Florida Senate - 2025 (PROPOSED BILL) SPB 7022 FOR CONSIDERATION By the Committee on Governmental Oversight and Accountability 585-01063A-25 20257022pb 1 A bill to be entitled 2 An act relating to employer contributions to fund 3 retiree benefits; amending s. 121.053, F.S.; 4 authorizing an officer, except while serving as a 5 legislator, to remain in elective office and receive 6 accumulated DROP proceeds after the officer attains a 7 certain age; providing that, upon termination, the 8 officer receives accumulated DROP proceeds including 9 interest earned in accordance with a specified 10 provision; amending s. 121.091, F.S.; requiring the 11 Division of Retirement or the State Board of 12 Administration, as appropriate, to take steps to 13 recoup from the elected officer any DROP proceeds 14 distributed in accordance with a specified provision, 15 under specified circumstances; amending s. 121.71, 16 F.S.; revising required employer retirement 17 contribution rates for each membership class and 18 subclass of the Florida Retirement System; providing a 19 declaration of important state interest; providing an 20 effective date. 21 22 Be It Enacted by the Legislature of the State of Florida: 23 24 Section 1.Subsection (7) of section 121.053, Florida 25 Statutes, is amended to read: 26 121.053Participation in the Elected Officers Class for 27 retired members. 28 (7)A member who is elected or appointed to an elective 29 office and who is participating in the Deferred Retirement 30 Option Program is not subject to termination as defined in s. 31 121.021, or reemployment limitations as provided in s. 32 121.091(9), until the end of his or her current term of office 33 or, if the officer is consecutively elected or reelected to an 34 elective office eligible for coverage under the Florida 35 Retirement System, until he or she no longer holds an elective 36 office, as follows: 37 (a)At the end of the members DROP period: 38 1.The officers DROP account may not accrue additional 39 monthly benefits, but does continue to earn interest as provided 40 in s. 121.091(13). However, an officer whose DROP participation 41 begins on or after July 1, 2010, may not continue to earn such 42 interest. 43 2.Retirement contributions, except for unfunded actuarial 44 liability and health insurance subsidy contributions required in 45 ss. 121.71(5) and 121.76, are not required of the employer of 46 the elected officer, and additional retirement credit may not be 47 earned under the Florida Retirement System. 48 3.The officer, except while serving as a legislator, may 49 remain in elective office and receive his or her accumulated 50 DROP proceeds, including interest earned in accordance with 51 subparagraph 1., after attaining the age of 59 1/2 years. 52 (b)An elected officer may voluntarily terminate his or her 53 elective office at any time and receive his or her DROP 54 proceeds. However, until termination occurs, an elected officer 55 whose termination limitations are extended by this section is 56 ineligible for renewed membership in the system and may not 57 receive pension payments, DROP lump sum payments, or any other 58 state payment other than the statutorily determined salary, 59 travel, and per diem for the elective office. 60 (c)Upon termination, the officer shall receive his or her 61 accumulated DROP account, including plus interest earned in 62 accordance with subparagraph (a)1., and shall accrue and 63 commence receiving monthly retirement benefits, which must be 64 paid on a prospective basis only. 65 Section 2.Subsection (5) of section 121.091, Florida 66 Statutes, is amended to read: 67 121.091Benefits payable under the system.Benefits may not 68 be paid under this section unless the member has terminated 69 employment as provided in s. 121.021(39)(a) or begun 70 participation in the Deferred Retirement Option Program as 71 provided in subsection (13), and a proper application has been 72 filed in the manner prescribed by the department. The department 73 may cancel an application for retirement benefits when the 74 member or beneficiary fails to timely provide the information 75 and documents required by this chapter and the departments 76 rules. The department shall adopt rules establishing procedures 77 for application for retirement benefits and for the cancellation 78 of such application when the required information or documents 79 are not received. 80 (5)TERMINATION BENEFITS.A member whose employment is 81 terminated prior to retirement retains membership rights to 82 previously earned member-noncontributory service credit, and to 83 member-contributory service credit, if the member leaves the 84 member contributions on deposit in his or her retirement 85 account. If a terminated member receives a refund of member 86 contributions, such member may reinstate membership rights to 87 the previously earned service credit represented by the refund 88 by completing 1 year of creditable service and repaying the 89 refunded member contributions, plus interest. 