CS for SB 7024                                   First Engrossed
       
       
       
       
       
       
       
       
       20237024e1
       
    1                        A bill to be entitled                      
    2         An act relating to retirement; amending s. 112.363,
    3         F.S.; providing that eligible retirees of the Florida
    4         Retirement System Pension Plan shall receive a certain
    5         monthly retiree health insurance subsidy payment
    6         beginning on a specified date; specifying how such
    7         payment is to be calculated; providing construction;
    8         providing that eligible members of the Florida
    9         Retirement System Investment Plan shall receive a
   10         certain monthly retiree health insurance subsidy
   11         payment; specifying how such payment is to be
   12         calculated; specifying that the member’s spouse at the
   13         time of the member’s death is the member’s
   14         beneficiary; providing an exception; requiring the
   15         employer of members of a state-administered retirement
   16         plan to contribute a certain percentage of gross
   17         compensation each pay period beginning on a specified
   18         date; amending s. 121.021, F.S.; revising the
   19         definition of the term “normal retirement date”;
   20         decreasing the age and years of service needed to
   21         reach the normal retirement date for certain members;
   22         amending s. 121.052, F.S.; revising the employer
   23         contribution rates for the retiree health insurance
   24         subsidy; amending s. 121.053, F.S.; providing that
   25         certain elected officers are ineligible to extend
   26         participation in the Deferred Retirement Option
   27         Program (DROP) beyond a specified period; conforming
   28         provisions to changes made by the act; amending ss.
   29         121.055 and 121.071, F.S.; revising the employer
   30         contribution rates for the retiree health insurance
   31         subsidy; amending s. 121.091, F.S.; revising when
   32         members can elect to begin to participate in DROP;
   33         increasing the length of time members can participate
   34         in DROP; revising the period for which certain members
   35         may elect to extend participation in DROP beyond the
   36         initial period; providing for the expiration of such
   37         extension; providing that certain elected officers are
   38         ineligible to extend DROP participation beyond the
   39         initial period; increasing the interest accrual rate
   40         for DROP, beginning on a specified date; conforming
   41         cross-references; conforming provisions to changes
   42         made by the act; amending s. 121.4501, F.S.;
   43         conforming provisions to changes made by the act;
   44         amending s. 121.71, F.S.; revising required employer
   45         retirement contribution rates for each membership
   46         class and subclass of the Florida Retirement System;
   47         amending s. 121.72, F.S.; increasing allocations to
   48         investment plan member accounts; amending s. 121.73,
   49         F.S.; increasing allocations to provide disability
   50         coverage for investment plan members; amending s.
   51         121.735, F.S.; revising allocations to provide line
   52         of-duty death benefits for investment plan members;
   53         providing a declaration of important state interest;
   54         providing effective dates.
   55          
   56  Be It Enacted by the Legislature of the State of Florida:
   57  
   58         Section 1. Paragraph (f) is added to subsection (3) of
   59  section 112.363, Florida Statutes, and paragraph (j) is added to
   60  subsection (8) of that section, to read:
   61         112.363 Retiree health insurance subsidy.—
   62         (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
   63         (f)1. Beginning July 1, 2023, each eligible retiree of the
   64  pension plan of the Florida Retirement System, or, if the
   65  retiree is deceased, his or her beneficiary who is receiving a
   66  monthly benefit from such retiree’s account and who is a spouse,
   67  or a person who meets the definition of joint annuitant in s.
   68  121.021(28), shall receive a monthly retiree health insurance
   69  subsidy payment equal to the number of years of creditable
   70  service, as defined in s. 121.021(17), completed at the time of
   71  retirement multiplied by $7.50; however, an eligible retiree or
   72  beneficiary may not receive a subsidy payment of more than $225
   73  or less than $45. If there are multiple beneficiaries, the total
   74  payment may not be greater than the payment to which the retiree
   75  was entitled. The health insurance subsidy amount payable to any
   76  person receiving the retiree health insurance subsidy payment on
   77  July 1, 2023, may not be reduced solely by operation of this
   78  subparagraph.
   79         2. Beginning July 1, 2023, each eligible member of the
   80  investment plan of the Florida Retirement System who has met the
   81  requirements of this section, or, if the member is deceased, his
   82  or her spouse who is the member’s designated beneficiary, shall
   83  receive a monthly retiree health insurance subsidy payment equal
   84  to the number of years of creditable service, as provided in
   85  this subparagraph, completed at the time of retirement
   86  multiplied by $7.50; however, an eligible retiree or beneficiary
   87  may not receive a subsidy payment of more than $225 or less than
   88  $45. For purposes of determining a member’s creditable service
   89  used to calculate the health insurance subsidy, a member’s years
   90  of service credit or fraction thereof must be based on the
   91  member’s work year as defined in s. 121.021(54). Credit must be
   92  awarded for a full work year if health insurance subsidy
   93  contributions have been made for each month in the member’s work
   94  year. In addition, all years of creditable service retained
   95  under the Florida Retirement System Pension Plan must be
   96  included as creditable service for purposes of this section.
   97  Notwithstanding this section, the spouse at the time of death is
   98  the member’s beneficiary unless such member has designated a
   99  different beneficiary subsequent to the member’s most recent
  100  marriage.
  101         (8) CONTRIBUTIONS.—For purposes of funding the insurance
  102  subsidy provided by this section:
  103         (j) Beginning July 1, 2023, the employer of each member of
  104  a state-administered retirement plan shall contribute 2.00
  105  percent of gross compensation each pay period.
  106  
  107  Such contributions shall be submitted to the Department of
  108  Management Services and deposited in the Retiree Health
  109  Insurance Subsidy Trust Fund.
  110         Section 2. Effective July 1, 2023, paragraph (b) of
  111  subsection (29) of section 121.021, Florida Statutes, is amended
  112  to read:
  113         121.021 Definitions.—The following words and phrases as
  114  used in this chapter have the respective meanings set forth
  115  unless a different meaning is plainly required by the context:
  116         (29) “Normal retirement date” means the date a member
  117  attains normal retirement age and is vested, which is determined
  118  as follows:
  119         (b) For If a Special Risk Class member initially enrolled:
  120         1. Before July 1, 2011:
  121         1.a. The first day of the month the member attains age 55
  122  and completes the years of creditable service in the Special
  123  Risk Class equal to or greater than the years of service
  124  required for vesting;
  125         2.b. The first day of the month following the date the
  126  member completes 25 years of creditable service in the Special
  127  Risk Class, regardless of age; or
  128         3.c. The first day of the month following the date the
  129  member completes 25 years of creditable service and attains age
  130  52, which service may include a maximum of 4 years of military
  131  service credit if such credit is not claimed under any other
  132  system and the remaining years are in the Special Risk Class.
