HB 1097

1
A bill to be entitled
2An act relating to public school employment; amending s.
3121.091, F.S.; authorizing reemployment of, and extended
4DROP participation by, persons formerly serving as
5administrative personnel in the same manner as retired
6instructional personnel; providing an effective date.
7
8Be It Enacted by the Legislature of the State of Florida:
9
10     Section 1.  Paragraph (b) of subsection (9) and paragraphs
11(a) and (b) of subsection (13) of section 121.091, Florida
12Statutes, are amended to read:
13     121.091  Benefits payable under the system.--Benefits may
14not be paid under this section unless the member has terminated
15employment as provided in s. 121.021(39)(a) or begun
16participation in the Deferred Retirement Option Program as
17provided in subsection (13), and a proper application has been
18filed in the manner prescribed by the department. The department
19may cancel an application for retirement benefits when the
20member or beneficiary fails to timely provide the information
21and documents required by this chapter and the department's
22rules. The department shall adopt rules establishing procedures
23for application for retirement benefits and for the cancellation
24of such application when the required information or documents
25are not received.
26     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
27     (b)1.  Any person who is retired under this chapter, except
28under the disability retirement provisions of subsection (4),
29may be reemployed by any private or public employer after
30retirement and receive retirement benefits and compensation from
31his or her employer without any limitations, except that a
32person may not receive both a salary from reemployment with any
33agency participating in the Florida Retirement System and
34retirement benefits under this chapter for a period of 12 months
35immediately subsequent to the date of retirement. However, a
36DROP participant shall continue employment and receive a salary
37during the period of participation in the Deferred Retirement
38Option Program, as provided in subsection (13).
39     2.  Any person to whom the limitation in subparagraph 1.
40applies who violates such reemployment limitation and who is
41reemployed with any agency participating in the Florida
42Retirement System before completion of the 12-month limitation
43period shall give timely notice of this fact in writing to the
44employer and to the division and shall have his or her
45retirement benefits suspended for the balance of the 12-month
46limitation period. Any person employed in violation of this
47paragraph and any employing agency which knowingly employs or
48appoints such person without notifying the Division of
49Retirement to suspend retirement benefits shall be jointly and
50severally liable for reimbursement to the retirement trust fund
51of any benefits paid during the reemployment limitation period.
52To avoid liability, such employing agency shall have a written
53statement from the retiree that he or she is not retired from a
54state-administered retirement system. Any retirement benefits
55received while reemployed during this reemployment limitation
56period shall be repaid to the retirement trust fund, and
57retirement benefits shall remain suspended until such repayment
58has been made. Benefits suspended beyond the reemployment
59limitation shall apply toward repayment of benefits received in
60violation of the reemployment limitation.
61     3.  A district school board may reemploy a retired member
62as a substitute or hourly teacher, education paraprofessional,
63transportation assistant, bus driver, or food service worker on
64a noncontractual basis after he or she has been retired for 1
65calendar month, in accordance with s. 121.021(39). A district
66school board may reemploy a retired member as instructional
67personnel, as defined in s. 1012.01(2)(a), or as administrative
68personnel, as defined in s. 1012.01(3), on an annual contractual
69basis after he or she has been retired for 1 calendar month, in
70accordance with s. 121.021(39). Any other retired member who is
71reemployed within 1 calendar month after retirement shall void
72his or her application for retirement benefits. District school
73boards reemploying such teachers, education paraprofessionals,
74transportation assistants, bus drivers, or food service workers
75are subject to the retirement contribution required by
76subparagraph 7.
