Florida Senate - 2018 SB 406 By Senator Steube 23-00512-18 2018406__ 1 A bill to be entitled 2 An act relating to retirement; amending s. 121.091, 3 F.S.; providing an exception to the reemployment after 4 retirement limitations to authorize a retiree of the 5 Florida Retirement System to be reemployed by an 6 employer under certain circumstances; providing an 7 effective date. 8 9 Be It Enacted by the Legislature of the State of Florida: 10 11 Section 1. Paragraph (b) of subsection (9) of section 12 121.091, Florida Statutes, is amended to read: 13 121.091 Benefits payable under the system.—Benefits may not 14 be paid under this section unless the member has terminated 15 employment as provided in s. 121.021(39)(a) or begun 16 participation in the Deferred Retirement Option Program as 17 provided in subsection (13), and a proper application has been 18 filed in the manner prescribed by the department. The department 19 may cancel an application for retirement benefits when the 20 member or beneficiary fails to timely provide the information 21 and documents required by this chapter and the department’s 22 rules. The department shall adopt rules establishing procedures 23 for application for retirement benefits and for the cancellation 24 of such application when the required information or documents 25 are not received. 26 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.— 27 (b) Any person whose retirement is effective before July 1, 28 2010, or whose participation in the Deferred Retirement Option 29 Program terminates before July 1, 2010, except under the 30 disability retirement provisions of subsection (4) or as 31 provided in s. 121.053, may be reemployed by an employer that 32 participates in a state-administered retirement system and 33 receive retirement benefits and compensation from that employer, 34 except that the person may not be reemployed by an employer 35 participating in the Florida Retirement System before meeting 36 the definition of termination in s. 121.021 and may not receive 37 both a salary from the employer and retirement benefits for 12 38 calendar months immediately subsequent to the date of 39 retirement. However, a DROP participant shall continue 40 employment and receive a salary during the period of 41 participation in the Deferred Retirement Option Program, as 42 provided in subsection (13). Notwithstanding this paragraph, a 43 retiree may be reemployed by an employer participating in the 44 Florida Retirement System before completion of the 12-month 45 limitation period if the member is employed on a part-time basis 46 and is not qualified to receive retirement benefits for the 12 47 calendar months immediately subsequent to the date of 48 reemployment. 49 1. A retiree who violates such reemployment limitation 50 before completion of the 12-month limitation period must give 51 timely notice of this fact in writing to the employer and to the 52 Division of Retirement or the state board and shall have his or 53 her retirement benefits suspended for the months employed or the 54 balance of the 12-month limitation period as required in sub 55 subparagraphs b. and c. A retiree employed in violation of this 56 paragraph and an employer who employs or appoints such person 57 are jointly and severally liable for reimbursement to the 58 retirement trust fund, including the Florida Retirement System 59 Trust Fund and the Public Employee Optional Retirement Program 60 Trust Fund, from which the benefits were paid. The employer must 61 have a written statement from the retiree that he or she is not 62 retired from a state-administered retirement system. Retirement 63 benefits shall remain suspended until repayment has been made. 64 Benefits suspended beyond the reemployment limitation shall 65 apply toward repayment of benefits received in violation of the 66 reemployment limitation. 67 a. A district school board may reemploy a retiree as a 68 substitute or hourly teacher, education paraprofessional, 69 transportation assistant, bus driver, or food service worker on 70 a noncontractual basis after he or she has been retired for 1 71 calendar month. A district school board may reemploy a retiree 72 as instructional personnel, as defined in s. 1012.01(2)(a), on 73 an annual contractual basis after he or she has been retired for 74 1 calendar month. Any member who is reemployed within 1 calendar 75 month after retirement shall void his or her application for 76 retirement benefits. District school boards reemploying such 77 teachers, education paraprofessionals, transportation 78 assistants, bus drivers, or food service workers are subject to 79 the retirement contribution required by subparagraph 2. 80 b. A Florida College System institution board of trustees 81 may reemploy a retiree as an adjunct instructor or as a 82 participant in a phased retirement program within the Florida 83 College System, after he or she has been retired for 1 calendar 84 month. A member who is reemployed within 1 calendar month after 85 retirement shall void his or her application for retirement 86 benefits. Boards of trustees reemploying such instructors are 87 subject to the retirement contribution required in subparagraph 88 2. A retiree may be reemployed as an adjunct instructor for no 89 more than 780 hours during the first 12 months of retirement. A 90 retiree reemployed for more than 780 hours during the first 12 91 months of retirement must give timely notice in writing to the 92 employer and to the Division of Retirement or the state board of 93 the date he or she will exceed the limitation. The division 94 shall suspend his or her retirement benefits for the remainder 95 of the 12 months of retirement. Any retiree employed in 96 violation of this sub-subparagraph and any employer who employs 97 or appoints such person without notifying the division to 98 suspend retirement benefits are jointly and severally liable for 99 any benefits paid during the reemployment limitation period. The 100 employer must have a written statement from the retiree that he 101 or she is not retired from a state-administered retirement 102 system. Any retirement benefits received by the retiree while 103 reemployed in excess of 780 hours during the first 12 months of 104 retirement must be repaid to the Florida Retirement System Trust 105 Fund, and retirement benefits shall remain suspended until 106 repayment is made. Benefits suspended beyond the end of the 107 retiree’s first 12 months of retirement shall apply toward 108 repayment of benefits received in violation of the 780-hour 109 reemployment limitation. 