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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
1
An act relating to state -administered retirement 2
systems; amending s. 121.091, F.S.; authorizing 3
certain members to elect to participate in the 4
deferred retirement program for an additional 36 5
months; amending s. 121.71, F.S.; revising required 6
employer retirement contribution rates for each 7
membership class and subclass of the Florida 8
Retirement System; amending s. 121.72, F.S.; revising 9
allocations to investment plan member accounts; 10
providing a declaration of important state interest; 11
providing an effective date. 12
13
Be It Enacted by the Legislature of the State of Florida: 14
15
Section 1. Paragraph (b) of subsection (13) of section 16
121.091, Florida Statutes, is amended to read: 17
121.091 Benefits payable under the system. —Benefits may 18
not be paid under this section unless the member has terminated 19
employment as provided in s. 121.021(39)(a) or begun 20
participation in the Deferred Retirement Opti on Program as 21
provided in subsection (13), and a proper application has been 22
filed in the manner prescribed by the department. The department 23
may cancel an application for retirement benefits when the 24
member or beneficiary fails to timely provide the infor mation 25
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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
and documents required by this chapter and the department's 26
rules. The department shall adopt rules establishing procedures 27
for application for retirement benefits and for the cancellation 28
of such application when the required information or documen ts 29
are not received. 30
(13) DEFERRED RETIREMENT OPTION PROGRAM. —In general, and 31
subject to this section, the Deferred Retirement Option Program, 32
hereinafter referred to as DROP, is a program under which an 33
eligible member of the Florida Retirement System m ay elect to 34
participate, deferring receipt of retirement benefits while 35
continuing employment with his or her Florida Retirement System 36
employer. The deferred monthly benefits shall accrue in the 37
Florida Retirement System on behalf of the member, plus inte rest 38
compounded monthly, for the specified period of the DROP 39
participation, as provided in paragraph (c). Upon termination of 40
employment, the member shall receive the total DROP benefits and 41
begin to receive the previously determined normal retirement 42
benefits. Participation in the DROP does not guarantee 43
employment for the specified period of DROP. Participation in 44
DROP by an eligible member beyond the initial 60 -month period as 45
authorized in this subsection shall be on an annual contractual 46
basis for all participants. 47
(b) Participation in DROP. —Except as provided in this 48
paragraph, an eligible member may elect to participate in DROP 49
for a period not to exceed a maximum of 60 calendar months. 50
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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
1.a. An eligible member may elect to participate in DROP 51
for a period not to exceed a maximum of 60 calendar months. 52
However, Members who are instructional personnel employed by the 53
Florida School for the Deaf and the Blind and authorized by the 54
Board of Trustees of the Florida School for the Deaf and the 55
Blind, who are instructional personnel as defined in s. 56
1012.01(2)(a)-(d) in grades K-12 and authorized by the district 57
school superintendent, or who are instructional personnel as 58
defined in s. 1012.01(2)(a) employed by a developmental research 59
school and authorized by the school's director, or if the school 60
has no director, by the school's principal, may participate in 61
DROP for up to 36 calendar months beyond the 60 -month period. 62
Effective July 1, 2018, instructional personnel who are 63
authorized to extend DROP par ticipation beyond the 60 -month 64
period must have a termination date that is the last day of the 65
last calendar month of the school year within the DROP extension 66
granted by the employer. If, on July 1, 2018, the member's DROP 67
participation has already been e xtended for the maximum 36 68
calendar months and the extension period concludes before the 69
end of the school year, the member's DROP participation may be 70
extended through the last day of the last calendar month of that 71
school year. The employer shall notify the division of the 72
change in termination date and the additional period of DROP 73
participation for the affected instructional personnel. 74
b. Administrative personnel in grades K -12, as defined in 75
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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
s. 1012.01(3), who have a DROP termination date on or after July 76
1, 2018, may be authorized to extend DROP participation beyond 77
the initial 60 calendar month period if the administrative 78
personnel's termination date is before the end of the school 79
year. Such administrative personnel may have DROP participation 80
extended until the last day of the last calendar month of the 81
school year in which their original DROP termination date 82
occurred if a date other than the last day of the last calendar 83
month of the school year is designated. The employer shall 84
notify the division of the change in termination date and the 85
additional period of DROP participation for the affected 86
administrative personnel. 87
c. Effective July 1, 2022, a member of the Special Risk 88
Class who is a law enforcement officer who meets the criteria in 89
s. 121.0515(3)(a) and who is a DROP participant on or after July 90
1, 2022, may participate in DROP for up to 36 calendar months 91
beyond the 60-month period if he or she enters DROP on or before 92
June 30, 2028. 93
2. Upon deciding to participate in DROP, the member shall 94
submit, on forms required by the division: 95
a. A written election to participate in DROP; 96
b. Selection of DROP participation and termination dates 97
that satisfy the limitations stated in paragraph (a) and 98
subparagraph 1. The termination date must be in a binding letter 99
of resignation to the employer establishing a deferred 100
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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
termination date. The member may change the termination date 101
within the limitations of subparagraph 1., but only with the 102
written approval of the employer; 103
c. A properly comple ted DROP application for service 104