  133         2. On or after July 1, 2011:
  134         a. The first day of the month the member attains age 60 and
  135  completes the years of creditable service in the Special Risk
  136  Class equal to or greater than the years of service required for
  137  vesting;
  138         b. The first day of the month following the date the member
  139  completes 30 years of creditable service in the Special Risk
  140  Class, regardless of age; or
  141         c. The first day of the month following the date the member
  142  completes 30 years of creditable service and attains age 57,
  143  which service may include a maximum of 4 years of military
  144  service credit if such credit is not claimed under any other
  145  system and the remaining years are in the Special Risk Class.
  146  
  147  For a pension plan member members, normal retirement age is
  148  attained on the normal retirement date. For an investment plan
  149  member members, normal retirement age is the date a member
  150  attains his or her normal retirement date as provided in this
  151  section, or the date a member is vested under the investment
  152  plan as provided in s. 121.4501(6), whichever is later.
  153         Section 3. Paragraph (d) of subsection (7) of section
  154  121.052, Florida Statutes, is amended to read:
  155         121.052 Membership class of elected officers.—
  156         (7) CONTRIBUTIONS.—
  157         (d) The following table states the required employer
  158  contribution on behalf of each member of the Elected Officers’
  159  Class in terms of a percentage of the member’s gross
  160  compensation. Such contribution constitutes the entire health
  161  insurance subsidy contribution with respect to each such member.
  162  A change in the contribution rate is effective with the first
  163  salary paid on or after the beginning date of the change. The
  164  retiree health insurance subsidy contribution rate is as
  165  follows:
  166  
  167  Dates of Contribution Rate Changes          ContributionRate           
  168  
  169  October 1, 1987, through December 31, 1988                0.24%                
  170  January 1, 1989, through December 31, 1993                0.48%                
  171  January 1, 1994, through December 31, 1994                0.56%                
  172  January 1, 1995, through June 30, 1998                0.66%                
  173  July 1, 1998, through June 30, 2001                0.94%                
  174  July 1, 2001, through June 30, 2013                1.11%                
  175  July 1, 2013, through June 30, 2014                1.20%                
  176  July 1, 2014, through June 30, 2015                1.26%                
  177  Effective July 1, 2015, through June 30, 2023                1.66%                
  178  Effective July 1, 2023                        2.00%                
  179  
  180  Such contributions and accompanying payroll data are due and
  181  payable no later than the 5th working day of the month
  182  immediately following the month during which the payroll period
  183  ended and shall be deposited by the administrator in the Retiree
  184  Health Insurance Subsidy Trust Fund.
  185         Section 4. Paragraph (a) of subsection (7) of section
  186  121.053, Florida Statutes, is amended, and paragraph (c) is
  187  added to subsection (3) of that section, to read:
  188         121.053 Participation in the Elected Officers’ Class for
  189  retired members.—
  190         (3) On or after July 1, 2010:
  191         (c)An elected officer who has deferred termination as
  192  provided in subsection (7) before July 1, 2023, is ineligible to
  193  extend his or her participation in the Deferred Retirement
  194  Option Program beyond the 60-month period.
  195         (7) A member who is elected or appointed to an elective
  196  office and who is participating in the Deferred Retirement
  197  Option Program is not subject to termination as defined in s.
  198  121.021, or reemployment limitations as provided in s.
  199  121.091(9), until the end of his or her current term of office
  200  or, if the officer is consecutively elected or reelected to an
  201  elective office eligible for coverage under the Florida
  202  Retirement System, until he or she no longer holds an elective
  203  office, as follows:
  204         (a) At the end of the member’s 60-month DROP period:
  205         1. The officer’s DROP account may not accrue additional
  206  monthly benefits, but does continue to earn interest as provided
  207  in s. 121.091(13). However, an officer whose DROP participation
  208  begins on or after July 1, 2010, may not continue to earn such
  209  interest.
  210         2. Retirement contributions, except for unfunded actuarial
  211  liability and health insurance subsidy contributions required in
  212  ss. 121.71(5) and 121.76, are not required of the employer of
  213  the elected officer, and additional retirement credit may not be
  214  earned under the Florida Retirement System.
  215         Section 5. Paragraph (d) of subsection (3) of section
  216  121.055, Florida Statutes, is amended to read:
  217         121.055 Senior Management Service Class.—There is hereby
  218  established a separate class of membership within the Florida
  219  Retirement System to be known as the “Senior Management Service
  220  Class,” which shall become effective February 1, 1987.
  221         (3)
  222         (d) The following table states the required employer
  223  contribution on behalf of each member of the Senior Management
  224  Service Class in terms of a percentage of the member’s gross
  225  compensation. Such contribution constitutes the entire health
  226  insurance subsidy contribution with respect to each such member.
  227  A change in the contribution rate is effective with the first
  228  salary paid on or after the beginning date of the change. The
  229  retiree health insurance subsidy contribution rate is as
  230  follows:
  231  
  232  Dates of Contribution Rate Changes          ContributionRate       
  233  
  234  October 1, 1987, through December 31, 1988            0.24%             
  235  January 1, 1989, through December 31, 1993            0.48%             
  236  January 1, 1994, through December 31, 1994            0.56%             
  237  January 1, 1995, through June 30, 1998            0.66%             
  238  July 1, 1998, through June 30, 2001              0.94%             
  239  July 1, 2001, through June 30, 2013              1.11%             
  240  July 1, 2013, through June 30, 2014              1.20%             
  241  July 1, 2014, through June 30, 2015              1.26%             
  242  Effective July 1, 2015, through June 30, 2023            1.66%             
  243  Effective July 1, 2023                           2.00%             
  244  
  245  Such contributions and accompanying payroll data are due and
  246  payable no later than the 5th working day of the month
  247  immediately following the month during which the payroll period
  248  ended and shall be deposited by the administrator in the Retiree
  249  Health Insurance Subsidy Trust Fund.
  250         Section 6. Subsection (4) of section 121.071, Florida
  251  Statutes, is amended to read:
  252         121.071 Contributions.—Contributions to the system shall be
  253  made as follows:
  254         (4) The following table states the required employer
  255  contribution on behalf of each member of the Regular Class,
  256  Special Risk Class, or Special Risk Administrative Support Class
  257  in terms of a percentage of the member’s gross compensation.
  258  Such contribution constitutes the entire health insurance
  259  subsidy contribution with respect to each such member. A change
  260  in the contribution rate is effective with the first salary paid
  261  on or after the beginning date of the change. The retiree health
  262  insurance subsidy contribution rate is as follows:
  263  
  264  Dates of Contribution Rate Changes          ContributionRate       
  265  
  266  October 1, 1987, through December 31, 1988            0.24%             
  267  January 1, 1989, through December 31, 1993            0.48%             
  268  January 1, 1994, through December 31, 1994            0.56%             
  269  January 1, 1995, through June 30, 1998            0.66%             
  270  July 1, 1998, through June 30, 2001              0.94%             
  271  July 1, 2001, through June 30, 2013              1.11%             
  272  July 1, 2013, through June 30, 2014              1.20%             
  273  July 1, 2014, through June 30, 2015              1.26%             
  274  Effective July 1, 2015, through June 30, 2023            1.66%             
  275  Effective July 1, 2023                           2.00%             
  276  
  277  Such contributions shall be deposited by the administrator in
  278  the Retiree Health Insurance Subsidy Trust Fund.
