Florida Retirement System Adjusts Contributions, Participation Period

A new law will adjust employer-paid contributions in the Florida Retirement System and the participation period for certain employees. 

State Representative Jay Trumbull (R-Panama City) introduced the bill; the state House and Senate on March 14, 2022 each unanimously passed the conference report that reconciled each chamber’s versions, and Gov. Ron Desantis (R) signed it into law on June 2. The measure increases the contribution rates paid by employers participating in the Florida Retirement System (FRS). Beginning July 1, 2022, the amount of employer-paid contributions allocated to each active member’s investment plan account will increase by 3% of the member’s compensation. 

The new law also extends the period that law enforcement officers may participate in the Deferred Option Retirement Program (DROP) from 60 months to 96 months. To be eligible for this extended participation period, the law enforcement officer must be participating in DROP before July 1, 2028.

Similarly, the law extends for another 36 months DROP participation for K-12 teachers employed by the Florida School for the Deaf and the Blind and authorized by the Board of Trustees of that school and by the district school superintendent, or who are teachers employed by a developmental research school and authorized by the school's director or principal. Under this measure, effective July 1, 2018, teachers who are authorized to extend DROP participation beyond the 60-month period must have a termination date that is the last day of the last calendar month of the school year within the DROP extension granted by the employer.