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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  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.

18

19            *****************************************

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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