Bill Text: FL S1670 | 2023 | Regular Session | Introduced
Bill Title: Deferred Retirement Option Program
Spectrum: Partisan Bill (Republican 3-0)
Status: (Failed) 2023-05-05 - Died in Appropriations [S1670 Detail]
Download: Florida-2023-S1670-Introduced.html
Florida Senate - 2023 SB 1670
By Senator Broxson
1-01748A-23 20231670__
1 A bill to be entitled
2 An act relating to the Deferred Retirement Option
3 Program; amending s. 121.091, F.S.; increasing the
4 period of time for which specified instructional and
5 administrative personnel may extend their
6 participation in the Deferred Retirement Option
7 Program, if such personnel enter the program before a
8 specified date; providing a statement of important
9 state interest; providing an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (b) of subsection (13) of section
14 121.091, Florida Statutes, is amended to read:
15 121.091 Benefits payable under the system.—Benefits may not
16 be paid under this section unless the member has terminated
17 employment as provided in s. 121.021(39)(a) or begun
18 participation in the Deferred Retirement Option Program as
19 provided in subsection (13), and a proper application has been
20 filed in the manner prescribed by the department. The department
21 may cancel an application for retirement benefits when the
22 member or beneficiary fails to timely provide the information
23 and documents required by this chapter and the department’s
24 rules. The department shall adopt rules establishing procedures
25 for application for retirement benefits and for the cancellation
26 of such application when the required information or documents
27 are not received.
28 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
29 subject to this section, the Deferred Retirement Option Program,
30 hereinafter referred to as DROP, is a program under which an
31 eligible member of the Florida Retirement System may elect to
32 participate, deferring receipt of retirement benefits while
33 continuing employment with his or her Florida Retirement System
34 employer. The deferred monthly benefits shall accrue in the
35 Florida Retirement System on behalf of the member, plus interest
36 compounded monthly, for the specified period of the DROP
37 participation, as provided in paragraph (c). Upon termination of
38 employment, the member shall receive the total DROP benefits and
39 begin to receive the previously determined normal retirement
40 benefits. Participation in the DROP does not guarantee
41 employment for the specified period of DROP. Participation in
42 DROP by an eligible member beyond the initial 60-month period as
43 authorized in this subsection shall be on an annual contractual
44 basis for all participants.
45 (b) Participation in DROP.—Except as provided in this
46 paragraph, an eligible member may elect to participate in DROP
47 for a period not to exceed a maximum of 60 calendar months.
48 1.a. Members who are instructional personnel employed by
49 the Florida School for the Deaf and the Blind and authorized by
50 the Board of Trustees of the Florida School for the Deaf and the
51 Blind, who are instructional personnel as defined in s.
52 1012.01(2)(a)-(d) in grades K-12 and authorized by the district
53 school superintendent, or who are instructional personnel as
54 defined in s. 1012.01(2)(a) employed by a developmental research
55 school and authorized by the school’s director, or if the school
56 has no director, by the school’s principal, may participate in
57 DROP for:
58 (I) Up to 36 calendar months beyond the initial 60-month
59 period; or
60 (II) Effective July 1, 2023, up to 60 calendar months
61 beyond the initial 60-month period if he or she enters DROP on
62 or before June 30, 2029.
63
64 Effective July 1, 2018, Instructional personnel who are
65 authorized to extend DROP participation beyond the initial 60
66 month period must have a termination date that is the last day
67 of the last calendar month of the school year within the DROP
68 extension granted by the employer. If, on July 1, 2018, the
69 member’s DROP participation has already been extended for the
70 maximum period of time 36 calendar months and the extension
71 period concludes before the end of the school year, the member’s
72 DROP participation may be extended through the last day of the
73 last calendar month of that school year. The employer shall
74 notify the division of the change in termination date and the
75 additional period of DROP participation for the affected
76 instructional personnel.
77 b. Effective July 1, 2023, if authorized by the district
78 school superintendent, members who are K-12 administrative
79 personnel as described in s. 1012.01(3) may participate in DROP
80 for up to 60 calendar months beyond the initial 60-month period
81 if he or she enters DROP on or before June 30, 2029.
