CS for SB 7024 First Engrossed 20237024e1 1 A bill to be entitled 2 An act relating to retirement; amending s. 112.363, 3 F.S.; providing that eligible retirees of the Florida 4 Retirement System Pension Plan shall receive a certain 5 monthly retiree health insurance subsidy payment 6 beginning on a specified date; specifying how such 7 payment is to be calculated; providing construction; 8 providing that eligible members of the Florida 9 Retirement System Investment Plan shall receive a 10 certain monthly retiree health insurance subsidy 11 payment; specifying how such payment is to be 12 calculated; specifying that the members spouse at the 13 time of the members death is the members 14 beneficiary; providing an exception; requiring the 15 employer of members of a state-administered retirement 16 plan to contribute a certain percentage of gross 17 compensation each pay period beginning on a specified 18 date; amending s. 121.021, F.S.; revising the 19 definition of the term normal retirement date; 20 decreasing the age and years of service needed to 21 reach the normal retirement date for certain members; 22 amending s. 121.052, F.S.; revising the employer 23 contribution rates for the retiree health insurance 24 subsidy; amending s. 121.053, F.S.; providing that 25 certain elected officers are ineligible to extend 26 participation in the Deferred Retirement Option 27 Program (DROP) beyond a specified period; conforming 28 provisions to changes made by the act; amending ss. 29 121.055 and 121.071, F.S.; revising the employer 30 contribution rates for the retiree health insurance 31 subsidy; amending s. 121.091, F.S.; revising when 32 members can elect to begin to participate in DROP; 33 increasing the length of time members can participate 34 in DROP; revising the period for which certain members 35 may elect to extend participation in DROP beyond the 36 initial period; providing for the expiration of such 37 extension; providing that certain elected officers are 38 ineligible to extend DROP participation beyond the 39 initial period; increasing the interest accrual rate 40 for DROP, beginning on a specified date; conforming 41 cross-references; conforming provisions to changes 42 made by the act; amending s. 121.4501, F.S.; 43 conforming provisions to changes made by the act; 44 amending s. 121.71, F.S.; revising required employer 45 retirement contribution rates for each membership 46 class and subclass of the Florida Retirement System; 47 amending s. 121.72, F.S.; increasing allocations to 48 investment plan member accounts; amending s. 121.73, 49 F.S.; increasing allocations to provide disability 50 coverage for investment plan members; amending s. 51 121.735, F.S.; revising allocations to provide line 52 of-duty death benefits for investment plan members; 53 providing a declaration of important state interest; 54 providing effective dates. 55 56 Be It Enacted by the Legislature of the State of Florida: 57 58 Section 1.Paragraph (f) is added to subsection (3) of 59 section 112.363, Florida Statutes, and paragraph (j) is added to 60 subsection (8) of that section, to read: 61 112.363Retiree health insurance subsidy. 62 (3)RETIREE HEALTH INSURANCE SUBSIDY AMOUNT. 63 (f)1.Beginning July 1, 2023, each eligible retiree of the 64 pension plan of the Florida Retirement System, or, if the 65 retiree is deceased, his or her beneficiary who is receiving a 66 monthly benefit from such retirees account and who is a spouse, 67 or a person who meets the definition of joint annuitant in s. 68 121.021(28), shall receive a monthly retiree health insurance 69 subsidy payment equal to the number of years of creditable 70 service, as defined in s. 121.021(17), completed at the time of 71 retirement multiplied by $7.50; however, an eligible retiree or 72 beneficiary may not receive a subsidy payment of more than $225 73 or less than $45. If there are multiple beneficiaries, the total 74 payment may not be greater than the payment to which the retiree 75 was entitled. The health insurance subsidy amount payable to any 76 person receiving the retiree health insurance subsidy payment on 77 July 1, 2023, may not be reduced solely by operation of this 78 subparagraph. 79 2.Beginning July 1, 2023, each eligible member of the 80 investment plan of the Florida Retirement System who has met the 81 requirements of this section, or, if the member is deceased, his 82 or her spouse who is the members designated beneficiary, shall 83 receive a monthly retiree health insurance subsidy payment equal 84 to the number of years of creditable service, as provided in 85 this subparagraph, completed at the time of retirement 86 multiplied by $7.50; however, an eligible retiree or beneficiary 87 may not receive a subsidy payment of more than $225 or less than 88 $45. For purposes of determining a members creditable service 89 used to calculate the health insurance subsidy, a members years 90 of service credit or fraction thereof must be based on the 91 members work year as defined in s. 121.021(54). Credit must be 92 awarded for a full work year if health insurance subsidy 93 contributions have been made for each month in the members work 94 year. In addition, all years of creditable service retained 95 under the Florida Retirement System Pension Plan must be 96 included as creditable service for purposes of this section. 97 Notwithstanding this section, the spouse at the time of death is 98 the members beneficiary unless such member has designated a 99 different beneficiary subsequent to the members most recent 100 marriage. 101 (8)CONTRIBUTIONS.For purposes of funding the insurance 102 subsidy provided by this section: 103 (j)Beginning July 1, 2023, the employer of each member of 104 a state-administered retirement plan shall contribute 2.00 105 percent of gross compensation each pay period. 106 107 Such contributions shall be submitted to the Department of 108 Management Services and deposited in the Retiree Health 109 Insurance Subsidy Trust Fund. 110 Section 2.Effective July 1, 2023, paragraph (b) of 111 subsection (29) of section 121.021, Florida Statutes, is amended 112 to read: 113 121.021Definitions.The following words and phrases as 114 used in this chapter have the respective meanings set forth 115 unless a different meaning is plainly required by the context: 116 (29)Normal retirement date means the date a member 117 attains normal retirement age and is vested, which is determined 118 as follows: 119 (b)For If a Special Risk Class member initially enrolled: 120 1.Before July 1, 2011: 121 1.a.The first day of the month the member attains age 55 122 and completes the years of creditable service in the Special 123 Risk Class equal to or greater than the years of service 124 required for vesting; 125 2.b.The first day of the month following the date the 126 member completes 25 years of creditable service in the Special 127 Risk Class, regardless of age; or 128 3.c.The first day of the month following the date the 129 member completes 25 years of creditable service and attains age 130 52, which service may include a maximum of 4 years of military 131 service credit if such credit is not claimed under any other 132 system and the remaining years are in the Special Risk Class. 