FL
Florida House Bill H5007

Florida 2022 Regular Session

Florida House Bill H5007 Compare Versions

OldNewDifferences
11
2-ENROLLED
3-HB 5007, Engrossed 1 2022 Legislature
2+
3+HB 5007 2022
44
55
66
77 CODING: Words stricken are deletions; words underlined are additions.
8-hb5007-02-er
8+hb5007-00
99 Page 1 of 13
1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1111
1212
1313
14- 1
14+A bill to be entitled 1
1515 An act relating to state -administered retirement 2
1616 systems; amending s. 121.091, F.S.; authorizing 3
1717 certain members to elect to participate in the 4
1818 deferred retirement program for an additional 36 5
1919 months; amending s. 121.71, F.S.; revising required 6
2020 employer retirement contribution rates for each 7
2121 membership class and subclass of the Florida 8
2222 Retirement System; amending s. 121.72, F.S.; revising 9
2323 allocations to investment plan member accounts; 10
2424 providing a declaration of important state interest; 11
2525 providing an effective date. 12
2626 13
2727 Be It Enacted by the Legislature of the State of Florida: 14
2828 15
2929 Section 1. Paragraph (b) of subsection (13) of section 16
3030 121.091, Florida Sta tutes, is amended to read: 17
3131 121.091 Benefits payable under the system. —Benefits may 18
3232 not be paid under this section unless the member has terminated 19
3333 employment as provided in s. 121.021(39)(a) or begun 20
3434 participation in the Deferred Retirement Option Progra m as 21
3535 provided in subsection (13), and a proper application has been 22
3636 filed in the manner prescribed by the department. The department 23
3737 may cancel an application for retirement benefits when the 24
3838 member or beneficiary fails to timely provide the information 25
39-ENROLLED
40-HB 5007, Engrossed 1 2022 Legislature
39+
40+HB 5007 2022
4141
4242
4343
4444 CODING: Words stricken are deletions; words underlined are additions.
45-hb5007-02-er
45+hb5007-00
4646 Page 2 of 13
4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
4848
4949
5050
5151 and documents required by this chapter and the department's 26
5252 rules. The department shall adopt rules establishing procedures 27
5353 for application for retirement benefits and for the cancellation 28
5454 of such application when the required information or documents 29
5555 are not received. 30
5656 (13) DEFERRED RETIREMENT OPTION PROGRAM. —In general, and 31
5757 subject to this section, the Deferred Retirement Option Program, 32
5858 hereinafter referred to as DROP, is a program under which an 33
5959 eligible member of the Florida Retirement System may elect to 34
6060 participate, deferring receipt of retirement benefits while 35
6161 continuing employment with his or her Florida Retirement System 36
6262 employer. The deferred monthly benefits shall accrue in the 37
6363 Florida Retirement System on behalf of the member, plus interest 38
6464 compounded monthly, for the specified period of the DROP 39
6565 participation, as provided in paragraph (c). Upon termination of 40
6666 employment, the member shall receive the total DROP benefits and 41
6767 begin to receive the previously determined normal retirement 42
6868 benefits. Participation in the DROP does not guarantee 43
6969 employment for the specified period of DROP. Participation in 44
7070 DROP by an eligible member beyond the initial 60 -month period as 45
7171 authorized in this subsection shall be on an annual contractual 46
7272 basis for all particip ants. 47
7373 (b) Participation in DROP. —Except as provided in this 48
7474 paragraph, an eligible member may elect to participate in DROP 49
7575 for a period not to exceed a maximum of 60 calendar months. 50
76-ENROLLED
77-HB 5007, Engrossed 1 2022 Legislature
76+
77+HB 5007 2022
7878
7979
8080
8181 CODING: Words stricken are deletions; words underlined are additions.
82-hb5007-02-er
82+hb5007-00
8383 Page 3 of 13
8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
8585
8686
8787
8888 1.a. An eligible member may elect to participate in DROP 51
8989 for a period not to exceed a maximum of 60 calendar months. 52
9090 However, Members who are instructional personnel employed by the 53
9191 Florida School for the Deaf and the Blind and authorized by the 54
