Bill Text: FL S7042 | 2015 | Regular Session | Introduced
Bill Title: Florida Retirement System
Spectrum: Committee Bill
Status: (Failed) 2015-05-01 - Died in Community Affairs [S7042 Detail]
Download: Florida-2015-S7042-Introduced.html
Florida Senate - 2015 SB 7042 By the Committee on Governmental Oversight and Accountability 585-02154-15 20157042__ 1 A bill to be entitled 2 An act relating to the Florida Retirement System; 3 amending s. 121.0515, F.S.; authorizing renewed 4 membership in the retirement system for retirees who 5 are reemployed in a position eligible for the Special 6 Risk Class under certain circumstances; amending s. 7 121.053, F.S.; authorizing renewed membership in the 8 retirement system for retirees who are reemployed in a 9 position eligible for the Elected Officers’ Class 10 under certain circumstances; amending s. 121.055, 11 F.S.; providing for renewed membership in the 12 retirement system for retirees of the Senior 13 Management Service Optional Annuity Program who are 14 employed on or after a specified date; amending s. 15 121.091, F.S.; conforming a provision to changes made 16 by the act; amending s. 121.111, F.S.; requiring an 17 employer to make employer and employee contributions 18 towards credit for military service for service credit 19 earned on or after a specified date; amending s. 20 121.122, F.S.; requiring that certain retirees who are 21 employed on or after a specified date be renewed 22 members in the investment plan; providing exceptions; 23 specifying that creditable service does not accrue for 24 a reemployed retiree during a specified period; 25 prohibiting certain funds from being paid into a 26 renewed member’s investment plan account for a 27 specified period of employment; requiring the renewed 28 member to satisfy vesting requirements; making a 29 renewed member ineligible to receive disability 30 benefits; specifying limitations and requirements; 31 requiring the employer and the retiree to make 32 applicable contributions to the renewed member’s 33 investment plan account; providing for the transfer of 34 contributions; prohibiting the purchase of past 35 service in the investment plan; authorizing a renewed 36 member to receive additional credit towards the health 37 insurance subsidy under certain circumstances; 38 providing that a retiree employed on or after a 39 specified date in a regularly established position 40 eligible for the State University System Optional 41 Retirement Program or State Community College System 42 Optional Retirement Program is a renewed member of 43 that program; specifying limitations and requirements; 44 requiring the employer and the retiree to make 45 applicable contributions; prohibiting the purchase of 46 past service in the program; providing for renewed 47 membership in the optional retirement program for 48 certain retirees initially reemployed on or after a 49 specified date; making the renewed member ineligible 50 to receive disability benefits; specifying limitations 51 and requirements; requiring the employer and the 52 retiree to make applicable contributions; providing 53 for the transfer of contributions; prohibiting the 54 purchase of past service in the optional retirement 55 program; authorizing a renewed member to receive 56 additional credit towards the health insurance subsidy 57 under certain circumstances; amending s. 121.4501, 58 F.S.; revising the definition of the term “eligible 59 employee”; conforming a provision to changes made by 60 the act; providing for employer contribution rate 61 increases to fund changes made by the act; providing a 62 directive to the Division of Law Revision and 63 Information; declaring that the act fulfills an 64 important state interest; providing an effective date. 65 66 Be It Enacted by the Legislature of the State of Florida: 67 68 Section 1. Paragraphs (i) and (j) are added to subsection 69 (2) of section 121.0515, Florida Statutes, to read: 70 121.0515 Special Risk Class.— 71 (2) MEMBERSHIP.— 72 (i) A retiree of a state-administered retirement system who 73 is employed in a regularly established position with a covered 74 employer and initially enrolled in the Special Risk Class as a 75 renewed member as provided in s. 121.122 on or after July 1, 76 2016, is subject to the following conditions: 77 1.a. If a retiree of a state-administered retirement system 78 is initially reemployed on July 1, 2010, through June 30, 2016, 79 and is reemployed in a regularly established position eligible 80 for the Special Risk Class as provided in this subsection and 81 subsection (3), may be enrolled in the Special Risk Class as a 82 renewed member of the investment plan for creditable service 83 earned on or after July 1, 2016. 