Senate Bill sb2264

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    Florida Senate - 2006                                  SB 2264

    By Senator Argenziano





    3-1218A-06

  1                      A bill to be entitled

  2         An act relating to the Florida Retirement

  3         System; amending s. 121.011, F.S.; deleting

  4         provisions consolidating the former state and

  5         county officers and employees' retirement

  6         system, the retirement system for school

  7         teachers, and the highway patrol pensions and

  8         pension trust fund; renumbering s. 121.181,

  9         F.S., relating to the effective date of the

10         former Florida Retirement System; amending s.

11         121.021, F.S.; revising and providing

12         definitions applicable to the Florida

13         Retirement System; renumbering s. 121.1905,

14         F.S., relating to the Division of Retirement

15         within the Department of Management Services;

16         creating s. 121.023, F.S.; consolidating

17         specified retirement systems under the Florida

18         Retirement System; providing for the assumption

19         of liabilities and assets by the Florida

20         Retirement System; renumbering s. 121.191,

21         F.S., relating to a prohibition against special

22         acts or general laws of local application which

23         amend, alter, or contravene the provisions of a

24         state-administered or state-supported

25         retirement system; providing an effective date.

26  

27  Be It Enacted by the Legislature of the State of Florida:

28  

29         Section 1.  Section 121.011, Florida Statutes, is

30  amended to read:

31         121.011  Florida Retirement System.--

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 1         (1)  SHORT TITLE.--This chapter may be shall be known

 2  and cited as the "Florida Retirement System Act."

 3         (2)  CONSOLIDATION OF EXISTING SYSTEMS AND LAWS.--

 4         (a)  Any officer or employee who is elected, appointed,

 5  or employed by the state or any subdivision thereof on or

 6  after December 1, 1970, shall not be eligible for membership,

 7  rights, or any privileges under chapters 122 (State and County

 8  Officers and Employees' Retirement System) and 238 (retirement

 9  system for school teachers) and those sections of chapter 321

10  pertaining to highway patrol pensions and pension trust fund.

11         (b)  The chapters or retirement system laws named in

12  paragraph (a) are hereby consolidated as separate instruments

13  appended to the "Florida Retirement System Act" established by

14  this chapter, and the administration of said chapters or

15  retirement systems shall be consolidated with the

16  administration of the Florida Retirement System established by

17  this chapter, and the Florida Retirement System shall assume

18  all liabilities related to the payment of benefits to members

19  and their beneficiaries under the respective retirement

20  systems of the members and their beneficiaries.

21         (3)  PRESERVATION OF RIGHTS.--

22         (a)  The rights of members of the retirement systems

23  established by chapters 122, 238, and 321 shall not be

24  impaired, nor shall their benefits be reduced by virtue of any

25  part of this chapter, except that if an eligible member of a

26  retirement system established by chapter 122, chapter 238, or

27  chapter 321, elects between April 15, 1971, and June 1, 1971,

28  inclusive, to transfer to the Florida Retirement System, he or

29  she shall be transferred to the Florida Retirement System on

30  June 1, 1971, and shall be subject to the provisions of the

31  Florida Retirement System established by this chapter and at

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 1  retirement have his or her benefits calculated in accordance

 2  with the provisions of s. 121.091.

 3         (b)  The rights of members of any retirement system

 4  established by local or special act or municipal ordinance

 5  shall not be impaired, nor shall their benefits be reduced by

 6  virtue of any part of this chapter.

 7         1.  If an eligible member of any such retirement system

 8  elects to transfer to the Florida Retirement System in a

 9  referendum held in accordance with this chapter by the

10  governing body administering such local retirement system, he

11  or she shall be transferred to the Florida Retirement System

12  on the date that his or her unit is accepted for membership

13  therein and shall be subject to the provisions of the Florida

14  Retirement System established by this chapter and at

15  retirement have his or her benefits calculated in accordance

16  with the provisions of s. 121.091.  However, the governing

17  body shall preserve the rights of employees of any existing

18  local retirement system not electing to transfer to the

19  Florida Retirement System.

20         2.  Whenever any employee of a governmental entity

21  which has a local retirement system becomes eligible to

22  participate in the Florida Retirement System by virtue of the

23  consolidation or merger of governments or the transfer of

24  functions between units of government, such employee shall

25  elect either to continue to participate in the local

26  retirement system or to become a member of the Florida

27  Retirement System.  For any such employee who elects to

28  continue to be a member of the local retirement system, the

29  Florida Retirement System employer is authorized to make the

30  required employer contributions to the local retirement system

31  and may make appropriate deductions from the employee's salary

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 1  as required by the local plan to preserve his or her

 2  retirement benefits.