133 2.On or after July 1, 2011: 134 a.The first day of the month the member attains age 60 and 135 completes the years of creditable service in the Special Risk 136 Class equal to or greater than the years of service required for 137 vesting; 138 b.The first day of the month following the date the member 139 completes 30 years of creditable service in the Special Risk 140 Class, regardless of age; or 141 c.The first day of the month following the date the member 142 completes 30 years of creditable service and attains age 57, 143 which service may include a maximum of 4 years of military 144 service credit if such credit is not claimed under any other 145 system and the remaining years are in the Special Risk Class. 146 147 For a pension plan member members, normal retirement age is 148 attained on the normal retirement date. For an investment plan 149 member members, normal retirement age is the date a member 150 attains his or her normal retirement date as provided in this 151 section, or the date a member is vested under the investment 152 plan as provided in s. 121.4501(6), whichever is later. 153 Section 3.Paragraph (d) of subsection (7) of section 154 121.052, Florida Statutes, is amended to read: 155 121.052Membership class of elected officers. 156 (7)CONTRIBUTIONS. 157 (d)The following table states the required employer 158 contribution on behalf of each member of the Elected Officers 159 Class in terms of a percentage of the members gross 160 compensation. Such contribution constitutes the entire health 161 insurance subsidy contribution with respect to each such member. 162 A change in the contribution rate is effective with the first 163 salary paid on or after the beginning date of the change. The 164 retiree health insurance subsidy contribution rate is as 165 follows: 166 167 Dates of ContributionRate Changes ContributionRate 168 169 October 1, 1987, through December 31, 1988 0.24% 170 January 1, 1989, through December 31, 1993 0.48% 171 January 1, 1994, through December 31, 1994 0.56% 172 January 1, 1995, through June 30, 1998 0.66% 173 July 1, 1998, through June 30, 2001 0.94% 174 July 1, 2001, through June 30, 2013 1.11% 175 July 1, 2013, through June 30, 2014 1.20% 176 July 1, 2014, through June 30, 2015 1.26% 177 Effective July 1, 2015, through June 30, 2023 1.66% 178 Effective July 1, 2023 2.00% 179 180 Such contributions and accompanying payroll data are due and 181 payable no later than the 5th working day of the month 182 immediately following the month during which the payroll period 183 ended and shall be deposited by the administrator in the Retiree 184 Health Insurance Subsidy Trust Fund. 185 Section 4.Paragraph (a) of subsection (7) of section 186 121.053, Florida Statutes, is amended, and paragraph (c) is 187 added to subsection (3) of that section, to read: 188 121.053Participation in the Elected Officers Class for 189 retired members. 190 (3)On or after July 1, 2010: 191 (c)An elected officer who has deferred termination as 192 provided in subsection (7) before July 1, 2023, is ineligible to 193 extend his or her participation in the Deferred Retirement 194 Option Program beyond the 60-month period. 195 (7)A member who is elected or appointed to an elective 196 office and who is participating in the Deferred Retirement 197 Option Program is not subject to termination as defined in s. 198 121.021, or reemployment limitations as provided in s. 199 121.091(9), until the end of his or her current term of office 200 or, if the officer is consecutively elected or reelected to an 201 elective office eligible for coverage under the Florida 202 Retirement System, until he or she no longer holds an elective 203 office, as follows: 204 (a)At the end of the members 60-month DROP period: 205 1.The officers DROP account may not accrue additional 206 monthly benefits, but does continue to earn interest as provided 207 in s. 121.091(13). However, an officer whose DROP participation 208 begins on or after July 1, 2010, may not continue to earn such 209 interest. 210 2.Retirement contributions, except for unfunded actuarial 211 liability and health insurance subsidy contributions required in 212 ss. 121.71(5) and 121.76, are not required of the employer of 213 the elected officer, and additional retirement credit may not be 214 earned under the Florida Retirement System. 215 Section 5.Paragraph (d) of subsection (3) of section 216 121.055, Florida Statutes, is amended to read: 217 121.055Senior Management Service Class.There is hereby 218 established a separate class of membership within the Florida 219 Retirement System to be known as the Senior Management Service 220 Class, which shall become effective February 1, 1987. 221 (3) 222 (d)The following table states the required employer 223 contribution on behalf of each member of the Senior Management 224 Service Class in terms of a percentage of the members gross 225 compensation. Such contribution constitutes the entire health 226 insurance subsidy contribution with respect to each such member. 227 A change in the contribution rate is effective with the first 228 salary paid on or after the beginning date of the change. The 229 retiree health insurance subsidy contribution rate is as 230 follows: 231 232 Dates of ContributionRate Changes ContributionRate 233 234 October 1, 1987, through December 31, 1988 0.24% 235 January 1, 1989, through December 31, 1993 0.48% 236 January 1, 1994, through December 31, 1994 0.56% 237 January 1, 1995, through June 30, 1998 0.66% 238 July 1, 1998, through June 30, 2001 0.94% 239 July 1, 2001, through June 30, 2013 1.11% 240 July 1, 2013, through June 30, 2014 1.20% 241 July 1, 2014, through June 30, 2015 1.26% 242 Effective July 1, 2015, through June 30, 2023 1.66% 243 Effective July 1, 2023 2.00% 244 245 Such contributions and accompanying payroll data are due and 246 payable no later than the 5th working day of the month 247 immediately following the month during which the payroll period 248 ended and shall be deposited by the administrator in the Retiree 249 Health Insurance Subsidy Trust Fund. 250 Section 6.Subsection (4) of section 121.071, Florida 251 Statutes, is amended to read: 252 121.071Contributions.Contributions to the system shall be 253 made as follows: 254 (4)The following table states the required employer 255 contribution on behalf of each member of the Regular Class, 256 Special Risk Class, or Special Risk Administrative Support Class 257 in terms of a percentage of the members gross compensation. 258 Such contribution constitutes the entire health insurance 259 subsidy contribution with respect to each such member. A change 260 in the contribution rate is effective with the first salary paid 261 on or after the beginning date of the change. The retiree health 262 insurance subsidy contribution rate is as follows: 263 264 Dates of ContributionRate Changes ContributionRate 265 266 October 1, 1987, through December 31, 1988 0.24% 267 January 1, 1989, through December 31, 1993 0.48% 268 January 1, 1994, through December 31, 1994 0.56% 269 January 1, 1995, through June 30, 1998 0.66% 270 July 1, 1998, through June 30, 2001 0.94% 271 July 1, 2001, through June 30, 2013 1.11% 272 July 1, 2013, through June 30, 2014 1.20% 273 July 1, 2014, through June 30, 2015 1.26% 274 Effective July 1, 2015, through June 30, 2023 1.66% 275 Effective July 1, 2023 2.00% 276 277 Such contributions shall be deposited by the administrator in 278 the Retiree Health Insurance Subsidy Trust Fund. 279 Section 7.Effective July 1, 2023, paragraph (a) of 280 subsection (3) of section 121.091, Florida Statutes, is amended 281 to read: 282 121.091Benefits payable under the system.Benefits may not 283 be paid under this section unless the member has terminated 284 employment as provided in s. 121.021(39)(a) or begun 285 participation in the Deferred Retirement Option Program as 286 provided in subsection (13), and a proper application has been 287 filed in the manner prescribed by the department. The department 288 may cancel an application for retirement benefits when the 289 member or beneficiary fails to timely provide the information 290 and documents required by this chapter and the departments 291 rules. The department shall adopt rules establishing procedures 292 for application for retirement benefits and for the cancellation 293 of such application when the required information or documents 294 are not received. 