for a period of at least 6 years, shall
570be entitled to receive an additional retirement benefit for such
571elected officer service prior to July 1, 1990, under the Elected
572Officers' Class of the Florida Retirement System, as follows:
573     1.  Upon completion of 6 or more years of creditable
574service in an office covered by the Elected Officers' Class, s.
575121.052, such member shall notify the administrator of his or
576her intent to purchase elected officer service prior to July 1,
5771990, and shall pay the member contribution applicable for the
578period being claimed, plus 4 percent interest compounded
579annually from the first year of service claimed until July 1,
5801975, and 6.5 percent interest compounded annually thereafter,
581until full payment is made to the Florida Retirement System
582Trust Fund; however, such member may purchase retirement credit
583under the Elected Officers' Class only for such service as an
584elected officer.
585     2.  Upon payment of the amount specified in subparagraph
5861., the employer shall pay into the Florida Retirement System
587Trust Fund the applicable employer contribution for the period
588of elected officer service prior to July 1, 1990, being claimed
589by the member, plus 4 percent interest compounded annually from
590the first year of service claimed until July 1, 1975, and 6.5
591percent interest compounded annually thereafter, until full
592payment is made to the Florida Retirement System Trust Fund.
593     (c)(b)  Any retired member of the Florida Retirement
594System, or any existing system as defined in s. 121.021(2), who,
595on or after July 1, 1990, through December 31, 2009, is serving
596in, or is elected or appointed to, an elective office covered by
597the Elected Officers' Class shall be enrolled in the appropriate
598subclass of the Elected Officers' Class of the Florida
599Retirement System, and applicable contributions shall be paid
600into the Florida Retirement System Trust Fund as provided in s.
601121.052(7). Pursuant thereto:
602     1.  Any such retired member shall be eligible to continue
603to receive retirement benefits as well as compensation for the
604elected officer service for as long as he or she remains in an
605elective office covered by the Elected Officers' Class.
606     2.  If any such member serves in an elective office covered
607by the Elected Officers' Class and becomes vested under that
608class, he or she shall be entitled to receive an additional
609retirement benefit for such elected officer service.
610     3.  Such member shall be entitled to purchase additional
611retirement credit in the Elected Officers' Class for any
612postretirement service performed in an elected position eligible
613for the Elected Officers' Class prior to July 1, 1990, or in the
614Regular Class for any postretirement service performed in any
615other regularly established position prior to July 1, 1991, by
616paying the applicable Elected Officers' Class or Regular Class
617employee and employer contributions for the period being
618claimed, plus 4 percent interest compounded annually from the
619first year of service claimed until July 1, 1975, and 6.5
620percent interest compounded thereafter, until full payment is
621made to the Florida Retirement System Trust Fund. The
622contribution for postretirement Regular Class service between
623July 1, 1985, and July 1, 1991, for which the reemployed retiree
624contribution was paid, shall be the difference between such
625contribution and the total applicable contribution for the
626period being claimed, plus interest. The employer of such member
627may pay the applicable employer contribution in lieu of the
628member. If a member does not wish to claim credit for all of the
629postretirement service for which he or she is eligible, the
630service the member claims must be the most recent service.
631     4.  Creditable service for which credit was received, or
632which remained unclaimed, at retirement may not be claimed or
633applied toward service credit earned following renewed
634membership. However, service earned in accordance with the
635renewed membership provisions in s. 121.122 may be used in
636conjunction with creditable service earned under this paragraph,
637provided applicable vesting requirements and other existing
638statutory conditions required by this chapter are met.
639     5.  An elected officer who is elected or appointed to an
640elective office and is participating in the Deferred Retirement
641Option Program before January 1, 2010, is not subject to
642termination as provided in s. 121.021(39)(b), or reemployment
643limitations as provided in s. 121.091(9), until the end of his
644or her current term of office or, if the officer is
645consecutively elected or reelected to an elective office
646eligible for coverage under the Florida Retirement System, until
647he or she no longer holds such an elective office, as follows:
648     a.  At the end of the 60-month DROP period:
649     (I)  The officer's DROP account shall accrue no additional
650monthly benefits, but shall continue to earn interest as
651provided in s. 121.091(13).
652     (II)  No retirement contributions shall be required of the
653employer of the elected officer and no additional retirement
654credit shall be earned under the Florida Retirement System.
655     b.  Nothing herein shall prevent an elected officer from
656voluntarily terminating his or her elective office at any time
657and electing to receive his or her DROP proceeds. However, until
658termination requirements are fulfilled as provided in s.
659121.021(39), any elected officer whose termination limitations
660are extended by this section shall be ineligible for renewed
661membership in the system and shall receive no pension payments,
662DROP lump sum payments, or any other state payment other than
663the statutorily determined salary, travel, and per diem for the
664elective office.
665     c.  Upon termination, the officer shall receive his or her
666accumulated DROP account, plus interest, and shall accrue and
667commence receiving monthly retirement benefits, which shall be
668paid on a prospective basis only.
669
670However, an officer electing to participate in the Deferred
671Retirement Option Program on or before June 30, 2002, shall not
672be required to terminate and shall remain subject to the
673provisions of this subparagraph as adopted in section 1 of
674chapter 2001-235, Laws of Florida.
675     (2)  Upon attaining his or her normal retirement date and
676payment of the amount specified in paragraphs (1)(b) and (c)
677(1)(a) and (b), and upon application to the administrator of the
678intent to retire, the member shall receive a monthly benefit
679under this section, in addition to any benefits already being
680received, which shall commence on the last day of the month of
681retirement and be payable on the last day of the month
682thereafter during his or her lifetime. The amount of such
683monthly benefit shall be the total percentage of retirement
684credit purchased under this section multiplied by the member's
685average monthly compensation as an elected officer, adjusted
686according to the option selected at retirement under s.
687121.091(6).
688     Section 6.  Paragraph (f) of subsection (1) and paragraphs
689(c) and (e) of subsection (6) of section 121.055, Florida
690Statutes, are amended to read:
691     121.055  Senior Management Service Class.--There is hereby
692established a separate class of membership within the Florida
693Retirement System to be known as the "Senior Management Service
694Class," which shall become effective February 1, 1987.
695     (1)
696     (f)  Effective July 1, 1997:
697     1.  Except as provided in subparagraph 3., any elected
698state officer eligible for membership in the Elected Officers'
699Class under s. 121.052(2)(a), (b), or (c) who elects membership
700in the Senior Management Service Class under s. 121.052(3)(c)
701may, within 6 months after assuming office or within 6 months
702after this act becomes a law for serving elected state officers,
703elect to participate in the Senior Management Service Optional
704Annuity Program, as provided in subsection (6), in lieu of
705membership in the Senior Management Service Class.
706     2.  Except as provided in subparagraph 3., any elected
707county officer of a local agency employer eligible for
708membership in the Elected Officers' Class under s. 121.052(2)(d)
709who elects membership in the Senior Management Service Class
710under s. 121.052(3)(c) may, within 6 months after assuming
711office, or within 6 months after this act becomes a law for
712serving elected county officers of a local agency employer,
713elect to withdraw from the Florida Retirement System participate
714in a lifetime monthly annuity program, as provided in
715subparagraph (b)2., in lieu of membership in the Senior
716Management Service Class.
717     3.  Any retiree of a state-administered retirement system
718who is initially reemployed on or after January 1, 2010, as an
719elected official eligible for Elected Officers' Class membership
720shall not be eligible for renewed membership in the Senior
721Management Service Optional Annuity Program as provided in
722subsection (6) or to withdraw from the Florida Retirement System
723as a renewed member as provided in subparagraph (b)2., as
724applicable, in lieu of Senior Management Service Class
725membership.
726     (6)
727     (c)  Participation.--
728     1.  Any eligible employee who is employed on or before
729February 1, 1987, may elect to participate in the optional
730annuity program in lieu of participation in the Senior
731Management Service Class. Such election shall be made in writing
732and filed with the department and the personnel officer of the
733employer on or before May 1, 1987. Any eligible employee who is
734employed on or before February 1, 1987, and who fails to make an
735election to participate in the optional annuity program by May
7361, 1987, shall be deemed to have elected membership in the
737Senior Management Service Class.
738     2.  Except as provided in subparagraph 6., any employee who
739becomes eligible to participate in the optional annuity program
740by reason of initial employment commencing after February 1,
7411987, may, within 90 days after the date of commencement of
742employment, elect to participate in the optional annuity
743program. Such election shall be made in writing and filed with
744the personnel officer of the employer. Any eligible employee who
745does not within 90 days after commencement of such employment
746elect to participate in the optional annuity program shall be
747deemed to have elected membership in the Senior Management
748Service Class.
749     3.  A person who is appointed to a position in the Senior
750Management Service Class and who is a member of an existing
751retirement system or the Special Risk or Special Risk
752Administrative Support Classes of the Florida Retirement System
753may elect to remain in such system or class in lieu of
754participation in the Senior Management Service Class or optional
755annuity program. Such election shall be made in writing and
756filed with the department and the personnel officer of the
757employer within 90 days of such appointment. Any eligible
758employee who fails to make an election to participate in the
759existing system, the Special Risk Class of the Florida
760Retirement System, the Special Risk Administrative Support Class
761of the Florida Retirement System, or the optional annuity
762program shall be deemed to have elected membership in the Senior
763Management Service Class.
764     4.  Except as provided in subparagraph 5., an employee's
765election to participate in the optional annuity program is
766irrevocable as long as such employee continues to be employed in
767an eligible position and continues to meet the eligibility
768requirements set forth in this paragraph.
769     5.  Effective from July 1, 2002, through September 30,
7702002, any active employee in a regularly established position
771who has elected to participate in the Senior Management Service
772Optional Annuity Program has one opportunity to choose to move
773from the Senior Management Service Optional Annuity Program to
774the Florida Retirement System defined benefit program.
775     a.  The election must be made in writing and must be filed
776with the department and the personnel officer of the employer
777before October 1, 2002, or, in the case of an active employee
778who is on a leave of absence on July 1, 2002, within 90 days
779after the conclusion of the leave of absence. This election is
780irrevocable.
781     b.  The employee will receive service credit under the
782defined benefit program of the Florida Retirement System equal
783to his or her years of service under the Senior Management
784Service Optional Annuity Program. The cost for such credit shall
785be an amount representing the present value of that employee's
786accumulated benefit obligation for the affected period of
787service.
788     c.  The employee must transfer the total accumulated
789employer contributions and earnings on deposit in his or her
790Senior Management Service Optional Annuity Program account. If
791the transferred amount is not sufficient to pay the amount due,
792the employee must pay a sum representing the remainder of the
793amount due. In no case may the employee retain any employer
794contributions or earnings thereon from the Senior Management
795Service Optional Annuity Program account.