 3         (c)  Any member of the Supreme Court Justices, District

 4  Courts of Appeal Judges, and Circuit Judges' Retirement

 5  System, former chapter 123, who terminates his or her service

 6  as a justice or judge and accepts employment covered under

 7  this chapter and elects to transfer to the Florida Retirement

 8  System rather than retain his or her vested rights under

 9  former chapter 123 may transfer to the Florida Retirement

10  System.  All contributions of such member, including matching

11  contributions, shall be transferred from the judicial

12  retirement trust fund to the system trust fund, and his or her

13  normal retirement benefit shall conform with s. 121.091 from

14  November 30, 1970, or from date of transfer thereafter.  Any

15  justice or judge electing to transfer to the Florida

16  Retirement System pursuant to the provisions of this paragraph

17  may, at any time prior to retirement, pay for and receive

18  credit for any service performed in any position covered by

19  the existing systems as defined in this chapter for which he

20  or she has not already received credit. The amount of such

21  payments and the credit received for such service shall be the

22  same as required for a member to obtain credit for prior

23  service pursuant to s. 8(2), chapter 70-112, Laws of Florida,

24  appearing as s. 121.081(2). Any justice or judge who elects to

25  transfer to the Florida Retirement System as provided herein

26  and who retires under the provisions of this chapter shall be

27  eligible for judicial service pursuant to the applicable

28  provisions of law if he or she has had no less than 5 years of

29  judicial service at the time of retirement.

30         (d)  The rights of members of the retirement system

31  established by this chapter shall not be impaired by virtue of

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 1  the conversion of the Florida Retirement System to an employee

 2  noncontributory system.  As of July 1, 1974, the rights of

 3  members of the retirement system established by this chapter

 4  are declared to be of a contractual nature, entered into

 5  between the member and the state, and such rights shall be

 6  legally enforceable as valid contract rights and shall not be

 7  abridged in any way.

 8         (e)  Any member of the Florida Retirement System or any

 9  member of an existing system under this chapter on July 1,

10  1975, who is not retired and who is, has been, or shall be,

11  suspended and reinstated without compensation shall receive

12  retirement service credit for the period of time from the date

13  of suspension to the date of reinstatement, provided:

14         1.  The creditable service claimed for the period of

15  suspension does not exceed 24 months;

16         2.  The member returns to active employment and remains

17  on the employer's payroll for at least 1 calendar month; and

18         3.  The member pays into the Retirement System Trust

19  Fund the total required employer contributions plus the total

20  employee contributions, if applicable, based on the member's

21  monthly compensation in effect for the pay period immediately

22  preceding the period of suspension, prorated for the said

23  period of suspension, plus interest thereon at a rate of 4

24  percent per annum compounded annually until July 1, 1975, and

25  6.5 percent interest thereafter until paid. If permitted by

26  federal law, the member may pay to the Internal Revenue

27  Service the total cost, if any, of providing social security

28  coverage for the period of suspension if any social security

29  payments have been made by the employer for the benefit of the

30  member during such period. Should there be any conflict as to

31  payment for social security coverage, the payment for

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 1  retirement service credit shall be made and retirement service

 2  credit granted regardless of such conflict.

