THE FLORIDA LEGISLATURE
Kathleen Passidomo Paul Renner
President of the Senate Speaker of the House of
Representatives
May 02, 2023
The Honorable Kathleen Passidomo
President of the Senate
The Honorable Paul Renner
Speaker, House of Representatives
Dear Madam President and Mr. Speaker:
Your Conference Committee on the disagreeing votes of the two houses on CS/SB 7024, same
being:
An act relating to Retirement.
having met, and after full and free conference, do recommend to their respective houses as
follows:
1. That the House of Representatives recede from its Amendment 979575.
2. That the Senate and House of Representatives adopt the Conference Committee
Amendment attached hereto, and by reference made a part of this report.
The Honorable Kathleen Passidomo
The Honorable Paul Renner
May 02, 2023
Page 2
Senator Doug Broxson, Chair Senator Ben Albritton, At Large
Senator Bryan Avila Senator Dennis Baxley, At Large
Senator Lori Berman Senator Lauren Book, At Large
Senator Jim Boyd Senator Jennifer Bradley
Senator Jason Brodeur Senator Danny Burgess
Senator Colleen Burton Senator Alexis Calatayud
Senator Jay Collins Senator Tracie Davis
Senator Nick DiCeglie Senator Ileana Garcia
Senator Erin Grall Senator Joe Gruters
Senator Gayle Harrell Senator Ed Hooper
Senator Travis Hutson, At Large Senator Blaise Ingoglia
Senator Shevrin D. Jones Senator Jonathan Martin
Senator Debbie Mayfield, At Large Senator Rosalind Osgood
Senator Keith Perry, At Large Senator Jason W. B. Pizzo
Senator Tina Scott Polsky Senator Bobby Powell
Senator Ana Maria Rodriguez Senator Darryl Ervin Rouson, At Large
Senator Corey Simon Senator Linda Stewart
Senator Geraldine F. Thompson Senator Victor M. Torres Jr.
CS/SB 7024
The Honorable Kathleen Passidomo
The Honorable Paul Renner
May 02, 2023
Page 3
Senator Jay Trumbull Senator Tom A. Wright
Senator Clay Yarborough
Conferees on the part of the Senate
CS/SB 7024
The Honorable Kathleen Passidomo
The Honorable Paul Renner
May 02, 2023
Page 4
Representative Thomas J. Leek, Chair Representative Thad Altman, At Large
Representative Robert Alexander Andrade, At Large Representative Christopher Benjamin, At Large
Representative Adam Botana, At Large Representative Robert Charles Brannan III, At Large
Representative Demi Busatta Cabrera, At Large Representative Kevin D. Chambliss, At Large
Representative Charles Wesley Clemons, Sr., At Representative Dan Daley, At Large
Large
Representative Fentrice Driskell, At Large Representative Randy Fine, At Large
Representative Sam Garrison, At Large Representative Michael Gottlieb, At Large
Representative Michael Grant, At Large Representative Tommy Gregory, At Large
Representative Christine Hunschofsky, At Large Representative Ralph E. Massullo, MD, At Large
Representative Stan McClain, At Large Representative Lawrence McClure, At Large
Representative Bobby Payne, At Large Representative Daniel Perez, At Large
Representative Felicia Simone Robinson, At Large Representative Bob Rommel, At Large
Representative Jason Shoaf, At Large Representative David Silvers, At Large
Representative Kelly Skidmore, At Large Representative John Snyder, At Large
Representative Josie Tomkow, At Large Representative Susan L. Valdés, At Large
Representative Patricia H. Williams, At Large Representative Marie Paule Woodson, At Large
Managers on the part of the House of Representatives
CS/SB 7024
SUMMARY OF CONFERENCE COMMITTEE ACTION Page 5
May 02, 2023
The Conference Committee Amendment for CS/SB 7024, relating to retirement, conforms the
law to the Fiscal Year 2023-2024 General Appropriations Act (GAA) as retirement contributions
are included in the GAA.
