Florida Senate - 2018 CS for SB 1240
By the Committee on Governmental Oversight and Accountability;
and Senator Mayfield
585-02378-18 20181240c1
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.051,
3 F.S.; authorizing certain employees to elect to
4 participate in the Florida Retirement System during a
5 specified period; requiring membership in the system
6 under certain circumstances; amending s. 121.091,
7 F.S.; revising limitations on the maximum length of
8 participation in the Deferred Retirement Option
9 Program for certain instructional personnel and
10 administrative personnel; requiring an employer to
11 notify the Division of Retirement of the Department of
12 Management Services regarding any change in
13 termination date and program participation for each
14 affected member; providing a statement of important
15 state interest; providing effective dates.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Effective upon becoming a law, paragraph (d) of
20 subsection (1) of section 121.051, Florida Statutes, is amended,
21 and paragraph (e) is added to that subsection, to read:
22 121.051 Participation in the system.—
23 (1) COMPULSORY PARTICIPATION.—
24 (d) Beginning March 31, 2018, an employee of a dependent
25 special district or a not-for-profit corporation or association
26 created by the Board of County Commissioners of Escambia County
27 for the purpose of owning, operating, or managing a public bus
28 transit system, may elect to participate in the Florida
29 Retirement System by notifying his or her employer in writing on
30 or before August 31, 2018. Employees electing to participate
31 within the election period shall become members of the Florida
32 Retirement System, and the election is irrevocable. Such
33 employees who are hired on or after March 31, 2018, shall be
34 required to participate in the Florida Retirement System.
35 (e) The following persons are not eligible to participate
36 in the Florida Retirement System:
37 1. Employees of a not-for-profit corporation or association
38 created by the Board of County Commissioners of Palm Beach
39 County for the purpose of owning, operating, or managing a
40 public bus transit system formerly operated or managed by a
41 private corporation subject to 49 U.S.C. s. 5333(b).
42 2. Persons who perform services as a consultant or an
43 independent contractor, as defined by the division.
44 Section 2. Paragraph (b) of subsection (13) of section
45 121.091, Florida Statutes, is amended to read:
46 121.091 Benefits payable under the system.—Benefits may not
47 be paid under this section unless the member has terminated
48 employment as provided in s. 121.021(39)(a) or begun
49 participation in the Deferred Retirement Option Program as
50 provided in subsection (13), and a proper application has been
51 filed in the manner prescribed by the department. The department
52 may cancel an application for retirement benefits when the
53 member or beneficiary fails to timely provide the information
54 and documents required by this chapter and the department’s
55 rules. The department shall adopt rules establishing procedures
56 for application for retirement benefits and for the cancellation
57 of such application when the required information or documents
58 are not received.
59 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
60 subject to this section, the Deferred Retirement Option Program,
61 hereinafter referred to as DROP, is a program under which an
62 eligible member of the Florida Retirement System may elect to
63 participate, deferring receipt of retirement benefits while
64 continuing employment with his or her Florida Retirement System
65 employer. The deferred monthly benefits shall accrue in the
66 Florida Retirement System on behalf of the member, plus interest
67 compounded monthly, for the specified period of the DROP
68 participation, as provided in paragraph (c). Upon termination of
69 employment, the member shall receive the total DROP benefits and
70 begin to receive the previously determined normal retirement
71 benefits. Participation in the DROP does not guarantee
72 employment for the specified period of DROP. Participation in
73 DROP by an eligible member beyond the initial 60-month period as
74 authorized in this subsection shall be on an annual contractual
75 basis for all participants.
76 (b) Participation in DROP.—Except as provided in this
77 paragraph, an eligible member may elect to participate in DROP
78 for a period not to exceed a maximum of 60 calendar months.
79 1.a. An eligible member may elect to participate in DROP
80 for a period not to exceed a maximum of 60 calendar months.
81 However, members who are instructional personnel employed by the
82 Florida School for the Deaf and the Blind and authorized by the
83 Board of Trustees of the Florida School for the Deaf and the
84 Blind, who are instructional personnel as defined in s.
85 1012.01(2)(a)-(d) in grades K-12 and authorized by the district
86 school superintendent, or who are instructional personnel as
87 defined in s. 1012.01(2)(a) employed by a developmental research
88 school and authorized by the school’s director, or if the school
89 has no director, by the school’s principal, may participate in
90 DROP for up to 36 calendar months beyond the 60-month period.
91 Effective July 1, 2018, instructional personnel who are
92 authorized to extend DROP participation beyond the 60-month
93 period must have a termination date that is the last day of the
94 last calendar month of the school year within the DROP extension
95 granted by the employer. If, on July 1, 2018, the member’s DROP
96 participation has already been extended for the maximum 36
97 calendar months and the extension period concludes before the
98 end of the school year, the member’s DROP participation may be
99 extended through the last day of the last calendar month of that
100 school year. The employer shall notify the division of the
101 change in termination date and the additional period of DROP
102 participation for the affected instructional personnel.