 3         (f)  The rights under an existing system of any former

 4  member of such system who has become a member of the Florida

 5  Retirement System, either by affirmative choice made during

 6  the initial transfer period of October 15, 1970, through

 7  November 30, 1970, or at any time on or after December 1,

 8  1970, or by operation of the compulsory participation

 9  provisions of s. 121.051(1), are limited to those rights that

10  existed and were exercised in such system at the time

11  participation in the system ceased.  The rights of such member

12  after transfer shall be subject to the provisions of the

13  Florida Retirement System established by this chapter, and at

14  retirement the member shall have his or her benefit calculated

15  in accordance with s. 121.091.  The provisions of this

16  paragraph are declaratory of the legislative intent upon the

17  original enactment of this chapter and are hereby deemed to

18  have been in effect from such date.

19         (g)  Any member of the Florida Retirement System or any

20  member of an existing system under this chapter who is not

21  retired and who is, has been, or shall be dismissed from

22  employment shall be considered terminated from active

23  membership in such system.

24         1.  If such dismissal is rescinded by proper authority

25  or through legal proceedings, the member is eligible to

26  receive retirement service credit for such period of dismissal

27  provided:

28         a.  The dismissal action taken against the member is

29  determined to be incorrect and is negated, the employee is

30  made whole for the period of the dismissal or any portion

31  thereof, and employment is reinstated; and

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    Florida Senate - 2006                                  SB 2264
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 1         b.  The employer pays into the Retirement System Trust

 2  Fund the total required employer contributions for the period

 3  for which the employee is made whole, plus interest at 6.5

 4  percent compounded annually until full payment is made. The

 5  employee shall pay the total employee contributions, plus

 6  interest, if applicable.

 7         2.  If the dismissal action is subsequently changed to

 8  a suspension by proper authority or through legal proceedings,

 9  the member is eligible to receive retirement service credit,

10  provided the member's employment is reinstated, restoring the

11  employee-employer relationship, and the employee pays the

12  total required employer and employee contributions and

13  complies with all requirements in paragraph (e).

14         Section 2.  Section 121.181, Florida Statutes, is

15  renumbered as section 121.012, Florida Statutes, to read:

16         121.012 121.181  Effective date.--For the purpose of

17  activating and implementing the Florida Retirement System this

18  chapter shall take effect on December 1, 1970, but for all

19  other purposes it shall take effect July 1, 1970.

20         Section 3.  Section 121.021, Florida Statutes, is

21  amended to read:

22         (Substantial rewording of section. See

23         s. 121.021, F.S., for present text.)

24         121.021  Definitions.--As used in this chapter, the

25  term:

26         (1)  "Accumulated annual leave payment" means any

27  payment, made either during an employee's employment or at

28  termination or retirement, for leave accrued during such

29  employee's career, which leave was intended for, but never

30  used by the employee for, his or her personal use. General

31  

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 1  leave, which may be used for both sickness and vacation, is

 2  considered accumulated annual leave.

 3         (2)  "Accumulated contributions" means the sum of:

 4         (a)  A member's contributions, without interest,

 5  subsequent to December 1, 1970; and

 6         (b)  The single-sum amount that the member would have

 7  received if he or she were covered by an existing system

 8  before December 1, 1970, and had terminated membership in such

 9  system on November 30, 1970, subject to reduction on account

10  of benefit payments as provided under certain options.

11         (3)  "Accumulated sick leave payment" means leave

12  accrued during an employee's career which was intended for use

13  in the event of sickness, injury, or other health problems of

14  a member or his or her family. General leave that may be used

15  for both sickness and vacation is not considered sick leave.

16         (4)  "Actuarial equivalent" means a benefit of equal

17  value when computed at regular interest upon the basis of the

18  mortality tables adopted by the administrator.

19         (5)  "Actuary" or "state retirement actuary" means a

20  fellow of the Society of Actuaries or a member of the American

21  Academy of Actuaries, or an organization of which one or more

22  members is a fellow of the Society of Actuaries or a member of

23  the American Academy of Actuaries or both.

24         (6)  "Administrator" means the Secretary of Management

25  Services.

26         (7)  "Agreement," for the purpose of implementing the

27  procedure to provide social security coverage under chapter

28  650, means a Section 218 Agreement entered into between the

29  Department of Management Services and the Social Security

30  Administration.

31  

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 1         (8)  "Annual compensation" means the total compensation

 2  paid to a member during a year. A "year" is 12 continuous

 3  months.