796     6.  Any retiree of a state-administered retirement system
797who is initially reemployed on or after January 1, 2010, shall
798not be eligible for renewed membership in the Senior Management
799Service Optional Annuity Program.
800     (e)  Benefits.--
801     1.  Benefits shall be payable under the Senior Management
802Service Optional Annuity Program only to participants in the
803program, or their beneficiaries as designated by the participant
804in the contract with a provider company, and such benefits shall
805be paid by the designated company in accordance with the terms
806of the annuity contract or contracts applicable to the
807participant. A participant must be terminated from all
808employment with all Florida Retirement System employers as
809provided in s. 121.021(39) to begin receiving the employer-
810funded benefit. Benefits funded by employer contributions shall
811be payable under the terms of the contract only as a lifetime
812annuity to the participant, his or her beneficiary, or his or
813her estate, in addition to except for:
814     a.  A lump-sum payment to the beneficiary upon the death of
815the participant;
816     b.  A cash-out of a de minimis account upon the request of
817a former participant who has been terminated for a minimum of 6
818months from the employment that entitled him or her to optional
819annuity program participation. A de minimis account is an
820account with a provider company containing employer
821contributions and accumulated earnings of not more than $5,000
822made under the provisions of this chapter. Such cash-out must be
823a complete liquidation of the account balance with that company
824and is subject to the provisions of the Internal Revenue Code;
825     c.  A mandatory distribution of a de minimis account of a
826former participant who has been terminated for a minimum of 6
827months from the employment that entitled him or her to optional
828annuity program participation as authorized by the department;
829or
830     d.c.  A lump-sum direct rollover distribution whereby all
831accrued benefits, plus interest and investment earnings, are
832paid from the participant's account directly to the custodian of
833an eligible retirement plan, as defined in s. 402(c)(8)(B) of
834the Internal Revenue Code, on behalf of the participant.
835
836As used in this subparagraph, a "de minimis account" means an
837account with a provider company containing employer
838contributions and accumulated earnings of not more than $5,000
839made under this chapter.
840     2.  The benefits payable to any person under the Senior
841Management Service Optional Annuity Program, and any
842contribution accumulated under such program, shall not be
843subject to assignment, execution, or attachment or to any legal
844process whatsoever.
845     3.  Except as provided in subparagraph 4., a participant
846who terminates employment and receives optional annuity program
847benefits funded by employer contributions shall be deemed to be
848retired from a state-administered retirement system in the event
849of subsequent employment with any employer that participates in
850the Florida Retirement System.
851     4.  A participant who receives optional annuity program
852benefits funded by employer contributions as a mandatory
853distribution of a de minimis account authorized by the
854department will not be considered a retiree.
855     Section 7.  Paragraph (a) of subsection (6) of section
856121.071, Florida Statutes, is amended to read:
857     121.071  Contributions.--Contributions to the system shall
858be made as follows:
859     (6)(a)  Required employee contributions for all service
860other than current service, including, but not limited to, prior
861service, past service, military service, leave-of-absence
862service, out-of-state service, and certain non-Florida
863Retirement System in-state service, shall be paid by cash,
864personal check, cashier's check, or money order, or a direct
865rollover or transfer from a qualified plan as provided under the
866Internal Revenue Code. The payment must only; shall be
867accompanied by a statement identifying the service for which
868payment is made; and shall be made in a lump sum for the total
869amount due or in annual payments of not less than $100, except
870for the final payment if less than $100, unless another method
871of payment is authorized by law or rule.
872     Section 8.  Paragraphs (a), (b), (e), (f), and (h) of
873subsection (1) of section 121.081, Florida Statutes, are amended
874to read:
875     121.081  Past service; prior service;
876contributions.--Conditions under which past service or prior
877service may be claimed and credited are:
878     (1)(a)  Past service, as defined in s. 121.021(18), may be
879claimed as creditable service by officers or employees of a
880city, metropolitan planning organization, charter school,
881charter technical career center, or special district who that
882become a covered group under this system. The governing body of
883a covered group in compliance with s. 121.051(2)(b) may elect to
884provide benefits with respect to past service earned prior to
885January 1, 1975, in accordance with this chapter, and the cost
886for such past service shall be established by applying the
887following formula: The member contribution for both regular and
888special risk members shall be 4 percent of the gross annual
889salary for each year of past service claimed, plus 4-percent
890employer matching contribution, plus 4-percent interest thereon
891compounded annually, figured on each year of past service, with
892interest compounded from date of annual salary earned until July
8931, 1975, and 6.5-percent interest compounded annually thereafter
894until date of payment. Once the total cost for a member has been
895figured to date, then after July 1, 1975, 6.5-percent compounded
896interest shall be added each June 30 thereafter on any unpaid
897balance until the cost of such past service liability is paid in
898full. The following formula shall be used in calculating past
899service earned prior to January 1, 1975: (Annual gross salary
900multiplied by 8 percent) multiplied by the 4-percent or 6.5-
901percent compound interest table factor, as may be applicable.
902The resulting product equals cost to date for each particular
903year of past service.
904     (b)  Past service earned after January 1, 1975, may be
905claimed by officers or employees of a city, metropolitan
906planning organization, charter school, charter technical career
907center, or special district who become that becomes a covered
908group under this system. The governing body of a covered group
909may elect to provide benefits with respect to past service
910earned after January 1, 1975, in accordance with this chapter,
911and the cost for such past service shall be established by
912applying the following formula: The employer shall contribute an
913amount equal to the contribution rate in effect at the time the
914service was earned, multiplied by the employee's gross salary
915for each year of past service claimed, plus 6.5-percent interest
916thereon, compounded annually, figured on each year of past
917service, with interest compounded from date of annual salary
918earned until date of payment.
919     (e)  Past service, as defined in s. 121.021(18), may be
920claimed as creditable service by a member of the Florida
921Retirement System who formerly was an officer or employee of a
922city, metropolitan planning organization, charter school,
923charter technical career center, or special district,
924notwithstanding the status or form of the retirement system, if
925any, of that city, metropolitan planning organization, charter
926school, charter technical career center, or special district and
927irrespective of whether officers or employees of that city,
928metropolitan planning organization, charter school, charter
929technical career center, or special district now or hereafter
930become a covered group under the Florida Retirement System. Such
931member may claim creditable service and be entitled to the
932benefits accruing to the regular class of members as provided
933for the past service claimed under this paragraph by paying into
934the retirement trust fund an amount equal to the total actuarial
935cost of providing the additional benefit resulting from such
936past-service credit, discounted by the applicable actuarial
937factors to date of retirement.
938     (f)  If When any person, either prior to this act or
939hereafter, becomes entitled to and participates does participate
940in one of the retirement systems under consolidated within or
941created by this chapter through the consolidation or merger of
942governments or the transfer of functions between units of
943government, either at the state or local level or between state
944and local units, or through the assumption of functions or
945activities by a state or local unit from an employing
946governmental entity that which was not an employer under the
947system, and such person becomes a member of the Florida
948Retirement System, such person is shall be entitled to receive
949past-service credit as defined in s. 121.021(18) for the time
950the such person performed services for, and was an employee of,
951such state or local unit or other governmental employing entity
952prior to the transfer, merger, consolidation, or assumption of
953functions and activities. Past-service credit allowed by this
954paragraph is shall also be available to any person who becomes a
955member of an existing system, as defined in s. 121.021(2), prior
956to December 1, 1970, through the transfer, merger,
957consolidation, or assumption of functions and activities set
958forth in this paragraph and who subsequently becomes a member of
959the Florida Retirement System. However, credit for the past
960service may not be granted until contributions are made in the
961manner provided in this subsection. If a person rejected Florida
962Retirement System membership at the time of the transfer,
963merger, or consolidation, or assumption of governmental
964functions and activities, the required contributions shall be at
965total actuarial cost as specified in paragraph (e). Such
966contributions or accrued interest may not be paid from any
967public state funds.
968     (h)  The following provisions apply to the purchase of past
969service:
970     1.  Notwithstanding any of the provisions of this
971subsection, past-service credit may not be purchased under this
972chapter for any service that is used to obtain a pension or
973benefit from a any local retirement system. Eligibility to
974receive or the receipt of contributions to a retirement plan
975made by the employer on behalf of the employee is considered a
976benefit.
977     2.  A member may not receive past service credit under
978paragraphs (a), (b), (e), or (f) for any leaves of absence
979without pay, except that credit for active military service
980leaves of absence may be claimed under paragraphs (a), (b), and
981(f), in accordance with s. 121.111(1).
982     3.  A member may not receive past service credit for co-
983employer service. Co-employer service or a co-employer
984relationship is employment in a single position simultaneously
985covered and reported by both a public employer and a private
986employer.
987     4.3.  If a member does not want desire to receive credit
988for all of his or her past service, the period the member claims
989must be the most recent past service prior to his or her
990participation in the Florida Retirement System.
991     5.4.  The cost of past service purchased by an employing
992agency for its employees may be amortized over the such period
993of time as is provided in the agreement, but not to exceed 15
994years, calculated in accordance with rule 60S-1.007(5)(f),
995Florida Administrative Code.
996     6.5.  The retirement account of each member for whom past
997service is being provided by his or her employer shall be
998credited with all past service the employer agrees to purchase
999as soon as the agreement between the employer and the department
1000is executed. Pursuant thereto:
1001     a.  Each such member's account shall also be posted with
1002the total contribution his or her employer agrees to make on in
1003the member's behalf for past service earned prior to October 1,
10041975, excluding those contributions representing the employer's
1005matching share and the compound interest calculation on the
1006total contribution. However, a portion of any contributions paid
1007by an employer for past service credit earned on and after
1008October 1, 1975, may not be posted to the a member's account.
1009     b.  A refund of contributions payable after an employer has
1010made a written agreement to purchase past service for employees
1011of the covered group includes shall include contributions for
1012past service which are posted to the a member's account.
1013However, contributions for past service earned on and after
1014October 1, 1975, are not refundable.
1015     Section 9.  Paragraphs (b) and (c) of subsection (9) and
1016subsections (13) and (14) of section 121.091, Florida Statutes,
1017are amended to read:
1018     121.091  Benefits payable under the system.--Benefits may
1019not be paid under this section unless the member has terminated
1020employment as provided in s. 121.021(39)(a) or begun
1021participation in the Deferred Retirement Option Program as
1022provided in subsection (13), and a proper application has been
1023filed in the manner prescribed by the department. The department
1024may cancel an application for retirement benefits when the
1025member or beneficiary fails to timely provide the information
1026and documents required by this chapter and the department's
1027rules. The department shall adopt rules establishing procedures
1028for application for retirement benefits and for the cancellation
1029of such application when the required information or documents
1030are not received.
