HB 605

1	A bill to be entitled
2	An act relating to Special Risk Class retirement benefits;
3	amending s. 121.091, F.S.; prohibiting certain members of
4	the Special Risk Class from being reemployed or
5	contracting with the same employing agency from which the
6	member retired; extending the period of time during which
7	certain Special Risk Class members may participate in the
8	Florida Retirement System Deferred Retirement Option
9	program; deleting obsolete provisions; providing
10	legislative findings with respect to the state's interest
11	in protecting the public's safety and welfare by extending
12	retirement benefits for certain officers and funding
13	increased retirement benefits in an actuarially sound
14	manner; providing a declaration of important state
15	interest; providing an effective date.
16
17	WHEREAS, one of the most fundamental mechanisms for
18	ensuring the safety and welfare of the public is through the
19	state's law enforcement agencies and correctional institutions,
20	and
21	WHEREAS, law enforcement agencies and correctional
22	institutions throughout this state and the nation are
23	experiencing great difficulty in recruiting and retaining well-
24	qualified law enforcement and correctional officers, and
25	WHEREAS, this need is projected to become more critical in
26	the future, and
27	WHEREAS, the most critical need is to recruit and retain
28	line officers who have daily and direct contact with the
29	criminal element, and
30	WHEREAS, because such work is physically demanding and
31	arduous and often requires extraordinary agility and mental
32	acuity that can diminish with age, persons employed in these
33	positions are classified as special risk and able to retire at
34	an earlier age, and
35	WHEREAS, one mechanism for retaining qualified officers is
36	to extend the amount of time that such officers can remain in
37	the Deferred Retirement Option Program (DROP) if such officers
38	can demonstrate that they retain the necessary physical and
39	mental capacity to continue to competently perform their job
40	duties, NOW, THEREFORE,
41
42	Be It Enacted by the Legislature of the State of Florida:
43
44	Section 1.  Paragraph (d) is added to subsection (9) of
45	section 121.091, Florida Statutes, and paragraphs (a) and (b) of
46	subsection (13) of that section are amended, to read:
47	121.091  Benefits payable under the system.--Benefits may
48	not be paid under this section unless the member has terminated
49	employment as provided in s. 121.021(39)(a) or begun
50	participation in the Deferred Retirement Option Program as
51	provided in subsection (13), and a proper application has been
52	filed in the manner prescribed by the department. The department
53	may cancel an application for retirement benefits when the
54	member or beneficiary fails to timely provide the information
55	and documents required by this chapter and the department's
56	rules. The department shall adopt rules establishing procedures
57	for application for retirement benefits and for the cancellation
58	of such application when the required information or documents
59	are not received.
60	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
61	(d)  Notwithstanding any other provision in this section, a
62	member of the Special Risk Class who is employed as a law
63	enforcement officer, correctional officer, or community-based
64	correctional probation officer, as described in s. 121.0515(2),
65	at the conclusion of his or her participation in DROP, may not
66	be employed, reemployed, or retained in a contractual capacity
67	by the same employing agency from which the member retired;
68	however, the member may be retained by the employing agency as a
69	part-time or auxiliary law enforcement officer, as those terms
70	are defined in s. 943.10, if the member is serving on a
71	voluntary basis and receives no more than $1 per calendar year
72	in remuneration for services rendered directly for the employing
73	agency. Any person who is reemployed or retained in a
74	contractual capacity in violation of this paragraph shall void
75	his or her application for retirement benefits. Any person who
76	violates this paragraph and any employing agency that knowingly
77	employs or contracts with such person in violation of this
78	paragraph is jointly and severally liable for reimbursement to
79	the Florida Retirement System Trust Fund for any retirement
80	benefits improperly paid during the reemployment or contractual
81	period. This provision does not otherwise limit the employment
82	or contractual opportunities for a retiree at any other
83	employing agency. This paragraph does not apply to a retiree who
84	is elected to an office or appointed to an office by the
85	Governor or by the Governor and Cabinet.
86	(13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
87	subject to the provisions of this section, the Deferred
88	Retirement Option Program, hereinafter referred to as the DROP,
89	is a program under which an eligible member of the Florida
90	Retirement System may elect to participate, deferring receipt of
91	retirement benefits while continuing employment with his or her
92	Florida Retirement System employer. The deferred monthly
93	benefits shall accrue in the System Trust Fund on behalf of the
94	participant, plus interest compounded monthly, for the specified
95	period of the DROP participation, as provided in paragraph (c).