 4         (9)  "Average final compensation" means the average of

 5  the 5 highest fiscal years of compensation for creditable

 6  service prior to retirement, termination, or death. For

 7  in-line-of-duty disability benefits, if less than 5 years of

 8  creditable service have been completed, the term "average

 9  final compensation" means the average annual compensation of

10  the total number of years of creditable service. Each year

11  used in the calculation of average final compensation shall

12  commence on July 1.

13         (10)  "Average monthly compensation" means one-twelfth

14  of average final compensation.

15         (11)  "Beneficiary" means the joint annuitant or any

16  other person, organization, estate, or trust fund designated

17  by the member to receive a retirement benefit, if any, which

18  may be payable upon the member's death.

19         (12)  "Benefit" means any payment, lump-sum or

20  periodic, to a member, retiree, or beneficiary, based

21  partially or entirely on employer contributions.

22         (13)  "Bonus" means a payment made in addition to an

23  employee's regular or overtime salary. A bonus is usually

24  nonrecurring, does not increase the employee's base rate of

25  pay, and includes no commitment for payment in a subsequent

26  year. Such payments are not considered compensation. Effective

27  July 1, 1989, employers may not report such payments to the

28  division as salary, and may not make retirement contributions

29  on such payments.

30  

31  

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 1         (14)  "Calendar month" means one of the 12 divisions of

 2  a year as determined by the Gregorian calendar, e.g., January,

 3  April, etc.

 4         (15)  "Calendar year" means a period of time beginning

 5  January 1 and ending on the following December 31.

 6         (16)  "City" means any municipality duly incorporated

 7  under the laws of the state.

 8         (17)  "Compensation" means the monthly salary paid to a

 9  member by his or her employer for work performed arising from

10  that employment.

11         (18)  "Continuous service" means creditable service as

12  a member, beginning with the first day of employment with an

13  employer covered under a state-administered retirement system

14  consolidated under this chapter and continuing for as long as

15  the member remains in an employer-employee relationship with

16  an employer covered under this chapter. An absence of 1

17  calendar month or more from an employer's payroll shall be

18  considered a break in continuous service, except for periods

19  of absence during which an employer-employee relationship

20  continues to exist and such period of absence is creditable

21  under this chapter or under one of the existing systems

22  consolidated under this chapter. However, a law enforcement

23  officer as defined in s. 121.0515(2)(a) who was a member of a

24  state-administered retirement system under chapter 122 or

25  chapter 321 and who resigned and was subsequently reemployed

26  in a law enforcement position within 12 calendar months after

27  such resignation by an employer under such state-administered

28  retirement system shall be deemed to have not experienced a

29  break in service. In addition, with respect to a

30  state-employed law enforcement officer who meets the criteria

31  specified in s. 121.0515(2)(a), if the absence from the

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 1  employer's payroll is the result of a layoff as defined in s.

 2  110.107 or a resignation to run for an elected office that

 3  meets the criteria specified in s. 121.0515(2)(a), no break in

 4  continuous service shall be deemed to have occurred if the

 5  member is reemployed as a state law enforcement officer or is

 6  elected to an office that meets the criteria specified in s.

 7  121.0515(2)(a) within 12 calendar months after the date of the

 8  layoff or resignation, notwithstanding the fact that such

 9  period of layoff or resignation is not creditable service

10  under this chapter. A withdrawal of contributions constitutes

11  a break in service. Continuous service also includes past

12  service purchased under this chapter, if such service is

13  continuous within this definition and the rules established by

14  the administrator. The administrator may establish

15  administrative rules and procedures for applying this

16  definition to creditable service authorized under this

17  chapter. Any correctional officer, as defined in s. 943.10,

18  whose participation in the state-administered retirement

19  system is terminated due to the transfer of a county detention

20  facility through a contractual agreement with a private entity

21  pursuant to s. 951.062, shall be deemed an employee having

22  continuous service in the Special Risk Class, if return to

23  employment with the former employer takes place within 3 years

24  due to contract termination or the officer is employed by a

25  covered employer in a special-risk position within 1 year

26  after his or her initial termination of employment by such

27  transfer of its detention facilities to the private entity.

