Florida Senate - 2025 SB 7022 By the Committee on Governmental Oversight and Accountability 585-02556-25 20257022__ 1 A bill to be entitled 2 An act relating to retirement; amending s. 121.053, 3 F.S.; authorizing an officer, except while serving as 4 a legislator, to remain in elective office and receive 5 accumulated DROP proceeds after the officer attains a 6 certain age; providing that, upon termination, the 7 officer receives accumulated DROP proceeds including 8 interest earned in accordance with a specified 9 provision; amending s. 121.091, F.S.; requiring the 10 Division of Retirement or the State Board of 11 Administration, as appropriate, to take steps to 12 recoup from the elected officer any DROP proceeds 13 distributed in accordance with a specified provision, 14 under specified circumstances; amending s. 121.71, 15 F.S.; revising required employer retirement 16 contribution rates for each membership class and 17 subclass of the Florida Retirement System; providing a 18 declaration of important state interest; providing an 19 effective date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23 Section 1.Subsection (7) of section 121.053, Florida 24 Statutes, is amended to read: 25 121.053Participation in the Elected Officers Class for 26 retired members. 27 (7)A member who is elected or appointed to an elective 28 office and who is participating in the Deferred Retirement 29 Option Program is not subject to termination as defined in s. 30 121.021, or reemployment limitations as provided in s. 31 121.091(9), until the end of his or her current term of office 32 or, if the officer is consecutively elected or reelected to an 33 elective office eligible for coverage under the Florida 34 Retirement System, until he or she no longer holds an elective 35 office, as follows: 36 (a)At the end of the members DROP period: 37 1.The officers DROP account may not accrue additional 38 monthly benefits, but does continue to earn interest as provided 39 in s. 121.091(13). However, an officer whose DROP participation 40 begins on or after July 1, 2010, may not continue to earn such 41 interest. 42 2.Retirement contributions, except for unfunded actuarial 43 liability and health insurance subsidy contributions required in 44 ss. 121.71(5) and 121.76, are not required of the employer of 45 the elected officer, and additional retirement credit may not be 46 earned under the Florida Retirement System. 47 3.The officer, except while serving as a legislator, may 48 remain in elective office and receive his or her accumulated 49 DROP proceeds, including interest earned in accordance with 50 subparagraph 1., after attaining the age of 59 1/2 years. 51 (b)An elected officer may voluntarily terminate his or her 52 elective office at any time and receive his or her DROP 53 proceeds. However, until termination occurs, an elected officer 54 whose termination limitations are extended by this section is 55 ineligible for renewed membership in the system and may not 56 receive pension payments, DROP lump sum payments, or any other 57 state payment other than the statutorily determined salary, 58 travel, and per diem for the elective office. 59 (c)Upon termination, the officer shall receive his or her 60 accumulated DROP account, including plus interest earned in 61 accordance with subparagraph (a)1., and shall accrue and 62 commence receiving monthly retirement benefits, which must be 63 paid on a prospective basis only. 64 Section 2.Subsection (5) of section 121.091, Florida 65 Statutes, is amended to read: 66 121.091Benefits payable under the system.Benefits may not 67 be paid under this section unless the member has terminated 68 employment as provided in s. 121.021(39)(a) or begun 69 participation in the Deferred Retirement Option Program as 70 provided in subsection (13), and a proper application has been 71 filed in the manner prescribed by the department. The department 72 may cancel an application for retirement benefits when the 73 member or beneficiary fails to timely provide the information 74 and documents required by this chapter and the departments 75 rules. The department shall adopt rules establishing procedures 76 for application for retirement benefits and for the cancellation 77 of such application when the required information or documents 78 are not received. 79 (5)TERMINATION BENEFITS.A member whose employment is 80 terminated prior to retirement retains membership rights to 81 previously earned member-noncontributory service credit, and to 82 member-contributory service credit, if the member leaves the 83 member contributions on deposit in his or her retirement 84 account. If a terminated member receives a refund of member 85 contributions, such member may reinstate membership rights to 86 the previously earned service credit represented by the refund 87 by completing 1 year of creditable service and repaying the 88 refunded member contributions, plus interest. 