84 b. A reemployed retiree, or the employer on behalf of the 85 retiree, may not purchase any past service for employment from 86 July 1, 2010, to June 30, 2016, when renewed membership is not 87 available. 88 2. A retiree of a state-administered retirement system who 89 is initially reemployed on or after July 1, 2016, in a regularly 90 established position eligible for the Special Risk Class as 91 provided in this subsection and subsection (3) shall be enrolled 92 as a renewed member of the investment plan. 93 (j) Effective July 1, 2016, a renewed member initially 94 enrolled before July 1, 2010, who is employed in a regularly 95 established position eligible for the Special Risk Class as 96 provided in this subsection and subsection (3) may be enrolled 97 in the Special Risk Class as a renewed member of the Florida 98 Retirement System for creditable service earned on or after July 99 1, 2016. Service as a renewed member in a regularly established 100 position otherwise covered by the Special Risk Class as required 101 by this subsection and subsection (3), before July 1, 2016, 102 cannot be upgraded from the Regular Class accrual value. 103 Section 2. Paragraph (a) of subsection (3) and subsection 104 (5) of section 121.053, Florida Statutes, are amended to read: 105 121.053 Participation in the Elected Officers’ Class for 106 retired members.— 107 (3) On or after July 1, 2010: 108 (a) A retiree of a state-administered retirement system who 109 is initially reemployed inelected or appointed for the first110time toan elective office in a regularly established position 111 with a covered employer may not reenroll in the Florida 112 Retirement System, except as provided in s. 121.122. 113 (5) Any renewed member, as described in s. 121.122(1), (3), 114 (4), or (5)subsection (1) or subsection (2), who is not 115 receiving the maximum health insurance subsidy provided in s. 116 112.363 is entitled to earn additional credit toward the maximum 117 health insurance subsidy. Any additional subsidy due because of 118 such additional credit may be received only at the time of 119 payment of the second career retirement benefit. The total 120 health insurance subsidy received from initial and renewed 121 membership may not exceed the maximum allowed in s. 112.363. 122 Section 3. Paragraph (f) of subsection (1) and paragraph 123 (c) of subsection (6) of section 121.055, Florida Statutes, are 124 amended to read: 125 121.055 Senior Management Service Class.—There is hereby 126 established a separate class of membership within the Florida 127 Retirement System to be known as the “Senior Management Service 128 Class,” which shall become effective February 1, 1987. 129 (1) 130 (f) Effective July 1, 1997: 131 1. Except as provided in subparagraph 3., an elected state 132 officer eligible for membership in the Elected Officers’ Class 133 under s. 121.052(2)(a), (b), or (c) who elects membership in the 134 Senior Management Service Class under s. 121.052(3)(c) may, 135 within 6 months after assuming office or within 6 months after 136 this act becomes a law for serving elected state officers, elect 137 to participate in the Senior Management Service Optional Annuity 138 Program, as provided in subsection (6), in lieu of membership in 139 the Senior Management Service Class. 140 2. Except as provided in subparagraph 3., an elected 141 officer of a local agency employer eligible for membership in 142 the Elected Officers’ Class under s. 121.052(2)(d) who elects 143 membership in the Senior Management Service Class under s. 144 121.052(3)(c) may, within 6 months after assuming office, or 145 within 6 months after this act becomes a law for serving elected 146 officers of a local agency employer, elect to withdraw from the 147 Florida Retirement System, as provided in subparagraph (b)2., in 148 lieu of membership in the Senior Management Service Class. 149 3. A retiree of a state-administered retirement system who 150 is initially reemployed in a regularly established position on 151or afterJuly 1, 2010, through June 30, 2016, as an elected 152 official eligible for the Elected Officers’ Class may not be 153 enrolled in renewed membership in the Senior Management Service 154 Class or in the Senior Management Service Optional Annuity 155 Program as provided in subsection (6), and may not withdraw from 156 the Florida Retirement System as a renewed member as provided in 157 subparagraph (b)2., as applicable, in lieu of membership in the 158 Senior Management Service Class. Effective July 1, 2016, a 159 retiree of the Senior Management Service Optional Annuity 160 Program who reenters covered employment shall be enrolled as a 161 renewed member as provided in s. 121.122. 162 (6) 163 (c) Participation.