295 (3)EARLY RETIREMENT BENEFIT.Upon retirement on his or her 296 early retirement date, the member shall receive an immediate 297 monthly benefit that shall begin to accrue on the first day of 298 the month of the retirement date and be payable on the last day 299 of that month and each month thereafter during his or her 300 lifetime. Such benefit shall be calculated as follows: 301 (a)For a member initially enrolled: 302 1.Before July 1, 2011, the amount of each monthly payment 303 shall be computed in the same manner as for a normal retirement 304 benefit, in accordance with subsection (1), but shall be based 305 on the members average monthly compensation and creditable 306 service as of the members early retirement date. The benefit so 307 computed shall be reduced by five-twelfths of 1 percent for each 308 complete month by which the early retirement date precedes the 309 normal retirement date of age 62 for a member of the Regular 310 Class, Senior Management Service Class, or the Elected Officers 311 Class, and age 55 for a member of the Special Risk Class, or age 312 52 if a Special Risk member has completed 25 years of creditable 313 service in accordance with s. 121.021(29)(b)3. s. 314 121.021(29)(b)1.c. 315 2.On or after July 1, 2011, the amount of each monthly 316 payment shall be computed in the same manner as for a normal 317 retirement benefit, in accordance with subsection (1), but shall 318 be based on the members average monthly compensation and 319 creditable service as of the members early retirement date. The 320 benefit so computed shall be reduced by five-twelfths of 1 321 percent for each complete month by which the early retirement 322 date precedes the normal retirement date of age 65 for a member 323 of the Regular Class, Senior Management Service Class, or the 324 Elected Officers Class, and age 55 60 for a member of the 325 Special Risk Class, or age 52 57 if a special risk member has 326 completed 25 30 years of creditable service in accordance with 327 s. 121.091(29)(b)3. s. 121.021(29)(b)2.c. 328 Section 8.Subsection (13) of section 121.091, Florida 329 Statutes, is amended to read: 330 121.091Benefits payable under the system.Benefits may not 331 be paid under this section unless the member has terminated 332 employment as provided in s. 121.021(39)(a) or begun 333 participation in the Deferred Retirement Option Program as 334 provided in subsection (13), and a proper application has been 335 filed in the manner prescribed by the department. The department 336 may cancel an application for retirement benefits when the 337 member or beneficiary fails to timely provide the information 338 and documents required by this chapter and the departments 339 rules. The department shall adopt rules establishing procedures 340 for application for retirement benefits and for the cancellation 341 of such application when the required information or documents 342 are not received. 343 (13)DEFERRED RETIREMENT OPTION PROGRAM.In general, and 344 subject to this section, the Deferred Retirement Option Program, 345 hereinafter referred to as DROP, is a program under which an 346 eligible member of the Florida Retirement System may elect to 347 participate, deferring receipt of retirement benefits while 348 continuing employment with his or her Florida Retirement System 349 employer. The deferred monthly benefits shall accrue in the 350 Florida Retirement System on behalf of the member, plus interest 351 compounded monthly, for the specified period of the DROP 352 participation, as provided in paragraph (c). Upon termination of 353 employment, the member shall receive the total DROP benefits and 354 begin to receive the previously determined normal retirement 355 benefits. Participation in the DROP does not guarantee 356 employment for the specified period of DROP. Participation in 357 DROP by an eligible member beyond the initial 60-month period as 358 authorized in this subsection shall be on an annual contractual 359 basis for all participants. 360 (a)Eligibility of member to participate in DROP.All 361 active Florida Retirement System members in a regularly 362 established position, and all active members of the Teachers 363 Retirement System established in chapter 238 or the State and 364 County Officers and Employees Retirement System established in 365 chapter 122, which are consolidated within the Florida 366 Retirement System under s. 121.011, are eligible to elect 367 participation in DROP if: 368 1.The member is not a renewed member under s. 121.122 or a 369 member of the State Community College System Optional Retirement 370 Program under s. 121.051, the Senior Management Service Optional 371 Annuity Program under s. 121.055, or the optional retirement 372 program for the State University System under s. 121.35. 373 2.Except as provided in subparagraph 6., for members 374 initially enrolled before July 1, 2011, Election to participate 375 in DROP may be is made at any time within 12 months immediately 376 following the date on which the member first reaches his or her 377 normal retirement date, or, for a member who reaches normal 378 retirement date based on service before he or she reaches age 379 62, or age 55 for Special Risk Class members, election to 380 participate may be deferred to the 12 months immediately 381 following the date the member attains age 57, or age 52 for 382 Special Risk Class members. Except as provided in subparagraph 383 6., for members initially enrolled on or after July 1, 2011, 384 election to participate is made within 12 months immediately 385 following the date on which the member first reaches normal 386 retirement date, or, for a member who reaches normal retirement 387 date based on service before he or she reaches age 65, or age 60 388 for Special Risk Class members, election to participate may be 389 deferred to the 12 months immediately following the date the 390 member attains age 60, or age 55 for Special Risk Class members. 391 A member who delays DROP participation during the 12-month 392 period immediately following his or her maximum DROP deferral 393 date, except as provided in subparagraph 6., loses a month of 394 DROP participation for each month delayed. A member who fails to 395 make an election within the 12-month limitation period forfeits 396 all rights to participate in DROP. The member shall advise his 397 or her employer and the division in writing of the date DROP 398 begins. The beginning date may be subsequent to the 12-month 399 election period but must be within the original 60-month 400 participation period provided in subparagraph (b)1. When 401 establishing eligibility to participate in DROP, the member may 402 elect to include or exclude any optional service credit 403 purchased by the member from the total service used to establish 404 the normal retirement date. A member who has dual normal 405 retirement dates is eligible to elect to participate in DROP 406 after attaining normal retirement date in either class. 