89 (a)A member whose employment is terminated for any reason 90 other than death or retirement before becoming vested is 91 entitled to the return of his or her accumulated contributions 92 as of the date of termination. Effective July 1, 2011, upon 93 termination of employment from all participating employers for 3 94 calendar months as defined in s. 121.021(39)(c) for any reason 95 other than retirement, a member may receive a refund of all 96 contributions he or she has made to the pension plan, subject to 97 the restrictions otherwise provided in this chapter. The refund 98 may be received as a lump-sum payment, a rollover to a qualified 99 plan, or a combination of these methods. Partial refunds are not 100 permitted. The refund may not include any interest earnings on 101 the contributions for a member of the pension plan. Employer 102 contributions made on behalf of the member are not refundable. A 103 member may not receive a refund of employee contributions if a 104 pending or an approved qualified domestic relations order is 105 filed against his or her retirement account. By obtaining a 106 refund of contributions, a member waives all rights under the 107 Florida Retirement System and the health insurance subsidy to 108 the service credit represented by the refunded contributions, 109 except the right to purchase his or her prior service credit in 110 accordance with s. 121.081(2). 111 (b)A member whose employment is terminated for any reason 112 other than death or retirement after becoming vested may elect 113 to receive a deferred monthly benefit which shall begin to 114 accrue on the first day of the month of normal or early 115 retirement and shall be payable on the last day of that month 116 and each month thereafter during his or her lifetime. The amount 117 of monthly benefit shall be computed in the same manner as for a 118 normal retirement benefit in accordance with subsection (1) or 119 early retirement benefit in accordance with s. 121.021(30), but 120 based on average monthly compensation and creditable service as 121 of the date of termination. 122 (c)In lieu of the deferred monthly benefit provided in 123 paragraph (b), the terminated member may elect to receive a 124 lump-sum amount equal to his or her accumulated contributions as 125 of the date of termination. Effective July 1, 2011, upon 126 termination of employment from all participating employers for 3 127 calendar months as defined in s. 121.021(39)(c) for any reason 128 other than retirement, a member may receive a refund of all 129 contributions he or she has made to the pension plan, subject to 130 the restrictions otherwise provided in this chapter. Partial 131 refunds are not permitted. The refund may not include any 132 interest earnings on the contributions for a member of the 133 pension plan. Employer contributions made on behalf of the 134 member are not refundable. A member may not receive a refund of 135 employee contributions if a pending or an approved qualified 136 domestic relations order is filed against his or her retirement 137 account. By obtaining a refund of contributions, a member waives 138 all rights under the Florida Retirement System and the health 139 insurance subsidy to the service credit represented by the 140 refunded contributions, except the right to purchase his or her 141 prior service credit in accordance with s. 121.081(2). 142 (d)If any retired member dies without having received in 143 benefit payments an amount equal to his or her accumulated 144 contributions, there shall be payable to his or her designated 145 beneficiary an amount equal to the excess, if any, of the 146 members accumulated contributions over the total monthly 147 payments made to the member prior to the date of death. 148 (e)A member shall be deemed a terminated member when 149 termination of employment has occurred as provided in s. 150 121.021(39). 151 (f)Any member who has been found guilty by a verdict of a 152 jury, or by the court trying the case without a jury, of 153 committing, aiding, or abetting any embezzlement or theft from 154 his or her employer, bribery in connection with the employment, 155 or other felony specified in chapter 838, except ss. 838.15 and 156 838.16, committed prior to retirement, or who has entered a plea 157 of guilty or of nolo contendere to such crime, or any member 158 whose employment is terminated by reason of the members 159 admitted commitment, aiding, or abetting of an embezzlement or 160 theft from his or her employer, bribery, or other felony 161 specified in chapter 838, except ss. 838.15 and 838.16, shall 162 forfeit all rights and benefits under this chapter, except the 163 return of his or her accumulated contributions as of the date of 164 termination. 