— 164 1. An eligible employee who is employed on or before 165 February 1, 1987, may elect to participate in the optional 166 annuity program in lieu of participating in the Senior 167 Management Service Class. Such election shallmustbe made in 168 writing and filed with the department and the personnel officer 169 of the employer on or before May 1, 1987. An eligible employee 170 who is employed on or before February 1, 1987, and who fails to 171 make an election to participate in the optional annuity program 172 by May 1, 1987, isshall bedeemed to have elected membership in 173 the Senior Management Service Class. 174 2. Except as provided in subparagraph 6., an employee who 175 becomes eligible to participate in the optional annuity program 176 by reason of initial employment commencing after February 1, 177 1987, may, within 90 days after the date of commencing 178 employment, elect to participate in the optional annuity 179 program. Such election shallmustbe made in writing and filed 180 with the personnel officer of the employer. An eligible employee 181 who does not within 90 days after commencing employment elect to 182 participate in the optional annuity program isshall bedeemed 183 to have elected membership in the Senior Management Service 184 Class. 185 3. A person who is appointed to a position in the Senior 186 Management Service Class and who is a member of an existing 187 retirement system or the Special Risk or Special Risk 188 Administrative Support Classes of the Florida Retirement System 189 may elect to remain in such system or class in lieu of 190 participating in the Senior Management Service Class or optional 191 annuity program. Such election shallmustbe made in writing and 192 filed with the department and the personnel officer of the 193 employer within 90 days after such appointment. An eligible 194 employee who fails to make an election to participate in the 195 existing system, the Special Risk Class of the Florida 196 Retirement System, the Special Risk Administrative Support Class 197 of the Florida Retirement System, or the optional annuity 198 program isshall bedeemed to have elected membership in the 199 Senior Management Service Class. 200 4. Except as provided in subparagraph 5., an employee’s 201 election to participate in the optional annuity program is 202 irrevocable if the employee continues to be employed in an 203 eligible position and continues to meet the eligibility 204 requirements set forth in this paragraph. 205 5. Effective from July 1, 2002, through September 30, 2002, 206 an active employee in a regularly established position who has 207 elected to participate in the Senior Management Service Optional 208 Annuity Program has one opportunity to choose to move from the 209 Senior Management Service Optional Annuity Program to the 210 Florida Retirement System Pension Plan. 211 a. The election shallmustbe made in writing andmust be212 filed with the department and the personnel officer of the 213 employer before October 1, 2002, or, in the case of an active 214 employee who is on a leave of absence on July 1, 2002, within 90 215 days after the conclusion of the leave of absence. This election 216 is irrevocable. 217 b. The employee shall receive service credit under the 218 pension plan equal to his or her years of service under the 219 Senior Management Service Optional Annuity Program. The cost for 220 such credit is the amount representing the present value of that 221 employee’s accumulated benefit obligation for the affected 222 period of service. 223 c. The employee shallmusttransfer the total accumulated 224 employer contributions and earnings on deposit in his or her 225 Senior Management Service Optional Annuity Program account. If 226 the transferred amount is not sufficient to pay the amount due, 227 the employee shallmustpay a sum representing the remainder of 228 the amount due. The employee may not retain any employer 229 contributions or earnings from the Senior Management Service 230 Optional Annuity Program account. 231 6. A retiree of a state-administered retirement system who 232 is initially reemployed on or after July 1, 2010, through June 233 30, 2016, may not renew membership in the Senior Management 234 Service Optional Annuity Program. Effective July 1, 2016, a 235 retiree of the Senior Management Service Optional Annuity 236 Program who reenters covered employment shall be enrolled as a 237 renewed member as provided in s. 121.122. 238 Section 4. Paragraph (c) of subsection (9) of section 239 121.091, Florida Statutes, is amended to read: 240 121.091 Benefits payable under the system.