9292 Board of Trustees of the Florida School for the Deaf and the 55
9393 Blind, who are instructional personnel as defined in s. 56
9494 1012.01(2)(a)-(d) in grades K-12 and authorized by the district 57
9595 school superintendent, or who are instructional personnel as 58
9696 defined in s. 1012.01(2)(a) employed by a developmental research 59
9797 school and authorized by the school's director, or if the school 60
9898 has no director, by the school's principal, may participate in 61
9999 DROP for up to 36 calendar months beyond the 60 -month period. 62
100100 Effective July 1, 2018, instructional personnel who are 63
101101 authorized to extend DROP participatio n beyond the 60-month 64
102102 period must have a termination date that is the last day of the 65
103103 last calendar month of the school year within the DROP extension 66
104104 granted by the employer. If, on July 1, 2018, the member's DROP 67
105105 participation has already been extended f or the maximum 36 68
106106 calendar months and the extension period concludes before the 69
107107 end of the school year, the member's DROP participation may be 70
108108 extended through the last day of the last calendar month of that 71
109109 school year. The employer shall notify the divis ion of the 72
110110 change in termination date and the additional period of DROP 73
111111 participation for the affected instructional personnel. 74
112112 b. Administrative personnel in grades K -12, as defined in 75
113-ENROLLED
114-HB 5007, Engrossed 1 2022 Legislature
113+
114+HB 5007 2022
115115
116116
117117
118118 CODING: Words stricken are deletions; words underlined are additions.
119-hb5007-02-er
119+hb5007-00
120120 Page 4 of 13
121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
122122
123123
124124
125125 s. 1012.01(3), who have a DROP termination date on or after July 76
126126 1, 2018, may be authorized to extend DROP participation beyond 77
127127 the initial 60 calendar month period if the administrative 78
128128 personnel's termination date is before the end of the school 79
129129 year. Such administrative personnel may have DROP participation 80
130130 extended until the last day of the last calendar month of the 81
131131 school year in which their original DROP termination date 82
132132 occurred if a date other than the last day of the last calendar 83
133133 month of the school year is designated. The employer shall 84
134134 notify the division of th e change in termination date and the 85
135135 additional period of DROP participation for the affected 86
136136 administrative personnel. 87
137137 c. Effective July 1, 2022, a member of the Special Risk 88
138138 Class who is a law enforcement officer who meets the criteria in 89
139-s. 121.0515(3)(a) and who is a DROP participant on or after July 90
140-1, 2022, may participate in DROP for up to 36 calendar months 91
141-beyond the 60-month period if he or she enters DROP on or before 92
142-June 30, 2028. 93
143- 2. Upon deciding to participate in DROP, the member shall 94
144-submit, on forms required by the division: 95
145- a. A written election to participate in DROP; 96
146- b. Selection of DROP participation and termination dates 97
147-that satisfy the limitations stated in paragraph (a) and 98
148-subparagraph 1. The termination date must be in a binding letter 99
149-of resignation to the employer establishing a deferred 100
150-ENROLLED
151-HB 5007, Engrossed 1 2022 Legislature
139+s. 121.0515(3)(a) may participate in DROP for up to 36 calendar 90
140+months beyond the 60 -month period if he or she enters DROP on or 91
141+before June 30, 2028. 92
142+ 2. Upon deciding to participate in DROP, the member shall 93
143+submit, on forms required by the division: 94
144+ a. A written election to participate in DROP; 95
145+ b. Selection of DROP participation and termination dates 96
146+that satisfy the limitations stated in paragraph (a) and 97
147+subparagraph 1. The termination date must be in a binding letter 98
148+of resignation to the employer establishin g a deferred 99
149+termination date. The member may change the termination date 100
150+
151+HB 5007 2022
152152
153153
154154
