H 5205

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1
2An act relating to retirement; amending s. 121.053,
3F.S.; authorizing an elected officer, except while
4serving as a legislator, to remain in elective office
5and receive accumulated Deferred Retirement Option
6Program (DROP) proceeds after the officer attains a
7certain age; providing that, upon termination, the
8officer receives accumulated DROP proceeds including
9interest earned in accordance with a specified
10provision; amending s. 121.091, F.S.; requiring the
11Division of Retirement or the State Board of
12Administration, as appropriate, to take steps to
13recoup from the elected officer any DROP proceeds
14distributed in accordance with a specified provision,
15under specified circumstances; amending s. 121.101,
16F.S.; revising the cost-of-living adjustment for
17eligible Special Risk Class retirees; defining the
18term "eligible Special Risk Class retiree"; amending
19s. 121.71, F.S.; revising required employer retirement
20contribution rates for each membership class and
21subclass of the Florida Retirement System; amending s.
22121.73, F.S.; revising required allocations from the
23Contributions Clearing Trust Fund to provide
24disability coverage to members of the investment plan
25of the Florida Retirement System; amending s. 121.735,
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26F.S.; revising allocations from the Contributions
27Clearing Trust Fund to provide line-of-duty death
28benefits to members of the investment plan of the
29Florida Retirement System; providing a declaration of
30important state interest; providing an effective date.
31
32    Be It Enacted by the Legislature of the State of Florida:
33
34Section 1.  Subsection (7) of section 121.053, Florida
35    Statutes, is amended to read:
36121.053       Participation in the Elected Officers' Class for
37    retired members.—
38(7)      A member who is elected or appointed to an elective
39    office and who is participating in the Deferred Retirement
40    Option Program is not subject to termination as defined in s.
41    121.021, or reemployment limitations as provided in s.
42    121.091(9), until the end of his or her current term of office
43    or, if the officer is consecutively elected or reelected to an
44    elective office eligible for coverage under the Florida
45    Retirement System, until he or she no longer holds an elective
46    office, as follows:
47(a)      At the end of the member's DROP period:
481.      The officer's DROP account may not accrue additional
49    monthly benefits, but does continue to earn interest as provided
50    in s. 121.091(13). However, an officer whose DROP participation
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51    begins on or after July 1, 2010, may not continue to earn such
52    interest.
532.      Retirement contributions, except for unfunded actuarial
54    liability and health insurance subsidy contributions required in
55    ss. 121.71(5) and 121.76, are not required of the employer of
56    the elected officer, and additional retirement credit may not be
57    earned under the Florida Retirement System.
583.      The officer, except while serving as a legislator, may
59    remain in elective office and receive his or her accumulated
60    DROP proceeds, including interest earned in accordance with
61    subparagraph 1., after attaining the age of 59 1/2 years.
62(b)      An elected officer may voluntarily terminate his or
63    her elective office at any time and receive his or her DROP
64    proceeds. However, until termination occurs, an elected officer
65    whose termination limitations are extended by this section is
66    ineligible for renewed membership in the system and may not
67    receive pension payments, DROP lump sum payments, or any other
68    state payment other than the statutorily determined salary,
69    travel, and per diem for the elective office.
70(c)      Upon termination, the officer shall receive his or her
71    accumulated DROP account, including plus interest earned in
72    accordance with subparagraph (a)1., and shall accrue and
73    commence receiving monthly retirement benefits, which must be
74    paid on a prospective basis only.
75Section 2.  Subsection (5) of section 121.091, Florida
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76     Statutes, is amended to read:
77121.091       Benefits payable under the system.—Benefits may
78     not be paid under this section unless the member has terminated
79     employment as provided in s. 121.021(39)(a) or begun
80     participation in the Deferred Retirement Option Program as
81     provided in subsection (13), and a proper application has been
82     filed in the manner prescribed by the department. The department
83     may cancel an application for retirement benefits when the
84     member or beneficiary fails to timely provide the information
85     and documents required by this chapter and the department's
86     rules. The department shall adopt rules establishing procedures
87     for application for retirement benefits and for the cancellation
88     of such application when the required information or documents
89     are not received.
