Senate Bill sb1572
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Florida Senate - 2001 SB 1572
By Senator Burt
16-587-01
1 A bill to be entitled
2 An act relating to retirement; amending s.
3 121.091, F.S.; revising conditions on
4 reemployment of district school board
5 instructional personnel after retirement;
6 providing for continuation of district school
7 board instructional personnel in the Deferred
8 Retirement Option Program beyond its regular
9 limits under certain circumstances; providing a
10 finding of important state interest; providing
11 an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (b) of subsection (9) and
16 paragraphs (a) and (b) of subsection (13) of section 121.091,
17 Florida Statutes, are amended to read:
18 121.091 Benefits payable under the system.--Benefits
19 may not be paid under this section unless the member has
20 terminated employment as provided in s. 121.021(39)(a) or
21 begun participation in the Deferred Retirement Option Program
22 as provided in subsection (13), and a proper application has
23 been filed in the manner prescribed by the department. The
24 department may cancel an application for retirement benefits
25 when the member or beneficiary fails to timely provide the
26 information and documents required by this chapter and the
27 department's rules. The department shall adopt rules
28 establishing procedures for application for retirement
29 benefits and for the cancellation of such application when the
30 required information or documents are not received.
31 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
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1 (b)1. Any person who is retired under this chapter,
2 except under the disability retirement provisions of
3 subsection (4), may be reemployed by any private or public
4 employer after retirement and receive retirement benefits and
5 compensation from his or her employer without any limitations,
6 except that a person other than a certified instructional
7 employee of a district school board may not receive both a
8 salary from reemployment with any agency participating in the
9 Florida Retirement System and retirement benefits under this
10 chapter for a period of 12 months immediately subsequent to
11 the date of retirement. However, a DROP participant shall
12 continue employment and receive a salary during the period of
13 participation in the Deferred Retirement Option Program, as
14 provided in subsection (13).
15 2. Any person to whom the limitation in subparagraph
16 1. applies who violates such reemployment limitation and who
17 is reemployed with any agency participating in the Florida
18 Retirement System before completion of the 12-month limitation
19 period shall give timely notice of this fact in writing to the
20 employer and to the division and shall have his or her
21 retirement benefits suspended for the balance of the 12-month
22 limitation period. Any person employed in violation of this
23 paragraph and any employing agency which knowingly employs or
24 appoints such person without notifying the Division of
25 Retirement to suspend retirement benefits shall be jointly and
26 severally liable for reimbursement to the retirement trust
27 fund of any benefits paid during the reemployment limitation
28 period. To avoid liability, such employing agency shall have
29 a written statement from the retiree that he or she is not
30 retired from a state-administered retirement system. Any
31 retirement benefits received while reemployed during this
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1 reemployment limitation period shall be repaid to the
2 retirement trust fund, and retirement benefits shall remain
3 suspended until such repayment has been made. Benefits
4 suspended beyond the reemployment limitation shall apply
5 toward repayment of benefits received in violation of the
6 reemployment limitation.
7 3. A district school board may reemploy a retired
8 member as a substitute or hourly teacher, education
9 paraprofessional, transportation assistant, bus driver, or
10 food service worker on a noncontractual basis after he or she
11 has been retired for 1 calendar month, in accordance with s.
12 121.021(39) or as provided in subparagraph 1. Any retired
13 member who is reemployed within 1 calendar month after
14 retirement shall void his or her application for retirement
15 benefits. District school boards reemploying such teachers,
16 education paraprofessionals, transportation assistants, bus
17 drivers, or food service workers are subject to the retirement
18 contribution required by subparagraph 7. Reemployment of a
19 retired member as a substitute or hourly teacher, education
20 paraprofessional, transportation assistant, bus driver, or
21 food service worker is limited to 780 hours during the first
22 12 months of his or her retirement. Any retired member
23 reemployed for more than 780 hours during his or her first 12
24 months of retirement shall give timely notice in writing to
25 the employer and to the division of the date he or she will
26 exceed the limitation. The division shall suspend his or her
27 retirement benefits for the remainder of the first 12 months
28 of retirement. Any person employed in violation of this
29 subparagraph and any employing agency which knowingly employs
30 or appoints such person without notifying the Division of
31 Retirement to suspend retirement benefits shall be jointly and
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Florida Senate - 2001 SB 1572
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1 severally liable for reimbursement to the retirement trust
2 fund of any benefits paid during the reemployment limitation
3 period. To avoid liability, such employing agency shall have
4 a written statement from the retiree that he or she is not
5 retired from a state-administered retirement system. Any
6 retirement benefits received by a retired member while
7 reemployed in excess of 780 hours during the first 12 months
8 of retirement shall be repaid to the Retirement System Trust
9 Fund, and his or her retirement benefits shall remain
10 suspended until repayment is made. Benefits suspended beyond
11 the end of the retired member's first 12 months of retirement
12 shall apply toward repayment of benefits received in violation
13 of the 780-hour reemployment limitation.