77     4.  A community college board of trustees may reemploy a
78retired member as an adjunct instructor, that is, an instructor
79who is noncontractual and part-time, or as a participant in a
80phased retirement program within the Florida Community College
81System, after he or she has been retired for 1 calendar month,
82in accordance with s. 121.021(39). Any retired member who is
83reemployed within 1 calendar month after retirement shall void
84his or her application for retirement benefits. Boards of
85trustees reemploying such instructors are subject to the
86retirement contribution required in subparagraph 7. A retired
87member may be reemployed as an adjunct instructor for no more
88than 780 hours during the first 12 months of retirement. Any
89retired member reemployed for more than 780 hours during the
90first 12 months of retirement shall give timely notice in
91writing to the employer and to the division of the date he or
92she will exceed the limitation. The division shall suspend his
93or her retirement benefits for the remainder of the first 12
94months of retirement. Any person employed in violation of this
95subparagraph and any employing agency which knowingly employs or
96appoints such person without notifying the Division of
97Retirement to suspend retirement benefits shall be jointly and
98severally liable for reimbursement to the retirement trust fund
99of any benefits paid during the reemployment limitation period.
100To avoid liability, such employing agency shall have a written
101statement from the retiree that he or she is not retired from a
102state-administered retirement system. Any retirement benefits
103received by a retired member while reemployed in excess of 780
104hours during the first 12 months of retirement shall be repaid
105to the Retirement System Trust Fund, and retirement benefits
106shall remain suspended until repayment is made. Benefits
107suspended beyond the end of the retired member's first 12 months
108of retirement shall apply toward repayment of benefits received
109in violation of the 780-hour reemployment limitation.
110     5.  The State University System may reemploy a retired
111member as an adjunct faculty member or as a participant in a
112phased retirement program within the State University System
113after the retired member has been retired for 1 calendar month,
114in accordance with s. 121.021(39). Any retired member who is
115reemployed within 1 calendar month after retirement shall void
116his or her application for retirement benefits. The State
117University System is subject to the retired contribution
118required in subparagraph 7., as appropriate. A retired member
119may be reemployed as an adjunct faculty member or a participant
120in a phased retirement program for no more than 780 hours during
121the first 12 months of his or her retirement. Any retired member
122reemployed for more than 780 hours during the first 12 months of
123retirement shall give timely notice in writing to the employer
124and to the division of the date he or she will exceed the
125limitation. The division shall suspend his or her retirement
126benefits for the remainder of the first 12 months of retirement.
127Any person employed in violation of this subparagraph and any
128employing agency which knowingly employs or appoints such person
129without notifying the Division of Retirement to suspend
130retirement benefits shall be jointly and severally liable for
131reimbursement to the retirement trust fund of any benefits paid
132during the reemployment limitation period. To avoid liability,
133such employing agency shall have a written statement from the
134retiree that he or she is not retired from a state-administered
135retirement system. Any retirement benefits received by a retired
136member while reemployed in excess of 780 hours during the first
13712 months of retirement shall be repaid to the Retirement System
138Trust Fund, and retirement benefits shall remain suspended until
139repayment is made. Benefits suspended beyond the end of the
140retired member's first 12 months of retirement shall apply
141toward repayment of benefits received in violation of the 780-
142hour reemployment limitation.
143     6.  The Board of Trustees of the Florida School for the
144Deaf and the Blind may reemploy a retired member as a substitute
145teacher, substitute residential instructor, or substitute nurse
146on a noncontractual basis after he or she has been retired for 1
147calendar month, in accordance with s. 121.021(39). Any retired
148member who is reemployed within 1 calendar month after
149retirement shall void his or her application for retirement
150benefits. The Board of Trustees of the Florida School for the
151Deaf and the Blind reemploying such teachers, residential
152instructors, or nurses is subject to the retirement contribution
153required by subparagraph 7. Reemployment of a retired member as
154a substitute teacher, substitute residential instructor, or
155substitute nurse is limited to 780 hours during the first 12
156months of his or her retirement. Any retired member reemployed
157for more than 780 hours during the first 12 months of retirement
158shall give timely notice in writing to the employer and to the
159division of the date he or she will exceed the limitation. The
160division shall suspend his or her retirement benefits for the
161remainder of the first 12 months of retirement. Any person
162employed in violation of this subparagraph and any employing
163agency which knowingly employs or appoints such person without
164notifying the Division of Retirement to suspend retirement
165benefits shall be jointly and severally liable for reimbursement
166to the retirement trust fund of any benefits paid during the
167reemployment limitation period. To avoid liability, such
168employing agency shall have a written statement from the retiree
169that he or she is not retired from a state-administered
170retirement system. Any retirement benefits received by a retired
171member while reemployed in excess of 780 hours during the first
17212 months of retirement shall be repaid to the Retirement System
173Trust Fund, and his or her retirement benefits shall remain
174suspended until payment is made. Benefits suspended beyond the
175end of the retired member's first 12 months of retirement shall
176apply toward repayment of benefits received in violation of the
177780-hour reemployment limitation.