90(5)     TERMINATION BENEFITS.—A member whose employment is
91     terminated prior to retirement retains membership rights to
92     previously earned member-noncontributory service credit, and to
93     member-contributory service credit, if the member leaves the
94     member contributions on deposit in his or her retirement
95     account. If a terminated member receives a refund of member
96     contributions, such member may reinstate membership rights to
97     the previously earned service credit represented by the refund
98     by completing 1 year of creditable service and repaying the
99     refunded member contributions, plus interest.
100(a)     A member whose employment is terminated for any reason
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101    other than death or retirement before becoming vested is
102    entitled to the return of his or her accumulated contributions
103    as of the date of termination. Effective July 1, 2011, upon
104    termination of employment from all participating employers for 3
105    calendar months as defined in s. 121.021(39)(c) for any reason
106    other than retirement, a member may receive a refund of all
107    contributions he or she has made to the pension plan, subject to
108    the restrictions otherwise provided in this chapter. The refund
109    may be received as a lump-sum payment, a rollover to a qualified
110    plan, or a combination of these methods. Partial refunds are not
111    permitted. The refund may not include any interest earnings on
112    the contributions for a member of the pension plan. Employer
113    contributions made on behalf of the member are not refundable. A
114    member may not receive a refund of employee contributions if a
115    pending or an approved qualified domestic relations order is
116    filed against his or her retirement account. By obtaining a
117    refund of contributions, a member waives all rights under the
118    Florida Retirement System and the health insurance subsidy to
119    the service credit represented by the refunded contributions,
120    except the right to purchase his or her prior service credit in
121    accordance with s. 121.081(2).
122(b)     A member whose employment is terminated for any reason
123    other than death or retirement after becoming vested may elect
124    to receive a deferred monthly benefit which shall begin to
125    accrue on the first day of the month of normal or early
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126    retirement and shall be payable on the last day of that month
127    and each month thereafter during his or her lifetime. The amount
128    of monthly benefit shall be computed in the same manner as for a
129    normal retirement benefit in accordance with subsection (1) or
130    early retirement benefit in accordance with s. 121.021(30), but
131    based on average monthly compensation and creditable service as
132    of the date of termination.
133(c)     In lieu of the deferred monthly benefit provided in
134    paragraph (b), the terminated member may elect to receive a
135    lump-sum amount equal to his or her accumulated contributions as
136    of the date of termination. Effective July 1, 2011, upon
137    termination of employment from all participating employers for 3
138    calendar months as defined in s. 121.021(39)(c) for any reason
139    other than retirement, a member may receive a refund of all
140    contributions he or she has made to the pension plan, subject to
141    the restrictions otherwise provided in this chapter. Partial
142    refunds are not permitted. The refund may not include any
143    interest earnings on the contributions for a member of the
144    pension plan. Employer contributions made on behalf of the
145    member are not refundable. A member may not receive a refund of
146    employee contributions if a pending or an approved qualified
147    domestic relations order is filed against his or her retirement
148    account. By obtaining a refund of contributions, a member waives
149    all rights under the Florida Retirement System and the health
150    insurance subsidy to the service credit represented by the
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151    refunded contributions, except the right to purchase his or her
152    prior service credit in accordance with s. 121.081(2).
153(d)     If any retired member dies without having received in
154    benefit payments an amount equal to his or her accumulated
155    contributions, there shall be payable to his or her designated
156    beneficiary an amount equal to the excess, if any, of the
157    member's accumulated contributions over the total monthly
158    payments made to the member prior to the date of death.
159(e)     A member shall be deemed a terminated member when
160    termination of employment has occurred as provided in s.
161    121.021(39).
162(f)     Any member who has been found guilty by a verdict of a
163    jury, or by the court trying the case without a jury, of
164    committing, aiding, or abetting any embezzlement or theft from
165    his or her employer, bribery in connection with the employment,
166    or other felony specified in chapter 838, except ss. 838.15 and
167    838.16, committed prior to retirement, or who has entered a plea
168    of guilty or of nolo contendere to such crime, or any member
169    whose employment is terminated by reason of the member's
170    admitted commitment, aiding, or abetting of an embezzlement or
171    theft from his or her employer, bribery, or other felony
172    specified in chapter 838, except ss. 838.15 and 838.16, shall
173    forfeit all rights and benefits under this chapter, except the
174    return of his or her accumulated contributions as of the date of
175    termination.