14 4. A community college board of trustees may reemploy
15 a retired member as an adjunct instructor, that is, an
16 instructor who is noncontractual and part-time, or as a
17 participant in a phased retirement program within the Florida
18 Community College System, after he or she has been retired for
19 1 calendar month, in accordance with s. 121.021(39). Any
20 retired member who is reemployed within 1 calendar month after
21 retirement shall void his or her application for retirement
22 benefits. Boards of trustees reemploying such instructors are
23 subject to the retirement contribution required in
24 subparagraph 7. A retired member may be reemployed as an
25 adjunct instructor for no more than 780 hours during the first
26 12 months of retirement. Any retired member reemployed for
27 more than 780 hours during the first 12 months of retirement
28 shall give timely notice in writing to the employer and to the
29 division of the date he or she will exceed the limitation.
30 The division shall suspend his or her retirement benefits for
31 the remainder of the first 12 months of retirement. Any
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1 person employed in violation of this subparagraph and any
2 employing agency which knowingly employs or appoints such
3 person without notifying the Division of Retirement to suspend
4 retirement benefits shall be jointly and severally liable for
5 reimbursement to the retirement trust fund of any benefits
6 paid during the reemployment limitation period. To avoid
7 liability, such employing agency shall have a written
8 statement from the retiree that he or she is not retired from
9 a state-administered retirement system. Any retirement
10 benefits received by a retired member while reemployed in
11 excess of 780 hours during the first 12 months of retirement
12 shall be repaid to the Retirement System Trust Fund, and
13 retirement benefits shall remain suspended until repayment is
14 made. Benefits suspended beyond the end of the retired
15 member's first 12 months of retirement shall apply toward
16 repayment of benefits received in violation of the 780-hour
17 reemployment limitation.
18 5. The State University System may reemploy a retired
19 member as an adjunct faculty member or as a participant in a
20 phased retirement program within the State University System
21 after the retired member has been retired for 1 calendar
22 month, in accordance with s. 121.021(39). Any retired member
23 who is reemployed within 1 calendar month after retirement
24 shall void his or her application for retirement benefits.
25 The State University System is subject to the retired
26 contribution required in subparagraph 7., as appropriate. A
27 retired member may be reemployed as an adjunct faculty member
28 or a participant in a phased retirement program for no more
29 than 780 hours during the first 12 months of his or her
30 retirement. Any retired member reemployed for more than 780
31 hours during the first 12 months of retirement shall give
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1 timely notice in writing to the employer and to the division
2 of the date he or she will exceed the limitation. The
3 division shall suspend his or her retirement benefits for the
4 remainder of the first 12 months of retirement. Any person
5 employed in violation of this subparagraph and any employing
6 agency which knowingly employs or appoints such person without
7 notifying the Division of Retirement to suspend retirement
8 benefits shall be jointly and severally liable for
9 reimbursement to the retirement trust fund of any benefits
10 paid during the reemployment limitation period. To avoid
11 liability, such employing agency shall have a written
12 statement from the retiree that he or she is not retired from
13 a state-administered retirement system. Any retirement
14 benefits received by a retired member while reemployed in
15 excess of 780 hours during the first 12 months of retirement
16 shall be repaid to the Retirement System Trust Fund, and
17 retirement benefits shall remain suspended until repayment is
18 made. Benefits suspended beyond the end of the retired
19 member's first 12 months of retirement shall apply toward
20 repayment of benefits received in violation of the 780-hour
21 reemployment limitation.
22 6. The Board of Trustees of the Florida School for the
23 Deaf and the Blind may reemploy a retired member as a
24 substitute teacher, substitute residential instructor, or
25 substitute nurse on a noncontractual basis after he or she has
26 been retired for 1 calendar month, in accordance with s.