178     7.  The employment by an employer of any retiree or DROP
179participant of any state-administered retirement system shall
180have no effect on the average final compensation or years of
181creditable service of the retiree or DROP participant. Prior to
182July 1, 1991, upon employment of any person, other than an
183elected officer as provided in s. 121.053, who has been retired
184under any state-administered retirement program, the employer
185shall pay retirement contributions in an amount equal to the
186unfunded actuarial liability portion of the employer
187contribution which would be required for regular members of the
188Florida Retirement System. Effective July 1, 1991, contributions
189shall be made as provided in s. 121.122 for retirees with
190renewed membership or subsection (13) with respect to DROP
191participants.
192     8.  Any person who has previously retired and who is
193holding an elective public office or an appointment to an
194elective public office eligible for the Elected Officers' Class
195on or after July 1, 1990, shall be enrolled in the Florida
196Retirement System as provided in s. 121.053(1)(b) or, if holding
197an elective public office that does not qualify for the Elected
198Officers' Class on or after July 1, 1991, shall be enrolled in
199the Florida Retirement System as provided in s. 121.122, and
200shall continue to receive retirement benefits as well as
201compensation for the elected officer's service for as long as he
202or she remains in elective office. However, any retired member
203who served in an elective office prior to July 1, 1990,
204suspended his or her retirement benefit, and had his or her
205Florida Retirement System membership reinstated shall, upon
206retirement from such office, have his or her retirement benefit
207recalculated to include the additional service and compensation
208earned.
209     9.  Any person who is holding an elective public office
210which is covered by the Florida Retirement System and who is
211concurrently employed in nonelected covered employment may elect
212to retire while continuing employment in the elective public
213office, provided that he or she shall be required to terminate
214his or her nonelected covered employment. Any person who
215exercises this election shall receive his or her retirement
216benefits in addition to the compensation of the elective office
217without regard to the time limitations otherwise provided in
218this subsection. No person who seeks to exercise the provisions
219of this subparagraph, as the same existed prior to May 3, 1984,
220shall be deemed to be retired under those provisions, unless
221such person is eligible to retire under the provisions of this
222subparagraph, as amended by chapter 84-11, Laws of Florida.
223     10.  The limitations of this paragraph apply to
224reemployment in any capacity with an "employer" as defined in s.
225121.021(10), irrespective of the category of funds from which
226the person is compensated.
227     11.  An employing agency may reemploy a retired member as a
228firefighter or paramedic after the retired member has been
229retired for 1 calendar month, in accordance with s. 121.021(39).
230Any retired member who is reemployed within 1 calendar month
231after retirement shall void his or her application for
232retirement benefits. The employing agency reemploying such
233firefighter or paramedic is subject to the retired contribution
234required in subparagraph 8. Reemployment of a retired
235firefighter or paramedic is limited to no more than 780 hours
236during the first 12 months of his or her retirement. Any retired
237member reemployed for more than 780 hours during the first 12
238months of retirement shall give timely notice in writing to the
239employer and to the division of the date he or she will exceed
240the limitation. The division shall suspend his or her retirement
241benefits for the remainder of the first 12 months of retirement.
