WeVote
Log In

Bill

Bill

SB 7022

Retirement

2025 Regular Session Introduced by Nick DiCeglie and 1 co-sponsor

Sets new FRS employer contribution rates to fund full normal cost and amortize unfunded liability, boosting annual FRS receipts by about $310.2 million starting July 1, 2025.

Chapter No. 2025-205, companion bill(s) passed, see SB 2500 (Ch. 2025-198)
#subjectindex
0
WeVote Research Nonpartisan
Bill Summary · SB 7022

SB 7022 — Retirement (Chapter No. 2025‑205)

Purpose

SB 7022 sets employer contribution rates for public employers participating in the Florida Retirement System (FRS), effective July 1, 2025, to fund the FRS’s full normal cost and to amortize the plan’s unfunded actuarial liability (UAL). The bill also creates a limited in‑service distribution rule for certain elected officers who participated in DROP (Deferred Retirement Option Program).

Key provisions

  • Establishes new employer contribution rates for FRS participation beginning July 1, 2025, calculated to fund:
    • the full normal cost of benefits, and
    • amortization of the FRS unfunded actuarial liability.
  • Estimates an increase in annual FRS Trust Fund receipts of about $310.2 million beginning July 1, 2025, relative to revenue generated under current statutory rates.
  • Allows an elected officer (excluding legislators) who has completed DROP participation to withdraw DROP accumulations while still in office after attaining age 59½. This is designated as the only authorized in‑service distribution under the FRS.
  • Requires the Department of Management Services (DMS) and the State Board of Administration (SBA) to take appropriate steps to recoup DROP distributions to an elected officer if those DROP accumulations would have been forfeited due to the officer’s conviction for certain crimes.

Who is affected

  • Public employers that participate in the FRS: state agencies, state universities and colleges, district school boards, counties, municipalities, and other participating local governmental entities. These employers will incur higher contribution costs.
  • Elected officers (other than legislators) who have completed DROP and meet the age requirement may access DROP accumulations while remaining in office, subject to forfeiture/recoupment rules tied to criminal convictions.
  • The FRS Trust Fund and, indirectly, state budgets and local government budgets that appropriate funds for employer retirement contributions.

Fiscal impact

  • Aggregate increase in employer contributions for retiree benefits; FRS Trust Fund projected to receive roughly $310.2 million more per year beginning July 1, 2025.
  • The bill increases amounts that state appropriations and local employer budgets must cover for employee benefits.

Legislative and timeline highlights

  • Introduced: March 13, 2025 (as SPB 7022/SB 7022).
  • Committee actions: Reported favorably by Governmental Oversight and Accountability; favorably by Appropriations.
  • Passed both chambers (Senate and House) with no recorded opposition; conference committee report adopted June 16, 2025.
  • Presented to and approved by the Governor; signed and chaptered as Chapter No. 2025‑205.
  • Effective date: July 1, 2025.

Context

The FRS is a multi‑employer, contributory retirement system serving employees across state and local government (roughly 659,000 active members and nearly 1,000 participating employers as of mid‑2024). This bill aligns employer contribution rates with actuarial funding needs to address plan liabilities and sustain benefit funding.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.