27 121.021(39). Any retired member who is reemployed within 1
28 calendar month after retirement shall void his or her
29 application for retirement benefits. The Board of Trustees of
30 the Florida School for the Deaf and the Blind reemploying such
31 teachers, residential instructors, or nurses is subject to the
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1 retirement contribution required by subparagraph 7.
2 Reemployment of a retired member as a substitute teacher,
3 substitute residential instructor, or substitute nurse is
4 limited to 780 hours during the first 12 months of his or her
5 retirement. Any retired member reemployed for more than 780
6 hours during the first 12 months of retirement shall give
7 timely notice in writing to the employer and to the division
8 of the date he or she will exceed the limitation. The division
9 shall suspend his or her retirement benefits for the remainder
10 of the first 12 months of retirement. Any person employed in
11 violation of this subparagraph and any employing agency which
12 knowingly employs or appoints such person without notifying
13 the Division of Retirement to suspend retirement benefits
14 shall be jointly and severally liable for reimbursement to the
15 retirement trust fund of any benefits paid during the
16 reemployment limitation period. To avoid liability, such
17 employing agency shall have a written statement from the
18 retiree that he or she is not retired from a
19 state-administered retirement system. Any retirement benefits
20 received by a retired member while reemployed in excess of 780
21 hours during the first 12 months of retirement shall be repaid
22 to the Retirement System Trust Fund, and his or her retirement
23 benefits shall remain suspended until payment is made.
24 Benefits suspended beyond the end of the retired member's
25 first 12 months of retirement shall apply toward repayment of
26 benefits received in violation of the 780-hour reemployment
27 limitation.
28 7. The employment by an employer of any retiree or
29 DROP participant of any state-administered retirement system
30 shall have no effect on the average final compensation or
31 years of creditable service of the retiree or DROP
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1 participant. Prior to July 1, 1991, upon employment of any
2 person, other than an elected officer as provided in s.
3 121.053, who has been retired under any state-administered
4 retirement program, the employer shall pay retirement
5 contributions in an amount equal to the unfunded actuarial
6 liability portion of the employer contribution which would be
7 required for regular members of the Florida Retirement System.
8 Effective July 1, 1991, contributions shall be made as
9 provided in s. 121.122 for retirees with renewed membership or
10 subsection (13) with respect to DROP participants.
11 8. Any person who has previously retired and who is
12 holding an elective public office or an appointment to an
13 elective public office eligible for the Elected Officers'
14 Class on or after July 1, 1990, shall be enrolled in the
15 Florida Retirement System as provided in s. 121.053(1)(b) or,
16 if holding an elective public office that does not qualify for
17 the Elected Officers' Class on or after July 1, 1991, shall be
18 enrolled in the Florida Retirement System as provided in s.
19 121.122, and shall continue to receive retirement benefits as
20 well as compensation for the elected officer's service for as
21 long as he or she remains in elective office. However, any
22 retired member who served in an elective office prior to July
23 1, 1990, suspended his or her retirement benefit, and had his
24 or her Florida Retirement System membership reinstated shall,
25 upon retirement from such office, have his or her retirement
26 benefit recalculated to include the additional service and
27 compensation earned.
28 9. Any person who is holding an elective public office
29 which is covered by the Florida Retirement System and who is
30 concurrently employed in nonelected covered employment may
31 elect to retire while continuing employment in the elective
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1 public office, provided that he or she shall be required to
2 terminate his or her nonelected covered employment. Any
3 person who exercises this election shall receive his or her
4 retirement benefits in addition to the compensation of the
5 elective office without regard to the time limitations
6 otherwise provided in this subsection. No person who seeks to
7 exercise the provisions of this subparagraph, as the same
8 existed prior to May 3, 1984, shall be deemed to be retired
9 under those provisions, unless such person is eligible to
10 retire under the provisions of this subparagraph, as amended
11 by chapter 84-11, Laws of Florida.
12 10. The limitations of this paragraph apply to
13 reemployment in any capacity with an "employer" as defined in
14 s. 121.021(10), irrespective of the category of funds from
15 which the person is compensated.
16 11. From July 1, 1997, through December 31, 1998,
17 notwithstanding the limitations of this subsection, except
18 that any retiree who is reemployed within 1 calendar month
19 after retirement shall void his or her application for
20 retirement benefits, any retiree of the Florida Retirement
21 System may be reemployed by a covered employer during the 2nd
22 through 12th months of the reemployment limitation period
23 without suspending his or her retirement benefits, provided
24 that the reemployment is for the sole purpose of working on
25 the technical aspects of correcting or replacing the computer
26 systems and programs necessary to resolve the year 2000 date
27 problem for computing which confronts all public employers
28 covered by the Florida Retirement System.