82 Administrative personnel who are authorized to extend DROP
83 participation beyond the initial 60-month period must have a
84 termination date that is the last day of the last calendar month
85 of the school year within the DROP extension granted by the
86 employer. If the member’s DROP participation has already been
87 extended for the maximum period of time and the extension period
88 concludes before the end of the school year, the member’s DROP
89 participation may be extended through the last day of the last
90 calendar month of that school year Administrative personnel in
91 grades K-12, as defined in s. 1012.01(3), who have a DROP
92 termination date on or after July 1, 2018, may be authorized to
93 extend DROP participation beyond the initial 60 calendar month
94 period if the administrative personnel’s termination date is
95 before the end of the school year. Such administrative personnel
96 may have DROP participation extended until the last day of the
97 last calendar month of the school year in which their original
98 DROP termination date occurred if a date other than the last day
99 of the last calendar month of the school year is designated. The
100 employer shall notify the division of the change in termination
101 date and the additional period of DROP participation for the
102 affected administrative personnel.
103 c. Effective July 1, 2022, a member of the Special Risk
104 Class who is a law enforcement officer who meets the criteria in
105 s. 121.0515(3)(a) and who is a DROP participant on or after July
106 1, 2022, may participate in DROP for up to 36 calendar months
107 beyond the 60-month period if he or she enters DROP on or before
108 June 30, 2028.
109 2. Upon deciding to participate in DROP, the member shall
110 submit, on forms required by the division:
111 a. A written election to participate in DROP;
112 b. Selection of DROP participation and termination dates
113 that satisfy the limitations stated in paragraph (a) and
114 subparagraph 1. The termination date must be in a binding letter
115 of resignation to the employer establishing a deferred
116 termination date. The member may change the termination date
117 within the limitations of subparagraph 1., but only with the
118 written approval of the employer;
119 c. A properly completed DROP application for service
120 retirement as provided in this section; and
121 d. Any other information required by the division.
122 3. The DROP participant is a retiree under the Florida
123 Retirement System for all purposes, except for paragraph (5)(f)
124 and subsection (9) and ss. 112.3173, 112.363, 121.053, and
125 121.122. DROP participation is final and may not be canceled by
126 the participant after the first payment is credited during the
127 DROP participation period. However, participation in DROP does
128 not alter the participant’s employment status, and the member is
129 not deemed retired from employment until his or her deferred
130 resignation is effective and termination occurs as defined in s.
131 121.021.
132 4. Elected officers are eligible to participate in DROP
133 subject to the following:
134 a. An elected officer who reaches normal retirement date
135 during a term of office may defer the election to participate
136 until the next succeeding term in that office. An elected
137 officer who exercises this option may participate in DROP for up
138 to 60 calendar months or no longer than the succeeding term of
139 office, whichever is less.
140 b. An elected or a nonelected participant may run for a
141 term of office while participating in DROP and, if elected,
142 extend the DROP termination date accordingly; however, if such
143 additional term of office exceeds the 60-month limitation
144 established in subparagraph 1., and the officer does not resign
145 from office within such 60-month limitation, the retirement and
146 the participant’s DROP is null and void as provided in sub
147 subparagraph (c)5.d.
148 c. An elected officer who is dually employed and elects to
149 participate in DROP must terminate all employment relationships
150 as provided in s. 121.021(39) for the nonelected position within
151 the original 60-month period or maximum participation period as
152 provided in subparagraph 1. For DROP participation ending:
153 (I) Before July 1, 2010, the officer may continue
154 employment as an elected officer as provided in s. 121.053. The
155 elected officer shall be enrolled as a renewed member in the
156 Elected Officers’ Class or the Regular Class, as provided in ss.
157 121.053 and 121.122, on the first day of the month after
158 termination of employment in the nonelected position and
159 termination of DROP. Distribution of the DROP benefits shall be
160 made as provided in paragraph (c).
161 (II) On or after July 1, 2010, the officer may continue
162 employment as an elected officer but must defer termination as
163 provided in s. 121.053.
164 Section 2. The Legislature finds that a proper and
165 legitimate state purpose is served when employees and retirees
166 of the state and its political subdivisions, and the dependents,
167 survivors, and beneficiaries of such employees and retirees, are
168 extended the basic protections afforded by governmental
169 retirement systems. These persons must be provided benefits that
170 are fair and adequate and that are managed, administered, and
171 funded in an actuarially sound manner, as required by s. 14,
172 Article X of the State Constitution and part VII of chapter 112,
173 Florida Statutes. Therefore, the Legislature determines and
174 declares that this act fulfills an important state interest.
175 Section 3. This act shall take effect July 1, 2023.