1031     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
1032     (b)1.  Any person who is retired under this chapter, except
1033under the disability retirement provisions of subsection (4),
1034may be reemployed by any private or public employer after
1035retirement and receive retirement benefits and compensation from
1036the his or her employer without limitation any limitations,
1037except that the a person may not receive both a salary from
1038reemployment with any agency participating in the Florida
1039Retirement System and retirement benefits under this chapter for
1040a period of 12 calendar months immediately after meeting
1041subsequent to the definition of termination in s. 121.021(39)
1042date of retirement. However, a DROP participant may shall
1043continue employment and receive a salary during the period of
1044participation in DROP the Deferred Retirement Option Program, as
1045provided in subsection (13).
1046     2.  Any person to whom the limitation in subparagraph 1.
1047applies who violates such reemployment limitation and who is
1048reemployed with any agency participating in the Florida
1049Retirement System after he or she has been retired and met the
1050definition of termination in s. 121.021(39) but before
1051completion of the 12-month limitation period must shall give
1052timely notice of this fact in writing to the employer and to the
1053Division of Retirement and shall have his or her retirement
1054benefits suspended while employed during for the balance of the
105512-month limitation period unless the person exceeds the 780-
1056hour limitation in subparagraph 4. or subparagraph 5. Any person
1057employed in violation of this subparagraph paragraph and any
1058employing agency that which knowingly employs or appoints such
1059person without notifying the division of Retirement to suspend
1060retirement benefits are shall be jointly and severally liable
1061for reimbursement to the retirement trust fund of any benefits
1062paid during the reemployment limitation period. To avoid
1063liability, the such employing agency must shall have a written
1064statement from the retiree that he or she is not retired from a
1065state-administered retirement system. Any retirement benefits
1066received by a retired member while reemployed during this
1067reemployment limitation period must shall be repaid to the
1068Florida Retirement System Trust Fund, and retirement benefits
1069shall remain suspended until such repayment is has been made.
1070Benefits suspended beyond the reemployment limitation shall
1071apply toward repayment of benefits received in violation of the
1072reemployment limitation.
1073     3.  A district school board may reemploy a retired member
1074as a substitute or hourly teacher, education paraprofessional as
1075defined in s. 1012.01(2)(e), transportation assistant, bus
1076driver, or food service worker on a noncontractual basis after
1077he or she has been retired and met the definition of termination
1078for 1 calendar month, in accordance with s. 121.021(39). A
1079district school board may reemploy a retired member as
1080instructional personnel, as defined in s. 1012.01(2)(a), on an
1081annual contractual basis after he or she has met the definition
1082of termination been retired for 1 calendar month, in accordance
1083with s. 121.021(39). Any other retired member who is reemployed
1084before meeting the definition of termination voids within 1
1085calendar month after retirement shall void his or her
1086application for retirement benefits. A district school board
1087that reemploys boards reemploying such teachers, education
1088paraprofessionals, transportation assistants, bus drivers, or
1089food service workers is are subject to the retirement
1090contribution required by subparagraph 9. 7.
1091     4.  A community college board of trustees may reemploy a
1092retired member as an adjunct instructor, that is, an instructor
1093who is noncontractual and part-time, or as a participant in a
1094phased retirement program within the Florida Community College
1095System, after he or she has been retired and met the definition
1096of termination for 1 calendar month, in accordance with s.
1097121.021(39). Any retired member who is reemployed within 12 1
1098calendar months month after retirement voids shall void his or
1099her application for retirement benefits. A board Boards of
1100trustees that reemploys reemploying such instructors is are
1101subject to the retirement contribution required in subparagraph
11029. 7. A retired member may be reemployed as an adjunct
1103instructor for no more than 780 hours during the first 12
1104calendar months after meeting the definition of termination
1105retirement. Any retired member reemployed for more than 780
1106hours during the first 12 months of retirement must shall give
1107timely notice in writing to the employer and to the Division of
1108Retirement of the date he or she will exceed the limitation. The
1109division shall suspend his or her retirement benefits for the
1110remainder of the 12-month limitation period first 12 months of
1111retirement. Any person employed in violation of this
1112subparagraph and any employing agency that which knowingly
1113employs or appoints such person without notifying the division
1114of Retirement to suspend retirement benefits are shall be
1115jointly and severally liable for reimbursement to the retirement
1116trust fund of any benefits paid during the reemployment
1117limitation period. To avoid liability, the such employing agency
1118must shall have a written statement from the retiree that he or
1119she is not retired from a state-administered retirement system.
1120Any retirement benefits received by a retired member while
1121reemployed in excess of 780 hours during the 12-month limitation
1122period must first 12 months of retirement shall be repaid to the
1123Florida Retirement System Trust Fund, and retirement benefits
1124shall remain suspended until repayment is made. Benefits
1125suspended beyond the end of the 12-month limitation period
1126retired member's first 12 months of retirement shall apply
1127toward repayment of benefits received in violation of the 780-
1128hour reemployment limitation.
1129     5.  The State University System may reemploy a retired
1130member as an adjunct faculty member or as a participant in a
1131phased retirement program within the State University System
1132after the retired member has met the definition of termination
1133been retired for 1 calendar month, in accordance with s.
1134121.021(39). Any retired member who is reemployed before meeting
1135the definition of termination voids within 1 calendar month
1136after retirement shall void his or her application for
1137retirement benefits. The State University System is subject to
1138the retired contribution required in subparagraph 9. 7., as
1139appropriate. A retired member may be reemployed as an adjunct
1140faculty member or a participant in a phased retirement program
1141for no more than 780 hours during the first 12 calendar months
1142after meeting the definition of termination of his or her
1143retirement. Any retired member reemployed for more than 780
1144hours during the 12-month limitation period must first 12 months
1145of retirement shall give timely notice in writing to the
1146employer and to the Division of Retirement of the date he or she
1147will exceed the limitation. The division shall suspend his or
1148her retirement benefits for the remainder of the 12-month
1149limitation period first 12 months of retirement. Any person
1150employed in violation of this subparagraph and any employing
1151agency that which knowingly employs or appoints such person
1152without notifying the division of Retirement to suspend
1153retirement benefits are shall be jointly and severally liable
1154for reimbursement to the retirement trust fund of any benefits
1155paid during the reemployment limitation period. To avoid
1156liability, such employing agency must shall have a written
1157statement from the retiree that he or she is not retired from a
1158state-administered retirement system. Any retirement benefits
1159received by a retired member while reemployed in excess of 780
1160hours during the first 12 months of retirement must shall be
1161repaid to the Florida Retirement System Trust Fund, and
1162retirement benefits shall remain suspended until repayment is
1163made. Benefits suspended beyond the end of the retired member's
116412-month limitation period first 12 months of retirement shall
1165apply toward repayment of benefits received in violation of the
1166780-hour reemployment limitation.
1167     6.  The Board of Trustees of the Florida School for the
1168Deaf and the Blind may reemploy a retired member as a substitute
1169teacher, substitute residential instructor, or substitute nurse
1170on a noncontractual basis after he or she has met the definition
1171of termination been retired for 1 calendar month, in accordance
1172with s. 121.021(39). The Board of Trustees of the Florida School
1173for the Deaf and the Blind may reemploy a retired member as
1174instructional personnel, as defined in s. 1012.01(2)(a), on an
1175annual contractual basis after he or she has been retired and
1176met the definition of termination in s. 121.021(39). Any retired
1177member who is reemployed before meeting the definition of
1178termination voids within 1 calendar month after retirement shall
1179void his or her application for retirement benefits. The Board
1180of Trustees of the Florida School for the Deaf and the Blind
1181reemploying such teachers, residential instructors, or nurses is
1182subject to the retirement contribution required by subparagraph
11839. 7. Reemployment of a retired member as a substitute teacher,
1184substitute residential instructor, or substitute nurse is
1185limited to 780 hours during the first 12 months of his or her
1186retirement. Any retired member reemployed for more than 780
1187hours during the first 12 months of retirement shall give timely
1188notice in writing to the employer and to the division of the
1189date he or she will exceed the limitation. The division shall
1190suspend his or her retirement benefits for the remainder of the
1191first 12 months of retirement. Any person employed in violation
1192of this subparagraph and any employing agency which knowingly
1193employs or appoints such person without notifying the Division
1194of Retirement to suspend retirement benefits shall be jointly
1195and severally liable for reimbursement to the retirement trust
1196fund of any benefits paid during the reemployment limitation
1197period. To avoid liability, such employing agency shall have a
1198written statement from the retiree that he or she is not retired
1199from a state-administered retirement system. Any retirement
1200benefits received by a retired member while reemployed in excess
1201of 780 hours during the first 12 months of retirement shall be
1202repaid to the Retirement System Trust Fund, and his or her
1203retirement benefits shall remain suspended until payment is
1204made. Benefits suspended beyond the end of the retired member's
1205first 12 months of retirement shall apply toward repayment of
1206benefits received in violation of the 780-hour reemployment
1207limitation.
1208     7.  A developmental research school may reemploy a retired
1209member as a substitute or hourly teacher or an education
1210paraprofessional, as defined in s. 1012.01(2)(e), on a
1211noncontractual basis after he or she has been retired and met
1212the definition of termination in s. 121.021(39). A developmental
1213research school may reemploy a retired member as instructional
1214personnel, as defined in s. 1012.01(2)(a), on an annual
1215contractual basis after he or she has been retired and met the
1216definition of termination in s. 121.021(39). Any other retired
1217member who is reemployed within 12 calendar months after
1218retirement voids his or her application for retirement benefits.
1219A developmental research school that reemploys retired teachers
1220and education paraprofessionals is subject to the retirement
1221contribution required by subparagraph 9.
1222     8.  A charter school may reemploy a retired member as a
1223substitute or hourly teacher on a noncontractual basis after he
1224or she has been retired and met the definition of termination in
1225s. 121.021(39). A charter school may reemploy a retired member
1226as instructional personnel, as defined in s. 1012.01(2)(a), on
1227an annual contractual basis after he or she has been retired and
1228met the definition of termination in s. 121.021(39). Any other
1229retired member who is reemployed within 12 calendar months after
1230retirement voids his or her application for retirement benefits.
1231A charter school that reemploys such members is subject to the
1232retirement contribution required by subparagraph 9.
1233     9.a.7.  The employment by an employer of a any retiree or
1234DROP participant of a any state-administered retirement system
1235does not affect shall have no effect on the average final
1236compensation or years of creditable service of the retiree or
1237DROP participant.