155155 CODING: Words stricken are deletions; words underlined are additions.
156-hb5007-02-er
156+hb5007-00
157157 Page 5 of 13
158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
159159
160160
161161
162-termination date. The member may change the termination date 101
163-within the limitations of subparagraph 1., but only with the 102
164-written approval of the employer; 103
165- c. A properly comple ted DROP application for service 104
166-retirement as provided in this section; and 105
167- d. Any other information required by the division. 106
168- 3. The DROP participant is a retiree under the Florida 107
169-Retirement System for all purposes, except for paragraph (5)(f) 108
170-and subsection (9) and ss. 112.3173, 112.363, 121.053, and 109
171-121.122. DROP participation is final and may not be canceled by 110
172-the participant after the first payment is credited during the 111
173-DROP participation period. However, participation in DROP does 112
174-not alter the participant's employment status, and the member is 113
175-not deemed retired from employment until his or her deferred 114
176-resignation is effective and termination occurs as defined in s. 115
177-121.021. 116
178- 4. Elected officers are eligible to participate in DROP 117
179-subject to the following: 118
180- a. An elected officer who reaches normal retirement date 119
181-during a term of office may defer the election to participate 120
182-until the next succeeding term in that office. An elected 121
183-officer who exercises this option may participate in DRO P for up 122
184-to 60 calendar months or no longer than the succeeding term of 123
185-office, whichever is less. 124
186- b. An elected or a nonelected participant may run for a 125
187-ENROLLED
188-HB 5007, Engrossed 1 2022 Legislature
162+within the limitations of subparagraph 1., but only with the 101
163+written approval of the employer; 102
164+ c. A properly completed DROP application for service 103
165+retirement as provided in this s ection; and 104
166+ d. Any other information required by the division. 105
167+ 3. The DROP participant is a retiree under the Florida 106
168+Retirement System for all purposes, except for paragraph (5)(f) 107
169+and subsection (9) and ss. 112.3173, 112.363, 121.053, and 108
170+121.122. DROP participation is final and may not be canceled by 109
171+the participant after the first payment is credited during the 110
172+DROP participation period. However, participation in DROP does 111
173+not alter the participant's employment status, and the member is 112
174+not deemed retired from employment until his or her deferred 113
175+resignation is effective and termination occurs as defined in s. 114
176+121.021. 115
177+ 4. Elected officers are eligible to participate in DROP 116
178+subject to the following: 117
179+ a. An elected officer who reaches normal reti rement date 118
180+during a term of office may defer the election to participate 119
181+until the next succeeding term in that office. An elected 120
182+officer who exercises this option may participate in DROP for up 121
183+to 60 calendar months or no longer than the succeeding term of 122
184+office, whichever is less. 123
185+ b. An elected or a nonelected participant may run for a 124
186+term of office while participating in DROP and, if elected, 125
187+
188+HB 5007 2022
189189
190190
191191
192192 CODING: Words stricken are deletions; words underlined are additions.
193-hb5007-02-er
193+hb5007-00
194194 Page 6 of 13
195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
196196
197197
198198
199-term of office while participating in DROP and, if elected, 126
200-extend the DROP termination date accord ingly; however, if such 127
201-additional term of office exceeds the 60 -month limitation 128
202-established in subparagraph 1., and the officer does not resign 129
203-from office within such 60 -month limitation, the retirement and 130
204-the participant's DROP is null and void as pro vided in sub-131
205-subparagraph (c)5.d. 132
206- c. An elected officer who is dually employed and elects to 133
207-participate in DROP must terminate all employment relationships 134
208-as provided in s. 121.021(39) for the nonelected position within 135