29 (13) DEFERRED RETIREMENT OPTION PROGRAM.--In general,
30 and subject to the provisions of this section, the Deferred
31 Retirement Option Program, hereinafter referred to as the
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1 DROP, is a program under which an eligible member of the
2 Florida Retirement System may elect to participate, deferring
3 receipt of retirement benefits while continuing employment
4 with his or her Florida Retirement System employer. The
5 deferred monthly benefits shall accrue in the System Trust
6 Fund on behalf of the participant, plus interest compounded
7 monthly, for the specified period of the DROP participation,
8 as provided in paragraph (c). Upon termination of employment,
9 the participant shall receive the total DROP benefits and
10 begin to receive the previously determined normal retirement
11 benefits. Participation in the DROP does not guarantee
12 employment for the specified period of DROP.
13 (a) Eligibility of member to participate in the
14 DROP.--All active Florida Retirement System members in a
15 regularly established position, and all active members of
16 either the Teachers' Retirement System established in chapter
17 238 or the State and County Officers' and Employees'
18 Retirement System established in chapter 122 which systems are
19 consolidated within the Florida Retirement System under s.
20 121.011, are eligible to elect participation in the DROP
21 provided that:
22 1. The member is not a renewed member of the Florida
23 Retirement System under s. 121.122, or a member of the State
24 Community College System Optional Retirement Program under s.
25 121.051, the Senior Management Service Optional Annuity
26 Program under s. 121.055, or the optional retirement program
27 for the State University System under s. 121.35.
28 2. Election to participate is made within 12 months
29 immediately following the date on which the member first
30 reaches normal retirement date, or, for a member who reaches
31 normal retirement date based on service before he or she
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1 reaches age 62, or age 55 for Special Risk Class members,
2 election to participate may be deferred to the 12 months
3 immediately following the date the member attains 57, or age
4 52 for Special Risk Class members. For a member who first
5 reached normal retirement date or the deferred eligibility
6 date described above prior to the effective date of this
7 section, election to participate shall be made within 12
8 months after the effective date of this section. A member who
9 fails to make an election within such 12-month limitation
10 period shall forfeit all rights to participate in the DROP.
11 The member shall advise his or her employer and the division
12 in writing of the date on which the DROP shall begin. Such
13 beginning date may be subsequent to the 12-month election
14 period, but must be within the 60-month limitation period as
15 provided in subparagraph (b)1. When establishing eligibility
16 of the member to participate in the DROP or the 60-month
17 maximum participation period, the member may elect to include
18 or exclude any optional service credit purchased by the member
19 from the total service used to establish the normal retirement
20 date. A member with dual normal retirement dates shall be
21 eligible to elect to participate in DROP within 12 months
22 after attaining normal retirement date in either class.
23 3. The employer of a member electing to participate in
24 the DROP, or employers if dually employed, shall acknowledge
25 in writing to the division the date the member's participation
26 in the DROP begins and the date the member's employment and
27 DROP participation will terminate.
28 4. Simultaneous employment of a participant by
29 additional Florida Retirement System employers subsequent to
30 the commencement of participation in the DROP shall be
31 permissible provided such employers acknowledge in writing a
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1 DROP termination date no later than the participant's existing
2 termination date or the 60-month limitation period as provided
3 in subparagraph (b)1.
4 5. A DROP participant may change employers while
5 participating in the DROP, subject to the following:
6 a. A change of employment must take place without a
7 break in service so that the member receives salary for each
8 month of continuous DROP participation. If a member receives
9 no salary during a month, DROP participation shall cease
10 unless the employer verifies a continuation of the employment
11 relationship for such participant pursuant to s.
12 121.021(39)(b).
13 b. Such participant and new employer shall notify the
14 division on forms required by the division as to the identity
15 of the new employer.
16 c. The new employer shall acknowledge, in writing, the
17 participant's DROP termination date, which may be extended but
18 not beyond the original 60-month period provided in
19 subparagraph (b)1., shall acknowledge liability for any
20 additional retirement contributions and interest required if
21 the participant fails to timely terminate employment, and
22 shall be subject to the adjustment required in
23 sub-subparagraph (c)5.d. However, certified instructional
24 personnel of a district school board may continue in the DROP
25 as long as they are employed in that capacity with a district
26 school board, subject to annual review of that continuation by
27 the employer.