407 3.The employer of a member electing to participate in 408 DROP, or employers if dually employed, shall acknowledge in 409 writing to the division the date the members participation in 410 DROP begins and the date the members employment and DROP 411 participation terminates. 412 4.Simultaneous employment of a member by additional 413 Florida Retirement System employers subsequent to the 414 commencement of a members participation in DROP is permissible 415 if such employers acknowledge in writing a DROP termination date 416 no later than the members existing termination date or the 417 maximum participation period provided in paragraph (b) 418 subparagraph (b)1. 419 5.A member may change employers while participating in 420 DROP, subject to the following: 421 a.A change of employment takes place without a break in 422 service so that the member receives salary for each month of 423 continuous DROP participation. If a member receives no salary 424 during a month, DROP participation ceases unless the employer 425 verifies a continuation of the employment relationship for such 426 member pursuant to s. 121.021(39)(b). 427 b.The member and new employer notify the division of the 428 identity of the new employer on forms required by the division. 429 c.The new employer acknowledges, in writing, the members 430 DROP termination date, which may be extended but not beyond the 431 maximum participation period provided in paragraph (b) 432 subparagraph (b)1., acknowledges liability for any additional 433 retirement contributions and interest required if the member 434 fails to timely terminate employment, and is subject to the 435 adjustment required in sub-subparagraph (c)5.d. 436 6.Effective July 1, 2001, for instructional personnel as 437 defined in s. 1012.01(2), election to participate in DROP may be 438 made at any time following the date on which the member first 439 reaches normal retirement date. The member shall advise his or 440 her employer and the division in writing of the date on which 441 DROP begins. When establishing eligibility of the member to 442 participate in DROP for the 60-month participation period 443 provided in subparagraph (b)1., the member may elect to include 444 or exclude any optional service credit purchased by the member 445 from the total service used to establish the normal retirement 446 date. A member who has dual normal retirement dates is eligible 447 to elect to participate in either class. 448 (b)Participation in DROP.Except as provided in this 449 paragraph, an eligible member may elect to participate in DROP 450 for a period not to exceed a maximum of 96 60 calendar months. 451 1.a.Members who are instructional personnel employed by 452 the Florida School for the Deaf and the Blind and authorized by 453 the Board of Trustees of the Florida School for the Deaf and the 454 Blind, who are instructional personnel as defined in s. 455 1012.01(2)(a)-(d) in grades K-12 and authorized by the district 456 school superintendent, or who are instructional personnel as 457 defined in s. 1012.01(2)(a) employed by a developmental research 458 school and authorized by the schools director, or if the school 459 has no director, by the schools principal, may: 460 (I)Extend DROP participation beyond the initial 96 461 calendar-month period if the instructional personnels 462 termination date is before the end of the school year. Such 463 instructional personnel may have DROP participation extended 464 until the last day of the last calendar month of the school year 465 in which their original DROP termination date occurred if a date 466 other than the last day of the last calendar month of the school 467 year is designated. 468 (II)Participate in DROP for up to 24 36 calendar months 469 beyond the 96-month 60-month period. Effective July 1, 2018, 470 Instructional personnel who are authorized to extend DROP 471 participation beyond the 96-month 60-month period must have a 472 termination date that is the last day of the last calendar month 473 of the school year within the DROP extension granted by the 474 employer. If, on July 1, 2018, the members DROP participation 475 has already been extended for the maximum 24 36 calendar months 476 and the extension period concludes before the end of the school 477 year, the members DROP participation may be extended through 478 the last day of the last calendar month of that school year. 479 This sub-sub-subparagraph expires June 30, 2029. 480 481 The employer shall notify the division of the change in 482 termination date and the additional period of DROP participation 483 for the affected instructional personnel. 484 b.Administrative personnel in grades K-12, as defined in 485 s. 1012.01(3), who have a DROP termination date on or after July 486 1, 2018, may be authorized to extend DROP participation beyond 487 the initial 96 60 calendar month period if the administrative 488 personnels termination date is before the end of the school 489 year. Such administrative personnel may have DROP participation 490 extended until the last day of the last calendar month of the 491 school year in which their original DROP termination date 492 occurred if a date other than the last day of the last calendar 493 month of the school year is designated. The employer shall 494 notify the division of the change in termination date and the 495 additional period of DROP participation for the affected 496 administrative personnel. 497 c.Effective July 1, 2022, a member of the Special Risk 498 Class who is a law enforcement officer who meets the criteria in 499 s. 121.0515(3)(a) and who is a DROP participant on or after July 500 1, 2022, may participate in DROP for up to 36 calendar months 501 beyond the 60-month period if he or she enters DROP on or before 502 June 30, 2028. 503 2.Upon deciding to participate in DROP, the member shall 504 submit, on forms required by the division: 505 a.A written election to participate in DROP; 506 b.Selection of DROP participation and termination dates 507 that satisfy the limitations stated in paragraph (a) and this 508 paragraph subparagraph 1. The termination date must be in a 509 binding letter of resignation to the employer establishing a 510 deferred termination date. The member may change the termination 511 date within the limitations of this paragraph subparagraph 1., 512 but only with the written approval of the employer; 513 c.A properly completed DROP application for service 514 retirement as provided in this section; and 515 d.Any other information required by the division. 516 3.The DROP participant is a retiree under the Florida 517 Retirement System for all purposes, except for paragraph (5)(f) 518 and subsection (9) and ss. 112.3173, 112.363, 121.053, and 519 121.122. DROP participation is final and may not be canceled by 520 the participant after the first payment is credited during the 521 DROP participation period. However, participation in DROP does 522 not alter the participants employment status, and the member is 523 not deemed retired from employment until his or her deferred 524 resignation is effective and termination occurs as defined in s. 525 121.021. 