1238     b.  Prior to July 1, 1991, upon employment of any person,
1239other than an elected officer as provided in s. 121.053, who is
1240has been retired under a any state-administered retirement
1241program, the employer shall pay retirement contributions in an
1242amount equal to the unfunded actuarial liability portion of the
1243employer contribution which would be required for regular
1244members of the Florida Retirement System. Effective July 1,
12451991, contributions shall be made as provided in s. 121.122 for
1246retirees who have with renewed membership or as provided in
1247subsection (13) for with respect to DROP participants.
1248     c.  Any person who is retired under a state-administered
1249retirement program and who is initially reemployed on or after
1250January 1, 2010, may not renew membership in the Florida
1251Retirement System. The employer shall pay retirement
1252contributions in an amount equal to the unfunded actuarial
1253liability portion of the employer contribution that would be
1254required for active members of the Florida Retirement System in
1255addition to the contributions required by s. 121.76.
1256     10.a.8.  Any person who has previously retired and who is
1257holding an elective public office or an appointment to an
1258elective public office eligible for the Elected Officers' Class
1259on or after July 1, 1990, through December 31, 2009, shall be
1260enrolled in the Florida Retirement System as provided in s.
1261121.053(1)(c)(b) or, if holding an elective public office that
1262does not qualify for the Elected Officers' Class on or after
1263July 1, 1991, through December 31, 2009, shall be enrolled in
1264the Florida Retirement System as provided in s. 121.122, and
1265shall continue to receive retirement benefits as well as
1266compensation for the elected officer's service for as long as he
1267or she remains in elective office. However, any retired member
1268who served in an elective office prior to July 1, 1990,
1269suspended his or her retirement benefit, and had his or her
1270Florida Retirement System membership reinstated shall, upon
1271retirement from such office, have his or her retirement benefit
1272recalculated to include the additional service and compensation
1273earned.
1274     b.  Any person who has retired and who is holding an
1275elective public office or an appointment to an elective public
1276office initially eligible for the Elected Officers' Class on or
1277after January 1, 2010, shall not be enrolled in the Florida
1278Retirement System as provided in s. 121.053(1)(c) or, if holding
1279an elective public office that does not qualify for the Elected
1280Officers' Class and is initially eligible on or after January 1,
12812010, shall not be enrolled in the Florida Retirement System as
1282provided in s. 121.122, and shall not continue to receive
1283retirement benefits during the first 12 calendar months after
1284meeting the definition of termination in s. 121.021(39).
1285     11.9.  Any person who is holding an elective public office
1286which is covered by the Florida Retirement System and who is
1287concurrently employed in nonelected covered employment may elect
1288to retire while continuing employment in the elective public
1289office if, provided that he or she terminates shall be required
1290to terminate his or her nonelected covered employment. Any
1291person who exercises this election shall receive his or her
1292retirement benefits in addition to the compensation of the
1293elective office without regard to the time limitations otherwise
1294provided in this subsection. A No person who seeks to exercise
1295the provisions of this subparagraph, as they the same existed
1296prior to May 3, 1984, may not shall be deemed to be retired
1297under those provisions, unless such person is eligible to retire
1298under the provisions of this subparagraph, as amended by chapter
129984-11, Laws of Florida.
1300     12.  The limitations of this paragraph apply to
1301reemployment in any capacity with an employer irrespective of
1302the category of funds from which the person is compensated.
1303     13.  The provisions of this paragraph regarding
1304reemployment after retirement apply to DROP participants
1305effective upon termination from employment and the end of DROP
1306participation.
1307     10.  The limitations of this paragraph apply to
1308reemployment in any capacity with an "employer" as defined in s.
1309121.021(10), irrespective of the category of funds from which
1310the person is compensated.
1311     11.  An employing agency may reemploy a retired member as a
1312firefighter or paramedic after the retired member has been
1313retired for 1 calendar month, in accordance with s. 121.021(39).
1314Any retired member who is reemployed within 1 calendar month
1315after retirement shall void his or her application for
1316retirement benefits. The employing agency reemploying such
1317firefighter or paramedic is subject to the retired contribution
1318required in subparagraph 8. Reemployment of a retired
1319firefighter or paramedic is limited to no more than 780 hours
1320during the first 12 months of his or her retirement. Any retired
1321member reemployed for more than 780 hours during the first 12
1322months of retirement shall give timely notice in writing to the
1323employer and to the division of the date he or she will exceed
1324the limitation. The division shall suspend his or her retirement
1325benefits for the remainder of the first 12 months of retirement.
1326Any person employed in violation of this subparagraph and any
1327employing agency which knowingly employs or appoints such person
1328without notifying the Division of Retirement to suspend
1329retirement benefits shall be jointly and severally liable for
1330reimbursement to the Retirement System Trust Fund of any
1331benefits paid during the reemployment limitation period. To
1332avoid liability, such employing agency shall have a written
1333statement from the retiree that he or she is not retired from a
1334state-administered retirement system. Any retirement benefits
1335received by a retired member while reemployed in excess of 780
1336hours during the first 12 months of retirement shall be repaid
1337to the Retirement System Trust Fund, and retirement benefits
1338shall remain suspended until repayment is made. Benefits
1339suspended beyond the end of the retired member's first 12 months
1340of retirement shall apply toward repayment of benefits received
1341in violation of the 780-hour reemployment limitation.
1342     (c)  The provisions of this subsection apply to retirees,
1343as defined in s. 121.4501(2)(j), of the Public Employee Optional
1344Retirement Program created in part II, subject to the following
1345conditions:
1346     1.  Such retirees may not be reemployed with an employer
1347participating in the Florida Retirement System as provided in
1348paragraph (b) until such person has been retired for 12 3
1349calendar months, unless the participant has reached the normal
1350retirement requirements of the defined benefit plan as provided
1351in s. 121.021(29).
1352     2.  Such retiree employed in violation of this subsection
1353and any employing agency that knowingly employs or appoints such
1354person shall be jointly and severally liable for reimbursement
1355of any benefits paid to the retirement trust fund from which the
1356benefits were paid, including the Retirement System Trust Fund
1357and the Public Employee Optional Retirement Program Trust Fund,
1358as appropriate. To avoid liability, such employing agency must
1359have a written statement from the retiree that he or she is not
1360retired from a state-administered retirement system.
1361     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
1362subject to the provisions of this section, the Deferred
1363Retirement Option Program, hereinafter referred to as the DROP,
1364is a program under which an eligible member of the Florida
1365Retirement System may elect to participate, deferring receipt of
1366retirement benefits while continuing employment with his or her
1367Florida Retirement System employer. The deferred monthly
1368benefits shall accrue in the Florida Retirement System Trust
1369Fund on behalf of the participant, plus interest compounded
1370monthly, for the specified period of the DROP participation, as
1371provided in paragraph (c). Upon termination of employment, the
1372participant shall receive the total DROP benefits and begin to
1373receive the previously determined normal retirement benefits.
1374Participation in the DROP does not guarantee employment for the
1375specified period of DROP. Participation in the DROP by an
1376eligible member beyond the initial 60-month period as authorized
1377in this subsection shall be on an annual contractual basis for
1378all participants.
1379     (a)  Eligibility of member to participate in the DROP.--All
1380active Florida Retirement System members in a regularly
1381established position, and all active members of either the
1382Teachers' Retirement System established in chapter 238 or the
1383State and County Officers' and Employees' Retirement System
1384established in chapter 122, which systems are consolidated
1385within the Florida Retirement System under s. 121.011, are
1386eligible to elect participation in the DROP if provided that:
1387     1.  The member is not a renewed member of the Florida
1388Retirement System under s. 121.122, or a member of the State
1389Community College System Optional Retirement Program under s.
1390121.051, the Senior Management Service Optional Annuity Program
1391under s. 121.055, or the optional retirement program for the
1392State University System under s. 121.35.
1393     2.  Except as provided in subparagraph 6., election to
1394participate is made within 12 months immediately following the
1395date on which the member first reaches normal retirement date,
1396or, for a member who reaches normal retirement date based on
1397service before he or she reaches age 62, or age 55 for Special
1398Risk Class members, election to participate may be deferred to
1399the 12 months immediately following the date the member attains
140057, or age 52 for Special Risk Class members. A member who
1401delays DROP participation during the 12-month period immediately
1402following his or her maximum DROP deferral date, except as
1403provided in subparagraph 6., loses a month of DROP participation
1404for each month delayed. For a member who first reached normal
1405retirement date or the deferred eligibility date described above
1406prior to the effective date of this section, election to
1407participate shall be made within 12 months after the effective
1408date of this section. A member who fails to make an election
1409within the such 12-month limitation period forfeits shall
1410forfeit all rights to participate in the DROP. The member shall
1411advise his or her employer and the division in writing of the
1412date on which the DROP begins shall begin. The Such beginning
1413date may be subsequent to the 12-month election period, but must
1414be within the original 60-month participation or, with respect
1415to members who are instructional personnel employed by the
1416Florida School for the Deaf and the Blind and who have received
1417authorization by the Board of Trustees of the Florida School for
1418the Deaf and the Blind to participate in the DROP beyond 60
1419months, or who are instructional personnel as defined in s.
14201012.01(2)(a)-(d) in grades K-12 and who have received
1421authorization by the district school superintendent to
1422participate in the DROP beyond 60 months, the 96-month
1423limitation period as provided in subparagraph (b)1. When
1424establishing eligibility of the member to participate in the
1425DROP for the 60-month or, with respect to members who are
1426instructional personnel employed by the Florida School for the
1427Deaf and the Blind and who have received authorization by the
1428Board of Trustees of the Florida School for the Deaf and the
1429Blind to participate in the DROP beyond 60 months, or who are
1430instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1431grades K-12 and who have received authorization by the district
1432school superintendent to participate in the DROP beyond 60
1433months, the 96-month maximum participation period, the member
1434may elect to include or exclude any optional service credit
1435purchased by the member from the total service used to establish
1436the normal retirement date. A member who has with dual normal
1437retirement dates is shall be eligible to elect to participate in
1438DROP within 12 months after attaining normal retirement date in
1439either class.
1440     3.  The employer of a member electing to participate in the
1441DROP, or employers if dually employed, shall acknowledge in
1442writing to the division the date the member's participation in
1443the DROP begins and the date the member's employment and DROP
1444participation will terminate.
1445     4.  Simultaneous employment of a participant by additional
1446Florida Retirement System employers subsequent to the
1447commencement of participation in the DROP is shall be
1448permissible if provided such employers acknowledge in writing a
1449DROP termination date no later than the participant's existing
1450termination date or the maximum participation 60-month
1451limitation period as provided in subparagraph (b)1.