  279         Section 7. Effective July 1, 2023, paragraph (a) of
  280  subsection (3) of section 121.091, Florida Statutes, is amended
  281  to read:
  282         121.091 Benefits payable under the system.—Benefits may not
  283  be paid under this section unless the member has terminated
  284  employment as provided in s. 121.021(39)(a) or begun
  285  participation in the Deferred Retirement Option Program as
  286  provided in subsection (13), and a proper application has been
  287  filed in the manner prescribed by the department. The department
  288  may cancel an application for retirement benefits when the
  289  member or beneficiary fails to timely provide the information
  290  and documents required by this chapter and the department’s
  291  rules. The department shall adopt rules establishing procedures
  292  for application for retirement benefits and for the cancellation
  293  of such application when the required information or documents
  294  are not received.
  295         (3) EARLY RETIREMENT BENEFIT.—Upon retirement on his or her
  296  early retirement date, the member shall receive an immediate
  297  monthly benefit that shall begin to accrue on the first day of
  298  the month of the retirement date and be payable on the last day
  299  of that month and each month thereafter during his or her
  300  lifetime. Such benefit shall be calculated as follows:
  301         (a) For a member initially enrolled:
  302         1. Before July 1, 2011, the amount of each monthly payment
  303  shall be computed in the same manner as for a normal retirement
  304  benefit, in accordance with subsection (1), but shall be based
  305  on the member’s average monthly compensation and creditable
  306  service as of the member’s early retirement date. The benefit so
  307  computed shall be reduced by five-twelfths of 1 percent for each
  308  complete month by which the early retirement date precedes the
  309  normal retirement date of age 62 for a member of the Regular
  310  Class, Senior Management Service Class, or the Elected Officers’
  311  Class, and age 55 for a member of the Special Risk Class, or age
  312  52 if a Special Risk member has completed 25 years of creditable
  313  service in accordance with s. 121.021(29)(b)3. s.
  314  121.021(29)(b)1.c.
  315         2. On or after July 1, 2011, the amount of each monthly
  316  payment shall be computed in the same manner as for a normal
  317  retirement benefit, in accordance with subsection (1), but shall
  318  be based on the member’s average monthly compensation and
  319  creditable service as of the member’s early retirement date. The
  320  benefit so computed shall be reduced by five-twelfths of 1
  321  percent for each complete month by which the early retirement
  322  date precedes the normal retirement date of age 65 for a member
  323  of the Regular Class, Senior Management Service Class, or the
  324  Elected Officers’ Class, and age 55 60 for a member of the
  325  Special Risk Class, or age 52 57 if a special risk member has
  326  completed 25 30 years of creditable service in accordance with
  327  s. 121.091(29)(b)3. s. 121.021(29)(b)2.c.
  328         Section 8. Subsection (13) of section 121.091, Florida
  329  Statutes, is amended to read:
  330         121.091 Benefits payable under the system.—Benefits may not
  331  be paid under this section unless the member has terminated
  332  employment as provided in s. 121.021(39)(a) or begun
  333  participation in the Deferred Retirement Option Program as
  334  provided in subsection (13), and a proper application has been
  335  filed in the manner prescribed by the department. The department
  336  may cancel an application for retirement benefits when the
  337  member or beneficiary fails to timely provide the information
  338  and documents required by this chapter and the department’s
  339  rules. The department shall adopt rules establishing procedures
  340  for application for retirement benefits and for the cancellation
  341  of such application when the required information or documents
  342  are not received.
  343         (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
  344  subject to this section, the Deferred Retirement Option Program,
  345  hereinafter referred to as DROP, is a program under which an
  346  eligible member of the Florida Retirement System may elect to
  347  participate, deferring receipt of retirement benefits while
  348  continuing employment with his or her Florida Retirement System
  349  employer. The deferred monthly benefits shall accrue in the
  350  Florida Retirement System on behalf of the member, plus interest
  351  compounded monthly, for the specified period of the DROP
  352  participation, as provided in paragraph (c). Upon termination of
  353  employment, the member shall receive the total DROP benefits and
  354  begin to receive the previously determined normal retirement
  355  benefits. Participation in the DROP does not guarantee
  356  employment for the specified period of DROP. Participation in
  357  DROP by an eligible member beyond the initial 60-month period as
  358  authorized in this subsection shall be on an annual contractual
  359  basis for all participants.
  360         (a) Eligibility of member to participate in DROP.—All
  361  active Florida Retirement System members in a regularly
  362  established position, and all active members of the Teachers’
  363  Retirement System established in chapter 238 or the State and
  364  County Officers’ and Employees’ Retirement System established in
  365  chapter 122, which are consolidated within the Florida
  366  Retirement System under s. 121.011, are eligible to elect
  367  participation in DROP if:
  368         1. The member is not a renewed member under s. 121.122 or a
  369  member of the State Community College System Optional Retirement
  370  Program under s. 121.051, the Senior Management Service Optional
  371  Annuity Program under s. 121.055, or the optional retirement
  372  program for the State University System under s. 121.35.
  373         2. Except as provided in subparagraph 6., for members
  374  initially enrolled before July 1, 2011, Election to participate
  375  in DROP may be is made at any time within 12 months immediately
  376  following the date on which the member first reaches his or her
  377  normal retirement date, or, for a member who reaches normal
  378  retirement date based on service before he or she reaches age
  379  62, or age 55 for Special Risk Class members, election to
  380  participate may be deferred to the 12 months immediately
  381  following the date the member attains age 57, or age 52 for
  382  Special Risk Class members. Except as provided in subparagraph
  383  6., for members initially enrolled on or after July 1, 2011,
  384  election to participate is made within 12 months immediately
  385  following the date on which the member first reaches normal
  386  retirement date, or, for a member who reaches normal retirement
  387  date based on service before he or she reaches age 65, or age 60
  388  for Special Risk Class members, election to participate may be
  389  deferred to the 12 months immediately following the date the
  390  member attains age 60, or age 55 for Special Risk Class members.
