CS/SB 7028 full text · Session Watch

Florida Senate - 2026 CS for SB 7028 By the Committees on Appropriations; and Governmental Oversight and Accountability; and Senator Arrington 576-03005-26 20267028c1

1 A bill to be entitled

2 An act relating to retirement; amending s. 121.053,

3 F.S.; authorizing an elected officer, except while

4 serving as a legislator, to remain in elective office

5 and receive accumulated Deferred Retirement Option

6 Program (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. 121.101,

16 F.S.; revising the cost-of-living adjustment for

17 eligible Special Risk Class retirees; defining the

18 term “eligible Special Risk Class retiree”; amending

19 s. 121.71, F.S.; revising required employer retirement

20 contribution rates for each membership class and

21 subclass of the Florida Retirement System; amending s.

22 121.73, F.S.; revising required allocations from the

23 Contributions Clearing Trust Fund to provide

24 disability coverage to members of the investment plan

25 of the Florida Retirement System; amending s. 121.735,

26 F.S.; revising allocations from the Contributions

27 Clearing Trust Fund to provide line-of-duty death

28 benefits to members of the investment plan of the

29 Florida Retirement System; providing a declaration of

30 important state interest; providing an effective date.

32 Be It Enacted by the Legislature of the State of Florida:

34 Section 1. Subsection (7) of section 121.053, Florida

35 Statutes, is amended to read:

36 121.053 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:

48 1. 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

51 begins on or after July 1, 2010, may not continue to earn such

52 interest.

53 2. 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.

58 3. 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 her

63 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.

75 Section 2. Subsection (5) of section 121.091, Florida

76 Statutes, is amended to read:

77 121.091 Benefits payable under the system.—Benefits may not

78 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

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

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

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.

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 to

188 any member convicted of a felony committed on or after October

189 1, 2008, defined in s. 800.04 against a victim younger than 16

190 years of age, or defined in chapter 794 against a victim younger

191 than 18 years of age, through the use or attempted use of power,

192 rights, privileges, duties, or position of the member’s public

193 office or employment position. However, the division or the

194 state board shall return the member’s accumulated contributions,

195 if any, that the member accumulated as of the date of

196 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

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:

213 1. Such DROP proceeds were distributed before the elected

214 officer’s termination; and

215 2. The division or state board would be prohibited pursuant

216 to paragraph (k) from making a distribution to the elected

217 officer, absent the distribution to the elected officer pursuant

218 to s. 121.053(7)(a)3.

219 Section 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:

223 121.101 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

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:

237 1. 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

240 2. 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.

243 Section 4. Subsections (4) and (5) of section 121.71,

244 Florida Statutes, are amended to read:

245 121.71 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:

250 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2026 ~~2025~~

252 Regular Class 7.11% ~~7.10%~~

253 Special Risk Class 21.58% ~~20.10%~~

254 Special Risk Administrative Support Class 11.45% ~~10.88%~~

255 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 10.30% ~~10.04%~~

256 Elected Officers’ Class— Justices, Judges 15.54% ~~15.62%~~

257 Elected Officers’ Class— County Elected Officers 11.45% ~~11.79%~~

258 Senior Management Service Class 8.68% ~~8.73%~~

259 DROP 9.86% ~~9.37%~~

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:

265 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2026 ~~2025~~

267 Regular Class 4.42% ~~4.87%~~

268 Special Risk Class 14.10% ~~13.03%~~

269 Special Risk Administrative Support Class 28.28% ~~26.54%~~

270 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 51.43% ~~50.56%~~

271 Elected Officers’ Class— Justices, Judges 28.40% ~~28.46%~~

272 Elected Officers’ Class— County Elected Officers 41.49% ~~40.72%~~

273 Senior Management Service Class 21.86% ~~22.45%~~

274 DROP 10.26% ~~10.65%~~

275 Section 5. Subsection (3) of section 121.73, Florida

276 Statutes, is amended to read:

277 121.73 Allocations for member disability coverage;

278 percentage amounts.—

279 (3) Effective July 1, 2026 ~~2002~~ , allocations from the

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:

285 Membership Class Percentage of Gross Compensation

287 Regular Class 0.25%

288 Special Risk Class 1.91% ~~1.85%~~

289 Special Risk Administrative Support Class 0.46% ~~0.45%~~

290 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.41%

291 Elected Officers’ Class— Justices, Judges 0.73%

292 Elected Officers’ Class— County Elected Officers 0.41%

293 Senior Management Service Class 0.26%

294 Section 6. Subsection (3) of section 121.735, Florida

295 Statutes, is amended to read:

296 121.735 Allocations for member line-of-duty death benefits;

297 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:

303 Membership Class Percentage of Gross Compensation

305 Regular Class 0.05%

306 Special Risk Class 1.28% ~~1.26%~~

307 Special Risk Administrative Support Class 0.03%

308 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 0.15%

309 Elected Officers’ Class— Justices, Judges 0.09%

310 Elected Officers’ Class— County Elected Officers 0.20%

311 Senior Management Service Class 0.05%

312 Section 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.

324 Section 8. This act shall take effect July 1, 2026.