90 (a)A member whose employment is terminated for any reason 91 other than death or retirement before becoming vested is 92 entitled to the return of his or her accumulated contributions 93 as of the date of termination. Effective July 1, 2011, upon 94 termination of employment from all participating employers for 3 95 calendar months as defined in s. 121.021(39)(c) for any reason 96 other than retirement, a member may receive a refund of all 97 contributions he or she has made to the pension plan, subject to 98 the restrictions otherwise provided in this chapter. The refund 99 may be received as a lump-sum payment, a rollover to a qualified 100 plan, or a combination of these methods. Partial refunds are not 101 permitted. The refund may not include any interest earnings on 102 the contributions for a member of the pension plan. Employer 103 contributions made on behalf of the member are not refundable. A 104 member may not receive a refund of employee contributions if a 105 pending or an approved qualified domestic relations order is 106 filed against his or her retirement account. By obtaining a 107 refund of contributions, a member waives all rights under the 108 Florida Retirement System and the health insurance subsidy to 109 the service credit represented by the refunded contributions, 110 except the right to purchase his or her prior service credit in 111 accordance with s. 121.081(2). 112 (b)A member whose employment is terminated for any reason 113 other than death or retirement after becoming vested may elect 114 to receive a deferred monthly benefit which shall begin to 115 accrue on the first day of the month of normal or early 116 retirement and shall be payable on the last day of that month 117 and each month thereafter during his or her lifetime. The amount 118 of monthly benefit shall be computed in the same manner as for a 119 normal retirement benefit in accordance with subsection (1) or 120 early retirement benefit in accordance with s. 121.021(30), but 121 based on average monthly compensation and creditable service as 122 of the date of termination. 123 (c)In lieu of the deferred monthly benefit provided in 124 paragraph (b), the terminated member may elect to receive a 125 lump-sum amount equal to his or her accumulated contributions as 126 of the date of termination. Effective July 1, 2011, upon 127 termination of employment from all participating employers for 3 128 calendar months as defined in s. 121.021(39)(c) for any reason 129 other than retirement, a member may receive a refund of all 130 contributions he or she has made to the pension plan, subject to 131 the restrictions otherwise provided in this chapter. Partial 132 refunds are not permitted. The refund may not include any 133 interest earnings on the contributions for a member of the 134 pension plan. Employer contributions made on behalf of the 135 member are not refundable. A member may not receive a refund of 136 employee contributions if a pending or an approved qualified 137 domestic relations order is filed against his or her retirement 138 account. By obtaining a refund of contributions, a member waives 139 all rights under the Florida Retirement System and the health 140 insurance subsidy to the service credit represented by the 141 refunded contributions, except the right to purchase his or her 142 prior service credit in accordance with s. 121.081(2). 143 (d)If any retired member dies without having received in 144 benefit payments an amount equal to his or her accumulated 145 contributions, there shall be payable to his or her designated 146 beneficiary an amount equal to the excess, if any, of the 147 members accumulated contributions over the total monthly 148 payments made to the member prior to the date of death. 149 (e)A member shall be deemed a terminated member when 150 termination of employment has occurred as provided in s. 151 121.021(39). 152 (f)Any member who has been found guilty by a verdict of a 153 jury, or by the court trying the case without a jury, of 154 committing, aiding, or abetting any embezzlement or theft from 155 his or her employer, bribery in connection with the employment, 156 or other felony specified in chapter 838, except ss. 838.15 and 157 838.16, committed prior to retirement, or who has entered a plea 158 of guilty or of nolo contendere to such crime, or any member 159 whose employment is terminated by reason of the members 160 admitted commitment, aiding, or abetting of an embezzlement or 161 theft from his or her employer, bribery, or other felony 162 specified in chapter 838, except ss. 838.15 and 838.16, shall 163 forfeit all rights and benefits under this chapter, except the 164 return of his or her accumulated contributions as of the date of 165 termination. 