  391  A member who delays DROP participation during the 12-month
  392  period immediately following his or her maximum DROP deferral
  393  date, except as provided in subparagraph 6., loses a month of
  394  DROP participation for each month delayed. A member who fails to
  395  make an election within the 12-month limitation period forfeits
  396  all rights to participate in DROP. The member shall advise his
  397  or her employer and the division in writing of the date DROP
  398  begins. The beginning date may be subsequent to the 12-month
  399  election period but must be within the original 60-month
  400  participation period provided in subparagraph (b)1. When
  401  establishing eligibility to participate in DROP, the member may
  402  elect to include or exclude any optional service credit
  403  purchased by the member from the total service used to establish
  404  the normal retirement date. A member who has dual normal
  405  retirement dates is eligible to elect to participate in DROP
  406  after attaining normal retirement date in either class.
  407         3. The employer of a member electing to participate in
  408  DROP, or employers if dually employed, shall acknowledge in
  409  writing to the division the date the member’s participation in
  410  DROP begins and the date the member’s employment and DROP
  411  participation terminates.
  412         4. Simultaneous employment of a member by additional
  413  Florida Retirement System employers subsequent to the
  414  commencement of a member’s participation in DROP is permissible
  415  if such employers acknowledge in writing a DROP termination date
  416  no later than the member’s existing termination date or the
  417  maximum participation period provided in paragraph (b)
  418  subparagraph (b)1.
  419         5. A member may change employers while participating in
  420  DROP, subject to the following:
  421         a. A change of employment takes place without a break in
  422  service so that the member receives salary for each month of
  423  continuous DROP participation. If a member receives no salary
  424  during a month, DROP participation ceases unless the employer
  425  verifies a continuation of the employment relationship for such
  426  member pursuant to s. 121.021(39)(b).
  427         b. The member and new employer notify the division of the
  428  identity of the new employer on forms required by the division.
  429         c. The new employer acknowledges, in writing, the member’s
  430  DROP termination date, which may be extended but not beyond the
  431  maximum participation period provided in paragraph (b)
  432  subparagraph (b)1., acknowledges liability for any additional
  433  retirement contributions and interest required if the member
  434  fails to timely terminate employment, and is subject to the
  435  adjustment required in sub-subparagraph (c)5.d.
  436         6. Effective July 1, 2001, for instructional personnel as
  437  defined in s. 1012.01(2), election to participate in DROP may be
  438  made at any time following the date on which the member first
  439  reaches normal retirement date. The member shall advise his or
  440  her employer and the division in writing of the date on which
  441  DROP begins. When establishing eligibility of the member to
  442  participate in DROP for the 60-month participation period
  443  provided in subparagraph (b)1., the member may elect to include
  444  or exclude any optional service credit purchased by the member
  445  from the total service used to establish the normal retirement
  446  date. A member who has dual normal retirement dates is eligible
  447  to elect to participate in either class.
  448         (b) Participation in DROP.—Except as provided in this
  449  paragraph, an eligible member may elect to participate in DROP
  450  for a period not to exceed a maximum of 96 60 calendar months.
  451         1.a. Members who are instructional personnel employed by
  452  the Florida School for the Deaf and the Blind and authorized by
  453  the Board of Trustees of the Florida School for the Deaf and the
  454  Blind, who are instructional personnel as defined in s.
  455  1012.01(2)(a)-(d) in grades K-12 and authorized by the district
  456  school superintendent, or who are instructional personnel as
  457  defined in s. 1012.01(2)(a) employed by a developmental research
  458  school and authorized by the school’s director, or if the school
  459  has no director, by the school’s principal, may:
  460         (I)Extend DROP participation beyond the initial 96
  461  calendar-month period if the instructional personnel’s
  462  termination date is before the end of the school year. Such
  463  instructional personnel may have DROP participation extended
  464  until the last day of the last calendar month of the school year
  465  in which their original DROP termination date occurred if a date
  466  other than the last day of the last calendar month of the school
  467  year is designated.
  468         (II) Participate in DROP for up to 24 36 calendar months
  469  beyond the 96-month 60-month period. Effective July 1, 2018,
  470  Instructional personnel who are authorized to extend DROP
  471  participation beyond the 96-month 60-month period must have a
  472  termination date that is the last day of the last calendar month
  473  of the school year within the DROP extension granted by the
  474  employer. If, on July 1, 2018, the member’s DROP participation
  475  has already been extended for the maximum 24 36 calendar months
  476  and the extension period concludes before the end of the school
  477  year, the member’s DROP participation may be extended through
  478  the last day of the last calendar month of that school year.
  479  This sub-sub-subparagraph expires June 30, 2029.
  480  
  481  The employer shall notify the division of the change in
  482  termination date and the additional period of DROP participation
  483  for the affected instructional personnel.
  484         b. Administrative personnel in grades K-12, as defined in
  485  s. 1012.01(3), who have a DROP termination date on or after July
  486  1, 2018, may be authorized to extend DROP participation beyond
  487  the initial 96 60 calendar month period if the administrative
  488  personnel’s termination date is before the end of the school
  489  year. Such administrative personnel may have DROP participation
  490  extended until the last day of the last calendar month of the
  491  school year in which their original DROP termination date
  492  occurred if a date other than the last day of the last calendar
  493  month of the school year is designated. The employer shall
  494  notify the division of the change in termination date and the
  495  additional period of DROP participation for the affected
  496  administrative personnel.
  497         c. Effective July 1, 2022, a member of the Special Risk
  498  Class who is a law enforcement officer who meets the criteria in
  499  s. 121.0515(3)(a) and who is a DROP participant on or after July
  500  1, 2022, may participate in DROP for up to 36 calendar months
  501  beyond the 60-month period if he or she enters DROP on or before
  502  June 30, 2028.
  503         2. Upon deciding to participate in DROP, the member shall
  504  submit, on forms required by the division:
  505         a. A written election to participate in DROP;
  506         b. Selection of DROP participation and termination dates
  507  that satisfy the limitations stated in paragraph (a) and this
  508  paragraph subparagraph 1. The termination date must be in a
  509  binding letter of resignation to the employer establishing a
  510  deferred termination date. The member may change the termination
  511  date within the limitations of this paragraph subparagraph 1.,
  512  but only with the written approval of the employer;
  513         c. A properly completed DROP application for service
  514  retirement as provided in this section; and
  515         d. Any other information required by the division.
  516         3. The DROP participant is a retiree under the Florida
  517  Retirement System for all purposes, except for paragraph (5)(f)
  518  and subsection (9) and ss. 112.3173, 112.363, 121.053, and
  519  121.122. DROP participation is final and may not be canceled by
  520  the participant after the first payment is credited during the
  521  DROP participation period. However, participation in DROP does
  522  not alter the participant’s employment status, and the member is
  523  not deemed retired from employment until his or her deferred
  524  resignation is effective and termination occurs as defined in s.
  525  121.021.
  526         4. Elected officers are eligible to participate in DROP
  527  subject to the following:
  528         a. An elected officer who reaches normal retirement date
  529  during a term of office may defer the election to participate
  530  until the next succeeding term in that office. An elected
  531  officer who exercises this option may participate in DROP for up
  532  to 96 60 calendar months or no longer than the succeeding term
  533  of office, whichever is less.