209-the original 60-month period or maximum participation period as 136
210-provided in subparagraph 1. For DROP participation ending: 137
211- (I) Before July 1, 2010, the officer may continue 138
212-employment as an elected officer as provided in s. 121.053. The 139
213-elected officer shall be enrolled as a renewed me mber in the 140
214-Elected Officers' Class or the Regular Class, as provided in ss. 141
215-121.053 and 121.122, on the first day of the month after 142
216-termination of employment in the nonelected position and 143
217-termination of DROP. Distribution of the DROP benefits shall be 144
218-made as provided in paragraph (c). 145
219- (II) On or after July 1, 2010, the officer may continue 146
220-employment as an elected officer but must defer termination as 147
221-provided in s. 121.053. 148
222- Section 2. Subsections (4) and (5) of section 121.71, 149
223-Florida Statutes, are amended to read: 150
224-ENROLLED
225-HB 5007, Engrossed 1 2022 Legislature
199+extend the DROP termination date accordingly; however, if such 126
200+additional term of office exceeds the 60 -month limitation 127
201+established in subparagraph 1., and the officer does not resign 128
202+from office within such 60 -month limitation, the retirement and 129
203+the participant's DROP is null and void as provided in sub -130
204+subparagraph (c)5.d. 131
205+ c. An elected officer who is dua lly employed and elects to 132
206+participate in DROP must terminate all employment relationships 133
207+as provided in s. 121.021(39) for the nonelected position within 134
208+the original 60-month period or maximum participation period as 135
209+provided in subparagraph 1. For DROP participation ending: 136
210+ (I) Before July 1, 2010, the officer may continue 137
211+employment as an elected officer as provided in s. 121.053. The 138
212+elected officer shall be enrolled as a renewed member in the 139
213+Elected Officers' Class or the Regular Class, as provide d in ss. 140
214+121.053 and 121.122, on the first day of the month after 141
215+termination of employment in the nonelected position and 142
216+termination of DROP. Distribution of the DROP benefits shall be 143
217+made as provided in paragraph (c). 144
218+ (II) On or after July 1, 2010, t he officer may continue 145
219+employment as an elected officer but must defer termination as 146
220+provided in s. 121.053. 147
221+ Section 2. Subsections (4) and (5) of section 121.71, 148
222+Florida Statutes, are amended to read: 149
223+ 121.71 Uniform rates; process; calculations; l evy.— 150
224+
225+HB 5007 2022
226226
227227
228228
229229 CODING: Words stricken are deletions; words underlined are additions.
230-hb5007-02-er
230+hb5007-00
231231 Page 7 of 13
232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
233233
234234
235235
236- 121.71 Uniform rates; process; calculations; levy. — 151
237- (4) Required employer retirement contribution rates for 152
238-each membership class and subclass of the Florida Retirement 153
239-System for both retirement plans are as follows: 154
240- 155
241-Membership Class Percentage of
236+ (4) Required employer retirement contribution rates for 151
237+each membership class and subclass of the Florida Retirement 152
238+System for both retirement plans are as follows: 153
239+ 154
240+Membership Class
241+Percentage of
242242 Gross
243243 Compensation,
244244 Effective
245245 July 1, 2022 2021
246+ 155
247+
246248 156
247-
249+Regular Class 5.96% 4.91%
248250 157
249-Regular Class 5.96% 4.91%
251+Special Risk Class 16.44% 15.27%
250252 158
251-Special Risk Class 16.44% 15.27%
252- 159
253253 Special Risk
254254 Administrative
255255 Support Class 10.77% 9.73%
256- 160
256+ 159
257257 Elected Officers' Class —
258258 Legislators, Governor,
259259 Lt. Governor,
260260 Cabinet Officers,
261+ State Attorneys, 9.31% 8.49%
261262
262-
263-
264-
265-ENROLLED
266-HB 5007, Engrossed 1 2022 Legislature
263+HB 5007 2022
267264
268265
269266
270267 CODING: Words stricken are deletions; words underlined are additions.
271-hb5007-02-er
268+hb5007-00
272269 Page 8 of 13
273270 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
274271
275272
276273
277- State Attorneys,