242Any person employed in violation of this subparagraph and any
243employing agency which knowingly employs or appoints such person
244without notifying the Division of Retirement to suspend
245retirement benefits shall be jointly and severally liable for
246reimbursement to the Retirement System Trust Fund of any
247benefits paid during the reemployment limitation period. To
248avoid liability, such employing agency shall have a written
249statement from the retiree that he or she is not retired from a
250state-administered retirement system. Any retirement benefits
251received by a retired member while reemployed in excess of 780
252hours during the first 12 months of retirement shall be repaid
253to the Retirement System Trust Fund, and retirement benefits
254shall remain suspended until repayment is made. Benefits
255suspended beyond the end of the retired member's first 12 months
256of retirement shall apply toward repayment of benefits received
257in violation of the 780-hour reemployment limitation.
258     (13)  DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
259subject to the provisions of this section, the Deferred
260Retirement Option Program, hereinafter referred to as the DROP,
261is a program under which an eligible member of the Florida
262Retirement System may elect to participate, deferring receipt of
263retirement benefits while continuing employment with his or her
264Florida Retirement System employer. The deferred monthly
265benefits shall accrue in the System Trust Fund on behalf of the
266participant, plus interest compounded monthly, for the specified
267period of the DROP participation, as provided in paragraph (c).
268Upon termination of employment, the participant shall receive
269the total DROP benefits and begin to receive the previously
270determined normal retirement benefits. Participation in the DROP
271does not guarantee employment for the specified period of DROP.
272Participation in the DROP by an eligible member beyond the
273initial 60-month period as authorized in this subsection shall
274be on an annual contractual basis for all participants.
275     (a)  Eligibility of member to participate in the DROP.--All
276active Florida Retirement System members in a regularly
277established position, and all active members of either the
278Teachers' Retirement System established in chapter 238 or the
279State and County Officers' and Employees' Retirement System
280established in chapter 122 which systems are consolidated within
281the Florida Retirement System under s. 121.011, are eligible to
282elect participation in the DROP provided that:
283     1.  The member is not a renewed member of the Florida
284Retirement System under s. 121.122, or a member of the State
285Community College System Optional Retirement Program under s.
286121.051, the Senior Management Service Optional Annuity Program
287under s. 121.055, or the optional retirement program for the
288State University System under s. 121.35.
289     2.  Except as provided in subparagraph 6., election to
290participate is made within 12 months immediately following the
291date on which the member first reaches normal retirement date,
292or, for a member who reaches normal retirement date based on
293service before he or she reaches age 62, or age 55 for Special
294Risk Class members, election to participate may be deferred to
295the 12 months immediately following the date the member attains
29657, or age 52 for Special Risk Class members. For a member who
297first reached normal retirement date or the deferred eligibility
298date described above prior to the effective date of this
299section, election to participate shall be made within 12 months
300after the effective date of this section. A member who fails to
301make an election within such 12-month limitation period shall
302forfeit all rights to participate in the DROP. The member shall
303advise his or her employer and the division in writing of the
304date on which the DROP shall begin. Such beginning date may be
305subsequent to the 12-month election period, but must be within
306the 60-month or, with respect to members who are instructional
307personnel employed by the Florida School for the Deaf and the
308Blind and who have received authorization by the Board of
309Trustees of the Florida School for the Deaf and the Blind to
310participate in the DROP beyond 60 months, or who are
311instructional personnel as defined in s. 1012.01(2)(a)-(d) or
312administrative personnel as defined in s. 1012.01(3) in grades
313K-12  and who have received authorization by the district school
314superintendent to participate in the DROP beyond 60 months, the
31596-month limitation period as provided in subparagraph (b)1.
316When establishing eligibility of the member to participate in
317the DROP for the 60-month or, with respect to members who are
318instructional personnel employed by the Florida School for the
319Deaf and the Blind and who have received authorization by the
320Board of Trustees of the Florida School for the Deaf and the
321Blind to participate in the DROP beyond 60 months, or who are
322instructional personnel as defined in s. 1012.01(2)(a)-(d) or
323administrative personnel as defined in s. 1012.01(3) in grades
324K-12 and who have received authorization by the district school
325superintendent to participate in the DROP beyond 60 months, the
32696-month maximum participation period, the member may elect to
327include or exclude any optional service credit purchased by the
328member from the total service used to establish the normal
329retirement date. A member with dual normal retirement dates
330shall be eligible to elect to participate in DROP within 12
331months after attaining normal retirement date in either class.
