On June 6, 2023, Govenor Ron DeSantis approved a bill that was passed by both the Florida House and Senate. The bill, SB 7024, will make some pretty big changes to the Florida Retirement System and the benefits retirees can expect to receive. Here are some of the key changes:
- The normal retirement date for Special Risk1 class members will be reverted back to pre-July 2011 numbers for those enrolled on or after July 1, 2011. So moving forward, those members will be eligible for retirement at age 55 provided they have at least 8 years of service or at any age with 25 years of service.
- All FRS members, regardless of class membership and occupation, will be able to enroll in DROP at any time after reaching the normal retirement date, rather than within the 1-year period immediately following their normal retirement date.
- DROP participation has been extended from 5 years to 8 years, regardless of class membership and occupation. For certain K-12 instructional personnel, they may have the opportunity to extend their DROP participation an additional 2 years to a total of 10 years.
- The DROP interest rate will increase from 1.3% to 4% on DROP accumulations held on or after July 1, 2023.
- The health insurance subsidy will increase from $5 for each year of service to $7.50 for each year of service (up to 30 years). What this amounts to is an increase of total possible monthly health insurance subsidy benefits from $150 monthly to $225 monthly.
These changes are some of most substantial changes to the FRS since 2011, when many of the benefits were reduced. The effective date for the announced changes will be July 1st.
For those interested in reading the bill summary, here is the link: https://www.flsenate.gov/Committees/BillSummaries/2023/html/3071
For those interested in reading the full bill, here is the link: https://laws.flrules.org/2023/193
1. Special Risk Class - The FRS membership class for eligible members who are employed as law enforcement officers, firefighters, correctional officers, paramedics, or emergency medical technicians, or as health care workers specified under section 121.0515(2)(f), Florida Statutes, and who meet the criteria in the retirement laws and rules to qualify for this class. The class also covers eligible members employed as: Community-based correctional probation officers and certain health care workers at correctional and forensic institutions within the Departments of Corrections or Children and Family Services, employees engaged in fire prevention, firefighter training, or aerial surveillance, specified employees in forensic position with the Florida Department of Law Enforcement, sheriff, or coroners’ offices, and certain youth custody officers within the Department of Juvenile Justice. (For more on this class, see Chapter 1, Part IV, section C.)