96	Upon termination of employment, the participant shall receive
97	the total DROP benefits and begin to receive the previously
98	determined normal retirement benefits. Participation in the DROP
99	does not guarantee employment for the specified period of DROP.
100	Participation in the DROP by an eligible member beyond the
101	initial 60-month period as authorized in this subsection shall
102	be on an annual contractual basis for all participants.
103	(a)  Eligibility of member to participate in the DROP.--All
104	active Florida Retirement System members in a regularly
105	established position, and all active members of either the
106	Teachers' Retirement System established in chapter 238 or the
107	State and County Officers' and Employees' Retirement System
108	established in chapter 122, which systems are consolidated
109	within the Florida Retirement System under s. 121.011, are
110	eligible to elect participation in the DROP if provided that:
111	1.  The member is not a renewed member of the Florida
112	Retirement System under s. 121.122, or a member of the State
113	Community College System Optional Retirement Program under s.
114	121.051, the Senior Management Service Optional Annuity Program
115	under s. 121.055, or the optional retirement program for the
116	State University System under s. 121.35.
117	2.  Except as provided in subparagraph 6., election to
118	participate is made within 12 months immediately following the
119	date on which the member first reaches normal retirement date,
120	or, for a member who reaches normal retirement date based on
121	service before he or she reaches age 62, or age 55 for Special
122	Risk Class members, election to participate may be deferred to
123	the 12 months immediately following the date the member attains
124	57, or age 52 for Special Risk Class members. For a member who
125	first reached normal retirement date or the deferred eligibility
126	date described above prior to the effective date of this
127	section, election to participate shall be made within 12 months
128	after the effective date of this section. A member who fails to
129	make an election within the such 12-month limitation period
130	forfeits shall forfeit all rights to participate in the DROP.
131	The member shall advise his or her employer and the division in
132	writing of the date on which the DROP shall begin. The Such
133	beginning date may be subsequent to the 12-month election
134	period, but must be within the maximum participation 60-month
135	or, with respect to members who are instructional personnel
136	employed by the Florida School for the Deaf and the Blind and
137	who have received authorization by the Board of Trustees of the
138	Florida School for the Deaf and the Blind to participate in the
139	DROP beyond 60 months, or who are instructional personnel as
140	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
141	received authorization by the district school superintendent to
142	participate in the DROP beyond 60 months, the 96-month
143	limitation period as provided in subparagraph (b)1. When
144	establishing eligibility of the member to participate in the
145	DROP for the 60-month or, with respect to members who are
146	instructional personnel employed by the Florida School for the
147	Deaf and the Blind and who have received authorization by the
148	Board of Trustees of the Florida School for the Deaf and the
149	Blind to participate in the DROP beyond 60 months, or who are
150	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
151	grades K-12 and who have received authorization by the district
152	school superintendent to participate in the DROP beyond 60
153	months, the 96-month maximum participation period, the member
154	may elect to include or exclude any optional service credit
155	purchased by the member from the total service used to establish
156	the normal retirement date. A member who has with dual normal
157	retirement dates is shall be eligible to elect to participate in
158	DROP within 12 months after attaining normal retirement date in
159	either class.
160	3.  The employer of a member electing to participate in the
161	DROP, or employers if dually employed, shall acknowledge in
162	writing to the division the date the member's participation in
163	the DROP begins and the date the member's employment and DROP
164	participation will terminate.
165	4.  Simultaneous employment of a participant by additional
166	Florida Retirement System employers subsequent to the
167	commencement of participation in the DROP is shall be
168	permissible if provided such employers acknowledge in writing a
169	DROP termination date no later than the participant's existing
170	termination date or the maximum participation 60-month
171	limitation period as provided in subparagraph (b)1.
