HB 905 2023
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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
A bill to be entitled 1
An act relating to Deferred Retirement Option Program 2
eligibility for school employees and personnel; 3
amending s. 121.091, F.S.; removing the time 4
limitation for DROP eligibility for certain 5
instructional personnel administrative personnel, and 6
educational support employees; providing a declaration 7
of important state interest; providing an effective 8
date. 9
10
Be It Enacted by the Legislature of the State of Florida: 11
12
Section 1. Paragraph (b) of subsection (13) of section 13
121.091, Florida Statutes, is amended to read: 14
121.091 Benefits payable under the system. —Benefits may 15
not be paid under this sec tion unless the member has terminated 16
employment as provided in s. 121.021(39)(a) or begun 17
participation in the Deferred Retirement Option Program as 18
provided in subsection (13), and a proper application has been 19
filed in the manner prescribed by the depar tment. The department 20
may cancel an application for retirement benefits when the 21
member or beneficiary fails to timely provide the information 22
and documents required by this chapter and the department's 23
rules. The department shall adopt rules establishing procedures 24
for application for retirement benefits and for the cancellation 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
of such application when the required information or documents 26
are not received. 27
(13) DEFERRED RETIREMENT OPTION PROGRAM. —In general, and 28
subject to this section, the Deferred Re tirement Option Program, 29
hereinafter referred to as DROP, is a program under which an 30
eligible member of the Florida Retirement System may elect to 31
participate, deferring receipt of retirement benefits while 32
continuing employment with his or her Florida Re tirement System 33
employer. The deferred monthly benefits shall accrue in the 34
Florida Retirement System on behalf of the member, plus interest 35
compounded monthly, for the specified period of the DROP 36
participation, as provided in paragraph (c). Upon terminat ion of 37
employment, the member shall receive the total DROP benefits and 38
begin to receive the previously determined normal retirement 39
benefits. Participation in the DROP does not guarantee 40
employment for the specified period of DROP. Participation in 41
DROP by an eligible member beyond the initial 60 -month period as 42
authorized in this subsection shall be on an annual contractual 43
basis for all participants. 44
(b) Participation in DROP. —Except as provided in this 45
paragraph, an eligible member may elect to partic ipate in DROP 46
for a period not to exceed a maximum of 60 calendar months. 47
1.a. Members who are instructional personnel employed by 48
the Florida School for the Deaf and the Blind and authorized by 49
the Board of Trustees of the Florida School for the Deaf an d the 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
Blind;, who are instructional personnel , administrative 51
personnel, or educational support employees as defined in s. 52
1012.01(2), (3), or (6), respectively, s. 1012.01(2)(a)-(d) in 53
grades K-12 and authorized by the district school 54
superintendent;, or who are instructional personnel as defined 55
in s. 1012.01(2)(a) employed by a developmental research school 56
and authorized by the school's director, or if the school has no 57
director, by the school's principal, may participate in DROP for 58
up to 36 calendar months beyond the 60-month period. Effective 59
July 1, 2018, instructional personnel who are authorized to 60
extend DROP participation beyond the 60 -month period must have a 61
termination date that is the last day of the last calendar month 62
of the school year wit hin the DROP extension granted by the 63
employer. If, on July 1, 2018, the member's DROP participation 64
has already been extended for the maximum 36 calendar months and 65
the extension period concludes before the end of the school 66
year, the member's DROP partic ipation may be extended through 67
the last day of the last calendar month of that school year. The 68
employer shall notify the division of the change in termination 69
date and the additional period of DROP participation for the 70
affected instructional personnel. 71
b. Administrative personnel in grades K -12, as defined in 72
s. 1012.01(3), who have a DROP termination date on or after July 73
1, 2018, may be authorized to extend DROP participation beyond 74
the initial 60 calendar month period if the administrative 75
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personnel's termination date is before the end of the school 76
year. Such administrative personnel may have DROP participation 77
extended until the last day of the last calendar month of the 78