332     3.  The employer of a member electing to participate in the
333DROP, or employers if dually employed, shall acknowledge in
334writing to the division the date the member's participation in
335the DROP begins and the date the member's employment and DROP
336participation will terminate.
337     4.  Simultaneous employment of a participant by additional
338Florida Retirement System employers subsequent to the
339commencement of participation in the DROP shall be permissible
340provided such employers acknowledge in writing a DROP
341termination date no later than the participant's existing
342termination date or the 60-month limitation period as provided
343in subparagraph (b)1.
344     5.  A DROP participant may change employers while
345participating in the DROP, subject to the following:
346     a.  A change of employment must take place without a break
347in service so that the member receives salary for each month of
348continuous DROP participation. If a member receives no salary
349during a month, DROP participation shall cease unless the
350employer verifies a continuation of the employment relationship
351for such participant pursuant to s. 121.021(39)(b).
352     b.  Such participant and new employer shall notify the
353division on forms required by the division as to the identity of
354the new employer.
355     c.  The new employer shall acknowledge, in writing, the
356participant's DROP termination date, which may be extended but
357not beyond the original 60-month or, with respect to members who
358are instructional personnel employed by the Florida School for
359the Deaf and the Blind and who have received authorization by
360the Board of Trustees of the Florida School for the Deaf and the
361Blind to participate in the DROP beyond 60 months, or who are
362instructional personnel as defined in s. 1012.01(2)(a)-(d) or
363administrative personnel as defined in s. 1012.01(3) in grades
364K-12 and who have received authorization by the district school
365superintendent to participate in the DROP beyond 60 months, the
36696-month period provided in subparagraph (b)1., shall
367acknowledge liability for any additional retirement
368contributions and interest required if the participant fails to
369timely terminate employment, and shall be subject to the
370adjustment required in sub-subparagraph (c)5.d.
371     6.  Effective July 1, 2001, for instructional personnel as
372defined in s. 1012.01(2), election to participate in the DROP
373shall be made at any time following the date on which the member
374first reaches normal retirement date. The member shall advise
375his or her employer and the division in writing of the date on
376which the Deferred Retirement Option Program shall begin. When
377establishing eligibility of the member to participate in the
378DROP for the 60-month or, with respect to members who are
379instructional personnel employed by the Florida School for the
380Deaf and the Blind and who have received authorization by the
381Board of Trustees of the Florida School for the Deaf and the
382Blind to participate in the DROP beyond 60 months, or who are
383instructional personnel as defined in s. 1012.01(2)(a)-(d) or
384administrative personnel as defined in s. 1012.01(3) in grades
385K-12 and who have received authorization by the district school
386superintendent to participate in the DROP beyond 60 months, the
38796-month maximum participation period, as provided in
388subparagraph (b)1., the member may elect to include or exclude
389any optional service credit purchased by the member from the
390total service used to establish the normal retirement date. A
391member with dual normal retirement dates shall be eligible to
392elect to participate in either class.