172	5.  A DROP participant may change employers while
173	participating in the DROP, subject to the following:
174	a.  A change of employment must take place without a break
175	in service so that the member receives salary for each month of
176	continuous DROP participation. If a member receives no salary
177	during a month, DROP participation shall cease unless the
178	employer verifies a continuation of the employment relationship
179	for such participant pursuant to s. 121.021(39)(b).
180	b.  Such participant and new employer shall notify the
181	division of the identity of the new employer on forms required
182	by the division as to the identity of the new employer.
183	c.  The new employer shall acknowledge, in writing, the
184	participant's DROP termination date, which may be extended but
185	not beyond the maximum participation original 60-month or, with
186	respect to members who are instructional personnel employed by
187	the Florida School for the Deaf and the Blind and who have
188	received authorization by the Board of Trustees of the Florida
189	School for the Deaf and the Blind to participate in the DROP
190	beyond 60 months, or who are instructional personnel as defined
191	in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
192	authorization by the district school superintendent to
193	participate in the DROP beyond 60 months, the 96-month period
194	provided in subparagraph (b)1., shall acknowledge liability for
195	any additional retirement contributions and interest required if
196	the participant fails to timely terminate employment, and shall
197	be subject to the adjustment required in sub-subparagraph
198	(c)5.d.
199	6.  Effective July 1, 2001, for instructional personnel as
200	defined in s. 1012.01 s. 1012.01(2), election to participate in
201	the DROP may shall be made at any time following the date on
202	which the member first reaches normal retirement date. The
203	member shall advise his or her employer and the division in
204	writing of the date on which DROP the Deferred Retirement Option
205	Program shall begin. When establishing eligibility of the member
206	to participate in the DROP for the 60-month or, with respect to
207	members who are instructional personnel employed by the Florida
208	School for the Deaf and the Blind and who have received
209	authorization by the Board of Trustees of the Florida School for
210	the Deaf and the Blind to participate in the DROP beyond 60
211	months, or who are instructional personnel as defined in s.
212	1012.01(2)(a)-(d) in grades K-12 and who have received
213	authorization by the district school superintendent to
214	participate in the DROP beyond 60 months, the 96-month maximum
215	participation period, as provided in subparagraph (b)1., the
216	member may elect to include or exclude any optional service
217	credit purchased by the member from the total service used to
218	establish the normal retirement date. A member who has with dual
219	normal retirement dates is shall be eligible to elect to
220	participate in either class.
221	(b)  Participation in the DROP.--
222	1.  Subject to the following exceptions, an eligible member
223	may elect to participate in the DROP for a period not to exceed
224	a maximum of 60 calendar months. or, with respect to
225	a.  Eligible members who are instructional personnel
226	employed by the Florida School for the Deaf and the Blind and
227	who have received authorization by the Board of Trustees of the
228	Florida School for the Deaf and the Blind to participate in the
229	DROP beyond 60 months, or who are instructional personnel as
230	defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
231	received authorization by the district school superintendent to
232	participate in the DROP beyond 60 calendar months, may elect to
233	participate for a period up to 96 calendar months immediately
234	following the date on which the member first reaches his or her
235	normal retirement date or the date to which he or she is
236	eligible to defer his or her election to participate as provided
237	in subparagraph (a)2. However, a member who has reached normal
238	retirement date prior to the effective date of the DROP shall be
239	eligible to participate in the DROP for a period of time not to
240	exceed 60 calendar months or, with respect to members who are
241	instructional personnel employed by the Florida School for the
242	Deaf and the Blind and who have received authorization by the
243	Board of Trustees of the Florida School for the Deaf and the
244	Blind to participate in the DROP beyond 60 months, or who are
245	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
246	grades K-12 and who have received authorization by the district
247	school superintendent to participate in the DROP beyond 60
248	calendar months, 96 calendar months immediately following the
249	effective date of the DROP, except a member of the Special Risk
250	Class who has reached normal retirement date prior to the
251	effective date of the DROP and whose total accrued value exceeds
252	75 percent of average final compensation as of his or her
253	effective date of retirement shall be eligible to participate in
254	the DROP for no more than 36 calendar months immediately
255	following the effective date of the DROP.