28         (19)  "Covered group" means the officers and employees

29  of an employer who become members under this chapter. The term

30  applies also when the employer is a charter technical career

31  center, charter school, special district, or city for which

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 1  coverage under this chapter is sought by the employer and

 2  approved for social security coverage by the United States

 3  Secretary of Health and Human Services and approved by the

 4  administrator for membership under this chapter.

 5         (20)  "Creditable service" of any member means the sum

 6  of his or her past service, prior service, military service,

 7  out-of-state or non-FRS in-state service, workers'

 8  compensation credit, leave-of-absence credit, and future

 9  service allowed within the provisions of this chapter if all

10  required contributions have been paid and all other

11  requirements of this chapter have been met. However, in no

12  case shall a member receive credit for more than a year's

13  service during any 12-month period. Service by a teacher, a

14  nonacademic employee of a school board, or an employee of a

15  participating employer other than a school board whose total

16  employment is to provide services to a school board for the

17  school year only shall be based on contract years of

18  employment or school term years of employment, as provided in

19  chapters 122 and 238, rather than 12-month periods of

20  employment.

21         (21)  "Date of participation" means the date on which

22  the officer or employee becomes a member.

23         (22)  "Death in the line of duty" means death arising

24  out of and in the actual performance of duty required by a

25  member's employment during his or her regularly scheduled

26  working hours or irregular working hours as required by the

27  employer.

28         (23)  "Department" means the Department of Management

29  Services.

30         (24)  "Disability in line of duty" means an injury or

31  illness arising out of and in the actual performance of duty

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 1  required by a member's employment during his or her regularly

 2  scheduled working hours or irregular working hours as required

 3  by the employer.

 4         (25)  "DROP participant" means any member who elects to

 5  retire and participate in the Deferred Retirement Option

 6  Program as provided in s. 121.091(13).

 7         (26)  "Early retirement date" means the first day of

 8  the month following the date a member becomes vested and

 9  elects to receive retirement benefits in accordance with s.

10  121.091(3).

11         (27)  "Effective date of retirement" means the first

12  day of the month in which benefit payments begin to accrue

13  pursuant to s. 121.091.

14         (28)  "Employer" means any agency, branch, department,

15  institution, university, institution of higher education, or

16  board of the state, or any county agency, branch, department,

17  board, district school board, or special district of the

18  state, or any city of the state which participates in the

19  system for the benefit of certain of its employees, or a

20  charter school or charter technical career center that

21  participates as provided in s. 121.051(2)(d).

22         (29)  "Existing systems" means the State and County

23  Officers and Employees' Retirement System, the Teacher's

24  Retirement System, and the Highway Patrol Pensions and Pension

25  Trust Fund, which are consolidated in s. 121.011(2), and the

26  Judicial Retirement System.

27         (30)  "Future service" of any member means service

28  subsequent to the date of the member's participation and may

29  include authorized leaves of absence as provided in s.

30  121.121.

31  

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 1         (31)  "Independent contractor" means an individual who

 2  is not subject to the control and direction of the employer

 3  for whom work is being performed, with respect not only to

 4  what shall be done but to how it shall be done. If the

 5  employer has the right to exert such control, an

 6  employee-employer relationship exists, and, for purposes of

 7  this chapter, the person is an employee and not an independent

 8  contractor. The division shall adopt rules providing criteria

 9  for determining whether an individual is an employee or an

10  independent contractor.

11         (32)  "Joint annuitant" means any person designated by

12  the member to receive a retirement benefit upon the member's

13  death who is:

14         (a)  The spouse of the member;

15         (b)  The member's natural or adopted child who is under

16  age 25, or is physically or mentally disabled and incapable of

17  self-support, regardless of age; or any person other than the

18  spouse for whom the member is the legal guardian, if such

19  person is under age 25 and is financially dependent for not

20  less than one-half of his or her support from the member at

21  retirement or at the time of death of such member, whichever

22  occurs first; or

23         (c)  A parent or grandparent, or a person age 25 or

24  older for whom the member is the legal guardian, if such

25  parent, grandparent, or other person is financially dependent

26  for not less than one-half of his or her support from the

27  member at retirement or at the time of the death of such

28  member, whichever occurs first.

