The bill amends various sections of the Florida Statutes concerning retirement, particularly 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 DROP account balance, including interest, and will begin receiving monthly retirement benefits. The bill also mandates that the Division of Retirement or the State Board of Administration must recoup any DROP proceeds distributed to an elected officer under certain conditions, especially if the distribution occurred before the officer's termination.

Further amendments include updates to the cost-of-living adjustments for eligible Special Risk Class retirees, changes to employer retirement contribution rates for various membership classes, and adjustments to allocations from the Contributions Clearing Trust Fund for disability coverage and line-of-duty death benefits. The bill specifically updates the allocation percentage for the Special Risk Class from 1.26% to 1.28% while maintaining existing percentages for other classes. Additionally, it includes a new legislative declaration emphasizing the importance of fair and adequate retirement benefits for state employees and their dependents, ensuring these benefits are managed in an actuarially sound manner. The act is set to take effect on July 1, 2026.

Statutes affected:
H 5205E e1: 121.053, 121.73, 121.735
H 5205E er: 121.053, 121.73, 121.735