—Benefits may not 241 be paid under this section unless the member has terminated 242 employment as provided in s. 121.021(39)(a) or begun 243 participation in the Deferred Retirement Option Program as 244 provided in subsection (13), and a proper application has been 245 filed in the manner prescribed by the department. The department 246 may cancel an application for retirement benefits when the 247 member or beneficiary fails to timely provide the information 248 and documents required by this chapter and the department’s 249 rules. The department shall adopt rules establishing procedures 250 for application for retirement benefits and for the cancellation 251 of such application when the required information or documents 252 are not received. 253 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.— 254 (c) Any person whose retirement is effective on or after 255 July 1, 2010, or whose participation in the Deferred Retirement 256 Option Program terminates on or after July 1, 2010, who is 257 retired under this chapter, except under the disability 258 retirement provisions of subsection (4) or as provided in s. 259 121.053, may be reemployed by an employer that participates in a 260 state-administered retirement system and receive retirement 261 benefits and compensation from that employer. However, a person 262 may not be reemployed by an employer participating in the 263 Florida Retirement System before meeting the definition of 264 termination in s. 121.021 and may not receive both a salary from 265 the employer and retirement benefits for 6 calendar months after 266 meeting the definition of termination. However, a DROP 267 participant shall continue employment and receive a salary 268 during the period of participation in the Deferred Retirement 269 Option Program, as provided in subsection (13). 270 1. The reemployed retiree may not renew membership in the 271 Florida Retirement System, except as provided in s. 121.122. 272 2. The employer shall pay retirement contributions in an 273 amount equal to the unfunded actuarial liability portion of the 274 employer contribution that would be required for active members 275 of the Florida Retirement System in addition to the 276 contributions required by s. 121.76. 277 3. A retiree initially reemployed in violation of this 278 paragraph and an employer that employs or appoints such person 279 are jointly and severally liable for reimbursement of any 280 retirement benefits paid to the retirement trust fund from which 281 the benefits were paid, including the Florida Retirement System 282 Trust Fund and the Public Employee Optional Retirement Program 283 Trust Fund, as appropriate. The employer must have a written 284 statement from the employee that he or she is not retired from a 285 state-administered retirement system. Retirement benefits shall 286 remain suspended until repayment is made. Benefits suspended 287 beyond the end of the retiree’s 6-month reemployment limitation 288 period shall apply toward the repayment of benefits received in 289 violation of this paragraph. 290 Section 5. Subsection (1) of section 121.111, Florida 291 Statutes, is amended to read: 292 121.111 Credit for military service.— 293 (1) Creditable service of any member shall also include 294 military service as defined in s. 121.021(20)(a) if: 295 (a) The member is in the active employ of an employer 296 immediately prior to such service and leaves a position, other 297 than a temporary position, for the purpose of induction into the 298 Armed Forces of the United States or entry upon duty in the 299 Armed Forces of the United States. When applied to the Florida 300 Retirement System: 301 1. The term “position other than a temporary position” 302 means a regularly established position with a Florida Retirement 303 System employer; and 304 2. A member shall be construed to have left his or her 305 employment for military purposes if he or she reported for 306 active duty within 60 days after leaving such employment; 307 (b) The member is entitled to reemployment under the 308 provisions of the Veterans’ Reemployment Rights Act (38 U.S.C. 309 ss. 2021 et seq.); 310 (c) The member applies for reemployment with the same 311 employer within the time set forth in s. 2021 or s. 2024 of the 312 Veterans’ Reemployment Rights Act, whichever is applicable, and 313 is reemployed by such employer; 314 (d)1. For service credit earned before July 1, 2015, the 315 member makes the required employee contributions, if any, and 316 the employer makes the required employer contributions for the 317 employee’s membership class for each month of service credit 318 during such period of military service, based upon the 319 employee’s rate of monthly compensation as of the date that the 320 employee left his or her position, plus 4 percent interest on 321 such contributions compounded annually from the due date of the 322 contribution until July 1, 1975, and 6.5 percent interest 323 compounded annually