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176(g)     Any elected official who is convicted by the Senate of
177    an impeachable offense shall forfeit all rights and benefits
178    under this chapter, except the return of his or her accumulated
179    contributions as of the date of the conviction.
180(h)     Any member who, prior to retirement, is adjudged by a
181    court of competent jurisdiction to have violated any state law
182    against strikes by public employees, or who has been found
183    guilty by such court of violating any state law prohibiting
184    strikes by public employees, shall forfeit all rights and
185    benefits under this chapter, except the return of his or her
186    accumulated contributions as of the date of the conviction.
187(i)     The division or the state board may not pay benefits
188    to any member convicted of a felony committed on or after
189    October 1, 2008, defined in s. 800.04 against a victim younger
190    than 16 years of age, or defined in chapter 794 against a victim
191    younger than 18 years of age, through the use or attempted use
192    of power, rights, privileges, duties, or position of the
193    member's public office or employment position. However, the
194    division or the state board shall return the member's
195    accumulated contributions, if any, that the member accumulated
196    as of the date of conviction.
197(j)     Any beneficiary who by a verdict of a jury or by the
198    court trying the case without a jury is found guilty, or who has
199    entered a plea of guilty or nolo contendere, of unlawfully and
200    intentionally killing or procuring the death of the member
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201    forfeits all rights to the deceased member's benefits under this
202    chapter, and the benefits will be paid as if such beneficiary
203    had predeceased the decedent.
204(k)     Benefits may not be paid by the division or the state
205    board pending final resolution of such charges against a member
206    or beneficiary if the resolution of such charges could require
207    the forfeiture of benefits as provided in paragraph (f),
208    paragraph (g), paragraph (h), paragraph (i), paragraph (j), or
209    chapter 112.
210(l)      The division and the state board, as appropriate, must
211    take steps to recoup from the elected officer any DROP proceeds
212    distributed pursuant to s. 121.053(7)(a)3. if:
2131.      Such DROP proceeds were distributed before the elected
214    officer's termination; and
2152.      The division or state board would be prohibited
216    pursuant to paragraph (k) from making a distribution to the
217    elected officer, absent the distribution to the elected officer
218    pursuant to s. 121.053(7)(a)3.
219Section 3.  Present subsections (5) through (9) of section
220    121.101, Florida Statutes, are redesignated as subsections (6)
221    through (10), respectively, and a new subsection (5) is added to
222    that section, to read:
223121.101       Cost-of-living adjustment of benefits.—
224(5)(a)       Commencing July 1, 2026, and in lieu of any annual
225    adjustment authorized in paragraph (4)(b) occurring after the
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226    fifth anniversary of retirement of an eligible Special Risk
227    Class member whose effective retirement date is on or after July
228    1, 2011, the adjusted monthly benefit of each eligible Special
229    Risk Class retiree and annuitant shall be the amount of the
230    monthly benefit being received on June 30 immediately preceding
231    the adjustment date plus the greater of the amount determined by
232    multiplying the benefit by the factor calculated pursuant to
233    paragraph (4)(c) or the amount equal to 1.5 percent of this
234    benefit.
235(b)      For purposes of this subsection, the term "eligible
236    Special Risk Class retiree" means a retiree:
2371.      Initially enrolled in the Florida Retirement System
238    prior to July 1, 2011, who has completed at least 72 calendar
239    months of creditable service as a Special Risk Class member; or
2402.      Initially enrolled in the Florida Retirement System on
241    or after July 1, 2011, who has completed at least 96 calendar
242    months of creditable service as a Special Risk Class member.
