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1
2 An act relating to state-administered retirement
3 systems; amending s. 121.091, F.S.; authorizing
4 certain members to elect to participate in the
5 deferred retirement program for an additional 36
6 months; amending s. 121.71, F.S.; revising required
7 employer retirement contribution rates for each
8 membership class and subclass of the Florida
9 Retirement System; amending s. 121.72, F.S.; revising
10 allocations to investment plan member accounts;
11 providing a declaration of important state interest;
12 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
19 not 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 infor mation
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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 documen ts
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 inte rest
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.—Except as provided in this
49 paragraph, an eligible member may elect to participate in DROP
50 for a period not to exceed a maximum of 60 calendar months.
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51 1.a. An eligible member may elect to participate in DROP
52 for a period not to exceed a maximum of 60 calendar months.
53 However, Members who are instructional personnel employed by the
54 Florida School for the Deaf and the Blind and authorized by the
55 Board of Trustees of the Florida School for the Deaf and the
56 Blind, who are instructional personnel as defined in s.
57 1012.01(2)(a)-(d) in grades K-12 and authorized by the district
58 school superintendent, or who are instructional personnel as
59 defined in s. 1012.01(2)(a) employed by a developmental research
60 school and authorized by the school's director, or if the school
61 has no director, by the school's principal, may participate in
62 DROP for up to 36 calendar months beyond the 60-month period.
63 Effective July 1, 2018, instructional personnel who are
64 authorized to extend DROP participation beyond the 60-month
65 period must have a termination date that is the last day of the
66 last calendar month of the school year within the DROP extension
67 granted by the employer. If, on July 1, 2018, the member's DROP
68 participation has already been extended for the maximum 36
69 calendar months and the extension period concludes before the
70 end of the school year, the member's DROP participation may be
71 extended through the last day of the last calendar month of that
72 school year. The employer shall notify the division of the
73 change in termination date and the additional period of DROP
74 participation for the affected instructional personnel.
75 b. Administrative personnel in grades K-12, as defined in
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76 s. 1012.01(3), who have a DROP termination date on or after July
77 1, 2018, may be authorized to extend DROP participation beyond
78 the initial 60 calendar month period if the administrative
79 personnel's termination date is before the end of the school
80 year. Such administrative personnel may have DROP participation
81 extended until the last day of the last calendar month of the
82 school year in which their original DROP termination date
83 occurred if a date other than the last day of the last calendar
84 month of the school year is designated. The employer shall
85 notify the division of the change in termination date and the
86 additional period of DROP participation for the affected
87 administrative personnel.
88 c. Effective July 1, 2022, a member of the Special Risk
89 Class who is a law enforcement officer who meets the criteria in
90 s. 121.0515(3)(a) and who is a DROP participant on or after July
91 1, 2022, may participate in DROP for up to 36 calendar months
92 beyond the 60-month period if he or she enters DROP on or before
93 June 30, 2028.
94 2. Upon deciding to participate in DROP, the member shall
95 submit, on forms required by the division:
96 a. A written election to participate in DROP;
97 b. Selection of DROP participation and termination dates
98 that satisfy the limitations stated in paragraph (a) and
99 subparagraph 1. The termination date must be in a binding letter
100 of resignation to the employer establishing a deferred
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101 termination date. The member may change the termination date
102 within the limitations of subparagraph 1., but only with the
103 written approval of the employer;
104 c. A properly completed DROP application for service
105 retirement as provided in this section; and
106 d. Any other information required by the division.
107 3. The DROP participant is a retiree under the Florida
108 Retirement System for all purposes, except for paragraph (5)(f)
109 and subsection (9) and ss. 112.3173, 112.363, 121.053, and
110 121.122. DROP participation is final and may not be canceled by
111 the participant after the first payment is credited during the
112 DROP participation period. However, participation in DROP does
113 not alter the participant's employment status, and the member is
114 not deemed retired from employment until his or her deferred
115 resignation is effective and termination occurs as defined in s.
116 121.021.
117 4. Elected officers are eligible to participate in DROP
118 subject to the following:
119 a. An elected officer who reaches normal retirement date
120 during a term of office may defer the election to participate
121 until the next succeeding term in that office. An elected
122 officer who exercises this option may participate in DRO P for up
123 to 60 calendar months or no longer than the succeeding term of
124 office, whichever is less.
125 b. An elected or a nonelected participant may run for a
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126 term of office while participating in DROP and, if elected,
127 extend the DROP termination date accordingly; however, if such
128 additional term of office exceeds the 60-month limitation
129 established in subparagraph 1., and the officer does not resign
130 from office within such 60-month limitation, the retirement and
131 the participant's DROP is null and void as provided in sub-
132 subparagraph (c)5.d.
133 c. An elected officer who is dually employed and elects to
134 participate in DROP must terminate all employment relationships
135 as provided in s. 121.021(39) for the nonelected position within
136 the original 60-month period or maximum participation period as
137 provided in subparagraph 1. For DROP participation ending:
138 (I) Before July 1, 2010, the officer may continue
139 employment as an elected officer as provided in s. 121.053. The
140 elected officer shall be enrolled as a renewed member in the
141 Elected Officers' Class or the Regular Class, as provided in ss.
142 121.053 and 121.122, on the first day of the month after
143 termination of employment in the nonelected position and
144 termination of DROP. Distribution of the DROP benefits shall be
145 made as provided in paragraph (c).
146 (II) On or after July 1, 2010, the officer may continue
147 employment as an elected officer but must defer termination as
148 provided in s. 121.053.
149 Section 2. Subsections (4) and (5) of section 121.71,
150 Florida Statutes, are amended to read:
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151 121.71 Uniform rates; process; calculations; levy. —
152 (4) Required employer retirement contribution rates for
153 each membership class and subclass of the Florida Retirement
154 System for both retirement plans are as follows:
155
Membership Class Percentage of
Gross
Compensation,
Effective
July 1, 2022 2021
156
157
Regular Class 5.96% 4.91%
158
Special Risk Class 16.44% 15.27%
159
Special Risk
Administrative
Support Class 10.77% 9.73%
160
Elected Officers' Class—
Legislators, Governor,
Lt. Governor,
Cabinet Officers,
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State Attorneys,
Public Defenders 9.31% 8.49%
161
Elected Officers' Class—
Justices, Judges 14.41% 13.38%
162
Elected Officers' Class—
County Elected Officers 11.30% 10.28%
163
Senior Management Service Class 7.70% 6.49%
164
DROP 7.79% 7.23%
165
166 (5) In order to address unfunded actuarial liabilities of
167 the system, the required employer retirement contribution rates
168 for each membership class and subclass of the Florida Retirement
169 System for both retirement plans are as follows:
170
Membership Class Percentage of
Gross
Compensation,
Effective
July 1, 2022 2021
171
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172
Regular Class 4.23% 4.19%
173
Special Risk Class 9.67% 8.90%
174
Special Risk
Administrative
Support Class 26.16% 26.31%
175
Elected Officers' Class—
Legislators, Governor,
Lt. Governor,
Cabinet Officers,
State Attorneys,
Public Defenders 56.76% 53.52%
176
Elected Officers' Class—
Justices, Judges 27.64% 25.81%
177
Elected Officers' Class—
County Elected Officers 43.98% 39.42%
178
Senior Management Service Class 22.15% 20.80%
179
DROP 9.15% 9.45%
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