  534         b. An elected or a nonelected participant may run for a
  535  term of office while participating in DROP and, if elected,
  536  extend the DROP termination date accordingly; however, if such
  537  additional term of office exceeds the 96-month 60-month
  538  limitation established in this paragraph subparagraph 1., and
  539  the officer does not resign from office within such 60-month
  540  limitation, the retirement and the participant’s DROP is null
  541  and void as provided in sub-subparagraph (c)5.d.
  542         c. An elected officer who is dually employed and elects to
  543  participate in DROP must terminate all employment relationships
  544  as provided in s. 121.021(39) for the nonelected position within
  545  the original 60-month period or maximum participation period as
  546  provided in this paragraph subparagraph 1. For DROP
  547  participation ending:
  548         (I) Before July 1, 2010, the officer may continue
  549  employment as an elected officer as provided in s. 121.053. The
  550  elected officer shall be enrolled as a renewed member in the
  551  Elected Officers’ Class or the Regular Class, as provided in ss.
  552  121.053 and 121.122, on the first day of the month after
  553  termination of employment in the nonelected position and
  554  termination of DROP. Distribution of the DROP benefits shall be
  555  made as provided in paragraph (c).
  556         (II) On or after July 1, 2010, the officer may continue
  557  employment as an elected officer but must defer termination as
  558  provided in s. 121.053.
  559         d.An elected officer who has deferred termination as
  560  provided in s. 121.053 before June 30, 2023, is ineligible to
  561  extend DROP participation beyond 60 months.
  562         (c) Benefits payable under DROP.—
  563         1. Effective on the date of DROP participation, the
  564  member’s initial normal monthly benefit, including creditable
  565  service, optional form of payment, and average final
  566  compensation, and the effective date of retirement are fixed.
  567  The beneficiary established under the Florida Retirement System
  568  is the beneficiary eligible to receive any DROP benefits payable
  569  if the DROP participant dies before completing the period of
  570  DROP participation. If a joint annuitant predeceases the member,
  571  the member may name a beneficiary to receive accumulated DROP
  572  benefits payable. The retirement benefit, the annual cost of
  573  living adjustments provided in s. 121.101, and interest accrue
  574  monthly in the Florida Retirement System Trust Fund. For members
  575  whose DROP participation begins:
  576         a. Before July 1, 2011, the interest accrues at an
  577  effective annual rate of 6.5 percent compounded monthly, on the
  578  prior month’s accumulated ending balance, up to the month of
  579  termination or death, except as provided in s. 121.053(7).
  580         b. On or after July 1, 2011, the interest accrues:
  581         (I)Through June 30, 2023, at an effective annual rate of
  582  1.3 percent, compounded monthly, on the prior month’s
  583  accumulated ending balance, up to the month of termination or
  584  death, except as provided in s. 121.053(7).
  585         (II)Beginning July 1, 2023, at an effective annual rate of
  586  4 percent, compounded monthly, on the prior month’s accumulated
  587  ending balance, up to the month of termination or death, except
  588  as provided in s. 121.053(7).
  589         2. Each employee who elects to participate in DROP may
  590  elect to receive a lump-sum payment for accrued annual leave
  591  earned in accordance with agency policy upon beginning
  592  participation in DROP. The accumulated leave payment certified
  593  to the division upon commencement of DROP shall be included in
  594  the calculation of the member’s average final compensation. The
  595  employee electing the lump-sum payment is not eligible to
  596  receive a second lump-sum payment upon termination, except to
  597  the extent the employee has earned additional annual leave
  598  which, combined with the original payment, does not exceed the
  599  maximum lump-sum payment allowed by the employing agency’s
  600  policy or rules. An early lump-sum payment shall be based on the
  601  hourly wage of the employee at the time he or she begins
  602  participation in DROP. If the member elects to wait and receive
  603  a lump-sum payment upon termination of DROP and termination of
  604  employment with the employer, any accumulated leave payment made
  605  at that time may not be included in the member’s retirement
  606  benefit, which was determined and fixed by law when the employee
  607  elected to participate in DROP.
  608         3. The effective date of DROP participation and the
  609  effective date of retirement of a DROP participant shall be the
  610  first day of the month selected by the member to begin
  611  participation in DROP, provided such date is properly
  612  established, with the written confirmation of the employer, and
  613  the approval of the division, on forms required by the division.
  614         4. Normal retirement benefits and any interest continue to
  615  accrue in DROP until the established termination date of DROP or
  616  until the member terminates employment or dies before such date,
  617  except as provided in s. 121.053(7). Although individual DROP
  618  accounts may not be established, a separate accounting of each
  619  member’s accrued benefits under DROP shall be calculated and
  620  provided to the member.
  621         5. At the conclusion of the member’s participation in DROP,
  622  the division shall distribute the member’s total accumulated
  623  DROP benefits, subject to the following:
  624         a. The division shall receive verification by the member’s
  625  employer or employers that the member has terminated all
  626  employment relationships as provided in s. 121.021(39).
  627         b. The terminated DROP participant or, if deceased, the
  628  member’s named beneficiary, shall elect on forms provided by the
  629  division to receive payment of the DROP benefits in accordance
  630  with one of the options listed below. If a member or beneficiary
  631  fails to elect a method of payment within 60 days after
  632  termination of DROP, the division shall pay a lump sum as
  633  provided in sub-sub-subparagraph (I).
  634         (I) Lump sum.—All accrued DROP benefits, plus interest,
  635  less withholding taxes remitted to the Internal Revenue Service,
  636  shall be paid to the DROP participant or surviving beneficiary.
  637         (II) Direct rollover.—All accrued DROP benefits, plus
  638  interest, shall be paid from DROP directly to the custodian of
  639  an eligible retirement plan as defined in s. 402(c)(8)(B) of the
  640  Internal Revenue Code. However, in the case of an eligible
  641  rollover distribution to the surviving spouse of a deceased
  642  member, an eligible retirement plan is an individual retirement
  643  account or an individual retirement annuity as described in s.
  644  402(c)(9) of the Internal Revenue Code.
  645         (III) Partial lump sum.—A portion of the accrued DROP
  646  benefits shall be paid to DROP participant or surviving spouse,
  647  less withholding taxes remitted to the Internal Revenue Service,
  648  and the remaining DROP benefits must be transferred directly to
  649  the custodian of an eligible retirement plan as defined in s.
  650  402(c)(8)(B) of the Internal Revenue Code. However, in the case
  651  of an eligible rollover distribution to the surviving spouse of
  652  a deceased member, an eligible retirement plan is an individual
  653  retirement account or an individual retirement annuity as
  654  described in s. 402(c)(9) of the Internal Revenue Code. The
  655  proportions must be specified by the DROP participant or
  656  surviving beneficiary.