243Section 4.  Subsections (4) and (5) of section 121.71,
244    Florida Statutes, are amended to read:
245121.71       Uniform rates; process; calculations; levy.—
246(4)      Required employer retirement contribution rates for
247    each membership class and subclass of the Florida Retirement
248    System for both retirement plans are as follows:
249
   Membership Class  Percentage of
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                                                                           Gross
                                                                   Compensation,
                                                                       Effective
                                                               July 1, 2026 2025
250
251
   Regular Class  7.11% 7.10%
252
   Special Risk Class  21.58% 20.10%
253
   Special Risk
      Administrative
      Support Class  11.45% 10.88%
254
   Elected Officers' Class—
      Legislators, Governor,
      Lt. Governor,
      Cabinet Officers,
      State Attorneys,
      Public Defenders  10.30% 10.04%
255
   Elected Officers' Class—
      Justices, Judges  15.54% 15.62%
256
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   Elected Officers' Class—
      County Elected Officers  11.45% 11.79%
257
   Senior Management Service Class  8.68% 8.73%
258
   DROP  9.86% 9.37%
259
260(5)     In order to address unfunded actuarial liabilities of
261    the system, the required employer retirement contribution rates
262    for each membership class and subclass of the Florida Retirement
263    System for both retirement plans are as follows:
264
                                                                   Percentage of
                                                                           Gross
                                                                   Compensation,
                                                                       Effective
   Membership Class  July 1, 2026 2025
265
266
   Regular Class  4.42% 4.87%
267
   Special Risk Class  14.10% 13.03%
268
   Special Risk  28.28% 26.54%
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      Administrative
      Support Class
269
   Elected Officers' Class—
      Legislators, Governor,
      Lt. Governor,
      Cabinet Officers,
      State Attorneys,
      Public Defenders  51.43% 50.56%
270
   Elected Officers' Class—
      Justices, Judges  28.40% 28.46%
271
   Elected Officers' Class—
      County Elected Officers  41.49% 40.72%
272
   Senior Management Service Class  21.86% 22.45%
273
   DROP  10.26% 10.65%
274
275Section 5.  Subsection (3) of section 121.73, Florida
276    Statutes, is amended to read:
277121.73       Allocations for member disability coverage;
278    percentage amounts.—
279(3)     Effective July 1, 2026 2002, allocations from the
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280    Florida Retirement System Contributions Clearing Trust Fund to
281    provide disability coverage for members in the investment plan,
282    and to offset the costs of administering said coverage, are as
283    follows:
284
   Membership Class  Percentage of Gross Compensation
285
286
   Regular Class  0.25%
287
   Special Risk Class  1.91% 1.85%
288
   Special Risk Administrative Support Class  0.46% 0.45%
289
   Elected Officers' Class—
      Legislators, Governor,
      Lt. Governor, Cabinet Officers,
      State Attorneys, Public Defenders  0.41%
290
   Elected Officers' Class—
      Justices, Judges  0.73%
291
   Elected Officers' Class—
      County Elected Officers  0.41%
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292
   Senior Management Service Class  0.26%
293
294Section 6.  Subsection (3) of section 121.735, Florida
295    Statutes, is amended to read:
296121.735       Allocations for member line-of-duty death
297    benefits; percentage amounts.—
298(3)     Allocations from the Florida Retirement System
299    Contributions Clearing Trust Fund to provide line-of-duty death
300    benefits for members in the investment plan and to offset the
301    costs of administering said coverage, are as follows:
302
   Membership Class  Percentage of Gross Compensation
303
304
   Regular Class  0.05%
305
   Special Risk Class  1.28% 1.26%
306
   Special Risk Administrative Support Class  0.03%
307
   Elected Officers' Class—
      Legislators, Governor,
      Lt. Governor, Cabinet Officers,  0.15%
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      State Attorneys, Public Defenders
308
   Elected Officers' Class—
      Justices, Judges  0.09%
309
   Elected Officers' Class—
      County Elected Officers  0.20%
310
   Senior Management Service Class  0.05%
311
312Section 7.  The Legislature finds that a proper and
313    legitimate state purpose is served when employees, officers, and
314    retirees of the state and its political subdivisions, and the
315    dependents, survivors, and beneficiaries of such employees,
316    officers, and retirees, are extended the basic protections
317    afforded by governmental retirement systems. These persons must
318    be provided benefits that are fair and adequate and that are
319    managed, administered, and funded in an actuarially sound manner
320    as required by s. 14, Article X of the State Constitution and
321    part VII of chapter 112, Florida Statutes. Therefore, the
322    Legislature determines and declares that this act fulfills an
323    important state interest.
324Section 8.  This act shall take effect July 1, 2026.
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