retirement as provided in this section; and 105
d. Any other information required by the division. 106
3. The DROP participant is a retiree under the Florida 107
Retirement System for all purposes, except for paragraph (5)(f) 108
and subsection (9) and ss. 112.3173, 112.363, 121.053, and 109
121.122. DROP participation is final and may not be canceled by 110
the participant after the first payment is credited during the 111
DROP participation period. However, participation in DROP does 112
not alter the participant's employment status, and the member is 113
not deemed retired from employment until his or her deferred 114
resignation is effective and termination occurs as defined in s. 115
121.021. 116
4. Elected officers are eligible to participate in DROP 117
subject to the following: 118
a. An elected officer who reaches normal retirement date 119
during a term of office may defer the election to participate 120
until the next succeeding term in that office. An elected 121
officer who exercises this option may participate in DRO P for up 122
to 60 calendar months or no longer than the succeeding term of 123
office, whichever is less. 124
b. An elected or a nonelected participant may run for a 125
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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
term of office while participating in DROP and, if elected, 126
extend the DROP termination date accord ingly; however, if such 127
additional term of office exceeds the 60 -month limitation 128
established in subparagraph 1., and the officer does not resign 129
from office within such 60 -month limitation, the retirement and 130
the participant's DROP is null and void as pro vided in sub-131
subparagraph (c)5.d. 132
c. An elected officer who is dually employed and elects to 133
participate in DROP must terminate all employment relationships 134
as provided in s. 121.021(39) for the nonelected position within 135
the original 60-month period or maximum participation period as 136
provided in subparagraph 1. For DROP participation ending: 137
(I) Before July 1, 2010, the officer may continue 138
employment as an elected officer as provided in s. 121.053. The 139
elected officer shall be enrolled as a renewed me mber in the 140
Elected Officers' Class or the Regular Class, as provided in ss. 141
121.053 and 121.122, on the first day of the month after 142
termination of employment in the nonelected position and 143
termination of DROP. Distribution of the DROP benefits shall be 144
made as provided in paragraph (c). 145
(II) On or after July 1, 2010, the officer may continue 146
employment as an elected officer but must defer termination as 147
provided in s. 121.053. 148
Section 2. Subsections (4) and (5) of section 121.71, 149
Florida Statutes, are amended to read: 150
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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
121.71 Uniform rates; process; calculations; levy. — 151
(4) Required employer retirement contribution rates for 152
each membership class and subclass of the Florida Retirement 153
System for both retirement plans are as follows: 154
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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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
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
(5) In order to address unfunded actuarial liabilities of 166
the system, the required employer retirement contribution rates 167
for each membership class and subclass of the Florida Retirement 168
System for both retirement plans are as follows: 169
170
Membership Class Percentage of
Gross
Compensation,
Effective
July 1, 2022 2021
171
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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
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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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
180
Section 3. Subsection (5) of section 121.72, Florida 181
Statutes, is amended and subsection (6) is added to that section 182
to read: 183
121.72 Allocations to investment plan member accounts; 184
percentage amounts.— 185
(5) Effective July 1, 2012, through June 30, 2022, 186
allocations from the Florida Retirement System Contributions 187
Clearing Trust Fund to investment plan member accounts are as 188
follows: 189
190
Membership Class Percentage of
Gross
Compensation
191
192
Regular Class 6.30%
193
Special Risk Class 14.00%
194
Special Risk Administrative Support Class 7.95%
195
Elected Officers' Class —
Legislators, Governor,
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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
Lt. Governor, Cabinet Officers,
State Attorneys, Public Defenders
9.38%
196
Elected Officers' Class —
Justices, Judges 13.23%
197
Elected Officers' Class —
County Elected Officers 11.34%
198
Senior Management Service Class 7.67%
199
(6) Effective July 1, 2022, allocations from the Florida 200
Retirement System Contributions Clearing Trust Fund to 201
investment plan member accounts are as follows: 202
203
Membership Class Percentage of
Gross
Compensation
204
205
Regular Class 9.30%
206
Special Risk Class 17.00%
207
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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
Special Risk Administrative Support Class 10.95%
208
Elected Officers' Class —
Legislators, Governor,
Lt. Governor, Cabinet Officers,
State Attorneys, Public Defenders 12.38%
209
Elected Officers' Class —
Justices, Judges 16.23%
210
Elected Officers' Class —
County Elected Officers 14.34%
211
Senior Management Service Class 10.67%
212
Section 4. The Legislature finds that a proper and 213
legitimate state purpose is served when employees, officers, and 214
retirees of the state and its political subdivisions, and the 215
dependents, survivors, and beneficiaries of such employees, 216
officers, and retirees, are e xtended the basic protections 217
afforded by governmental retirement systems. These persons must 218
be provided benefits that are fair and adequate and that are 219
managed, administered, and funded in an actuarially sound manner 220
as required by s. 14, Article X of t he State Constitution and 221
part VII of chapter 112, Florida Statutes. Therefore, the 222
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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
Legislature determines and declares that this act fulfills an 223
important state interest. 224
Section 5. This act shall take effect July 1, 2022. 225