278274 Public Defenders
279-
280-9.31% 8.49%
275+ 160
276+Elected Officers' Class —
277+ Justices, Judges 14.41% 13.38%
281278 161
282279 Elected Officers' Class —
283- Justices, Judges 14.41% 13.38%
280+ County Elected Officers 11.30% 10.28%
284281 162
285-Elected Officers' Class —
286- County Elected Officers 11.30% 10.28%
282+Senior Management Service Class 7.70% 6.49%
287283 163
288-Senior Management Service Class 7.70% 6.49%
284+DROP 7.79% 7.23%
289285 164
290-DROP 7.79% 7.23%
291- 165
292- (5) In order to address unfunded actuarial liabilities of 166
293-the system, the required employer retirement contribution rates 167
294-for each membership class and subclass of the Florida Retirement 168
295-System for both retirement plans are as follows: 169
296- 170
297-Membership Class Percentage of
286+ (5) In order to address unfunded actuarial liabilities of 165
287+the system, the required employer retirement contribution rates 166
288+for each membership class and subclass of the Florida Retirement 167
289+System for both retirement plans are as follows: 168
290+ 169
291+Membership Class
292+Percentage of
298293 Gross
299294 Compensation,
300295 Effective
301296 July 1, 2022 2021
297+ 170
298+
302299 171
303300
304-ENROLLED
305-HB 5007, Engrossed 1 2022 Legislature
301+HB 5007 2022
306302
307303
308304
309305 CODING: Words stricken are deletions; words underlined are additions.
310-hb5007-02-er
306+hb5007-00
311307 Page 9 of 13
312308 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
313309
314310
315311
312+Regular Class 4.23% 4.19%
316313 172
317-Regular Class 4.23% 4.19%
314+Special Risk Class 9.67% 8.90%
318315 173
319-Special Risk Class 9.67% 8.90%
320- 174
321316 Special Risk
322317 Administrative
323318 Support Class 26.16% 26.31%
324- 175
319+ 174
325320 Elected Officers' Class —
326321 Legislators, Governor,
327322 Lt. Governor,
328323 Cabinet Officers,
329324 State Attorneys,
330325 Public Defenders 56.76% 53.52%
326+ 175
327+Elected Officers' Class —
328+ Justices, Judges 27.64% 25.81%
331329 176
332330 Elected Officers' Class —
333- Justices, Judges 27.64% 25.81%
331+ County Elected Officers 43.98% 39.42%
334332 177
335-Elected Officers' Class —
336- County Elected Officers 43.98% 39.42%
333+Senior Management Service Class 22.15% 20.80%
337334 178
338-Senior Management Service Class 22.15% 20.80%
335+DROP 9.15% 9.45%
339336 179
340-DROP 9.15% 9.45%
341-ENROLLED
342-HB 5007, Engrossed 1 2022 Legislature
337+
338+HB 5007 2022
343339
344340
345341
346342 CODING: Words stricken are deletions; words underlined are additions.
347-hb5007-02-er
343+hb5007-00
348344 Page 10 of 13
349345 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
350346
351347
352348
353- 180
354- Section 3. Subsection (5) of section 121.72, Florida 181
355-Statutes, is amended and subsection (6) is added to that section 182
356-to read: 183
357- 121.72 Allocations to investment plan member accounts; 184
358-percentage amounts.— 185
359- (5) Effective July 1, 2012, through June 30, 2022, 186
360-allocations from the Florida Retirement System Contributions 187
361-Clearing Trust Fund to investment plan member accounts are as 188
362-follows: 189
363- 190
349+ Section 3. Subsection (5) of section 121.72, Florida 180
350+Statutes, is amended and subsection (6) is added to that section 181
351+to read: 182
352+ 121.72 Allocations to investment plan member accounts; 183
353+percentage amounts.— 184
354+ (5) Effective July 1, 2012, through June 30, 2022, 185
355+allocations from the Florida Retirement System Contributions 186
356+Clearing Trust Fund to investment plan member accounts are as 187
357+follows: 188
358+ 189
364359 Membership Class Percentage of
365360 Gross
366361 Compensation
362+ 190
363+
367364 191
368-
365+Regular Class 6.30%
369366 192
370-Regular Class 6.30%
367+Special Risk Class 14.00%
371368 193
372-Special Risk Class 14.00%
369+Special Risk Administrative Support Class 7.95%
373370 194
374-Special Risk Administrative Support Class 7.95%
375- 195
376371 Elected Officers' Class —
377372 Legislators, Governor,
373+ Lt. Governor, Cabinet Officers, 9.38%
378374
379-
380-ENROLLED
381-HB 5007, Engrossed 1 2022 Legislature
375+HB 5007 2022
382376
383377
384378