29         (33)  "Leave of absence" means a leave of absence from

30  employment under the Florida Retirement System, subsequent to

31  

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 1  November 30, 1970, for which retirement credit may be received

 2  in accordance with s. 121.121.

 3         (34)(a)  "Local agency employer" means the board of

 4  county commissioners or other legislative governing body of a

 5  county, however styled, including that of a consolidated or

 6  metropolitan government; a clerk of the circuit court,

 7  sheriff, property appraiser, tax collector, or supervisor of

 8  elections, if such officer is elected or has been appointed to

 9  fill a vacancy in an elective office; a community college

10  board of trustees or district school board; or the governing

11  body of any city or special district of the state which

12  participates in the system for the benefit of certain of its

13  employees.

14         (b)  The term "local agency employer" also includes the

15  governing body of any council, commission, authority, or other

16  governmental entity created or authorized by general or

17  special law which participates in the Florida Retirement

18  System for the benefit of its employees and which is

19  independent of any local agency employer as defined under

20  paragraph (a).

21         (35)  "Member" means any officer or employee who is

22  covered or who becomes covered under this system in accordance

23  with this chapter. On and after December 1, 1970, all new

24  members and those members transferring from existing systems

25  shall be divided into the following classes: "Special Risk

26  Class," as provided in s. 121.0515(2); "Special Risk

27  Administrative Support Class," as provided in s. 121.0515(7);

28  "Elected Officers' Class," as provided in s. 121.052; "Senior

29  Management Service Class," as provided in s. 121.055; and

30  "Regular Class," which consists of all members who are not in

31  the Special Risk Class, Special Risk Administrative Support

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 1  Class, Elected Officers' Class, or Senior Management Service

 2  Class.

 3         (36)  "Military service" of any member means:

 4         (a)  Service in the Armed Forces of the United States

 5  under the conditions set forth in s. 121.111(1); or

 6         (b)  Actual wartime service in the Armed Forces of the

 7  United States, as defined by s. 1.01(14), or wartime service

 8  in the Allied Forces, not to exceed 4 years, if credit for

 9  such service has not been granted under any other federal or

10  state system, and if such service is not used in any other

11  retirement system; however, this paragraph does not prohibit

12  the use of such service as creditable service if granted and

13  used in a pension system under chapter 67 of Title 10 of the

14  United States Code.

15         (37)  "Normal retirement age" is attained on the normal

16  retirement date.

17         (38)  "Normal retirement date" means the first day of

18  any month a member becomes eligible for an unreduced benefit

19  as set forth in s. 121.091(1).

20         (39)  "Officer or employee" means any person receiving

21  salary payments for work performed in a regularly established

22  position and, if employed by a city or special district,

23  employed in a covered group.

24         (40)  "Past service" of any member, as provided in s.

25  121.081(1), means the number of years and complete months and

26  any fractional part of a month, recognized and credited by an

27  employer and approved by the administrator, during which the

28  member was in the active employ of an employer before his or

29  her date of participation.

30         (41)  "Payee" means a retiree or beneficiary of a

31  retiree who is receiving a retirement benefit payment.

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 1         (42)  "Pension" means monthly payments to a retiree

 2  derived as provided in this chapter.

 3         (43)  "Phased retirement program" means a program

 4  contracted by the governing board of a university or community

 5  college participating under this chapter in which a retiree

 6  may be reemployed in a faculty position if:

 7         (a)  The member retired and met the definition of

 8  termination under this section;

 9         (b)  The retired member is reemployed for not more than

10  780 hours during the first 12 months of his or her retirement;

11  and

12         (c)  The retired member is reemployed with the

13  university or community college from which he or she retired.

14  

15  Renewed membership for a retiree participating in a phased

16  retirement program shall be determined in accordance with s.