  657         c. The form of payment selected by the DROP participant or
  658  surviving beneficiary must comply with the minimum distribution
  659  requirements of the Internal Revenue Code.
  660         d. A DROP participant who fails to terminate all employment
  661  relationships as provided in s. 121.021(39) shall be deemed as
  662  not retired, and the DROP election is null and void. Florida
  663  Retirement System membership shall be reestablished
  664  retroactively to the date of the commencement of DROP, and each
  665  employer with whom the member continues employment must pay to
  666  the Florida Retirement System Trust Fund the difference between
  667  the DROP contributions paid in paragraph (i) and the
  668  contributions required for the applicable Florida Retirement
  669  System class of membership during the period the member
  670  participated in DROP, plus 6.5 percent interest compounded
  671  annually.
  672         6. The retirement benefits of any DROP participant who
  673  terminates all employment relationships as provided in s.
  674  121.021(39) but is reemployed in violation of the reemployment
  675  provisions of subsection (9) are suspended during those months
  676  in which the retiree is in violation. Any retiree in violation
  677  of this subparagraph and any employer that employs or appoints
  678  such person without notifying the division to suspend retirement
  679  benefits are jointly and severally liable for any benefits paid
  680  during the reemployment limitation period. The employer must
  681  have a written statement from the retiree that he or she is not
  682  retired from a state-administered retirement system. Any
  683  retirement benefits received by a retiree while employed in
  684  violation of the reemployment limitations must be repaid to the
  685  Florida Retirement System Trust Fund, and his or her retirement
  686  benefits shall remain suspended until payment is made. Benefits
  687  suspended beyond the end of the reemployment limitation period
  688  apply toward repayment of benefits received in violation of the
  689  reemployment limitation.
  690         7. The accrued benefits of any DROP participant, and any
  691  contributions accumulated under the program, are not subject to
  692  assignment, execution, attachment, or any legal process except
  693  for qualified domestic relations court orders, income deduction
  694  orders as provided in s. 61.1301, and federal income tax levies.
  695         8. DROP participants are not eligible for disability
  696  retirement benefits as provided in subsection (4).
  697         (d) Death benefits under DROP.—
  698         1. Upon the death of a DROP participant, the named
  699  beneficiary is entitled to apply for and receive the accrued
  700  benefits in DROP as provided in sub-subparagraph (c)5.b.
  701         2. The normal retirement benefit accrued to DROP during the
  702  month of a participant’s death is the final monthly benefit
  703  credited for such DROP participant.
  704         3. Eligibility to participate in DROP terminates upon death
  705  of the participant. If the participant dies on or after the
  706  effective date of enrollment in DROP, but before the first
  707  monthly benefit is credited to DROP, Florida Retirement System
  708  benefits are paid in accordance with subparagraph (7)(c)1. or
  709  subparagraph 2.
  710         4. A DROP participant’s survivors are not eligible to
  711  receive Florida Retirement System death benefits as provided in
  712  paragraph (7)(d).
  713         (e) Cost-of-living adjustment.—On each July 1, the
  714  participant’s normal retirement benefit shall be increased as
  715  provided in s. 121.101.
  716         (f) Retiree health insurance subsidy.—DROP participants are
  717  not eligible to apply for the retiree health insurance subsidy
  718  payments as provided in s. 112.363 until such participants have
  719  terminated employment and participation in DROP.
  720         (g) Renewed membership.—DROP participants are not eligible
  721  for renewed membership in the Florida Retirement System under
  722  ss. 121.053 and 121.122 until all employment relationships are
  723  terminated as provided in s. 121.021(39).
  724         (h) Employment limitation after DROP participation.—Upon
  725  termination as defined in s. 121.021, DROP participants are
  726  subject to the same reemployment limitations as other retirees.
  727  Reemployment restrictions applicable to retirees as provided in
  728  subsection (9) do not apply to DROP participants until their
  729  employment and participation in DROP are terminated.
  730         (i) Contributions.—
  731         1. All employers paying the salary of a DROP participant
  732  filling a regularly established position shall contribute 8.0
  733  percent of such participant’s gross compensation for the period
  734  of July 1, 2002, through June 30, 2003, and the percentage of
  735  such compensation required by s. 121.71 thereafter, which shall
  736  constitute the entire employer DROP contribution with respect to
  737  such participant. Such contributions, payable to the Florida
  738  Retirement System Trust Fund in the same manner as required in
  739  s. 121.071, must be made as appropriate for each pay period and
  740  are in addition to contributions required for social security
  741  and the Retiree Health Insurance Subsidy Trust Fund. Such
  742  employer, social security, and health insurance subsidy
  743  contributions are not included in DROP.
  744         2. The employer shall, in addition to subparagraph 1., also
  745  withhold one-half of the entire social security contribution
  746  required for the participant. Contributions for social security
  747  by each participant and each employer, in the amount required
  748  for social security coverage as provided by the federal Social
  749  Security Act, are in addition to contributions specified in
  750  subparagraph 1.
  751         3. All employers paying the salary of a DROP participant
  752  filling a regularly established position shall contribute the
  753  percent of such participant’s gross compensation required in s.
  754  121.071(4), which constitutes the employer’s health insurance
  755  subsidy contribution with respect to such participant. Such
  756  contributions must be deposited by the administrator in the
  757  Retiree Health Insurance Subsidy Trust Fund.
  758         (j) Forfeiture of retirement benefits.—This section does
  759  not remove DROP participants from the scope of s. 8(d), Art. II
  760  of the State Constitution, s. 112.3173, and paragraph (5)(f).
  761  DROP participants who commit a specified felony offense while
  762  employed are subject to forfeiture of all retirement benefits,
  763  including DROP benefits, pursuant to those provisions of law.
  764         (k) Administration of program.—The division shall adopt
  765  rules as necessary for the effective and efficient
  766  administration of this subsection. The division is not required
  767  to advise members of the federal tax consequences of an election
  768  related to the DROP but may advise members to seek independent
  769  advice.
  770         Section 9. Effective July 1, 2023, subsection (3) of
  771  section 121.4501, Florida Statutes, is amended to read:
  772         121.4501 Florida Retirement System Investment Plan.—
  773         (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
  774         (a) An eligible employee who is employed in a regularly
  775  established position by a state employer on June 1, 2002; by a
  776  district school board employer on September 1, 2002; or by a
  777  local employer on December 1, 2002, and who is a member of the
  778  pension plan at the time of his or her election to participate
  779  in the investment plan shall retain all retirement service
  780  credit earned under the pension plan as credited under the
  781  system and is entitled to a deferred benefit upon termination.
  782  However, election to enroll in the investment plan terminates
  783  the active membership of the employee in the pension plan, and
  784  the service of a member in the investment plan is not creditable
  785  under the pension plan for purposes of benefit accrual but is
  786  creditable for purposes of vesting.
