Florida Senate - 2017 COMMITTEE AMENDMENT Bill No. SB 1500 Ì463234ÈÎ463234 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/03/2017 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Governmental Oversight and Accountability (Mayfield) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Paragraph (b) of subsection (13) of section 6 121.091, Florida Statutes, is amended to read: 7 121.091 Benefits payable under the system.—Benefits may not 8 be paid under this section unless the member has terminated 9 employment as provided in s. 121.021(39)(a) or begun 10 participation in the Deferred Retirement Option Program as 11 provided in subsection (13), and a proper application has been 12 filed in the manner prescribed by the department. The department 13 may cancel an application for retirement benefits when the 14 member or beneficiary fails to timely provide the information 15 and documents required by this chapter and the department’s 16 rules. The department shall adopt rules establishing procedures 17 for application for retirement benefits and for the cancellation 18 of such application when the required information or documents 19 are not received. 20 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and 21 subject to this section, the Deferred Retirement Option Program, 22 hereinafter referred to as DROP, is a program under which an 23 eligible member of the Florida Retirement System may elect to 24 participate, deferring receipt of retirement benefits while 25 continuing employment with his or her Florida Retirement System 26 employer. The deferred monthly benefits shall accrue in the 27 Florida Retirement System on behalf of the member, plus interest 28 compounded monthly, for the specified period of the DROP 29 participation, as provided in paragraph (c). Upon termination of 30 employment, the member shall receive the total DROP benefits and 31 begin to receive the previously determined normal retirement 32 benefits. Participation in the DROP does not guarantee 33 employment for the specified period of DROP. Participation in 34 DROP by an eligible member beyond the initial 60-month period as 35 authorized in this subsection shall be on an annual contractual 36 basis for all participants. 37 (b) Participation in DROP.— 38 1.a. An eligible member may elect to participate in DROP 39 for a period not to exceed a maximum of 60 calendar months. 40 However, members who are instructional personnel employed by the 41 Florida School for the Deaf and the Blind and authorized by the 42 Board of Trustees of the Florida School for the Deaf and the 43 Blind, who are instructional personnel as defined in s. 44 1012.01(2)(a)-(d) in grades K-12 and authorized by the district 45 school superintendent, or who are instructional personnel as 46 defined in s. 1012.01(2)(a) employed by a developmental research 47 school and authorized by the school’s director, or if the school 48 has no director, by the school’s principal, may participate in 49 DROP for up to 36 calendar months beyond the 60-month period. 50 b. For instructional personnel and administrative personnel 51 in grades K-12, as defined in s. 1012.01(2)(a)-(d) and (3), 52 respectively, who enter DROP before July 1, 2017, the member may 53 continue to participate in DROP until the last day of the last 54 calendar month of the school year in which his or her 55 termination date occurs, notwithstanding the limitations on the 56 length of participation established in this subsection and the 57 termination date designated pursuant to sub-subparagraph 2.b., 58 if a date other than the last day of the last calendar month of 59 the school year is designated. The employer shall notify the 60 division of the change in termination date and the additional 61 period of DROP participation for each affected member. For 62 instructional personnel and administrative personnel in grades 63 K-12, as defined in s. 1012.01(2)(a)-(d) and (3), respectively, 64 who enter DROP on or after July 1, 2017, the member’s 65 termination date shall be the last day of the last calendar 66 month of the school year in which his or her termination date 67 would otherwise occur in accordance with the limitations on the 68 length of participation established in this subsection. 69 2. Upon deciding to participate in DROP, the member shall 70 submit, on forms required by the division: 71 a. A written election to participate in DROP; 72 b. Selection of DROP participation and termination dates 73 that satisfy the limitations stated in paragraph (a) and 74 subparagraph 1. The termination date must be in a binding letter 75 of resignation to the employer establishing a deferred 76 termination date. The member may change the termination date 77 within the limitations of subparagraph 1., but only with the 78 written approval of the employer; 79 c. A properly completed DROP application for service 80 retirement as provided in this section; and 81 d. Any other information required by the division. 82 3. The DROP participant is a retiree under the Florida 83 Retirement System for all purposes, except for paragraph (5)(f) 84 and subsection (9) and ss. 112.3173, 112.363, 121.053, and 85 121.122. DROP participation is final and may not be canceled by 86 the participant after the first payment is credited during the 87 DROP participation period. However, participation in DROP does 88 not alter the participant’s employment status, and the member is 89 not deemed retired from employment until his or her deferred 90 resignation is effective and termination occurs as defined in s. 91 121.021. 92 4. Elected officers are eligible to participate in DROP 93 subject to the following: 94 a. An elected officer who reaches normal retirement date 95 during a term of office may defer the election to participate 96 until the next succeeding term in that office. An elected 97 officer who exercises this option may participate in DROP for up 98 to 60 calendar months or no longer than the succeeding term of 99 office, whichever is less. 100 b. An elected or a nonelected participant may run for a 101 term of office while participating in DROP and, if elected, 102 extend the DROP termination date accordingly; however, if such 103 additional term of office exceeds the 60-month limitation 104 established in subparagraph 1., and the officer does not resign 105 from office within such 60-month limitation, the retirement and 106 the participant’s DROP is null and void as provided in sub 107 subparagraph (c)5.d. 108 c. An elected officer who is dually employed and elects to 109 participate in DROP must terminate all employment relationships 110 as provided in s. 121.021(39) for the nonelected position within 111 the original 60-month period or maximum participation period as 112 provided in subparagraph 1. For DROP participation ending: 113 (I) Before July 1, 2010, the officer may continue 114 employment as an elected officer as provided in s. 121.053. The 115 elected officer shall be enrolled as a renewed member in the 116 Elected Officers’ Class or the Regular Class, as provided in ss. 117 121.053 and 121.122, on the first day of the month after 118 termination of employment in the nonelected position and 119 termination of DROP. Distribution of the DROP benefits shall be 120 made as provided in paragraph (c). 121 (II) On or after July 1, 2010, the officer may continue 122 employment as an elected officer but must defer termination as 123 provided in s. 121.053. 124 Section 2. The Legislature finds that a proper and 125 legitimate state purpose is served when employees and retirees 126 of the state and its political subdivisions, and the dependents, 127 survivors, and beneficiaries of such employees and retirees, are 128 extended the basic protections afforded by governmental 129 retirement systems. These persons must be provided benefits that 130 are fair and adequate and that are managed, administered, and 131 funded in an actuarially sound manner, as required by s. 14, 132 Article X of the State Constitution and part VII of chapter 112, 133 Florida Statutes. Therefore, the Legislature determines and 134 declares that this act fulfills an important state interest. 135 Section 3. This act shall take effect July 1, 2017. 136 137 ================= T I T L E A M E N D M E N T ================ 138 And the title is amended as follows: 139 Delete everything before the enacting clause 140 and insert: 141 A bill to be entitled 142 An act relating to retirement of instructional 143 personnel and administrative personnel; amending s. 144 121.091, F.S.; revising limitations on the maximum 145 length of participation in the Deferred Retirement 146 Option Program for certain instructional personnel and 147 administrative personnel; requiring an employer to 148 notify the Division of Retirement of the Department of 149 Management Services regarding any change in 150 termination date and program participation for each 151 affected member; providing a statement of important 152 state interest; providing an effective date.