17  121.053 or s. 121.122.

18         (44)  "Plan year" means the period of time beginning

19  July 1 and ending on the following June 30, both dates

20  inclusive, for all state-administered retirement systems.

21         (45)  "Previous service" means the number of years,

22  complete months, and any fractional part of a month, as

23  recognized and credited by an employer and approved by the

24  administrator, of service under one of the retirement systems

25  established by this chapter, chapter 122, former chapter 123,

26  chapter 238, or chapter 321, on which the required

27  contributions were paid at the member's termination of

28  employment, and for which the member has received no refund of

29  contributions.

30         (46)  "Prior service" means the number of years,

31  complete months, and any fractional part of a month in which

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 1  the member received a refund or service on which no

 2  contributions were made and made the required contributions

 3  pursuant to s. 121.081(2).

 4         (47)  "Regularly established position" is defined as

 5  follows:

 6         (a)  In a state agency, the term means a position that

 7  is authorized and established pursuant to law and is

 8  compensated from a salaries appropriation pursuant to s.

 9  216.011(1)(dd), or an established position that is authorized

10  pursuant to s. 216.262(1)(a) and (b) and is compensated from a

11  salaries account as provided by rule.

12         (b)  In a local agency such as a district school board,

13  county agency, community college, city, or special district,

14  the term means a regularly established position that will be

15  in existence for a period beyond 6 consecutive months, except

16  as provided by rule.

17         (48)  "Retiree" means a former member of the Florida

18  Retirement System or of an existing system who has terminated

19  employment and is receiving benefit payments from the system

20  in which he or she was a member. This term also includes a

21  person who retired and is receiving benefits under s. 112.05.

22         (49)  "Signature" means the name or mark of a person as

23  written by that person. When an "X" is used as a signature on

24  a document, the document must include the printed names,

25  signatures, and addresses of two persons who witnessed the

26  signing, or the document must be notarized.

27         (50)  "Social security coverage" means old-age,

28  survivors, disability, and health insurance, as provided by

29  the federal Social Security Act.

30         (51)  "Social Security Trust Fund" means the trust fund

31  established in the State Treasury by this chapter for the

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 1  purpose of receiving the contributions paid by members and

 2  employers for payment to the Secretary of the Treasury. Other

 3  trust funds may be established to administer the Social

 4  Security Trust Fund.

 5         (52)  "Special district" means an independent special

 6  district as defined in s. 189.403(3).

 7         (53)  "Special risk member" means any officer or

 8  employee who meets criteria of Special Risk Class membership

 9  as set forth in s. 121.0515.

10         (54)  "System" means the general retirement system

11  established by this chapter to be known and cited as the

12  "Florida Retirement System," including, but not limited to,

13  the defined benefit retirement program administered under the

14  provisions of part I of this chapter and the defined

15  contribution retirement program known as the Public Employee

16  Optional Retirement Program and administered under the

17  provisions of part II of this chapter.

18         (55)  "System trust fund" means the trust fund

19  established in the State Treasury by this chapter for the

20  purpose of holding and investing the contributions paid by

21  members and employers and paying the benefits to which members

22  or their beneficiaries may become entitled. Other trust funds

23  may be established in the State Treasury to administer the

24  system trust fund.

25         (56)  "Temporary position" means:

26         (a)  In a state agency, an employment position that is

27  compensated from an other personal services (OPS) account, as

28  provided for in s. 216.011(1)(dd).

29         (b)  In a local agency, an employment position that

30  will exist for less than 6 consecutive months, or other

31  employment position as determined by rule of the division,

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 1  regardless of whether it will exist for 6 consecutive months

 2  or longer.

 3         (57)(a)  "Termination" occurs, except as provided in

 4  paragraph (b), when a member ceases all employment

 5  relationships with employers under this system, as defined in

 6  subsection (10), but if a member is employed by any such

 7  employer within the next calendar month, termination shall be

 8  deemed not to have occurred. A leave of absence constitutes a

 9  continuation of the employment relationship, except that a

10  leave of absence without pay due to disability may constitute

11  termination for a member if such member makes application for

12  and is approved for disability retirement in accordance with

13  s. 121.091(4). The department or board may require other

14  evidence of termination as deemed necessary.

