In the 2023 Regular Legislative Session, the Florida Legislature passed bills affecting members and
employers of the Florida Retirement System (FRS) and other state-administered retirement plans.
Legislative changes are summarized as follows by the respective bill. As policies and procedures are
established, the Division of Retirement will notify FRS employers of the changes necessary to comply
with new legislation.
2023 Regular Legislative Session
The 2023 Florida Legislature passed Senate Bill (SB) 7024 and SB 110. The provisions of the bills are
as follows:
SB 7024 – General Retirement signed into law June 5, 2023
- Employer Contribution Rates – New contribution rates will begin July 1, 2023, for state-
administered retirement programs. The employer contribution rates paid into FRS Investment - Plan accounts will increase by 2% in all membership classes. The new contribution rates for the fiscal year 2023-2024 are provided separately in Information Release 2023-229, dated June 7, 2023.
- Health Insurance Subsidy (HIS) – Effective July 1, 2023, the employer of each member of the
FRS shall contribute 2% of compensation each pay period to HIS. Employers will also increase
the HIS payment for FRS Pension Plan and FRS Investment Plan members based on a calculated
amount. The HIS benefit calculation will be based on $7.50 per year of creditable service with a
maximum monthly benefit of $225 and a minimum of $45. - Deferred Retirement Option Program (DROP) Participation – Eligible members in a regularly
established position can elect to participate in DROP for no longer than 96 calendar months
beginning any time after their normal retirement date. The provision replaces individual
member eligibility windows for electing DROP participation. - K-12 Instructional Personnel DROP Extension – K-12 instructional personnel defined in section
(s.) 1012.01(2) (a)-(d), F.S., who are employed by a developmental research school, district
school board, or the Florida School for the Deaf and the Blind can extend DROP participation an
additional 24 calendar months. - DROP Accrual Interest Rate – Effective July 1, 2023, DROP accounts will accrue at an effective
annual rate of 4%, compounded monthly on the prior month’s accumulated ending balance, up
to the month of termination or death, except as provided in s. 121.053(7), F.S. - Special Risk Class Normal Retirement Date – Effective July 1, 2023, the normal retirement age
for members of the Special Risk Class and the Special Risk Administrative Support Class (if
retiring under Special Risk requirements) is age 55, if vested, or 25 years of service. Note:
Special Risk Class vesting requirements and average final compensation calculations will
continue to be based on each members’ FRS enrollment date. - SB 110 – Forfeiture of Retirement Benefits
Effective May 24, 2023, the bill authorizes the Division of Retirement and the State Board of
Administration to suspend benefits or retirement distribution to any public officer or employee who is
convicted of a specified offense committed before retirement, or whose office or employment is
terminated by reason of his or her admitted commission, aid, or abetment of specified offense in s.
112.3173, F.S. or 121.091(5), F.S.