This bill amends several sections of the Florida Statutes related to employer contributions for retiree benefits, specifically focusing on the Deferred Retirement Option Program (DROP) and the Florida Retirement System. It allows elected officers, except while serving as legislators, to remain in office and receive their accumulated DROP proceeds after reaching the age of 59 1/2. Upon termination, these officers will receive their accumulated DROP account, including interest earned, and will begin receiving monthly retirement benefits. Additionally, the bill mandates that the Division of Retirement or the State Board of Administration must recoup any DROP proceeds distributed under certain conditions if the elected officer has not yet terminated their employment.

The bill also revises the required employer retirement contribution rates for various membership classes within the Florida Retirement System, with specific percentage changes effective July 1, 2025. For instance, the contribution rate for the Regular Class will increase from 6.73% to 7.10%, while the Elected Officers Class will see a decrease from 10.70% to 10.04%. Furthermore, the legislation includes a declaration of important state interest, emphasizing the need for fair and adequate benefits for state employees and retirees, managed in an actuarially sound manner. The act is set to take effect on July 1, 2025.

Statutes affected:
S 7022 pb: 121.053, 121.091