  787         (b) Notwithstanding paragraph (a), an eligible employee who
  788  elects to participate in, or who defaults into, the investment
  789  plan and establishes one or more individual member accounts may
  790  elect to transfer to the investment plan a sum representing the
  791  present value of the employee’s accumulated benefit obligation
  792  under the pension plan, except as provided in paragraph (4)(b).
  793  Upon transfer, all service credit earned under the pension plan
  794  is nullified for purposes of entitlement to a future benefit
  795  under the pension plan. A member may not transfer the
  796  accumulated benefit obligation balance from the pension plan
  797  after the time period for enrolling in the investment plan has
  798  expired.
  799         1. For purposes of this subsection, the present value of
  800  the member’s accumulated benefit obligation is based upon the
  801  member’s estimated creditable service and estimated average
  802  final compensation under the pension plan, subject to
  803  recomputation under subparagraph 2. For state employees, initial
  804  estimates shall be based upon creditable service and average
  805  final compensation as of midnight on June 30, 2002; for district
  806  school board employees, initial estimates shall be based upon
  807  creditable service and average final compensation as of midnight
  808  on September 30, 2002; and for local government employees,
  809  initial estimates shall be based upon creditable service and
  810  average final compensation as of midnight on December 31, 2002.
  811  The dates specified are the “estimate date” for these employees.
  812  The actuarial present value of the employee’s accumulated
  813  benefit obligation shall be based on the following:
  814         a. The discount rate and other relevant actuarial
  815  assumptions used to value the Florida Retirement System Trust
  816  Fund at the time the amount to be transferred is determined,
  817  consistent with the factors provided in sub-subparagraphs b. and
  818  c.
  819         b. A benefit commencement age, based on the member’s
  820  estimated creditable service as of the estimate date.
  821         c. Except as provided under sub-subparagraph d., for a
  822  member initially enrolled:
  823         (I) Before July 1, 2011, the benefit commencement age is
  824  the younger of the following, but may not be younger than the
  825  member’s age as of the estimate date:
  826         (A) Age 62; or
  827         (B) The age the member would attain if the member completed
  828  30 years of service with an employer, assuming the member worked
  829  continuously from the estimate date, and disregarding any
  830  vesting requirement that would otherwise apply under the pension
  831  plan.
  832         (II) On or after July 1, 2011, the benefit commencement age
  833  is the younger of the following, but may not be younger than the
  834  member’s age as of the estimate date:
  835         (A) Age 65; or
  836         (B) The age the member would attain if the member completed
  837  33 years of service with an employer, assuming the member worked
  838  continuously from the estimate date, and disregarding any
  839  vesting requirement that would otherwise apply under the pension
  840  plan.
  841         d. For members of the Special Risk Class and for members of
  842  the Special Risk Administrative Support Class entitled to retain
  843  the special risk normal retirement date:
  844         (I) Initially enrolled before July 1, 2011, the benefit
  845  commencement age is the younger of the following, but may not be
  846  younger than the member’s age as of the estimate date:
  847         (I)(A) Age 55; or
  848         (II)(B) The age the member would attain if the member
  849  completed 25 years of service with an employer, assuming the
  850  member worked continuously from the estimate date, and
  851  disregarding any vesting requirement that would otherwise apply
  852  under the pension plan.
  853         (II) Initially enrolled on or after July 1, 2011, the
  854  benefit commencement age is the younger of the following, but
  855  may not be younger than the member’s age as of the estimate
  856  date:
  857         (A) Age 60; or
  858         (B) The age the member would attain if the member completed
  859  30 years of service with an employer, assuming the member worked
  860  continuously from the estimate date, and disregarding any
  861  vesting requirement that would otherwise apply under the pension
  862  plan.
  863         e. The calculation must disregard vesting requirements and
  864  early retirement reduction factors that would otherwise apply
  865  under the pension plan.
  866         2. For each member who elects to transfer moneys from the
  867  pension plan to his or her account in the investment plan, the
  868  division shall recompute the amount transferred under
  869  subparagraph 1. within 60 days after the actual transfer of
  870  funds based upon the member’s actual creditable service and
  871  actual final average compensation as of the initial date of
  872  participation in the investment plan. If the recomputed amount
  873  differs from the amount transferred by $10 or more, the division
  874  shall:
  875         a. Transfer, or cause to be transferred, from the Florida
  876  Retirement System Trust Fund to the member’s account the excess,
  877  if any, of the recomputed amount over the previously transferred
  878  amount together with interest from the initial date of transfer
  879  to the date of transfer under this subparagraph, based upon the
  880  effective annual interest equal to the assumed return on the
  881  actuarial investment which was used in the most recent actuarial
  882  valuation of the system, compounded annually.
  883         b. Transfer, or cause to be transferred, from the member’s
  884  account to the Florida Retirement System Trust Fund the excess,
  885  if any, of the previously transferred amount over the recomputed
  886  amount, together with interest from the initial date of transfer
  887  to the date of transfer under this subparagraph, based upon 6
  888  percent effective annual interest, compounded annually, pro rata
  889  based on the member’s allocation plan.
  890         3. If contribution adjustments are made as a result of
  891  employer errors or corrections, including plan corrections,
  892  following recomputation of the amount transferred under
  893  subparagraph 1., the member is entitled to the additional
  894  contributions or is responsible for returning any excess
  895  contributions resulting from the correction. However, a return
  896  of such erroneous excess pretax contribution by the plan must be
  897  made within the period allowed by the Internal Revenue Service.
  898  The present value of the member’s accumulated benefit obligation
  899  may not be recalculated.
  900         4. As directed by the member, the state board shall
  901  transfer or cause to be transferred the appropriate amounts to
  902  the designated accounts within 30 days after the effective date
  903  of the member’s participation in the investment plan unless the
  904  major financial markets for securities available for a transfer
  905  are seriously disrupted by an unforeseen event that causes the
  906  suspension of trading on a national securities exchange in the
  907  country where the securities were issued. In that event, the 30
  908  day period may be extended by a resolution of the state board.
  909  Transfers are not commissionable or subject to other fees and
  910  may be in the form of securities or cash, as determined by the
  911  state board. Such securities are valued as of the date of
  912  receipt in the member’s account.
  913         5. If the state board or the division receives notification
  914  from the United States Internal Revenue Service that this
  915  paragraph or any portion of this paragraph will cause the
  916  retirement system, or a portion thereof, to be disqualified for
  917  tax purposes under the Internal Revenue Code, the portion that
  918  will cause the disqualification does not apply. Upon such
  919  notice, the state board and the division shall notify the
  920  presiding officers of the Legislature.