15         (b)  "Termination" for a member electing to participate

16  under the Deferred Retirement Option Program occurs when the

17  participant in the Deferred Retirement Option Program ceases

18  all employment relationships with employers under this system

19  in accordance with s. 121.091(13), but if the participant in

20  the Deferred Retirement Option Program is employed by any such

21  employer within the next calendar month, termination will be

22  deemed not to have occurred, except as provided in s.

23  121.091(13)(b)4.c. A leave of absence constitutes a

24  continuation of the employment relationship.

25         (58)  "Unit" means any department, division, or

26  subdivision of a city or any classification of city employees

27  approved for social security coverage, as such, by the United

28  States Department of Health and Human Services, not based on

29  age, sex, or other classification resulting in

30  higher-than-average costs for retirement benefits.

31  

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 1         (59)  "Vested" or "vesting" means the guarantee that a

 2  member is eligible to receive a future retirement benefit upon

 3  completion of the required years of creditable service for the

 4  employee's class of membership, even though the member may

 5  have terminated covered employment before reaching his or her

 6  normal or early retirement date.

 7         (60)  "Work year" means the period of time an employee

 8  is required to work during the plan year to receive a full

 9  year of retirement credit, as provided by rule.

10         Section 4.  Section 121.1905, Florida Statutes, is

11  renumbered as section 121.022, Florida Statutes, to read:

12         121.022 121.1905  Division of Retirement; creation.--

13         (1)  There is created the Division of Retirement within

14  the Department of Management Services.

15         (2)  The mission of the Division of Retirement is to

16  provide quality and cost-effective retirement services as

17  measured by member satisfaction and by comparison with

18  administrative costs of comparable retirement systems.

19         Section 5.  Section 121.023, Florida Statutes, is

20  created to read:

21         121.023  Consolidation of existing systems under the

22  Florida Retirement System; liabilities and assets.--

23         (1)  Effective December 1, 1970, the State and County

24  Officers and Employees' Retirement System established by

25  chapter 122, the Teachers Retirement System established by

26  chapter 238, and the Highway Patrol Pensions and Pension Trust

27  Fund established by former chapter 321 shall be merged into

28  the Florida Retirement System.

29         (2)  Effective July 1, 1972, the Judicial Retirement

30  System established by former chapter 123 shall be merged into

31  the Florida Retirement System.

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 1         (3)(a)  With respect to systems consolidated under this

 2  section, the Florida Retirement System shall assume:

 3         1.  All liabilities related to the payment of benefits

 4  to members and their beneficiaries;

 5         2.  All obligations in regard to funding and

 6  administering benefits now accrued or which may accrue in the

 7  future for the benefit of members, beneficiaries, and

 8  survivors; and

 9         3.  All obligations in regard to funding, including any

10  actuarial deficit that may exist on or after October 1, 2006.

11         (b)  The administrator of the retirement systems hereby

12  merged shall cause to be transferred to the Florida Retirement

13  System all assets, including money, securities, and other

14  property accumulated as of October 1, 2006, and held for these

15  systems, as well as all liabilities and obligations of those

16  systems. Upon such transfer of assets, liabilities, and

17  obligations, the administrator shall become the trustee of any

18  trust fund or funds transferred to the Florida Retirement

19  System.

20         Section 6.  Section 121.191, Florida Statutes, is

21  renumbered as section 121.0231, Florida Statutes, to read:

22         121.0231 121.191  Special acts prohibited.--After July

23  1, 1972, there shall not be enacted any special act or general

24  law of local application which proposes to amend, alter, or

25  contravene the provisions of any state-administered retirement

26  system or any state-supported retirement system established by

27  general law.

28         Section 7.  This act shall take effect October 1, 2006.

29  

30  

31  

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Revises and provides additional definitions applicable to
      the Florida Retirement System. Consolidates various state
 4    retirement systems under the Florida Retirement System
      and provides for assumption of liabilities and assets.
 5    (See bill for details.)

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