Bill Summary: SPB 7094 - Retirement

• Renames and restructures Florida Retirement System programs: The "Public Employee Optional Retirement Program" is renamed the "Florida Retirement System Investment Plan," and the defined benefit program is renamed the "Florida Retirement System Pension Plan."

• Mandatory enrollment for new employees: Employees hired on or after July 1, 2011 (except those in optional programs or special risk classes) are required to enroll in the investment plan rather than having a choice between the pension and investment plans.

• Increases employee and employer contributions: Establishes uniform 3 percent employee contribution rates effective July 1, 2011, and adjusts employer contribution rates for various membership classes to address unfunded actuarial liabilities.

• Modifies retirement benefits and vesting: Changes cost-of-living adjustment calculations for members retiring after July 1, 2011; closes the Deferred Retirement Option Program (DROP) to new participants effective July 1, 2011; and implements new vesting schedules for investment plan members hired after July 1, 2011.

• Restricts benefit distributions and refunds: Limits refunds of employee contributions and imposes new requirements for domestic relations orders, while preventing benefit payments before employment termination except in limited circumstances.