school year in which their original DROP termination date 79
occurred if a date o ther than the last day of the last calendar 80
month of the school year is designated. The employer shall 81
notify the division of the change in termination date and the 82
additional period of DROP participation for the affected 83
administrative personnel. 84
b.c. Effective July 1, 2022, a member of the Special Risk 85
Class who is a law enforcement officer who meets the criteria in 86
s. 121.0515(3)(a) and who is a DROP participant on or after July 87
1, 2022, may participate in DROP for up to 36 calendar months 88
beyond the 60-month period if he or she enters DROP on or before 89
June 30, 2028. 90
2. Upon deciding to participate in DROP, the member shall 91
submit, on forms required by the division: 92
a. A written election to participate in DROP; 93
b. Selection of DROP participation and termination dates 94
that satisfy the limitations stated in paragraph (a) and 95
subparagraph 1. The termination date must be in a binding letter 96
of resignation to the employer establishing a deferred 97
termination date. The member may change the termination d ate 98
within the limitations of subparagraph 1., but only with the 99
written approval of the employer; 100
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c. A properly completed DROP application for service 101
retirement as provided in this section; and 102
d. Any other information required by the division. 103
3. The DROP participant is a retiree under the Florida 104
Retirement System for all purposes, except for paragraph (5)(f) 105
and subsection (9) and ss. 112.3173, 112.363, 121.053, and 106
121.122. DROP participation is final and may not be canceled by 107
the participant after the first payment is credited during the 108
DROP participation period. However, participation in DROP does 109
not alter the participant's employment status, and the member is 110
not deemed retired from employment until his or her deferred 111
resignation is effect ive and termination occurs as defined in s. 112
121.021. 113
4. Elected officers are eligible to participate in DROP 114
subject to the following: 115
a. An elected officer who reaches normal retirement date 116
during a term of office may defer the election to participate 117
until the next succeeding term in that office. An elected 118
officer who exercises this option may participate in DROP for up 119
to 60 calendar months or no longer than the succeeding term of 120
office, whichever is less. 121
b. An elected or a nonelected participant may run for a 122
term of office while participating in DROP and, if elected, 123
extend the DROP termination date accordingly; however, if such 124
additional term of office exceeds the 60 -month limitation 125
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established in subparagraph 1., and the officer does not resign 126
from office within such 60 -month limitation, the retirement and 127
the participant's DROP is null and void as provided in sub -128
subparagraph (c)5.d. 129
c. An elected officer who is dually employed and elects to 130
participate in DROP must terminate all employment relationships 131
as provided in s. 121.021(39) for the nonelected position within 132
the original 60-month period or maximum participation period as 133
provided in subparagraph 1. For DROP participation ending: 134
(I) Before July 1, 2010, the officer may continue 135
employment as an elected officer as provided in s. 121.053. The 136
elected officer shall be enrolled as a renewed member in the 137
Elected Officers' Class or the Regular Class, as provided in ss. 138
121.053 and 121.122, on the first day of the month af ter 139
termination of employment in the nonelected position and 140
termination of DROP. Distribution of the DROP benefits shall be 141
made as provided in paragraph (c). 142
(II) On or after July 1, 2010, the officer may continue 143
employment as an elected officer but m ust defer termination as 144
provided in s. 121.053. 145
Section 2. The Legislature finds that a proper and 146
legitimate state purpose is served when employees and retirees 147
of the state and its political subdivisions, and the dependents, 148
survivors, and beneficia ries of such employees and retirees, are 149
extended the basic protections afforded by governmental 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
retirement systems. These persons must be provided benefits that 151
are fair and adequate and that are managed, administered, and 152
funded in an actuarially sound m anner, as required by s. 14, 153
Article X of the State Constitution and part VII of chapter 112, 154
Florida Statutes. Therefore, the Legislature determines and 155
declares that this act fulfills an important state interest. 156
Section 3. This act shall take effect July 1, 2023. 157