  921         Section 10. Effective July 1, 2023, subsections (4) and (5)
  922  of section 121.71, Florida Statutes, are amended to read:
  923         121.71 Uniform rates; process; calculations; levy.—
  924         (4) Required employer retirement contribution rates for
  925  each membership class and subclass of the Florida Retirement
  926  System for both retirement plans are as follows:
  927  
  928  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022
  929  
  930  Regular Class                             6.73% 5.96%              
  931  Special Risk Class                       18.66% 16.44%             
  932  Special Risk Administrative Support Class             11.54% 10.77%             
  933  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             10.45% 9.31%              
  934  Elected Officers’ Class— Justices, Judges             14.90% 14.41%             
  935  Elected Officers’ Class— County Elected Officers             12.39% 11.30%             
  936  Senior Management Service Class              8.56% 7.70%              
  937  DROP                                      8.49% 7.79%              
  938  
  939         (5) In order to address unfunded actuarial liabilities of
  940  the system, the required employer retirement contribution rates
  941  for each membership class and subclass of the Florida Retirement
  942  System for both retirement plans are as follows:
  943  
  944  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022
  945  
  946  Regular Class                             4.78% 4.23%              
  947  Special Risk Class                       11.95% 9.67%              
  948  Special Risk Administrative Support Class             26.22% 26.16%             
  949  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             50.21% 56.76%             
  950  Elected Officers’ Class— Justices, Judges             27.93% 27.64%             
  951  Elected Officers’ Class— County Elected Officers             44.23% 43.98%             
  952  Senior Management Service Class             23.90% 22.15%             
  953  DROP                                     10.64% 9.15%              
  954  
  955         Section 11. Effective July 1, 2023, subsection (6) of
  956  section 121.72, Florida Statutes, is amended, and subsection (7)
  957  is added to that section, to read:
  958         121.72 Allocations to investment plan member accounts;
  959  percentage amounts.—
  960         (6) Effective July 1, 2022, through June 30, 2023,
  961  allocations from the Florida Retirement System Contributions
  962  Clearing Trust Fund to investment plan member accounts are as
  963  follows:
  964  
  965  
  966  Membership Class                  Percentage of Gross Compensation 
  967  
  968  Regular Class                                  9.30%               
  969  Special Risk Class                             17.00%              
  970  Special Risk Administrative Support Class              10.95%              
  971  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              12.38%              
  972  Elected Officers’ Class— Justices, Judges              16.23%              
  973  Elected Officers’ Class— County Elected Officers              14.34%              
  974  Senior Management Service Class                10.67%              
  975  
  976         (7) Effective July 1, 2023, allocations from the Florida
  977  Retirement System Contributions Clearing Trust Fund to
  978  investment plan member accounts are as follows:
  979  
  980  
  981  Membership Class                  Percentage of Gross Compensation 
  982  
  983  Regular Class                                  11.30%              
  984  Special Risk Class                             19.00%              
  985  Special Risk Administrative Support Class              12.95%              
  986  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              14.38%              
  987  Elected Officers’ Class— Justices, Judges              18.23%              
  988  Elected Officers’ Class— County Elected Officers              16.34%              
  989  Senior Management Service Class                12.67%              
  990  
  991         Section 12. Effective July 1, 2023, section 121.73, Florida
  992  Statutes, is amended to read:
  993         121.73 Allocations for member disability coverage;
  994  percentage amounts.—
  995         (1) The allocations established in this section subsection
  996  (3) shall be used to provide disability coverage for members in
  997  the investment plan and shall be transferred monthly by the
  998  Division of Retirement from the Florida Retirement System
  999  Contributions Clearing Trust Fund to the disability account of
 1000  the Florida Retirement System Trust Fund.
 1001         (2) The allocations are stated as a percentage of each
 1002  investment plan member’s gross compensation for the calendar
 1003  month. A change in a contribution percentage is effective the
 1004  first day of the month for which retirement contributions may be
 1005  made on or after the beginning date of the change. Contribution
 1006  percentages may be modified by general law.
 1007         (3) Effective July 1, 2002, allocations from the Florida
 1008  Retirement System Contributions Clearing Trust Fund to provide
 1009  disability coverage for members in the investment plan, and to
 1010  offset the costs of administering said coverage, are as follows:
 1011  
 1012  
 1013  Membership Class                  Percentage of Gross Compensation 
 1014  
 1015  Regular Class                                  0.25%               
 1016  Special Risk Class                          1.85% 1.33%            
 1017  Special Risk Administrative Support Class              0.45%               
 1018  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              0.41%               
 1019  Elected Officers’ Class— Justices, Judges              0.73%               
 1020  Elected Officers’ Class— County Elected Officers              0.41%               
 1021  Senior Management Service Class                0.26%               
 1022  
 1023         Section 13. Effective July 1, 2023, section 121.735,
 1024  Florida Statutes, is amended to read:
 1025         121.735 Allocations for member line-of-duty death benefits;
 1026  percentage amounts.—
 1027         (1) The allocations established in this section subsection
 1028  (3) shall be used to provide line-of-duty death benefit coverage
 1029  for members in the investment plan and shall be transferred
 1030  monthly by the division from the Florida Retirement System
 1031  Contributions Clearing Trust Fund to the survivor benefit
 1032  account of the Florida Retirement System Trust Fund.
 1033         (2) Such allocations are stated as a percentage of each
 1034  investment plan member’s gross compensation for the calendar
 1035  month. Any change in a contribution percentage is effective the
 1036  first day of the month for which retirement contributions may be
 1037  made on or after the beginning date of the change. Contribution
 1038  percentages may be modified by general law.
 1039         (3) Allocations from the Florida Retirement System
 1040  Contributions Clearing Trust Fund to provide line-of-duty death
 1041  benefits for members in the investment plan and to offset the
 1042  costs of administering said coverage, are as follows:
 1043  
 1044  Membership Class                  Percentage of Gross Compensation 
 1045  
 1046  Regular Class                                  0.05%               
 1047  Special Risk Class                          1.26% 1.21%            
 1048  Special Risk Administrative Support Class              0.03%               
 1049  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              0.15%               
 1050  Elected Officers’ Class— Justices, Judges              0.09%               
 1051  Elected Officers’ Class— County Elected Officers              0.20%               
 1052  Senior Management Service Class                0.05%               
 1053  
 1054         Section 14. The Legislature finds that a proper and
 1055  legitimate state purpose is served when employees, officers, and
 1056  retirees of the state and its political subdivisions, and the
 1057  dependents, survivors, and beneficiaries of such employees,
 1058  officers, and retirees, are extended the basic protections
 1059  afforded by governmental retirement systems. These persons must
 1060  be provided benefits that are fair and adequate and that are
 1061  managed, administered, and funded in an actuarially sound manner
 1062  as required by s. 14, Article X of the State Constitution and
 1063  part VII of chapter 112, Florida Statutes. Therefore, the
 1064  Legislature determines and declares that this act fulfills an
 1065  important state interest.
 1066         Section 15. Except as otherwise provided in this act, this
 1067  act shall take effect upon becoming a law.