The Florida Retirement System (FRS) is a multiple-employer, contributory plan that provides
retirement income benefits for employees of the state and county government agencies, district
school boards, state colleges and universities, and it also serves as the retirement plan for
participating employees of the cities, special districts, and independent hospitals that have
elected to join the system. Members of the FRS have two plan options available for participation:
the pension plan, which is a defined benefit plan, and the investment plan, which is a defined
contribution plan.
Currently, the normal retirement date for members of the Special Risk class hired on or after July
1, 2011, is the earlier of 30 years of service or age 60. For members of the Special Risk class
hired before July 1, 2011, the normal retirement date is the earlier of 25 years of service or age
55.
The Deferred Retirement Option Program (DROP) allows eligible members of the FRS Pension
Plan to defer receipt of retirement benefits while continuing employment with his or her FRS
Employer. Currently:
Eligible members may elect to participate in DROP for a period not to exceed 60
calendar months. However, law enforcement officers and certain instructional personnel
may elect to participate in DROP for a period not to exceed 96 calendar months;
Eligible members must to elect to participate in DROP within a certain eligibility window
or lose the opportunity for DROP participation;
Deferred monthly benefits accrue at an effective annual rate of 1.3 percent, compounded
monthly. Prior to July 1, 2011, the annual rate applied was 6.5 percent. Upon termination
of the employment, the member receives the total DROP benefits and begins to receive
the previously determined normal retirement amounts.
Eligible retirees of the FRS receive a monthly health insurance subsidy. Currently the subsidy is
calculated at $5 for each year of service in the FRS, with a maximum benefit of $150 per month
and a minimum benefit $30 per month.
The Department of Management Services (DMS) must provide an annual actuarial valuation of
the FRS and report the results to the Legislature by December 31 of each year. Thereafter, the
Legislature uses the results of the actuarial valuation to establish uniform employer contribution
rates during the next legislative session to ensure the FRS is funded in a sound actuarial manner.
The amendment:
Modifies the normal retirement date for Special Risk Class members initially enrolled on
or after July 1, 2011, to be the earlier of 25 years of creditable service, or age 55.
Makes the following modification to the DROP program:
o Eliminates the restrictive entry window for eligible members to participate in
DROP, allowing for entry into DROP at any age as long as years of service or age
and vesting requirements are met;
CS/SB 7024
SUMMARY OF CONFERENCE COMMITTEE ACTION (continued) Page 6
o Extends the maximum amount of time for eligible members to participate
in DROP from 60 to 96 calendar months for all classes, and from 96 to 120
calendar months for certain instructional personnel; and
o Increases the interest rate applied to a member’s accrued monthly benefit from 1.3
percent to 4 percent.
Increases the monthly retiree health insurance subsidy from $5 to $7.50 for each year of
service. The maximum benefit is adjusted from $150 to $225 per month and the
minimum benefit is adjusted from $30 to $45 per month.
Increases the allocations to investment plan accounts by 2 percent for each membership
class in the investment plan.
Revises the employer FRS contribution rates based on the actuarial valuation and
actuarial studies.
Declares that the act fulfills an important state interest. It provides that a proper and
legitimate state purpose is served by the amendment, which includes providing benefits
that are managed, administered, and funded in an actuarially sound manner.
The application of the rates will have a significant fiscal impact to funds appropriated by the
Legislature associated with employee salaries and benefits. Provisions of the amendment relating
to employer retirement contribution rates will increase amounts FRS Employers must pay for
employee retirement benefits.
CS/SB 7024
Statutes affected: S 7024 c1: 121.052, 121.055, 121.071
S 7024 e1: 121.021, 121.052, 121.053, 121.055, 121.071, 121.091, 121.4501, 121.72, 121.73, 121.735
S 7024 er: 121.021, 121.052, 121.053, 121.055, 121.071, 121.091, 121.4501, 121.72, 121.73, 121.735