526 4.Elected officers are eligible to participate in DROP 527 subject to the following: 528 a.An elected officer who reaches normal retirement date 529 during a term of office may defer the election to participate 530 until the next succeeding term in that office. An elected 531 officer who exercises this option may participate in DROP for up 532 to 96 60 calendar months or no longer than the succeeding term 533 of office, whichever is less. 534 b.An elected or a nonelected participant may run for a 535 term of office while participating in DROP and, if elected, 536 extend the DROP termination date accordingly; however, if such 537 additional term of office exceeds the 96-month 60-month 538 limitation established in this paragraph subparagraph 1., and 539 the officer does not resign from office within such 60-month 540 limitation, the retirement and the participants DROP is null 541 and void as provided in sub-subparagraph (c)5.d. 542 c.An elected officer who is dually employed and elects to 543 participate in DROP must terminate all employment relationships 544 as provided in s. 121.021(39) for the nonelected position within 545 the original 60-month period or maximum participation period as 546 provided in this paragraph subparagraph 1. For DROP 547 participation ending: 548 (I)Before July 1, 2010, the officer may continue 549 employment as an elected officer as provided in s. 121.053. The 550 elected officer shall be enrolled as a renewed member in the 551 Elected Officers Class or the Regular Class, as provided in ss. 552 121.053 and 121.122, on the first day of the month after 553 termination of employment in the nonelected position and 554 termination of DROP. Distribution of the DROP benefits shall be 555 made as provided in paragraph (c). 556 (II)On or after July 1, 2010, the officer may continue 557 employment as an elected officer but must defer termination as 558 provided in s. 121.053. 559 d.An elected officer who has deferred termination as 560 provided in s. 121.053 before June 30, 2023, is ineligible to 561 extend DROP participation beyond 60 months. 562 (c)Benefits payable under DROP. 563 1.Effective on the date of DROP participation, the 564 members initial normal monthly benefit, including creditable 565 service, optional form of payment, and average final 566 compensation, and the effective date of retirement are fixed. 567 The beneficiary established under the Florida Retirement System 568 is the beneficiary eligible to receive any DROP benefits payable 569 if the DROP participant dies before completing the period of 570 DROP participation. If a joint annuitant predeceases the member, 571 the member may name a beneficiary to receive accumulated DROP 572 benefits payable. The retirement benefit, the annual cost of 573 living adjustments provided in s. 121.101, and interest accrue 574 monthly in the Florida Retirement System Trust Fund. For members 575 whose DROP participation begins: 576 a.Before July 1, 2011, the interest accrues at an 577 effective annual rate of 6.5 percent compounded monthly, on the 578 prior months accumulated ending balance, up to the month of 579 termination or death, except as provided in s. 121.053(7). 580 b.On or after July 1, 2011, the interest accrues: 581 (I)Through June 30, 2023, at an effective annual rate of 582 1.3 percent, compounded monthly, on the prior months 583 accumulated ending balance, up to the month of termination or 584 death, except as provided in s. 121.053(7). 585 (II)Beginning July 1, 2023, at an effective annual rate of 586 4 percent, compounded monthly, on the prior months accumulated 587 ending balance, up to the month of termination or death, except 588 as provided in s. 121.053(7). 589 2.Each employee who elects to participate in DROP may 590 elect to receive a lump-sum payment for accrued annual leave 591 earned in accordance with agency policy upon beginning 592 participation in DROP. The accumulated leave payment certified 593 to the division upon commencement of DROP shall be included in 594 the calculation of the members average final compensation. The 595 employee electing the lump-sum payment is not eligible to 596 receive a second lump-sum payment upon termination, except to 597 the extent the employee has earned additional annual leave 598 which, combined with the original payment, does not exceed the 599 maximum lump-sum payment allowed by the employing agencys 600 policy or rules. An early lump-sum payment shall be based on the 601 hourly wage of the employee at the time he or she begins 602 participation in DROP. If the member elects to wait and receive 603 a lump-sum payment upon termination of DROP and termination of 604 employment with the employer, any accumulated leave payment made 605 at that time may not be included in the members retirement 606 benefit, which was determined and fixed by law when the employee 607 elected to participate in DROP. 608 3.The effective date of DROP participation and the 609 effective date of retirement of a DROP participant shall be the 610 first day of the month selected by the member to begin 611 participation in DROP, provided such date is properly 612 established, with the written confirmation of the employer, and 613 the approval of the division, on forms required by the division. 614 4.Normal retirement benefits and any interest continue to 615 accrue in DROP until the established termination date of DROP or 616 until the member terminates employment or dies before such date, 617 except as provided in s. 121.053(7). Although individual DROP 618 accounts may not be established, a separate accounting of each 619 members accrued benefits under DROP shall be calculated and 620 provided to the member. 621 5.At the conclusion of the members participation in DROP, 622 the division shall distribute the members total accumulated 623 DROP benefits, subject to the following: 624 a.The division shall receive verification by the members 625 employer or employers that the member has terminated all 626 employment relationships as provided in s. 121.021(39). 627 b.The terminated DROP participant or, if deceased, the 628 members named beneficiary, shall elect on forms provided by the 629 division to receive payment of the DROP benefits in accordance 630 with one of the options listed below. If a member or beneficiary 631 fails to elect a method of payment within 60 days after 632 termination of DROP, the division shall pay a lump sum as 633 provided in sub-sub-subparagraph (I). 634 (I)Lump sum.All accrued DROP benefits, plus interest, 635 less withholding taxes remitted to the Internal Revenue Service, 636 shall be paid to the DROP participant or surviving beneficiary. 637 (II)Direct rollover.All accrued DROP benefits, plus 638 interest, shall be paid from DROP directly to the custodian of 639 an eligible retirement plan as defined in s. 402(c)(8)(B) of the 640 Internal Revenue Code. However, in the case of an eligible 641 rollover distribution to the surviving spouse of a deceased 642 member, an eligible retirement plan is an individual retirement 643 account or an individual retirement annuity as described in s. 644 402(c)(9) of the Internal Revenue Code. 645 (III)Partial lump sum.A portion of the accrued DROP 646 benefits shall be paid to DROP participant or surviving spouse, 647 less withholding taxes remitted to the Internal Revenue Service, 648 and the remaining DROP benefits must be transferred directly to 649 the custodian of an eligible retirement plan as defined in s. 650 402(c)(8)(B) of the Internal Revenue Code. However, in the case 651 of an eligible rollover distribution to the surviving spouse of 652 a deceased member, an eligible retirement plan is an individual 653 retirement account or an individual retirement annuity as 654 described in s. 402(c)(9) of the Internal Revenue Code. The 655 proportions must be specified by the DROP participant or 656 surviving beneficiary. 