thereafter, until the payment is made to the 324 proper retirement trust fund; and 325 2. For service credit earned on or after July 1, 2015, the 326 employer makes the required employer and employee contributions 327 for the employee’s membership class for each month of service 328 credit during such period of military service, based upon the 329 employee’s rate of monthly compensation as of the date that the 330 employee left his or her position, plus 6.5 percent interest on 331 such contributions compounded annually from the due date of the 332 contribution until the payment is made to the Florida Retirement 333 System Trust Fund; and 334 (e) The period of service claimed pursuant to this 335 subsection does not exceed the periods specified by the 336 provisions of ss. 2021 and 2024 of the Veterans’ Reemployment 337 Rights Act which are applicable in the member’s case. 338 Section 6. Subsection (2) of section 121.122, Florida 339 Statutes, is amended, and subsections (3) through (6) are added 340 to that section, to read: 341 121.122 Renewed membership in system.— 342 (2) A retiree of a state-administered retirement system who 343 is initially reemployed in a regularly established position on 344 or after July 1, 2010, through June 30, 2016, may not be 345 enrolled as a renewed member. 346 (3) A retiree of a state-administered retirement system 347 specified in subsection (2) who is employed on or after July 1, 348 2016, in a regularly established position shall be a renewed 349 member of the investment plan, regardless of the position held, 350 unless employed in a position eligible for participation in the 351 State University System Optional Retirement Program or the State 352 Community College System Optional Retirement Program as provided 353 in subsections (4) and (5), respectively. A renewed member must 354 satisfy the vesting requirements and other provisions of this 355 chapter. 356 (a) Creditable service, including credit toward the retiree 357 health insurance subsidy provided in s. 112.363, does not accrue 358 for a retiree’s employment in a regularly established position 359 with a covered employer during the period from July 1, 2010, 360 through June 30, 2016. 361 (b) Employer and employee contributions, interest, 362 earnings, or any other funds may not be paid into a renewed 363 member’s investment plan account for any employment in a 364 regularly established position with a covered employer from July 365 1, 2010, through June 30, 2016, by the renewed member or the 366 employer on behalf of the member. 367 (c) To be eligible to receive a retirement benefit, the 368 renewed member must satisfy the vesting requirements in s. 369 121.4501(6). 370 (d) The member is ineligible to receive disability benefits 371 as provided in s. 121.091(4) or s. 121.591(2). 372 (e) The member is subject to the reemployment after 373 retirement limitations provided in s. 121.091(9), as applicable. 374 (f) The member must satisfy the requirements for 375 termination from employment provided in s. 121.021(39). 376 (g) Upon the renewed membership or reemployment of a 377 retiree, the employer and the retiree shall pay the applicable 378 employer and employee contributions required under ss. 112.363, 379 121.71, 121.74, and 121.76. The contributions are payable only 380 for employment and salary earned in a regularly established 381 position with a covered employer on or after July 1, 2016. The 382 employer and employee contributions shall be transferred to the 383 investment plan and placed in a default fund as designated by 384 the state board. The retiree may move the contributions once an 385 account is activated in the investment plan. 386 (h) The member may not purchase any past service in the 387 investment plan, including employment in a regularly established 388 position with a covered employer from July 1, 2010, through June 389 30, 2016. 390 (i) A renewed member who is a retiree of the investment 391 plan or pension plan and who is not receiving the maximum health 392 insurance subsidy provided in s. 112.363 is entitled to earn 393 additional credit toward the subsidy. Such credit may be earned 394 only for employment in a regularly established position with a 395 covered employer on or after July 1, 2016. Any additional 396 subsidy due because of additional credit may be received only at 397 the time of paying the second career retirement benefit. The 398 total health insurance subsidy received by a retiree receiving 399 benefits from initial and renewed membership may not exceed the 400 maximum allowed under s. 112.363. 