393     (b)  Participation in the DROP.--
394     1.  An eligible member may elect to participate in the DROP
395for a period not to exceed a maximum of 60 calendar months or,
396with respect to members who are instructional personnel employed
397by the Florida School for the Deaf and the Blind and who have
398received authorization by the Board of Trustees of the Florida
399School for the Deaf and the Blind to participate in the DROP
400beyond 60 months, or who are instructional personnel as defined
401in s. 1012.01(2)(a)-(d) or administrative personnel as defined
402in s. 1012.01(3) in grades K-12 and who have received
403authorization by the district school superintendent to
404participate in the DROP beyond 60 calendar months, 96 calendar
405months immediately following the date on which the member first
406reaches his or her normal retirement date or the date to which
407he or she is eligible to defer his or her election to
408participate as provided in subparagraph (a)2. However, a member
409who has reached normal retirement date prior to the effective
410date of the DROP shall be eligible to participate in the DROP
411for a period of time not to exceed 60 calendar months or, with
412respect to members who are instructional personnel employed by
413the Florida School for the Deaf and the Blind and who have
414received authorization by the Board of Trustees of the Florida
415School for the Deaf and the Blind to participate in the DROP
416beyond 60 months, or who are instructional personnel as defined
417in s. 1012.01(2)(a)-(d) or administrative personnel as defined
418in s. 1012.01(3) in grades K-12 and who have received
419authorization by the district school superintendent to
420participate in the DROP beyond 60 calendar months, 96 calendar
421months immediately following the effective date of the DROP,
422except a member of the Special Risk Class who has reached normal
423retirement date prior to the effective date of the DROP and
424whose total accrued value exceeds 75 percent of average final
425compensation as of his or her effective date of retirement shall
426be eligible to participate in the DROP for no more than 36
427calendar months immediately following the effective date of the
428DROP.
429     2.  Upon deciding to participate in the DROP, the member
430shall submit, on forms required by the division:
431     a.  A written election to participate in the DROP;
432     b.  Selection of the DROP participation and termination
433dates, which satisfy the limitations stated in paragraph (a) and
434subparagraph 1. Such termination date shall be in a binding
435letter of resignation with the employer, establishing a deferred
436termination date. The member may change the termination date
437within the limitations of subparagraph 1., but only with the
438written approval of his or her employer;
439     c.  A properly completed DROP application for service
440retirement as provided in this section; and
441     d.  Any other information required by the division.
442     3.  The DROP participant shall be a retiree under the
443Florida Retirement System for all purposes, except for paragraph
444(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
445and 121.122. However, participation in the DROP does not alter
446the participant's employment status and such employee shall not
447be deemed retired from employment until his or her deferred
448resignation is effective and termination occurs as provided in
449s. 121.021(39).
450     4.  Elected officers shall be eligible to participate in
451the DROP subject to the following:
452     a.  An elected officer who reaches normal retirement date
453during a term of office may defer the election to participate in
454the DROP until the next succeeding term in that office. Such
455elected officer who exercises this option may participate in the
456DROP for up to 60 calendar months or a period of no longer than
457such succeeding term of office, whichever is less.
458     b.  An elected or a nonelected participant may run for a
459term of office while participating in DROP and, if elected,
460extend the DROP termination date accordingly, except, however,
461if such additional term of office exceeds the 60-month
462limitation established in subparagraph 1., and the officer does
463not resign from office within such 60-month limitation, the
464retirement and the participant's DROP shall be null and void as
465provided in sub-subparagraph (c)5.d.
466     c.  An elected officer who is dually employed and elects to
467participate in DROP shall be required to satisfy the definition
468of termination within the 60-month or, with respect to members
469who are instructional personnel employed by the Florida School
470for the Deaf and the Blind and who have received authorization
471by the Board of Trustees of the Florida School for the Deaf and
472the Blind to participate in the DROP beyond 60 months, or who
473are instructional personnel as defined in s. 1012.01(2)(a)-(d)
474or administrative personnel as defined in s. 1012.01(3) in
475grades K-12 and who have received authorization by the district
476school superintendent to participate in the DROP beyond 60
477months, the 96-month limitation period as provided in
478subparagraph 1. for the nonelected position and may continue
479employment as an elected officer as provided in s. 121.053. The
480elected officer will be enrolled as a renewed member in the
481Elected Officers' Class or the Regular Class, as provided in ss.
482121.053 and 121.22, on the first day of the month after
483termination of employment in the nonelected position and
484termination of DROP. Distribution of the DROP benefits shall be
485made as provided in paragraph (c).
486     Section 2.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.