1452     5.  A DROP participant may change employers while
1453participating in the DROP, subject to the following:
1454     a.  A change of employment must take place without a break
1455in service so that the member receives salary for each month of
1456continuous DROP participation. If a member receives no salary
1457during a month, DROP participation shall cease unless the
1458employer verifies a continuation of the employment relationship
1459for such participant pursuant to s. 121.021(39)(b).
1460     b.  Such participant and new employer shall notify the
1461division of the identity of the new employer on forms required
1462by the division as to the identity of the new employer.
1463     c.  The new employer shall acknowledge, in writing, the
1464participant's DROP termination date, which may be extended but
1465not beyond the maximum participation original 60-month or, with
1466respect to members who are instructional personnel employed by
1467the Florida School for the Deaf and the Blind and who have
1468received authorization by the Board of Trustees of the Florida
1469School for the Deaf and the Blind to participate in the DROP
1470beyond 60 months, or who are instructional personnel as defined
1471in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
1472authorization by the district school superintendent to
1473participate in the DROP beyond 60 months, the 96-month period
1474provided in subparagraph (b)1., shall acknowledge liability for
1475any additional retirement contributions and interest required if
1476the participant fails to timely terminate employment, and is
1477shall be subject to the adjustment required in sub-subparagraph
1478(c)5.d.
1479     6.  Effective July 1, 2001, for instructional personnel as
1480defined in s. 1012.01(2), election to participate in the DROP
1481may shall be made at any time following the date on which the
1482member first reaches normal retirement date. The member shall
1483advise his or her employer and the division in writing of the
1484date on which DROP begins the Deferred Retirement Option Program
1485shall begin. When establishing eligibility of the member to
1486participate in the DROP for the 60-month or, with respect to
1487members who are instructional personnel employed by the Florida
1488School for the Deaf and the Blind and who have received
1489authorization by the Board of Trustees of the Florida School for
1490the Deaf and the Blind to participate in the DROP beyond 60
1491months, or who are instructional personnel as defined in s.
14921012.01(2)(a)-(d) in grades K-12 and who have received
1493authorization by the district school superintendent to
1494participate in the DROP beyond 60 months, the 96-month maximum
1495participation period, as provided in subparagraph (b)1., the
1496member may elect to include or exclude any optional service
1497credit purchased by the member from the total service used to
1498establish the normal retirement date. A member who has with dual
1499normal retirement dates is shall be eligible to elect to
1500participate in either class.
1501     (b)  Participation in the DROP.--
1502     1.a.  Except as provided in sub-subparagraph b., an
1503eligible member may elect to participate in the DROP for a
1504period not to exceed a maximum of 60 calendar months. or, with
1505respect to
1506     b.  Members who are instructional personnel employed by the
1507Florida School for the Deaf and the Blind and authorized who
1508have received authorization by the Board of Trustees of the
1509Florida School for the Deaf and the Blind to participate in the
1510DROP beyond 60 months, or who are instructional personnel as
1511defined in s. 1012.01(2)(a)-(d) in grades K-12 and authorized
1512who have received authorization by the district school
1513superintendent to participate in the DROP beyond 60 calendar
1514months, or who are instructional personnel as defined in s.
15151012.01(2)(a) employed by a developmental research school and
1516authorized by the school's director, or if the school has no
1517director, by the school's principal, may participate in DROP for
1518up to 36 calendar months beyond the 60-month period specified in
1519sub-subparagraph a. 96 calendar months immediately following the
1520date on which the member first reaches his or her normal
1521retirement date or the date to which he or she is eligible to
1522defer his or her election to participate as provided in
1523subparagraph (a)2. However, a member who has reached normal
1524retirement date prior to the effective date of the DROP shall be
1525eligible to participate in the DROP for a period of time not to
1526exceed 60 calendar months or, with respect to members who are
1527instructional personnel employed by the Florida School for the
1528Deaf and the Blind and who have received authorization by the
1529Board of Trustees of the Florida School for the Deaf and the
1530Blind to participate in the DROP beyond 60 months, or who are
1531instructional personnel as defined in s. 1012.01(2)(a)-(d) in
1532grades K-12 and who have received authorization by the district
1533school superintendent to participate in the DROP beyond 60
1534calendar months, 96 calendar months immediately following the
1535effective date of the DROP, except a member of the Special Risk
1536Class who has reached normal retirement date prior to the
1537effective date of the DROP and whose total accrued value exceeds
153875 percent of average final compensation as of his or her
1539effective date of retirement shall be eligible to participate in
1540the DROP for no more than 36 calendar months immediately
1541following the effective date of the DROP.
1542     2.  Upon deciding to participate in the DROP, the member
1543shall submit, on forms required by the division:
1544     a.  A written election to participate in the DROP;
1545     b.  Selection of the DROP participation and termination
1546dates that, which satisfy the limitations stated in paragraph
1547(a) and subparagraph 1. The Such termination date must shall be
1548in a binding letter of resignation to with the employer,
1549establishing a deferred termination date. The member may change
1550the termination date within the limitations of subparagraph 1.,
1551but only with the written approval of the his or her employer;
1552     c.  A properly completed DROP application for service
1553retirement as provided in this section; and
1554     d.  Any other information required by the division.
1555     3.  The DROP participant is shall be a retiree under the
1556Florida Retirement System for all purposes, except for paragraph
1557(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
1558and 121.122. DROP participation is final and cannot be canceled
1559by the participant after the first payment is credited during
1560the DROP participation period. However, participation in the
1561DROP does not alter the participant's employment status, and the
1562member is such employee shall not be deemed retired from
1563employment until his or her deferred resignation is effective
1564and termination occurs as provided in s. 121.021(39).
1565     4.  Elected officers are shall be eligible to participate
1566in the DROP subject to the following:
1567     a.  An elected officer who reaches normal retirement date
1568during a term of office may defer the election to participate in
1569the DROP until the next succeeding term in that office. An Such
1570elected officer who exercises this option may participate in the
1571DROP for up to 60 calendar months or a period of no longer than
1572the such succeeding term of office, whichever is less.
1573     b.  An elected or a nonelected participant may run for a
1574term of office while participating in DROP and, if elected,
1575extend the DROP termination date accordingly;, except, however,
1576if such additional term of office exceeds the 60-month
1577limitation established in subparagraph 1., and the officer does
1578not resign from office within such 60-month limitation, the
1579retirement and the participant's DROP is shall be null and void
1580as provided in sub-subparagraph (c)5.d.
1581     c.(I)  For DROP participation ending before January 1,
15822010, an elected officer who is dually employed and elects to
1583participate in DROP must meet shall be required to satisfy the
1584definition of termination in s. 121.021(39) within the original
158560-month period or maximum participation, with respect to
1586members who are instructional personnel employed by the Florida
1587School for the Deaf and the Blind and who have received
1588authorization by the Board of Trustees of the Florida School for
1589the Deaf and the Blind to participate in the DROP beyond 60
1590months, or who are instructional personnel as defined in s.
15911012.01(2)(a)-(d) in grades K-12 and who have received
1592authorization by the district school superintendent to
1593participate in the DROP beyond 60 months, the 96-month
1594limitation period as provided in subparagraph 1. for the
1595nonelected position and may continue employment as an elected
1596officer as provided in s. 121.053. The elected officer shall
1597will be enrolled as a renewed member in the Elected Officers'
1598Class or the Regular Class, as provided in ss. 121.053 and
1599121.122, on the first day of the month after termination of
1600employment in the nonelected position and termination of DROP.
1601Distribution of the DROP benefits shall be made as provided in
1602paragraph (c).
1603     (II)  For DROP participation ending on or after January 1,
16042010, an elected officer who is dually employed and elects to
1605participate in DROP must meet the definition of termination in
1606s. 121.021(39) within the original 60-month period or maximum
1607participation period as provided in subparagraph 1.
1608     (c)  Benefits payable under the DROP.--
1609     1.  Effective on with the date of DROP participation, the
1610member's initial normal monthly benefit, including creditable
1611service, optional form of payment, and average final
1612compensation, and the effective date of retirement are shall be
1613fixed. The beneficiary established under the Florida Retirement
1614System shall be the beneficiary eligible to receive any DROP
1615benefits payable if the DROP participant dies prior to the
1616completion of the period of DROP participation. If In the event
1617a joint annuitant predeceases the member, the member may name a
1618beneficiary to receive accumulated DROP benefits payable. The
1619Such retirement benefit, the annual cost of living adjustments
1620provided in s. 121.101, and interest shall accrue monthly in the
1621Florida Retirement System Trust Fund. The Such interest shall
1622accrue at an effective annual rate of 6.5 percent compounded
1623monthly, on the prior month's accumulated ending balance, up to
1624the month of termination or death.
1625     2.  Each employee who elects to participate in the DROP may
1626shall be allowed to elect to receive a lump-sum payment for
1627accrued annual leave earned in accordance with agency policy
1628upon beginning participation in the DROP. The Such accumulated
1629leave payment certified to the division upon commencement of
1630DROP shall be included in the calculation of the member's
1631average final compensation. The employee electing the such lump-
1632sum payment is upon beginning participation in DROP will not be
1633eligible to receive a second lump-sum payment upon termination,
1634except to the extent the employee has earned additional annual
1635leave which, combined with the original payment, does not exceed
1636the maximum lump-sum payment allowed by the employing agency's
1637policy or rules. An Such early lump-sum payment shall be based
1638on the hourly wage of the employee at the time he or she begins
1639participation in the DROP. If the member elects to wait and
1640receive a such lump-sum payment upon termination of DROP and
1641termination of employment with the employer, any accumulated
1642leave payment made at that time may not cannot be included in
1643the member's retirement benefit, which was determined and fixed
1644by law when the employee elected to participate in the DROP.
1645     3.  The effective date of DROP participation and the
1646effective date of retirement of a DROP participant shall be the
1647first day of the month selected by the member to begin
1648participation in the DROP, provided such date is properly
1649established, with the written confirmation of the employer, and
1650the approval of the division, on forms required by the division.
1651     4.  Normal retirement benefits and any interest thereon
1652shall continue to accrue in the DROP until the established
1653termination date of the DROP, or until the participant
1654terminates employment or dies prior to such date. Although
1655individual DROP accounts shall not be established, a separate
1656accounting of each participant's accrued benefits under the DROP
1657shall be calculated and provided to participants.
1658     5.  At the conclusion of the participant's DROP, the
1659division shall distribute the participant's total accumulated
1660DROP benefits, subject to the following provisions:
1661     a.  The division shall receive verification by the
1662participant's employer or employers that the such participant
1663has terminated employment as provided in s. 121.021(39)(b).