401 (4) A retiree of a state-administered retirement system 402 specified in subsection (2) who is employed on or after July 1, 403 2016, in a regularly established position eligible for 404 participation in the State University System Optional Retirement 405 Program shall become a renewed member of the optional retirement 406 program. The renewed member must satisfy the vesting 407 requirements and other provisions of this chapter. Once 408 enrolled, a renewed member remains enrolled in the optional 409 retirement program while employed in an eligible position for 410 the optional retirement program. If employment in a different 411 covered position results in the retiree’s enrollment in the 412 investment plan, the retiree is no longer eligible to 413 participate in the optional retirement program unless employed 414 in a mandatory position under s. 121.35. 415 (a) The member is subject to the reemployment after 416 retirement limitations provided in s. 121.091(9), as applicable. 417 (b) The member must satisfy the requirements for 418 termination of employment provided in s. 121.021(39). 419 (c) Upon renewed membership or reemployment of a retiree, 420 the employer and the retiree shall pay the applicable employer 421 and employee contributions required under s. 121.35. 422 (d) The member, or the employer on behalf of the member, 423 may not purchase any past service in the optional retirement 424 program or employment from July 1, 2010, to June 30, 2016, when 425 renewed membership is not available. 426 (5) A retiree of a state-administered retirement system 427 specified in subsection (2) who is employed on or after July 1, 428 2016, in a regularly established position eligible for 429 participation in the State Community College System Optional 430 Retirement Program as provided in s. 121.051(2)(c)4., shall 431 become a renewed member of the optional retirement program. The 432 renewed member must satisfy the eligibility requirements of this 433 chapter and s. 1012.875 for the optional retirement program. 434 Once enrolled, a renewed member remains enrolled in the optional 435 retirement program while employed in an eligible position for 436 the optional retirement program. If employment in a different 437 covered position results in the retiree’s enrollment in the 438 investment plan, the retiree is no longer eligible to 439 participate in the optional retirement program. 440 (a) The member is subject to the reemployment after 441 retirement limitations provided in s. 121.091(9), as applicable. 442 (b) The member must satisfy the requirements for 443 termination of employment provided in s. 121.021(39). 444 (c) Upon renewed membership or reemployment of a retiree, 445 the employer and the retiree shall pay the applicable employer 446 and employee contributions required under ss. 121.051(2)(c) and 447 1012.875. 448 (d) The member, or the employer on behalf of the member, 449 may not purchase any past service in the optional retirement 450 program or employment accrued from July 1, 2010, to June 30, 451 2016. 452 (6) A retiree of a state-administered retirement system who 453 is initially reemployed in a regularly established position on 454 or after July 1, 2016, shall be enrolled in the investment plan 455 unless eligible for participation in the State University System 456 Optional Retirement Program as provided in s. 121.35 or in the 457 State Community College System Optional Retirement Program as 458 provided in ss. 121.051(2)(c) and 1012.875. A renewed member 459 must satisfy the vesting requirements and other provisions 460 provided in this chapter. 461 (a) The member is not entitled to disability benefits as 462 provided in s. 121.091(4) or s. 121.591(2). 463 (b) The member is subject to the reemployment after 464 retirement limitations as provided in s. 121.091(9), as 465 applicable. 466 (c) The member must meet the termination from employment 467 provisions as provided in s. 121.021(39). 468 (d) Upon the renewed membership of a reemployed retiree, 469 the employer and the retiree shall pay the applicable employer 470 and employee contributions as required by ss. 112.363, 121.71, 471 121.74, and 121.76. The contributions are payable only for 472 employment and compensation earned in a regularly established 473 position with a covered employer on or after July 1, 2016. The 474 employer and employee contributions shall be transferred to the 475 investment plan and placed in a default fund as designated by 476 the state board. The retiree may move the contributions once an 477 account is activated in the investment plan. 478 (e) The member or the employer on behalf of the member may 479 not purchase any past service in the optional retirement program 480 or employment accrued from July 1, 2010 to June 30, 2016. 