657 c.The form of payment selected by the DROP participant or 658 surviving beneficiary must comply with the minimum distribution 659 requirements of the Internal Revenue Code. 660 d.A DROP participant who fails to terminate all employment 661 relationships as provided in s. 121.021(39) shall be deemed as 662 not retired, and the DROP election is null and void. Florida 663 Retirement System membership shall be reestablished 664 retroactively to the date of the commencement of DROP, and each 665 employer with whom the member continues employment must pay to 666 the Florida Retirement System Trust Fund the difference between 667 the DROP contributions paid in paragraph (i) and the 668 contributions required for the applicable Florida Retirement 669 System class of membership during the period the member 670 participated in DROP, plus 6.5 percent interest compounded 671 annually. 672 6.The retirement benefits of any DROP participant who 673 terminates all employment relationships as provided in s. 674 121.021(39) but is reemployed in violation of the reemployment 675 provisions of subsection (9) are suspended during those months 676 in which the retiree is in violation. Any retiree in violation 677 of this subparagraph and any employer that employs or appoints 678 such person without notifying the division to suspend retirement 679 benefits are jointly and severally liable for any benefits paid 680 during the reemployment limitation period. The employer must 681 have a written statement from the retiree that he or she is not 682 retired from a state-administered retirement system. Any 683 retirement benefits received by a retiree while employed in 684 violation of the reemployment limitations must be repaid to the 685 Florida Retirement System Trust Fund, and his or her retirement 686 benefits shall remain suspended until payment is made. Benefits 687 suspended beyond the end of the reemployment limitation period 688 apply toward repayment of benefits received in violation of the 689 reemployment limitation. 690 7.The accrued benefits of any DROP participant, and any 691 contributions accumulated under the program, are not subject to 692 assignment, execution, attachment, or any legal process except 693 for qualified domestic relations court orders, income deduction 694 orders as provided in s. 61.1301, and federal income tax levies. 695 8.DROP participants are not eligible for disability 696 retirement benefits as provided in subsection (4). 697 (d)Death benefits under DROP. 698 1.Upon the death of a DROP participant, the named 699 beneficiary is entitled to apply for and receive the accrued 700 benefits in DROP as provided in sub-subparagraph (c)5.b. 701 2.The normal retirement benefit accrued to DROP during the 702 month of a participants death is the final monthly benefit 703 credited for such DROP participant. 704 3.Eligibility to participate in DROP terminates upon death 705 of the participant. If the participant dies on or after the 706 effective date of enrollment in DROP, but before the first 707 monthly benefit is credited to DROP, Florida Retirement System 708 benefits are paid in accordance with subparagraph (7)(c)1. or 709 subparagraph 2. 710 4.A DROP participants survivors are not eligible to 711 receive Florida Retirement System death benefits as provided in 712 paragraph (7)(d). 713 (e)Cost-of-living adjustment.On each July 1, the 714 participants normal retirement benefit shall be increased as 715 provided in s. 121.101. 716 (f)Retiree health insurance subsidy.DROP participants are 717 not eligible to apply for the retiree health insurance subsidy 718 payments as provided in s. 112.363 until such participants have 719 terminated employment and participation in DROP. 720 (g)Renewed membership.DROP participants are not eligible 721 for renewed membership in the Florida Retirement System under 722 ss. 121.053 and 121.122 until all employment relationships are 723 terminated as provided in s. 121.021(39). 724 (h)Employment limitation after DROP participation.Upon 725 termination as defined in s. 121.021, DROP participants are 726 subject to the same reemployment limitations as other retirees. 727 Reemployment restrictions applicable to retirees as provided in 728 subsection (9) do not apply to DROP participants until their 729 employment and participation in DROP are terminated. 730 (i)Contributions. 731 1.All employers paying the salary of a DROP participant 732 filling a regularly established position shall contribute 8.0 733 percent of such participants gross compensation for the period 734 of July 1, 2002, through June 30, 2003, and the percentage of 735 such compensation required by s. 121.71 thereafter, which shall 736 constitute the entire employer DROP contribution with respect to 737 such participant. Such contributions, payable to the Florida 738 Retirement System Trust Fund in the same manner as required in 739 s. 121.071, must be made as appropriate for each pay period and 740 are in addition to contributions required for social security 741 and the Retiree Health Insurance Subsidy Trust Fund. Such 742 employer, social security, and health insurance subsidy 743 contributions are not included in DROP. 744 2.The employer shall, in addition to subparagraph 1., also 745 withhold one-half of the entire social security contribution 746 required for the participant. Contributions for social security 747 by each participant and each employer, in the amount required 748 for social security coverage as provided by the federal Social 749 Security Act, are in addition to contributions specified in 750 subparagraph 1. 751 3.All employers paying the salary of a DROP participant 752 filling a regularly established position shall contribute the 753 percent of such participants gross compensation required in s. 754 121.071(4), which constitutes the employers health insurance 755 subsidy contribution with respect to such participant. Such 756 contributions must be deposited by the administrator in the 757 Retiree Health Insurance Subsidy Trust Fund. 758 (j)Forfeiture of retirement benefits.This section does 759 not remove DROP participants from the scope of s. 8(d), Art. II 760 of the State Constitution, s. 112.3173, and paragraph (5)(f). 761 DROP participants who commit a specified felony offense while 762 employed are subject to forfeiture of all retirement benefits, 763 including DROP benefits, pursuant to those provisions of law. 764 (k)Administration of program.The division shall adopt 765 rules as necessary for the effective and efficient 766 administration of this subsection. The division is not required 767 to advise members of the federal tax consequences of an election 768 related to the DROP but may advise members to seek independent 769 advice. 770 Section 9.Effective July 1, 2023, subsection (3) of 771 section 121.4501, Florida Statutes, is amended to read: 772 121.4501Florida Retirement System Investment Plan. 773 (3)RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS. 774 (a)An eligible employee who is employed in a regularly 775 established position by a state employer on June 1, 2002; by a 776 district school board employer on September 1, 2002; or by a 777 local employer on December 1, 2002, and who is a member of the 778 pension plan at the time of his or her election to participate 779 in the investment plan shall retain all retirement service 780 credit earned under the pension plan as credited under the 781 system and is entitled to a deferred benefit upon termination. 