1664     b.  The terminated DROP participant or, if deceased, the
1665such participant's named beneficiary, shall elect on forms
1666provided by the division to receive payment of the DROP benefits
1667in accordance with one of the options listed below. If For a
1668participant or beneficiary who fails to elect a method of
1669payment within 60 days after of termination of the DROP, the
1670division shall will pay a lump sum as provided in sub-sub-
1671subparagraph (I).
1672     (I)  Lump sum.--All accrued DROP benefits, plus interest,
1673less withholding taxes remitted to the Internal Revenue Service,
1674shall be paid to the DROP participant or surviving beneficiary.
1675     (II)  Direct rollover.--All accrued DROP benefits, plus
1676interest, shall be paid from the DROP directly to the custodian
1677of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1678the Internal Revenue Code. However, in the case of an eligible
1679rollover distribution to the surviving spouse of a deceased
1680participant, an eligible retirement plan is an individual
1681retirement account or an individual retirement annuity as
1682described in s. 402(c)(9) of the Internal Revenue Code.
1683     (III)  Partial lump sum.--A portion of the accrued DROP
1684benefits shall be paid to the DROP participant or surviving
1685spouse, less withholding taxes remitted to the Internal Revenue
1686Service, and the remaining DROP benefits shall be transferred
1687directly to the custodian of an eligible retirement plan as
1688defined in s. 402(c)(8)(B) of the Internal Revenue Code.
1689However, in the case of an eligible rollover distribution to the
1690surviving spouse of a deceased participant, an eligible
1691retirement plan is an individual retirement account or an
1692individual retirement annuity as described in s. 402(c)(9) of
1693the Internal Revenue Code. The proportions shall be specified by
1694the DROP participant or surviving beneficiary.
1695     c.  The form of payment selected by the DROP participant or
1696surviving beneficiary must comply complies with the minimum
1697distribution requirements of the Internal Revenue Code.
1698     d.  A DROP participant who fails to terminate employment as
1699defined in s. 121.021(39)(b) shall be deemed as not to be
1700retired, and the DROP election is shall be null and void.
1701Florida Retirement System membership shall be reestablished
1702retroactively to the date of the commencement of the DROP, and
1703each employer with whom the participant continues employment
1704must shall be required to pay to the Florida Retirement System
1705Trust Fund the difference between the DROP contributions paid in
1706paragraph (h) (i) and the contributions required for the
1707applicable Florida Retirement System class of membership during
1708the period the member participated in the DROP, plus 6.5 percent
1709interest compounded annually.
1710     6.  The retirement benefits of any DROP participant who
1711meets the definition of termination in s. 121.021(39)(b) but is
1712in violation of the reemployment provisions as provided in
1713subsection (9) shall be suspended during those months in which
1714the member is in violation. Any member employed in violation of
1715this subparagraph and any employing agency that employs or
1716appoints such member without notifying the Division of
1717Retirement to suspend retirement benefits are jointly and
1718severally liable for any benefits paid during the reemployment
1719limitation period. To avoid liability, the employing agency must
1720have a written statement from the retiree that he or she is not
1721retired from a state-administered retirement system. Any
1722retirement benefits received by a retired member while employed
1723in violation of the reemployment limitations during the first 12
1724months after meeting termination in s. 121.021(39) must be
1725repaid to the Florida Retirement System Trust Fund, and his or
1726her retirement benefits shall remain suspended until payment is
1727made. Benefits suspended beyond the end of the retired member's
1728first 12 calendar months after meeting the definition of
1729termination in s. 121.021(39)(b) shall apply toward repayment of
1730benefits received in violation of the reemployment limitation.
1731     7.6.  The accrued benefits of any DROP participant, and any
1732contributions accumulated under the such program, are shall not
1733be subject to assignment, execution, attachment, or to any legal
1734process whatsoever, except for qualified domestic relations
1735orders by a court of competent jurisdiction, income deduction
1736orders as provided in s. 61.1301, and federal income tax levies.
1737     8.7.  DROP participants are shall not be eligible for
1738disability retirement benefits as provided in subsection (4).
1739     (d)  Death benefits under the DROP.--
1740     1.  Upon the death of a DROP participant, the named
1741beneficiary shall be entitled to apply for and receive the
1742accrued benefits in the DROP as provided in sub-subparagraph
1743(c)5.b.
1744     2.  The normal retirement benefit accrued to the DROP
1745during the month of a participant's death shall be the final
1746monthly benefit credited for such DROP participant.
1747     3.  Eligibility to participate in the DROP terminates upon
1748death of the participant. If the participant dies on or after
1749the effective date of enrollment in the DROP, but prior to the
1750first monthly benefit being credited to the DROP, Florida
1751Retirement System benefits shall be paid in accordance with
1752subparagraph (7)(c)1. or subparagraph 2.
1753     4.  A DROP participant's participants' survivors shall not
1754be eligible to receive Florida Retirement System death benefits
1755as provided in paragraph (7)(d).
1756     (e)  Cost-of-living adjustment.--On each July 1, the
1757participant's participants' normal retirement benefit shall be
1758increased as provided in s. 121.101.
1759     (f)  Retiree health insurance subsidy.--DROP participants
1760are not eligible to apply for the retiree health insurance
1761subsidy payments as provided in s. 112.363 until such
1762participants have terminated employment and participation in the
1763DROP.
1764     (g)  Renewed membership.--DROP participants shall not be
1765eligible for renewed membership in the Florida Retirement System
1766under ss. 121.053 and 121.122 until termination of employment is
1767effectuated as provided in s. 121.021(39)(b).
1768     (g)(h)  Employment limitation after DROP
1769participation.--Upon satisfying the definition of termination of
1770employment as provided in s. 121.021(39)(b), DROP participants
1771shall be subject to such reemployment limitations as other
1772retirees. Reemployment restrictions applicable to retirees as
1773provided in subsection (9) shall not apply to DROP participants
1774until their employment and participation in the DROP are
1775terminated.
1776     (h)(i)  Contributions.--
1777     1.  All employers paying the salary of a DROP participant
1778filling a regularly established position shall contribute 8.0
1779percent of such participant's gross compensation for the period
1780of July 1, 2002, through June 30, 2003, and the percentage 11.56
1781percent of such compensation required by s. 121.71 thereafter,
1782which shall constitute the entire employer DROP contribution
1783with respect to such participant. Such contributions, payable to
1784the Florida Retirement System Trust Fund in the same manner as
1785required in s. 121.071, shall be made as appropriate for each
1786pay period and are in addition to contributions required for
1787social security and the Retiree Health Insurance Subsidy Trust
1788Fund. Such employer, social security, and health insurance
1789subsidy contributions are not included in the DROP.
1790     2.  The employer shall, in addition to subparagraph 1.,
1791also withhold one-half of the entire social security
1792contribution required for the participant. Contributions for
1793social security by each participant and each employer, in the
1794amount required for social security coverage as now or hereafter
1795provided by the federal Social Security Act, shall be in
1796addition to contributions specified in subparagraph 1.
1797     3.  All employers paying the salary of a DROP participant
1798filling a regularly established position shall contribute the
1799percent of such participant's gross compensation required in s.
1800121.071(4), which shall constitute the employer's health
1801insurance subsidy contribution with respect to such participant.
1802Such contributions shall be deposited by the administrator in
1803the Retiree Health Insurance Subsidy Trust Fund.
1804     (i)(j)  Forfeiture of retirement benefits.--Nothing in this
1805section shall be construed to remove DROP participants from the
1806scope of s. 8(d), Art. II of the State Constitution, s.
1807112.3173, and paragraph (5)(f). DROP participants who commit a
1808specified felony offense while employed will be subject to
1809forfeiture of all retirement benefits, including DROP benefits,
1810pursuant to those provisions of law.
1811     (j)(k)  Administration of program.--The division shall make
1812such rules as are necessary for the effective and efficient
1813administration of this subsection. The division shall not be
1814required to advise members of the federal tax consequences of an
1815election related to the DROP but may advise members to seek
1816independent advice.
1817     (14)  PAYMENT OF BENEFITS.--This subsection applies to the
1818payment of benefits to a payee (retiree or beneficiary) under
1819the Florida Retirement System:
1820     (a)  Federal income tax shall be withheld in accordance
1821with federal law, unless the payee elects otherwise on Form W-
18224P. The division shall prepare and distribute to each recipient
1823of monthly retirement benefits an appropriate income tax form
1824that reflects the recipient's income and federal income tax
1825withheld for the calendar year just ended.
1826     (b)  Subject to approval by the division in accordance with
1827rule 60S-4.015, Florida Administrative Code, a payee receiving
1828retirement benefits under the Florida Retirement system may also
1829have the following payments deducted from his or her monthly
1830benefit:
1831     1.  Premiums for life and health-related insurance policies
1832from approved companies.
1833     2.  Life insurance premiums for the State Group Life
1834Insurance Plan, if authorized in writing by the payee and by the
1835department of Management Services.
1836     3.  Repayment of overpayments from the Florida Retirement
1837System Trust Fund, the State Employees' Health Insurance Trust
1838Fund, or the State Employees' Life Insurance Trust Fund, upon
1839notification of the payee.
1840     4.  Payments to an alternate payee for alimony or, child
1841support pursuant to an income deduction order under s. 61.1301,
1842or division of marital assets pursuant to a qualified domestic
1843relations order under s. 222.21 or an income deduction order
1844under s. 61.1301.
1845     5.  Payments to the Internal Revenue Service for federal
1846income tax levies, upon notification of the division by the
1847Internal Revenue Service.
1848     (c)  A payee must shall notify the division of any change
1849in his or her address. The division may suspend benefit payments
1850to a payee if correspondence sent to the payee's mailing address
1851is returned due to an incorrect address. Benefit payments shall
1852be resumed upon notification to the division of the payee's new
1853address.
1854     (d)  A payee whose retirement benefits are reduced by the
1855application of maximum benefit limits under s. 415(b) of the
1856Internal Revenue Code, as specified in s. 121.30(5), shall have
1857the portion of his or her calculated benefit in the Florida
1858Retirement System defined benefit plan which exceeds such
1859federal limitation paid through the Florida Retirement System
1860Preservation of Benefits Plan, as provided in s. 121.1001.
1861     (e)  The Division of Retirement may issue retirement
1862benefits payable for division of marital assets pursuant to a
1863qualified domestic relations order directly to the alternate
1864payee, any court order to the contrary notwithstanding, in order
1865to meet Internal Revenue Code requirements.
1866     (f)(e)  A No benefit may not be reduced for the purpose of
1867preserving the member's eligibility for a federal program.
1868     (g)(f)  The division shall adopt rules establishing
1869procedures for determining that the persons to whom benefits are
1870being paid are still living. The division shall suspend the
1871benefits being paid to any payee if when it is unable to contact
1872such payee and to confirm that he or she is still living.