28 (b) Participation in the DROP.--
29 1. An eligible member may elect to participate in the
30 DROP for a period not to exceed a maximum of 60 calendar
31 months immediately following the date on which the member
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1 first reaches his or her normal retirement date or the date to
2 which he or she is eligible to defer his or her election to
3 participate as provided in subparagraph (a)2. However, a
4 member who has reached normal retirement date prior to the
5 effective date of the DROP shall be eligible to participate in
6 the DROP for a period of time not to exceed 60 calendar months
7 immediately following the effective date of the DROP, except a
8 member of the Special Risk Class who has reached normal
9 retirement date prior to the effective date of the DROP and
10 whose total accrued value exceeds 75 percent of average final
11 compensation as of his or her effective date of retirement
12 shall be eligible to participate in the DROP for no more than
13 36 calendar months immediately following the effective date of
14 the DROP; however, certified instructional personnel of a
15 district school board may continue in the DROP as long as they
16 are employed in that capacity with a district school board,
17 subject to annual review of that continuation by the employer.
18 2. Upon deciding to participate in the DROP, the
19 member shall submit, on forms required by the division:
20 a. A written election to participate in the DROP;
21 b. Selection of the DROP participation and termination
22 dates, which satisfy the limitations stated in paragraph (a)
23 and subparagraph 1. Such termination date shall be in a
24 binding letter of resignation with the employer, establishing
25 a deferred termination date. The member may change the
26 termination date within the limitations of subparagraph 1.,
27 but only with the written approval of his or her employer;
28 c. A properly completed DROP application for service
29 retirement as provided in this section; and
30 d. Any other information required by the division.
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1 3. The DROP participant shall be a retiree under the
2 Florida Retirement System for all purposes, except for
3 paragraph (5)(f) and subsection (9) and ss. 112.3173, 112.363,
4 121.053, and 121.122. However, participation in the DROP does
5 not alter the participant's employment status and such
6 employee shall not be deemed retired from employment until his
7 or her deferred resignation is effective and termination
8 occurs as provided in s. 121.021(39).
9 4. Elected officers shall be eligible to participate
10 in the DROP subject to the following:
11 a. An elected officer who reaches normal retirement
12 date during a term of office may defer the election to
13 participate in the DROP until the next succeeding term in that
14 office. Such elected officer who exercises this option may
15 participate in the DROP for up to 60 calendar months or a
16 period of no longer than such succeeding term of office,
17 whichever is less.
18 b. An elected or a nonelected participant may run for
19 a term of office while participating in DROP and, if elected,
20 extend the DROP termination date accordingly, except, however,
21 if such additional term of office exceeds the 60-month
22 limitation established in subparagraph 1., and the officer
23 does not resign from office within such 60-month limitation,
24 the retirement and the participant's DROP shall be null and
25 void as provided in sub-subparagraph (c)5.d.
26 c. An elected officer who is dually employed and
27 elects to participate in DROP shall be required to satisfy the
28 definition of termination within the 60-month limitation
29 period as provided in subparagraph 1. for the nonelected
30 position and may continue employment as an elected officer as
31 provided in s. 121.053. The elected officer will be enrolled
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1 as a renewed member in the Elected Officers' Class or the
2 Regular Class, as provided in ss. 121.053 and 121.22, on the
3 first day of the month after termination of employment in the
4 nonelected position and termination of DROP. Distribution of
5 the DROP benefits shall be made as provided in paragraph (c).
6 Section 2. The Legislature finds that a proper and
7 legitimate state purpose is served when employees and retirees
8 of the state and of its political subdivisions, and the
9 dependents, survivors, and beneficiaries of such employees and
10 retirees, are extended the basic protections afforded by
11 governmental retirement systems that provide fair and adequate
12 benefits that are managed, administered, and funded in an
13 actuarially sound manner, as required by section 14 of Article
14 X of the State Constitution and part VII of chapter 112,
15 Florida Statutes. Therefore, the Legislature determines and
16 declares that this act fulfills an important state interest.
17 Section 3. This act shall take effect July 1, 2001.
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20 SENATE SUMMARY
21 Allows reemployment of district school board
instructional personnel within 12 months after retirement
22 without loss of retirement benefit. Authorizes such
personnel to continue in the Deferred Retirement Option
23 Program beyond the normal cutoff for such participation.
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