782 However, election to enroll in the investment plan terminates 783 the active membership of the employee in the pension plan, and 784 the service of a member in the investment plan is not creditable 785 under the pension plan for purposes of benefit accrual but is 786 creditable for purposes of vesting. 787 (b)Notwithstanding paragraph (a), an eligible employee who 788 elects to participate in, or who defaults into, the investment 789 plan and establishes one or more individual member accounts may 790 elect to transfer to the investment plan a sum representing the 791 present value of the employees accumulated benefit obligation 792 under the pension plan, except as provided in paragraph (4)(b). 793 Upon transfer, all service credit earned under the pension plan 794 is nullified for purposes of entitlement to a future benefit 795 under the pension plan. A member may not transfer the 796 accumulated benefit obligation balance from the pension plan 797 after the time period for enrolling in the investment plan has 798 expired. 799 1.For purposes of this subsection, the present value of 800 the members accumulated benefit obligation is based upon the 801 members estimated creditable service and estimated average 802 final compensation under the pension plan, subject to 803 recomputation under subparagraph 2. For state employees, initial 804 estimates shall be based upon creditable service and average 805 final compensation as of midnight on June 30, 2002; for district 806 school board employees, initial estimates shall be based upon 807 creditable service and average final compensation as of midnight 808 on September 30, 2002; and for local government employees, 809 initial estimates shall be based upon creditable service and 810 average final compensation as of midnight on December 31, 2002. 811 The dates specified are the estimate date for these employees. 812 The actuarial present value of the employees accumulated 813 benefit obligation shall be based on the following: 814 a.The discount rate and other relevant actuarial 815 assumptions used to value the Florida Retirement System Trust 816 Fund at the time the amount to be transferred is determined, 817 consistent with the factors provided in sub-subparagraphs b. and 818 c. 819 b.A benefit commencement age, based on the members 820 estimated creditable service as of the estimate date. 821 c.Except as provided under sub-subparagraph d., for a 822 member initially enrolled: 823 (I)Before July 1, 2011, the benefit commencement age is 824 the younger of the following, but may not be younger than the 825 members age as of the estimate date: 826 (A)Age 62; or 827 (B)The age the member would attain if the member completed 828 30 years of service with an employer, assuming the member worked 829 continuously from the estimate date, and disregarding any 830 vesting requirement that would otherwise apply under the pension 831 plan. 832 (II)On or after July 1, 2011, the benefit commencement age 833 is the younger of the following, but may not be younger than the 834 members age as of the estimate date: 835 (A)Age 65; or 836 (B)The age the member would attain if the member completed 837 33 years of service with an employer, assuming the member worked 838 continuously from the estimate date, and disregarding any 839 vesting requirement that would otherwise apply under the pension 840 plan. 841 d.For members of the Special Risk Class and for members of 842 the Special Risk Administrative Support Class entitled to retain 843 the special risk normal retirement date: 844 (I)Initially enrolled before July 1, 2011, the benefit 845 commencement age is the younger of the following, but may not be 846 younger than the members age as of the estimate date: 847 (I)(A)Age 55; or 848 (II)(B)The age the member would attain if the member 849 completed 25 years of service with an employer, assuming the 850 member worked continuously from the estimate date, and 851 disregarding any vesting requirement that would otherwise apply 852 under the pension plan. 853 (II)Initially enrolled on or after July 1, 2011, the 854 benefit commencement age is the younger of the following, but 855 may not be younger than the members age as of the estimate 856 date: 857 (A)Age 60; or 858 (B)The age the member would attain if the member completed 859 30 years of service with an employer, assuming the member worked 860 continuously from the estimate date, and disregarding any 861 vesting requirement that would otherwise apply under the pension 862 plan. 863 e.The calculation must disregard vesting requirements and 864 early retirement reduction factors that would otherwise apply 865 under the pension plan. 866 2.For each member who elects to transfer moneys from the 867 pension plan to his or her account in the investment plan, the 868 division shall recompute the amount transferred under 869 subparagraph 1. within 60 days after the actual transfer of 870 funds based upon the members actual creditable service and 871 actual final average compensation as of the initial date of 872 participation in the investment plan. If the recomputed amount 873 differs from the amount transferred by $10 or more, the division 874 shall: 875 a.Transfer, or cause to be transferred, from the Florida 876 Retirement System Trust Fund to the members account the excess, 877 if any, of the recomputed amount over the previously transferred 878 amount together with interest from the initial date of transfer 879 to the date of transfer under this subparagraph, based upon the 880 effective annual interest equal to the assumed return on the 881 actuarial investment which was used in the most recent actuarial 882 valuation of the system, compounded annually. 883 b.Transfer, or cause to be transferred, from the members 884 account to the Florida Retirement System Trust Fund the excess, 885 if any, of the previously transferred amount over the recomputed 886 amount, together with interest from the initial date of transfer 887 to the date of transfer under this subparagraph, based upon 6 888 percent effective annual interest, compounded annually, pro rata 889 based on the members allocation plan. 890 3.If contribution adjustments are made as a result of 891 employer errors or corrections, including plan corrections, 892 following recomputation of the amount transferred under 893 subparagraph 1., the member is entitled to the additional 894 contributions or is responsible for returning any excess 895 contributions resulting from the correction. However, a return 896 of such erroneous excess pretax contribution by the plan must be 897 made within the period allowed by the Internal Revenue Service. 898 The present value of the members accumulated benefit obligation 899 may not be recalculated. 900 4.As directed by the member, the state board shall 901 transfer or cause to be transferred the appropriate amounts to 902 the designated accounts within 30 days after the effective date 903 of the members participation in the investment plan unless the 904 major financial markets for securities available for a transfer 905 are seriously disrupted by an unforeseen event that causes the 906 suspension of trading on a national securities exchange in the 907 country where the securities were issued. In that event, the 30 908 day period may be extended by a resolution of the state board. 909 Transfers are not commissionable or subject to other fees and 910 may be in the form of securities or cash, as determined by the 911 state board. Such securities are valued as of the date of 912 receipt in the members account. 