110 c. The State University System may reemploy a retiree as an 111 adjunct faculty member or as a participant in a phased 112 retirement program within the State University System after the 113 retiree has been retired for 1 calendar month. A member who is 114 reemployed within 1 calendar month after retirement shall void 115 his or her application for retirement benefits. The State 116 University System is subject to the retired contribution 117 required in subparagraph 2., as appropriate. A retiree may be 118 reemployed as an adjunct faculty member or a participant in a 119 phased retirement program for no more than 780 hours during the 120 first 12 months of his or her retirement. A retiree reemployed 121 for more than 780 hours during the first 12 months of retirement 122 must give timely notice in writing to the employer and to the 123 Division of Retirement or the state board of the date he or she 124 will exceed the limitation. The division shall suspend his or 125 her retirement benefits for the remainder of the 12 months. Any 126 retiree employed in violation of this sub-subparagraph and any 127 employer who employs or appoints such person without notifying 128 the division to suspend retirement benefits are jointly and 129 severally liable for any benefits paid during the reemployment 130 limitation period. The employer must have a written statement 131 from the retiree that he or she is not retired from a state 132 administered retirement system. Any retirement benefits received 133 by the retiree while reemployed in excess of 780 hours during 134 the first 12 months of retirement must be repaid to the Florida 135 Retirement System Trust Fund, and retirement benefits shall 136 remain suspended until repayment is made. Benefits suspended 137 beyond the end of the retiree’s first 12 months of retirement 138 shall apply toward repayment of benefits received in violation 139 of the 780-hour reemployment limitation. 140 d. The Board of Trustees of the Florida School for the Deaf 141 and the Blind may reemploy a retiree as a substitute teacher, 142 substitute residential instructor, or substitute nurse on a 143 noncontractual basis after he or she has been retired for 1 144 calendar month. Any member who is reemployed within 1 calendar 145 month after retirement shall void his or her application for 146 retirement benefits. The Board of Trustees of the Florida School 147 for the Deaf and the Blind reemploying such teachers, 148 residential instructors, or nurses is subject to the retirement 149 contribution required by subparagraph 2. 150 e. A developmental research school may reemploy a retiree 151 as a substitute or hourly teacher or an education 152 paraprofessional as defined in s. 1012.01(2) on a noncontractual 153 basis after he or she has been retired for 1 calendar month. A 154 developmental research school may reemploy a retiree as 155 instructional personnel, as defined in s. 1012.01(2)(a), on an 156 annual contractual basis after he or she has been retired for 1 157 calendar month after retirement. Any member who is reemployed 158 within 1 calendar month voids his or her application for 159 retirement benefits. A developmental research school that 160 reemploys retired teachers and education paraprofessionals is 161 subject to the retirement contribution required by subparagraph 162 2. 163 f. A charter school may reemploy a retiree as a substitute 164 or hourly teacher on a noncontractual basis after he or she has 165 been retired for 1 calendar month. A charter school may reemploy 166 a retired member as instructional personnel, as defined in s. 167 1012.01(2)(a), on an annual contractual basis after he or she 168 has been retired for 1 calendar month after retirement. Any 169 member who is reemployed within 1 calendar month voids his or 170 her application for retirement benefits. A charter school that 171 reemploys such teachers is subject to the retirement 172 contribution required by subparagraph 2. 173 2. The employment of a retiree or DROP participant of a 174 state-administered retirement system does not affect the average 175 final compensation or years of creditable service of the retiree 176 or DROP participant. Before July 1, 1991, upon employment of any 177 person, other than an elected officer as provided in s. 121.053, 178 who is retired under a state-administered retirement program, 179 the employer shall pay retirement contributions in an amount 180 equal to the unfunded actuarial liability portion of the 181 employer contribution which would be required for regular 182 members of the Florida Retirement System. Effective July 1, 183 1991, contributions shall be made as provided in s. 121.122 for 184 retirees who have renewed membership or, as provided in 185 subsection (13), for DROP participants. 186 3. Any person who is holding an elective public office 187 which is covered by the Florida Retirement System and who is 188 concurrently employed in nonelected covered employment may elect 189 to retire while continuing employment in the elective public 190 office if he or she terminates his or her nonelected covered 191 employment. Such person shall receive his or her retirement 192 benefits in addition to the compensation of the elective office 193 without regard to the time limitations otherwise provided in 194 this subsection. A person who seeks to exercise the provisions 195 of this subparagraph as they existed before May 3, 1984, may not 196 be deemed to be retired under those provisions, unless such 197 person is eligible to retire under this subparagraph, as amended 198 by chapter 84-11, Laws of Florida. 199 Section 2. This act shall take effect July 1, 2018.