165 (g)Any elected official who is convicted by the Senate of 166 an impeachable offense shall forfeit all rights and benefits 167 under this chapter, except the return of his or her accumulated 168 contributions as of the date of the conviction. 169 (h)Any member who, prior to retirement, is adjudged by a 170 court of competent jurisdiction to have violated any state law 171 against strikes by public employees, or who has been found 172 guilty by such court of violating any state law prohibiting 173 strikes by public employees, shall forfeit all rights and 174 benefits under this chapter, except the return of his or her 175 accumulated contributions as of the date of the conviction. 176 (i)The division or the state board may not pay benefits to 177 any member convicted of a felony committed on or after October 178 1, 2008, defined in s. 800.04 against a victim younger than 16 179 years of age, or defined in chapter 794 against a victim younger 180 than 18 years of age, through the use or attempted use of power, 181 rights, privileges, duties, or position of the members public 182 office or employment position. However, the division or the 183 state board shall return the members accumulated contributions, 184 if any, that the member accumulated as of the date of 185 conviction. 186 (j)Any beneficiary who by a verdict of a jury or by the 187 court trying the case without a jury is found guilty, or who has 188 entered a plea of guilty or nolo contendere, of unlawfully and 189 intentionally killing or procuring the death of the member 190 forfeits all rights to the deceased members benefits under this 191 chapter, and the benefits will be paid as if such beneficiary 192 had predeceased the decedent. 193 (k)Benefits may not be paid by the division or the state 194 board pending final resolution of such charges against a member 195 or beneficiary if the resolution of such charges could require 196 the forfeiture of benefits as provided in paragraph (f), 197 paragraph (g), paragraph (h), paragraph (i), paragraph (j), or 198 chapter 112. 199 (l)The division and the state board, as appropriate, must 200 take steps to recoup from the elected officer any DROP proceeds 201 distributed pursuant to s. 121.053(7)(a)3. if: 202 1.Such DROP proceeds were distributed before the elected 203 officers termination; and 204 2.The division or state board would be prohibited pursuant 205 to paragraph (k) from making a distribution to the elected 206 officer, absent the distribution to the elected officer pursuant 207 to s. 121.053(7)(a)3. 208 Section 3.Subsections (4) and (5) of section 121.71, 209 Florida Statutes, are amended to read: 210 121.71Uniform rates; process; calculations; levy. 211 (4)Required employer retirement contribution rates for 212 each membership class and subclass of the Florida Retirement 213 System for both retirement plans are as follows: 214 215 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024 216 217 Regular Class 7.10% 6.73% 218 Special Risk Class 20.10% 18.66% 219 Special RiskAdministrativeSupport Class 10.88% 11.54% 220 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 10.04% 10.70% 221 Elected Officers ClassJustices, Judges 15.62% 14.90% 222 Elected Officers ClassCounty Elected Officers 11.79% 12.39% 223 Senior Management Service Class 8.73% 8.56% 224 DROP 9.37% 8.49% 225 (5)In order to address unfunded actuarial liabilities of 226 the system, the required employer retirement contribution rates 227 for each membership class and subclass of the Florida Retirement 228 System for both retirement plans are as follows: 229 230 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2025 2024 231 232 Regular Class 4.87% 4.84% 233 Special Risk Class 13.03% 12.07% 234 Special RiskAdministrativeSupport Class 26.54% 26.22% 235 Elected Officers ClassLegislators, Governor,Lt. Governor,Cabinet Officers,State Attorneys,Public Defenders 50.56% 50.21% 236 Elected Officers ClassJustices, Judges 28.46% 28.49% 237 Elected Officers ClassCounty Elected Officers 40.72% 44.23% 238 Senior Management Service Class 22.45% 23.90% 239 DROP 10.65% 10.64% 240 Section 4.The Legislature finds that a proper and 241 legitimate state purpose is served when employees, officers, and 242 retirees of the state and its political subdivisions, and the 243 dependents, survivors, and beneficiaries of such employees, 244 officers, and retirees, are extended the basic protections 245 afforded by governmental retirement systems. These persons must 246 be provided benefits that are fair and adequate and that are 247 managed, administered, and funded in an actuarially sound manner 248 as required by s. 14, Article X of the State Constitution and 249 part VII of chapter 112, Florida Statutes. Therefore, the 250 Legislature determines and declares that this act fulfills an 251 important state interest. 252 Section 5.This act shall take effect July 1, 2025.