913 5.If the state board or the division receives notification 914 from the United States Internal Revenue Service that this 915 paragraph or any portion of this paragraph will cause the 916 retirement system, or a portion thereof, to be disqualified for 917 tax purposes under the Internal Revenue Code, the portion that 918 will cause the disqualification does not apply. Upon such 919 notice, the state board and the division shall notify the 920 presiding officers of the Legislature. 921 Section 10.Effective July 1, 2023, subsections (4) and (5) 922 of section 121.71, Florida Statutes, are amended to read: 923 121.71Uniform rates; process; calculations; levy. 924 (4)Required employer retirement contribution rates for 925 each membership class and subclass of the Florida Retirement 926 System for both retirement plans are as follows: 927 928 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022 929 930 Regular Class 6.73% 5.96% 931 Special Risk Class 18.66% 16.44% 932 Special RiskAdministrativeSupport Class 11.54% 10.77% 933 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 10.45% 9.31% 934 Elected Officers ClassJustices, Judges 14.90% 14.41% 935 Elected Officers ClassCounty Elected Officers 12.39% 11.30% 936 Senior Management Service Class 8.56% 7.70% 937 DROP 8.49% 7.79% 938 939 (5)In order to address unfunded actuarial liabilities of 940 the system, the required employer retirement contribution rates 941 for each membership class and subclass of the Florida Retirement 942 System for both retirement plans are as follows: 943 944 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022 945 946 Regular Class 4.78% 4.23% 947 Special Risk Class 11.95% 9.67% 948 Special RiskAdministrativeSupport Class 26.22% 26.16% 949 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 50.21% 56.76% 950 Elected Officers ClassJustices, Judges 27.93% 27.64% 951 Elected Officers ClassCounty Elected Officers 44.23% 43.98% 952 Senior Management Service Class 23.90% 22.15% 953 DROP 10.64% 9.15% 954 955 Section 11.Effective July 1, 2023, subsection (6) of 956 section 121.72, Florida Statutes, is amended, and subsection (7) 957 is added to that section, to read: 958 121.72Allocations to investment plan member accounts; 959 percentage amounts. 960 (6)Effective July 1, 2022, through June 30, 2023, 961 allocations from the Florida Retirement System Contributions 962 Clearing Trust Fund to investment plan member accounts are as 963 follows: 964 965 966 Membership Class Percentage of Gross Compensation 967 968 Regular Class 9.30% 969 Special Risk Class 17.00% 970 Special Risk Administrative Support Class 10.95% 971 Elected Officers ClassLegislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders 12.38% 972 Elected Officers ClassJustices, Judges 16.23% 973 Elected Officers ClassCounty Elected Officers 14.34% 974 Senior Management Service Class 10.67% 975 976 (7)Effective July 1, 2023, allocations from the Florida 977 Retirement System Contributions Clearing Trust Fund to 978 investment plan member accounts are as follows: 979 980 981 Membership Class Percentage of Gross Compensation 982 983 Regular Class 11.30% 984 Special Risk Class 19.00% 985 Special Risk Administrative Support Class 12.95% 986 Elected Officers ClassLegislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders 14.38% 987 Elected Officers ClassJustices, Judges 18.23% 988 Elected Officers ClassCounty Elected Officers 16.34% 989 Senior Management Service Class 12.67% 990 991 Section 12.Effective July 1, 2023, section 121.73, Florida 992 Statutes, is amended to read: 993 121.73Allocations for member disability coverage; 994 percentage amounts. 995 (1)The allocations established in this section subsection 996 (3) shall be used to provide disability coverage for members in 997 the investment plan and shall be transferred monthly by the 998 Division of Retirement from the Florida Retirement System 999 Contributions Clearing Trust Fund to the disability account of 1000 the Florida Retirement System Trust Fund. 1001 (2)The allocations are stated as a percentage of each 1002 investment plan members gross compensation for the calendar 1003 month. A change in a contribution percentage is effective the 1004 first day of the month for which retirement contributions may be 1005 made on or after the beginning date of the change. Contribution 1006 percentages may be modified by general law. 1007 (3)Effective July 1, 2002, allocations from the Florida 1008 Retirement System Contributions Clearing Trust Fund to provide 1009 disability coverage for members in the investment plan, and to 1010 offset the costs of administering said coverage, are as follows: 1011 1012 1013 Membership Class Percentage of Gross Compensation 1014 1015 Regular Class 0.25% 1016 Special Risk Class 1.85% 1.33% 1017 Special Risk Administrative Support Class 0.45% 1018 Elected Officers ClassLegislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders 0.41% 1019 Elected Officers ClassJustices, Judges 0.73% 1020 Elected Officers ClassCounty Elected Officers 0.41% 1021 Senior Management Service Class 0.26% 1022 1023 Section 13.Effective July 1, 2023, section 121.735, 1024 Florida Statutes, is amended to read: 1025 121.735Allocations for member line-of-duty death benefits; 1026 percentage amounts. 1027 (1)The allocations established in this section subsection 1028 (3) shall be used to provide line-of-duty death benefit coverage 1029 for members in the investment plan and shall be transferred 1030 monthly by the division from the Florida Retirement System 1031 Contributions Clearing Trust Fund to the survivor benefit 1032 account of the Florida Retirement System Trust Fund. 1033 (2)Such allocations are stated as a percentage of each 1034 investment plan members gross compensation for the calendar 1035 month. Any change in a contribution percentage is effective the 1036 first day of the month for which retirement contributions may be 1037 made on or after the beginning date of the change. Contribution 1038 percentages may be modified by general law. 1039 (3)Allocations from the Florida Retirement System 1040 Contributions Clearing Trust Fund to provide line-of-duty death 1041 benefits for members in the investment plan and to offset the 1042 costs of administering said coverage, are as follows: 1043 1044 Membership Class Percentage of Gross Compensation 1045 1046 Regular Class 0.05% 1047 Special Risk Class 1.26% 1.21% 1048 Special Risk Administrative Support Class 0.03% 1049 Elected Officers ClassLegislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders 0.15% 1050 Elected Officers ClassJustices, Judges 0.09% 1051 Elected Officers ClassCounty Elected Officers 0.20% 1052 Senior Management Service Class 0.05% 1053 1054 Section 14.The Legislature finds that a proper and 1055 legitimate state purpose is served when employees, officers, and 1056 retirees of the state and its political subdivisions, and the 1057 dependents, survivors, and beneficiaries of such employees, 1058 officers, and retirees, are extended the basic protections 1059 afforded by governmental retirement systems. These persons must 1060 be provided benefits that are fair and adequate and that are 1061 managed, administered, and funded in an actuarially sound manner 1062 as required by s. 14, Article X of the State Constitution and 1063 part VII of chapter 112, Florida Statutes. Therefore, the 1064 Legislature determines and declares that this act fulfills an 1065 important state interest. 1066 Section 15.Except as otherwise provided in this act, this 1067 act shall take effect upon becoming a law.