166 (g)Any elected official who is convicted by the Senate of 167 an impeachable offense shall forfeit all rights and benefits 168 under this chapter, except the return of his or her accumulated 169 contributions as of the date of the conviction. 170 (h)Any member who, prior to retirement, is adjudged by a 171 court of competent jurisdiction to have violated any state law 172 against strikes by public employees, or who has been found 173 guilty by such court of violating any state law prohibiting 174 strikes by public employees, shall forfeit all rights and 175 benefits under this chapter, except the return of his or her 176 accumulated contributions as of the date of the conviction. 177 (i)The division or the state board may not pay benefits to 178 any member convicted of a felony committed on or after October 179 1, 2008, defined in s. 800.04 against a victim younger than 16 180 years of age, or defined in chapter 794 against a victim younger 181 than 18 years of age, through the use or attempted use of power, 182 rights, privileges, duties, or position of the members public 183 office or employment position. However, the division or the 184 state board shall return the members accumulated contributions, 185 if any, that the member accumulated as of the date of 186 conviction. 187 (j)Any beneficiary who by a verdict of a jury or by the 188 court trying the case without a jury is found guilty, or who has 189 entered a plea of guilty or nolo contendere, of unlawfully and 190 intentionally killing or procuring the death of the member 191 forfeits all rights to the deceased members benefits under this 192 chapter, and the benefits will be paid as if such beneficiary 193 had predeceased the decedent. 194 (k)Benefits may not be paid by the division or the state 195 board pending final resolution of such charges against a member 196 or beneficiary if the resolution of such charges could require 197 the forfeiture of benefits as provided in paragraph (f), 198 paragraph (g), paragraph (h), paragraph (i), paragraph (j), or 199 chapter 112. 200 (l)The division and the state board, as appropriate, must 201 take steps to recoup from the elected officer any DROP proceeds 202 distributed pursuant to s. 121.053(7)(a)3. if: 203 1.Such DROP proceeds were distributed before the elected 204 officers termination; and 205 2.The division or state board would be prohibited pursuant 206 to paragraph (k) from making a distribution to the elected 207 officer, absent the distribution to the elected officer pursuant 208 to s. 121.053(7)(a)3. 209 Section 3.Subsections (4) and (5) of section 121.71, 210 Florida Statutes, are amended to read: 211 121.71Uniform rates; process; calculations; levy. 212 (4)Required employer retirement contribution rates for 213 each membership class and subclass of the Florida Retirement 214 System for both retirement plans are as follows: 215 216 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024 217 218 Regular Class 7.10% 6.73% 219 Special Risk Class 20.10% 18.66% 220 Special RiskAdministrativeSupport Class 10.88% 11.54% 221 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 10.04% 10.70% 222 Elected Officers ClassJustices, Judges 15.62% 14.90% 223 Elected Officers ClassCounty Elected Officers 11.79% 12.39% 224 Senior Management Service Class 8.73% 8.56% 225 DROP 9.37% 8.49% 226 (5)In order to address unfunded actuarial liabilities of 227 the system, the required employer retirement contribution rates 228 for each membership class and subclass of the Florida Retirement 229 System for both retirement plans are as follows: 230 231 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024 232 233 Regular Class 4.87% 4.84% 234 Special Risk Class 13.03% 12.07% 235 Special RiskAdministrativeSupport Class 26.54% 26.22% 236 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 50.56% 50.21% 237 Elected Officers ClassJustices, Judges 28.46% 28.49% 238 Elected Officers ClassCounty Elected Officers 40.72% 44.23% 239 Senior Management Service Class 22.45% 23.90% 240 DROP 10.65% 10.64% 241 Section 4.The Legislature finds that a proper and 242 legitimate state purpose is served when employees, officers, and 243 retirees of the state and its political subdivisions, and the 244 dependents, survivors, and beneficiaries of such employees, 245 officers, and retirees, are extended the basic protections 246 afforded by governmental retirement systems. These persons must 247 be provided benefits that are fair and adequate and that are 248 managed, administered, and funded in an actuarially sound manner 249 as required by s. 14, Article X of the State Constitution and 250 part VII of chapter 112, Florida Statutes. Therefore, the 251 Legislature determines and declares that this act fulfills an 252 important state interest. 253 Section 5.This act shall take effect July 1, 2025.