256	b.  Special Risk Class members who are employed as law
257	enforcement officers, correctional officers, or community-based
258	correctional probation officers, as described in s. 121.0515(2),
259	and who are currently participating in DROP for up to 60 months
260	may participate for an additional 36 calendar months.
261	2.  Upon deciding to participate in the DROP, the member
262	shall submit, on forms required by the division:
263	a.  A written election to participate in the DROP;
264	b.  Selection of the DROP participation and termination
265	dates, which satisfy the limitations stated in paragraph (a) and
266	subparagraph 1. The Such termination date must shall be in a
267	binding letter of resignation to with the employer, establishing
268	a deferred termination date. The member may change the
269	termination date within the limitations of subparagraph 1., but
270	only with the written approval of the his or her employer;
271	c.  A properly completed DROP application for service
272	retirement as provided in this section; and
273	d.  Any other information required by the division.
274	3.  The DROP participant shall be a retiree under the
275	Florida Retirement System for all purposes, except for paragraph
276	(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
277	and 121.122. However, participation in the DROP does not alter
278	the participant's employment status and the member is such
279	employee shall not be deemed retired from employment until his
280	or her deferred resignation is effective and termination occurs
281	as provided in s. 121.021(39).
282	4.  Elected officers are shall be eligible to participate
283	in the DROP subject to the following:
284	a.  An elected officer who reaches normal retirement date
285	during a term of office may defer the election to participate in
286	the DROP until the next succeeding term in that office. An Such
287	elected officer who exercises this option may participate in the
288	DROP for up to 60 calendar months or for a period of no longer
289	than the such succeeding term of office, whichever is less.
290	b.  An elected or a nonelected participant may run for a
291	term of office while participating in DROP and, if elected,
292	extend the DROP termination date accordingly, except that,
293	however, if such additional term of office exceeds the 60-month
294	limitation established in subparagraph 1., and the officer does
295	not resign from office within such 60-month limitation, the
296	retirement and the participant's DROP shall be null and void as
297	provided in sub-subparagraph (c)5.d.
298	c.  An elected officer who is dually employed and elects to
299	participate in DROP must shall be required to satisfy the
300	definition of termination within the maximum participation 60-
301	month or, with respect to members who are instructional
302	personnel employed by the Florida School for the Deaf and the
303	Blind and who have received authorization by the Board of
304	Trustees of the Florida School for the Deaf and the Blind to
305	participate in the DROP beyond 60 months, or who are
306	instructional personnel as defined in s. 1012.01(2)(a)-(d) in
307	grades K-12 and who have received authorization by the district
308	school superintendent to participate in the DROP beyond 60
309	months, the 96-month limitation period as provided in
310	subparagraph 1. for the nonelected position and may continue
311	employment as an elected officer as provided in s. 121.053. The
312	elected officer shall will be enrolled as a renewed member in
313	the Elected Officers' Class or the Regular Class, as provided in
314	ss. 121.053 and 121.122, on the first day of the month after
315	termination of employment in the nonelected position and
316	termination of DROP. Distribution of the DROP benefits shall be
317	made as provided in paragraph (c).
318	Section 2.  The Legislature finds and declares that
319	ensuring the availability of experienced law enforcement,
320	correctional, and probation officers to protect the safety and
321	welfare of the public is an important state interest. Providing
322	such officers who are members of the Florida Retirement System
323	with an opportunity to extend their employment as law
324	enforcement officers, correctional officers, or probation
325	officers by increasing the maximum participation period in the
326	Deferred Retirement Option Program will help serve that
327	interest. Funding for such retirement benefits must be made,
328	administered, and funded in an actuarially sound manner as
329	required by s. 14, Art. X of the State Constitution and part VII
330	of chapter 112, Florida Statutes. Therefore, the Legislature
331	determines and declares that the amendment of s. 121.091,
332	Florida Statutes, by this act fulfills an important state
333	interest.
334	Section 3.  This act shall take effect upon becoming a law.

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