103 b. Administrative personnel in grades K-12, as defined in
104 s. 1012.01(3), who have a DROP termination date on or after July
105 1, 2018, may be authorized to extend DROP participation beyond
106 the initial 60 calendar month period if the administrative
107 personnel’s termination date is before the end of the school
108 year. Such administrative personnel may have DROP participation
109 extended until the last day of the last calendar month of the
110 school year in which their original DROP termination date
111 occurred if a date other than the last day of the last calendar
112 month of the school year is designated. The employer shall
113 notify the division of the change in termination date and the
114 additional period of DROP participation for the affected
115 administrative personnel.
116 2. Upon deciding to participate in DROP, the member shall
117 submit, on forms required by the division:
118 a. A written election to participate in DROP;
119 b. Selection of DROP participation and termination dates
120 that satisfy the limitations stated in paragraph (a) and
121 subparagraph 1. The termination date must be in a binding letter
122 of resignation to the employer establishing a deferred
123 termination date. The member may change the termination date
124 within the limitations of subparagraph 1., but only with the
125 written approval of the employer;
126 c. A properly completed DROP application for service
127 retirement as provided in this section; and
128 d. Any other information required by the division.
129 3. The DROP participant is a retiree under the Florida
130 Retirement System for all purposes, except for paragraph (5)(f)
131 and subsection (9) and ss. 112.3173, 112.363, 121.053, and
132 121.122. DROP participation is final and may not be canceled by
133 the participant after the first payment is credited during the
134 DROP participation period. However, participation in DROP does
135 not alter the participant’s employment status, and the member is
136 not deemed retired from employment until his or her deferred
137 resignation is effective and termination occurs as defined in s.
138 121.021.
139 4. Elected officers are eligible to participate in DROP
140 subject to the following:
141 a. An elected officer who reaches normal retirement date
142 during a term of office may defer the election to participate
143 until the next succeeding term in that office. An elected
144 officer who exercises this option may participate in DROP for up
145 to 60 calendar months or no longer than the succeeding term of
146 office, whichever is less.
147 b. An elected or a nonelected participant may run for a
148 term of office while participating in DROP and, if elected,
149 extend the DROP termination date accordingly; however, if such
150 additional term of office exceeds the 60-month limitation
151 established in subparagraph 1., and the officer does not resign
152 from office within such 60-month limitation, the retirement and
153 the participant’s DROP is null and void as provided in sub
154 subparagraph (c)5.d.
155 c. An elected officer who is dually employed and elects to
156 participate in DROP must terminate all employment relationships
157 as provided in s. 121.021(39) for the nonelected position within
158 the original 60-month period or maximum participation period as
159 provided in subparagraph 1. For DROP participation ending:
160 (I) Before July 1, 2010, the officer may continue
161 employment as an elected officer as provided in s. 121.053. The
162 elected officer shall be enrolled as a renewed member in the
163 Elected Officers’ Class or the Regular Class, as provided in ss.
164 121.053 and 121.122, on the first day of the month after
165 termination of employment in the nonelected position and
166 termination of DROP. Distribution of the DROP benefits shall be
167 made as provided in paragraph (c).
168 (II) On or after July 1, 2010, the officer may continue
169 employment as an elected officer but must defer termination as
170 provided in s. 121.053.
171 Section 3. The Legislature finds that a proper and
172 legitimate state purpose is served when employees and retirees
173 of the state and its political subdivisions, and the dependents,
174 survivors, and beneficiaries of such employees and retirees, are
175 extended the basic protections afforded by governmental
176 retirement systems. These persons must be provided benefits that
177 are fair and adequate and that are managed, administered, and
178 funded in an actuarially sound manner, as required by s. 14,
179 Article X of the State Constitution and part VII of chapter 112,
180 Florida Statutes. Therefore, the Legislature determines and
181 declares that this act fulfills an important state interest.
182 Section 4. Except as otherwise expressly provided in this
183 act and except for this section, which shall take effect upon
184 this act becoming a law, this act shall take effect July 1,
185 2018.