481 (f) A renewed member who is a retiree of the investment 482 plan or pension plan and is not receiving the maximum health 483 insurance subsidy provided in s. 112.363 is entitled to earn 484 additional credit toward the subsidy. Such credit may be earned 485 only for employment in a regularly established position with a 486 covered employer on or after July 1, 2016. Any additional 487 subsidy due because of additional credit may be received only at 488 the time of paying the second career retirement benefit. The 489 total health insurance subsidy received by a retiree receiving 490 benefits from initial and renewed membership may not exceed the 491 maximum allowable under s. 112.363. 492 Section 7. Paragraph (e) of subsection (2) and paragraph 493 (f) of subsection (4) of section 121.4501, Florida Statutes, are 494 amended to read: 495 121.4501 Florida Retirement System Investment Plan.— 496 (2) DEFINITIONS.—As used in this part, the term: 497 (e) “Eligible employee” means an officer or employee, as 498 defined in s. 121.021, who: 499 1. Is a member of, or is eligible for membership in, the 500 Florida Retirement System, including any renewed member of the 501 Florida Retirement System initially enrolled before July 1, 502 2010;or503 2. Participates in, or is eligible to participate in, the 504 Senior Management Service Optional Annuity Program as 505 established under s. 121.055(6), the State Community College 506 System Optional Retirement Program as established under s. 507 121.051(2)(c), or the State University System Optional 508 Retirement Program established under s. 121.35; or 509 3. Is a retiree of a state-administered retirement system 510 employed in a regularly established position on or after July 1, 511 2016, enrolled as a renewed member as provided under s. 121.122. 512 513 The term does not include any member participating in the 514 Deferred Retirement Option Program established under s. 515 121.091(13), a retiree of a state-administered retirement system 516 initially reemployed in a regularly established position on or 517 after July 1, 2010, through June 30, 2016, or a mandatory 518 participant of the State University System Optional Retirement 519 Program established under s. 121.35. 520 (4) PARTICIPATION; ENROLLMENT.— 521 (f)1. A member of the investment plan who takes a 522 distribution of any contributions from his or her investment 523 plan account is considered a retiree. A retiree who is initially 524 reemployed in a regularly established position on or after July 525 1, 2010, and before June 30, 2016, is not eligible forto be526enrolled inrenewed membership, except as provided in s. 527 121.122. 528 2. A retiree who is initially reemployed on or after July 529 1, 2016, shall be a renewed member as provided in s. 121.122. 530 Section 8. (1) In order to fund the benefit changes 531 provided for in this act, the required employer contribution 532 rates of the Florida Retirement System established in 121.71(4), 533 Florida Statutes, shall be adjusted effective July 1, 2016 as 534 follows: 535 (a) The Regular Class is increased by X.XX percentage 536 points. 537 (b) The Special Risk Class is increased by X.XX percentage 538 points. 539 (c) The Special Risk Administrative Support Class is 540 increased by X.XX percentage points. 541 (d) The Elected Officers’ Class—Legislators, Governor, Lt. 542 Governor, Cabinet Officers, State Attorneys, Public Defenders is 543 increased by X.XX percentage points. 544 (e) The Elected Officers’ Class—Justices, Judges is 545 increased by X.XX percentage points. 546 (f) The Elected Officer’s Class—County Elected Officers is 547 increased by X.XX percentage points. 548 (g) The Senior Management Service Class is increased by 549 X.XX percentage points. 550 (h) The DROP is increased by X.XX percentage points. 551 (2) The adjustments provided in subsection (1) shall be 552 made in addition to other changes to such contribution rates 553 which may be enacted into law to take effect on July 1, 2016. 554 The Division of Law Revision and Information is requested to 555 adjust accordingly the contribution rates provided in s. 121.71, 556 Florida Statutes. 557 Section 9. The Legislature finds that a proper and 558 legitimate state purpose is served when employees and retirees 559 of the state and its political subdivisions, and the dependents, 560 survivors, and beneficiaries of such employees and retirees, are 561 extended the basic protections afforded by governmental 562 retirement systems. These persons must be provided benefits that 563 are fair and adequate and that are managed, administered, and 564 funded in an actuarially sound manner, as required by s. 14, 565 Article X of the State Constitution and part VII of chapter 112, 566 Florida Statutes. Therefore, the Legislature determines and 567 declares that this act fulfills an important state interest. 568 Section 10. This act shall take effect July 1, 2015.