1873     Section 10.  Section 121.1115, Florida Statutes, is amended
1874to read:
1875     121.1115  Purchase of retirement credit for out-of-state or
1876and federal service.--Effective January 1, 1995, a member of the
1877Florida Retirement System may purchase creditable service for
1878periods of public employment in another state and receive
1879creditable service for such periods of employment. Service with
1880the Federal Government, including any active military service,
1881may be claimed. Upon completion of each year of service earned
1882under the Florida Retirement System, a member may purchase up to
18831 year of retirement credit for his or her out-of-state service,
1884subject to the following provisions:
1885     (1)  LIMITATIONS AND CONDITIONS.--To receive credit for the
1886out-of-state service:
1887     (a)  The out-of-state service being claimed must have been:
1888     1.  Performed in a position of employment with the state or
1889a political subdivision thereof or with the Federal Government;
1890     2.  Covered by a retirement or pension plan provided by the
1891state or political subdivision, or by the Federal Government, as
1892appropriate; and
1893     3.  Performed prior to a period of membership in the
1894Florida Retirement System.
1895     (b)  The member must have completed a minimum of 6 years of
1896creditable service under the Florida Retirement System,
1897excluding out-of-state service and in-state service claimed and
1898purchased under s. 121.1122.
1899     (c)  Not more than 5 years of creditable service may be
1900claimed for creditable service aggregated under the provisions
1901of this section and s. 121.1122.
1902     (d)  The out-of-state service credit claimed under this
1903section shall be credited only as service in the Regular Class
1904of membership, and any benefit or pension based thereon is shall
1905be subject to the limitations and restrictions of s. 112.65.
1906     (e)  The member is not eligible for and may not receive a
1907pension or benefit from a retirement or pension plan based on or
1908including the out-of-state service. Eligibility for or the
1909receipt of contributions to a retirement plan made by the
1910employer on behalf of the employee is considered a benefit.
1911     (f)(e)  A member shall be eligible To receive service
1912credit for out-of-state service performed after leaving the
1913Florida Retirement System, the member must complete only upon
1914return to membership and completion of at least 1 year of
1915creditable service in the Florida Retirement System following
1916the out-of-state service.
1917     (2)  COST.--For each year claimed, the member must pay into
1918the Florida Retirement System Trust Fund an amount equal to 20
1919percent of the member's annual compensation for the first full
1920work year of creditable service earned under the Florida
1921Retirement System, but not less than $12,000, plus interest at
19226.5 percent compounded annually from the date of first annual
1923salary earned until full payment is made. The employer may pay
1924all or a portion of the cost of this service credit.
1925     Section 11.  Subsection (2) of section 121.1122, Florida
1926Statutes, is amended to read:
1927     121.1122  Purchase of retirement credit for in-state public
1928service and in-state service in accredited nonpublic schools and
1929colleges, including charter schools and charter technical career
1930centers.--Effective January 1, 1998, a member of the Florida
1931Retirement System may purchase creditable service for periods of
1932certain public or nonpublic employment performed in this state,
1933as provided in this section.
1934     (2)  LIMITATIONS AND CONDITIONS.--
1935     (a)  A member is not eligible to receive credit for in-
1936state service under this section until he or she has completed 6
1937years of creditable service under the Florida Retirement System,
1938excluding service purchased under this section and out-of-state
1939service claimed and purchased under s. 121.1115.
1940     (b)  A member may not purchase and receive credit for more
1941than 5 years of creditable service aggregated under the
1942provisions of this section and s. 121.1115.
1943     (c)  Service credit claimed under this section shall be
1944credited only as service in the Regular Class of membership and
1945is shall be subject to the provisions of s. 112.65.
1946     (d)  Service credit may not be purchased under this section
1947if the member is eligible to receive or is receiving a pension
1948or benefit from a retirement or pension plan based on or
1949including the service. Eligibility for or the receipt of
1950contributions to a retirement plan made by the employer on
1951behalf of the employee is considered a benefit.
1952     (e)(d)  A member is shall be eligible to receive service
1953credit for in-state service performed after leaving the Florida
1954Retirement System only after upon returning to membership and
1955completing at least 1 year of creditable service in the Florida
1956Retirement System following the in-state service.
1957     (f)(e)  The service claimed must have been service covered
1958by a retirement or pension plan provided by the employer.
1959     Section 12.  Section 121.122, Florida Statutes, is amended
1960to read:
1961     121.122  Renewed membership in system.--
1962     (1)  Any retiree of a state-administered retirement system
1963who is initially reemployed on or after January 1, 2010, shall
1964not be eligible for renewed membership.
1965     (2)  Except as provided in s. 121.053, effective July 1,
19661991, through December 31, 2009, any retiree of a state-
1967administered retirement system who is initially reemployed
1968employed in a regularly established position with a covered
1969employer shall be enrolled as a compulsory member of the Regular
1970Class of the Florida Retirement System or, effective July 1,
19711997, through December 31, 2009, any retiree of a state-
1972administered retirement system who is initially reemployed
1973employed in a position included in the Senior Management Service
1974Class shall be enrolled as a compulsory member of the Senior
1975Management Service Class of the Florida Retirement System as
1976provided in s. 121.055, and shall be entitled to receive an
1977additional retirement benefit, subject to the following
1978conditions:
1979     (1)(a)  Such member shall resatisfy the age and service
1980requirements as provided in this chapter for initial membership
1981under the system, unless such member elects to participate in
1982the Senior Management Service Optional Annuity Program in lieu
1983of the Senior Management Service Class, as provided in s.
1984121.055(6).
1985     (b)  Such member shall not be entitled to disability
1986benefits as provided in s. 121.091(4).
1987     (c)  Such member must meet the reemployment after
1988retirement limitations as provided in s. 121.091(9), as
1989applicable.
1990     (3)(2)  Upon renewed membership or reemployment of a
1991retiree, the employer of such member shall pay the applicable
1992employer contributions as required by ss. 121.71, 121.74,
1993121.76, and 112.363 121.055(3) and 121.071(1)(a) and (4).
1994     (4)(3)  The retiree of a state-administered retirement
1995system who is initially reemployed before January 1, 2010, Such
1996member shall be entitled to purchase additional retirement
1997credit in the Regular Class or the Senior Management Service
1998Class, as applicable, for any postretirement service performed
1999in a regularly established position as follows:
2000     (a)  For regular class service prior to July 1, 1991, by
2001paying the Regular Class applicable employee and employer
2002contributions for the period being claimed, plus 4 percent
2003interest compounded annually from first year of service claimed
2004until July 1, 1975, and 6.5 percent interest compounded
2005thereafter, until full payment is made to the Florida Retirement
2006System Trust Fund; or
2007     (b)  For Senior Management Service Class prior to June 1,
20081997, as provided in s. 121.055(1)(j).
2009
2010The contribution for postretirement service between July 1,
20111985, and July 1, 1991, for which the reemployed retiree
2012contribution was paid, shall be the difference between such
2013contribution and the total applicable contribution for the
2014period being claimed, plus interest. The employer of such member
2015may pay the applicable employer contribution in lieu of the
2016member. If a member does not wish to claim credit for all of the
2017postretirement service for which he or she is eligible, the
2018service the member claims must be the most recent service.
2019     (5)(4)  No creditable service for which credit was
2020received, or which remained unclaimed, at retirement may be
2021claimed or applied toward service credit earned following
2022renewed membership. However, for retirees initially reemployed
2023before January 1, 2010, service earned as an elected officer
2024with renewed membership in the Elected Officers' Class may be
2025used in conjunction with creditable service earned under this
2026section, provided the applicable vesting requirements and other
2027existing statutory conditions required by this chapter are met.
2028     (6)(5)  Notwithstanding any other limitations provided in
2029this section, a participant of the State University System
2030Optional Retirement Program, the State Community College
2031Optional Retirement Program, or the Senior Management Service
2032Optional Annuity Program who terminated employment and commenced
2033receiving a distribution an annuity under the provisions of the
2034optional program, who initially renews membership before January
20351, 2010, in the Regular Class as required by this section upon
2036reemployment after retirement, and who had previously earned
2037creditable Florida Retirement System service that was not
2038included in any retirement benefit may include such previous
2039service toward vesting and service credit in the second career
2040benefit provided under renewed membership.
2041     (7)(6)  Any renewed member who is not receiving the maximum
2042health insurance subsidy provided in s. 112.363 shall be
2043entitled to earn additional credit toward the maximum health
2044insurance subsidy. Any additional subsidy due because of such
2045additional credit shall be received only at the time of payment
2046of the second career retirement benefit. In no case shall the
2047total health insurance subsidy received by a retiree receiving
2048benefits from initial and renewed membership exceed the maximum
2049allowed in s. 112.363.
2050     Section 13.  Section 121.136, Florida Statutes, is amended
2051to read:
2052     121.136  Annual benefit statement to members.--In Beginning
2053January 1, 1993, and each January of each year thereafter, the
2054department shall provide each active member of the Florida
2055Retirement System with 5 or more years of creditable service an
2056annual statement of benefits that provides. Such statement
2057should provide the member with basic data about the member's
2058retirement account. At a minimum Minimally, it must shall
2059include the member's retirement plan, accrued service credit the
2060amount of funds on deposit in the retirement account, and an
2061estimate of retirement benefits.
2062     Section 14.  Section 121.1905, Florida Statutes, is amended
2063to read:
2064     121.1905  Division of Retirement; creation.--
2065     (1)  There is created the Division of Retirement within the
2066Department of Management Services.
2067     (2)  The mission of the Division of Retirement is to
2068provide quality and cost-effective retirement services as
2069measured by member satisfaction and by comparison with
2070administrative costs of comparable retirement systems.
2071     Section 15.  Paragraph (a) of subsection (2) of section
2072121.23, Florida Statutes, is amended to read:
2073     121.23  Disability retirement and special risk membership
2074applications; Retirement Commission; powers and duties; judicial
2075review.--The provisions of this section apply to all proceedings
2076in which the administrator has made a written final decision on
2077the merits respecting applications for disability retirement,
2078reexamination of retired members receiving disability benefits,
2079applications for special risk membership, and reexamination of
2080special risk members in the Florida Retirement System. The
2081jurisdiction of the State Retirement Commission under this
2082section shall be limited to written final decisions of the
2083administrator on the merits.
2084     (2)  A member shall be entitled to a hearing before the
2085State Retirement Commission pursuant to ss. 120.569 and
2086120.57(1) on the merits of any written adverse decision of the
2087administrator, if he or she files with the commission a written
2088request for such hearing within 21 days after receipt of such
2089written decision from the administrator. For the purpose of such
2090hearings, the commission shall be an "agency head" as defined by
2091s. 120.52.