385379 CODING: Words stricken are deletions; words underlined are additions.
386-hb5007-02-er
380+hb5007-00
387381 Page 11 of 13
388382 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
389383
390384
391385
392- Lt. Governor, Cabinet Officers,
393386 State Attorneys, Public Defenders
394-
395-9.38%
387+ 195
388+Elected Officers' Class —
389+ Justices, Judges 13.23%
396390 196
397391 Elected Officers' Class —
398- Justices, Judges 13.23%
392+ County Elected Officers 11.34%
399393 197
400-Elected Officers' Class —
401- County Elected Officers 11.34%
394+Senior Management Service Class 7.67%
402395 198
403-Senior Management Service Class 7.67%
404- 199
405- (6) Effective July 1, 2022, allocations from the Florida 200
406-Retirement System Contributions Clearing Trust Fund to 201
407-investment plan member accounts are as follows: 202
408- 203
396+ (6) Effective July 1, 2022, allocations from the Florida 199
397+Retirement System Contributions Clearing Trust Fund to 200
398+investment plan member accounts are as follows: 201
399+ 202
409400 Membership Class Percentage of
410401 Gross
411402 Compensation
403+ 203
404+
412405 204
406+Regular Class 9.30%
407+ 205
408+Special Risk Class 17.00%
409+ 206
410+Special Risk Administrative Support Class 10.95%
413411
414- 205
415-Regular Class 9.30%
416- 206
417-Special Risk Class 17.00%
418- 207
419-ENROLLED
420-HB 5007, Engrossed 1 2022 Legislature
412+HB 5007 2022
421413
422414
423415
424416 CODING: Words stricken are deletions; words underlined are additions.
425-hb5007-02-er
417+hb5007-00
426418 Page 12 of 13
427419 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
428420
429421
430422
431-Special Risk Administrative Support Class 10.95%
432- 208
423+ 207
433424 Elected Officers' Class —
434425 Legislators, Governor,
435426 Lt. Governor, Cabinet Officers,
436427 State Attorneys, Public Defenders 12.38%
428+ 208
429+Elected Officers' Class—
430+ Justices, Judges 16.23%
437431 209
438432 Elected Officers' Class —
439- Justices, Judges 16.23%
433+ County Elected Officers 14.34%
440434 210
441-Elected Officers' Class —
442- County Elected Officers 14.34%
435+Senior Management Service Class 10.67%
443436 211
444-Senior Management Service Class 10.67%
445- 212
446- Section 4. The Legislature finds that a proper and 213
447-legitimate state purpose is served when employees, officers, and 214
448-retirees of the state and its political subdivisions, and the 215
449-dependents, survivors, and beneficiaries of such employees, 216
450-officers, and retirees, are e xtended the basic protections 217
451-afforded by governmental retirement systems. These persons must 218
452-be provided benefits that are fair and adequate and that are 219
453-managed, administered, and funded in an actuarially sound manner 220
454-as required by s. 14, Article X of t he State Constitution and 221
455-part VII of chapter 112, Florida Statutes. Therefore, the 222
456-ENROLLED
457-HB 5007, Engrossed 1 2022 Legislature
437+ Section 4. The Legislature finds that a proper and 212
438+legitimate state purpose is served when employees, officers, and 213
439+retirees of the state and its political subdivisions, and the 214
440+dependents, survivors, and beneficiaries of such employees, 215
441+officers, and retirees, are e xtended the basic protections 216
442+afforded by governmental retirement systems. These persons must 217
443+be provided benefits that are fair and adequate and that are 218
444+managed, administered, and funded in an actuarially sound manner 219
445+as required by s. 14, Article X of t he State Constitution and 220
446+part VII of chapter 112, Florida Statutes. Therefore, the 221
447+Legislature determines and declares that this act fulfills an 222
448+
449+HB 5007 2022
458450
459451
460452
461453 CODING: Words stricken are deletions; words underlined are additions.
462-hb5007-02-er
454+hb5007-00
463455 Page 13 of 13
464456 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
465457
466458
467459
468-Legislature determines and declares that this act fulfills an 223
469-important state interest. 224
470- Section 5. This act shall take effect July 1, 2022. 225
460+important state interest. 223
461+ Section 5. This act shall take effect July 1, 2022. 224