Florida Senate - 2017 CS for SB 1500
By the Committee on Governmental Oversight and Accountability;
and Senator Mayfield
585-03376-17 20171500c1
1 A bill to be entitled
2 An act relating to retirement of instructional
3 personnel and administrative personnel; amending s.
4 121.091, F.S.; revising limitations on the maximum
5 length of participation in the Deferred Retirement
6 Option Program for certain instructional personnel and
7 administrative personnel; requiring an employer to
8 notify the Division of Retirement of the Department of
9 Management Services regarding any change in
10 termination date and program participation for each
11 affected member; providing a statement of important
12 state interest; providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Paragraph (b) of subsection (13) of section
17 121.091, Florida Statutes, is amended to read:
18 121.091 Benefits payable under the system.—Benefits may not
19 be paid under this section unless the member has terminated
20 employment as provided in s. 121.021(39)(a) or begun
21 participation in the Deferred Retirement Option Program as
22 provided in subsection (13), and a proper application has been
23 filed in the manner prescribed by the department. The department
24 may cancel an application for retirement benefits when the
25 member or beneficiary fails to timely provide the information
26 and documents required by this chapter and the department’s
27 rules. The department shall adopt rules establishing procedures
28 for application for retirement benefits and for the cancellation
29 of such application when the required information or documents
30 are not received.
31 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
32 subject to this section, the Deferred Retirement Option Program,
33 hereinafter referred to as DROP, is a program under which an
34 eligible member of the Florida Retirement System may elect to
35 participate, deferring receipt of retirement benefits while
36 continuing employment with his or her Florida Retirement System
37 employer. The deferred monthly benefits shall accrue in the
38 Florida Retirement System on behalf of the member, plus interest
39 compounded monthly, for the specified period of the DROP
40 participation, as provided in paragraph (c). Upon termination of
41 employment, the member shall receive the total DROP benefits and
42 begin to receive the previously determined normal retirement
43 benefits. Participation in the DROP does not guarantee
44 employment for the specified period of DROP. Participation in
45 DROP by an eligible member beyond the initial 60-month period as
46 authorized in this subsection shall be on an annual contractual
47 basis for all participants.
48 (b) Participation in DROP.—
49 1.a. An eligible member may elect to participate in DROP
50 for a period not to exceed a maximum of 60 calendar months.
51 However, members who are instructional personnel employed by the
52 Florida School for the Deaf and the Blind and authorized by the
53 Board of Trustees of the Florida School for the Deaf and the
54 Blind, who are instructional personnel as defined in s.
55 1012.01(2)(a)-(d) in grades K-12 and authorized by the district
56 school superintendent, or who are instructional personnel as
57 defined in s. 1012.01(2)(a) employed by a developmental research
58 school and authorized by the school’s director, or if the school
59 has no director, by the school’s principal, may participate in
60 DROP for up to 36 calendar months beyond the 60-month period.
61 b. For instructional personnel and administrative personnel
62 in grades K-12, as defined in s. 1012.01(2)(a)-(d) and (3),
63 respectively, who enter DROP before July 1, 2017, the member may
64 continue to participate in DROP until the last day of the last
65 calendar month of the school year in which his or her
66 termination date occurs, notwithstanding the limitations on the
67 length of participation established in this subsection and the
68 termination date designated pursuant to sub-subparagraph 2.b.,
69 if a date other than the last day of the last calendar month of
70 the school year is designated. The employer shall notify the
71 division of the change in termination date and the additional
72 period of DROP participation for each affected member. For
73 instructional personnel and administrative personnel in grades
74 K-12, as defined in s. 1012.01(2)(a)-(d) and (3), respectively,
75 who enter DROP on or after July 1, 2017, the member’s
76 termination date shall be the last day of the last calendar
77 month of the school year in which his or her termination date
78 would otherwise occur in accordance with the limitations on the
79 length of participation established in this subsection.
80 2. Upon deciding to participate in DROP, the member shall
81 submit, on forms required by the division:
82 a. A written election to participate in DROP;
83 b. Selection of DROP participation and termination dates
84 that satisfy the limitations stated in paragraph (a) and
85 subparagraph 1. The termination date must be in a binding letter
86 of resignation to the employer establishing a deferred
87 termination date. The member may change the termination date
88 within the limitations of subparagraph 1., but only with the
89 written approval of the employer;
90 c. A properly completed DROP application for service
91 retirement as provided in this section; and
92 d. Any other information required by the division.
93 3. The DROP participant is a retiree under the Florida
94 Retirement System for all purposes, except for paragraph (5)(f)
95 and subsection (9) and ss. 112.3173, 112.363, 121.053, and
96 121.122. DROP participation is final and may not be canceled by
97 the participant after the first payment is credited during the
98 DROP participation period. However, participation in DROP does
99 not alter the participant’s employment status, and the member is
100 not deemed retired from employment until his or her deferred
101 resignation is effective and termination occurs as defined in s.
102 121.021.
103 4. Elected officers are eligible to participate in DROP
104 subject to the following:
105 a. An elected officer who reaches normal retirement date
106 during a term of office may defer the election to participate
107 until the next succeeding term in that office. An elected
108 officer who exercises this option may participate in DROP for up
109 to 60 calendar months or no longer than the succeeding term of
110 office, whichever is less.
111 b. An elected or a nonelected participant may run for a
112 term of office while participating in DROP and, if elected,
113 extend the DROP termination date accordingly; however, if such
114 additional term of office exceeds the 60-month limitation
115 established in subparagraph 1., and the officer does not resign
116 from office within such 60-month limitation, the retirement and
117 the participant’s DROP is null and void as provided in sub
118 subparagraph (c)5.d.
119 c. An elected officer who is dually employed and elects to
120 participate in DROP must terminate all employment relationships
121 as provided in s. 121.021(39) for the nonelected position within
122 the original 60-month period or maximum participation period as
123 provided in subparagraph 1. For DROP participation ending:
124 (I) Before July 1, 2010, the officer may continue
125 employment as an elected officer as provided in s. 121.053. The
126 elected officer shall be enrolled as a renewed member in the
127 Elected Officers’ Class or the Regular Class, as provided in ss.
128 121.053 and 121.122, on the first day of the month after
129 termination of employment in the nonelected position and
130 termination of DROP. Distribution of the DROP benefits shall be
131 made as provided in paragraph (c).
132 (II) On or after July 1, 2010, the officer may continue
133 employment as an elected officer but must defer termination as
134 provided in s. 121.053.
135 Section 2. The Legislature finds that a proper and
136 legitimate state purpose is served when employees and retirees
137 of the state and its political subdivisions, and the dependents,
138 survivors, and beneficiaries of such employees and retirees, are
139 extended the basic protections afforded by governmental
140 retirement systems. These persons must be provided benefits that
141 are fair and adequate and that are managed, administered, and
142 funded in an actuarially sound manner, as required by s. 14,
143 Article X of the State Constitution and part VII of chapter 112,
144 Florida Statutes. Therefore, the Legislature determines and
145 declares that this act fulfills an important state interest.
146 Section 3. This act shall take effect July 1, 2017.