2092     (a)  The commission may shall have the authority to issue
2093orders as a result of the a hearing that are shall be binding on
2094all parties to the dispute and. The commission may order any
2095action that it deems appropriate. Any disability retirement
2096order of the commission that issued pursuant to this subsection
2097which sustains the application of the member may include an
2098amount, to be determined by the commission, for reasonable
2099attorney's fees and taxable costs, which shall be calculated in
2100accordance with the statewide uniform guidelines for taxation of
2101costs in civil actions. The amount of the attorney's fees fee
2102may not exceed 50 percent of the initial yearly benefit awarded
2103under s. 121.091(4). In cases involving disability retirement,
2104the State Retirement commission shall require the member to
2105present substantial competent medical evidence that meets the
2106requirements of s. 121.091(4)(c)2. and 3., and may require
2107vocational evidence, before awarding disability retirement
2108benefits.
2109     Section 16.  Paragraph (a) of subsection (1) of section
2110121.24, Florida Statutes, is amended to read:
2111     121.24  Conduct of commission business; legal and other
2112assistance; compensation.--
2113     (1)  The commission shall conduct its business within the
2114following guidelines:
2115     (a)  For purposes of hearing appeals under s. 121.23, the
2116commission may meet in panels consisting of no not fewer than
2117three members. For the purpose of meeting in these panels, a
2118quorum shall be not fewer than two members. For all other
2119purposes, A quorum shall consist of three members. The
2120concurring vote of a majority of the members present is shall be
2121required to reach a decision, issue orders, and conduct the
2122business of the commission.
2123     Section 17.  Paragraph (h) of subsection (3) and paragraphs
2124(a) and (e) of subsection (5) of section 121.35, Florida
2125Statutes, are amended, and paragraph (g) is added to subsection
2126(5) of that section, to read:
2127     121.35  Optional retirement program for the State
2128University System.--
2129     (3)  ELECTION OF OPTIONAL PROGRAM.--
2130     (h)  A participant in the optional retirement program may
2131not participate in more than one state-administered retirement
2132system, plan, or class simultaneously. Except as provided in s.
2133121.052(6)(d), a participant who is or becomes dually employed
2134in two or more positions covered by the Florida Retirement
2135System, one of which is eligible for the optional program and
2136one of which is not, may remain a member of the optional program
2137and contributions shall be paid as required only on the salary
2138earned in the position eligible for the optional program during
2139such period of dual employment; or, within 90 days after
2140becoming dually employed, he or she may elect membership in the
2141Regular Class of the Florida Retirement System in lieu of the
2142optional program and contributions shall be paid as required on
2143the total salary received for all employment. At retirement, the
2144average final compensation used to calculate any benefits for
2145which the member becomes eligible under the Florida Retirement
2146System shall be based on all salary reported for both positions
2147during such period of dual employment. When such member ceases
2148to be dually employed, he or she may, within 90 days, elect to
2149remain in the Florida Retirement System class for which he or
2150she is eligible or to again become a participant in the optional
2151retirement program. Failure to elect membership in the optional
2152program within 90 days shall result in compulsory membership in
2153the Florida Retirement System, except that a member filling a
2154faculty position at under a college with a faculty practice plan
2155at the University of Florida, or the medical center at the
2156University of South Florida, or any other state university shall
2157again participate in the optional retirement program as required
2158in s. 121.051(1)(a).
2159     (5)  BENEFITS.--
2160     (a)  Benefits shall be payable under the optional
2161retirement program only to vested participants in the program,
2162or their beneficiaries as designated by the participant in the
2163contract with a provider company, and such benefits shall be
2164paid only by the designated company in accordance with s. 403(b)
2165of the Internal Revenue Code and in accordance with the terms of
2166the annuity contract or contracts applicable to the participant.
2167Benefits shall accrue in individual accounts that are
2168participant-directed, portable, and funded by employer
2169contributions and the earnings thereon. The participant must be
2170terminated from all employment with all Florida Retirement
2171System employers, as provided in s. 121.021(39), to begin
2172receiving the employer-funded benefit. Benefits funded by
2173employer contributions shall be payable in accordance with the
2174following terms and conditions:
2175     1.  Benefits shall be payable only to a participant, to his
2176or her beneficiaries, or to his or her estate, as designated by
2177the participant.
2178     2.  Benefits shall be paid by the provider company or
2179companies in accordance with the law, the provisions of the
2180contract, and any applicable department board rule or policy.
2181     3.  In the event of a participant's death, moneys
2182accumulated by, or on behalf of, the participant, less
2183withholding taxes remitted to the Internal Revenue Service, if
2184any, shall be distributed to the participant's designated
2185beneficiary or beneficiaries, or to the participant's estate, as
2186if the participant retired on the date of death, as provided in
2187paragraph (c). No other death benefits shall be available for
2188survivors of participants under the optional retirement program
2189except for such benefits, or coverage for such benefits, as are
2190separately afforded by the employer, at the employer's
2191discretion.
2192     (e)  A participant who chooses to receive his or her
2193benefits upon termination of employment as defined in s.
2194121.021(39) shall have responsibility to notify the provider
2195company of the date on which he or she wishes benefits funded by
2196employer contributions to begin. Benefits may be deferred until
2197such time as the participant chooses to make such application.
2198     (g)  For purposes of this section, "retiree" means a former
2199participant of the optional retirement program who has
2200terminated employment and has taken a distribution as provided
2201in this subsection, except for a mandatory distribution of a de
2202minimis account authorized by the department.
2203     Section 18.  Paragraph (f) of subsection (2) of section
2204121.4501, Florida Statutes, is amended to read:
2205     121.4501  Public Employee Optional Retirement Program.--
2206     (2)  DEFINITIONS.--As used in this part, the term:
2207     (f)  "Eligible employee" means an officer or employee, as
2208defined in s. 121.021(11), who:
2209     1.  Is a member of, or is eligible for membership in, the
2210Florida Retirement System, including any renewed member of the
2211Florida Retirement System initially enrolled before January 1,
22122010; or
2213     2.  Participates in, or is eligible to participate in, the
2214Senior Management Service Optional Annuity Program as
2215established under s. 121.055(6), the State Community College
2216System Optional Retirement Program as established under s.
2217121.051(2)(c), or the State University System Optional
2218Retirement Program established under s. 121.35.
2219
2220The term does not include any member participating in the
2221Deferred Retirement Option Program established under s.
2222121.091(13), a retiree of a state-administered retirement system
2223initially reemployed on or after January 1, 2010, or a mandatory
2224participant of the State University System Optional Retirement
2225Program established under s. 121.35.
2226     Section 19.  Paragraph (b) of subsection (1) of section
2227121.591, Florida Statutes, is amended to read:
2228     121.591  Benefits payable under the Public Employee
2229Optional Retirement Program of the Florida Retirement
2230System.--Benefits may not be paid under this section unless the
2231member has terminated employment as provided in s.
2232121.021(39)(a) or is deceased and a proper application has been
2233filed in the manner prescribed by the state board or the
2234department. The state board or department, as appropriate, may
2235cancel an application for retirement benefits when the member or
2236beneficiary fails to timely provide the information and
2237documents required by this chapter and the rules of the state
2238board and department. In accordance with their respective
2239responsibilities as provided herein, the State Board of
2240Administration and the Department of Management Services shall
2241adopt rules establishing procedures for application for
2242retirement benefits and for the cancellation of such application
2243when the required information or documents are not received. The
2244State Board of Administration and the Department of Management
2245Services, as appropriate, are authorized to cash out a de
2246minimis account of a participant who has been terminated from
2247Florida Retirement System covered employment for a minimum of 6
2248calendar months. A de minimis account is an account containing
2249employer contributions and accumulated earnings of not more than
2250$5,000 made under the provisions of this chapter. Such cash-out
2251must either be a complete lump-sum liquidation of the account
2252balance, subject to the provisions of the Internal Revenue Code,
2253or a lump-sum direct rollover distribution paid directly to the
2254custodian of an eligible retirement plan, as defined by the
2255Internal Revenue Code, on behalf of the participant. If any
2256financial instrument issued for the payment of retirement
2257benefits under this section is not presented for payment within
2258180 days after the last day of the month in which it was
2259originally issued, the third-party administrator or other duly
2260authorized agent of the State Board of Administration shall
2261cancel the instrument and credit the amount of the instrument to
2262the suspense account of the Public Employee Optional Retirement
2263Program Trust Fund authorized under s. 121.4501(6). Any such
2264amounts transferred to the suspense account are payable upon a
2265proper application, not to include earnings thereon, as provided
2266in this section, within 10 years after the last day of the month
2267in which the instrument was originally issued, after which time
2268such amounts and any earnings thereon shall be forfeited. Any
2269such forfeited amounts are assets of the Public Employee
2270Optional Retirement Program Trust Fund and are not subject to
2271the provisions of chapter 717.
2272     (1)  NORMAL BENEFITS.--Under the Public Employee Optional
2273Retirement Program:
2274     (b)  If a participant elects to receive his or her benefits
2275upon termination of employment as defined in s. 121.021(39), the
2276participant must submit a written application or an equivalent
2277form to the third-party administrator indicating his or her
2278preferred distribution date and selecting an authorized method
2279of distribution as provided in paragraph (c). The participant
2280may defer receipt of benefits until he or she chooses to make
2281such application, subject to federal requirements.
2282     Section 20.  Subsection (8) of section 1012.33, Florida
2283Statutes, is amended to read:
2284     1012.33  Contracts with instructional staff, supervisors,
2285and school principals.--
2286     (8)  Notwithstanding any other provision of law, a retired
2287any member who has retired may interrupt retirement and be
2288reemployed in any public school. A Any member so reemployed by
2289the same district from which he or she retired may be employed
2290on a probationary contractual basis as provided in subsection
2291(1); however, no regular retirement employee shall be eligible
2292to renew membership under a retirement system created by chapter
2293121 or chapter 238.
2294     Section 21.  Sections 121.093, 121.094, and 121.45, Florida
2295Statutes, are repealed.
2296     Section 22.  The Legislature finds that a proper and
2297legitimate state purpose is served when employees and retirees
2298of the state and its political subdivisions, as well as the
2299dependents, survivors, and beneficiaries of such employees and
2300retirees, are extended the basic protections afforded by
2301governmental retirement systems that provide fair and adequate
2302benefits and that are managed, administered, and funded in an
2303actuarially sound manner as required by s. 14, Art. X of the
2304State Constitution and part VII of chapter 112, Florida
2305Statutes. Therefore, the Legislature determines and declares
2306that the amendment of s. 121.091, Florida Statutes, by this act
2307fulfills an important state interest.
2308     Section 23.  This act shall take effect July 1, 2009.


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