HB 861

1
A bill to be entitled
2An act relating to reemployment after retirement; amending
3s. 121.021, F.S.; redefining the term "termination";
4providing that termination has not occurred if a member
5was employed in violation of certain rehire provisions;
6amending s. 121.091, F.S.; limiting terms of reemployment
7for certain members; providing certain exceptions;
8providing for joint and several liability for violation of
9reemployment provisions; amending s. 121.591, F.S.;
10providing that the violation of certain rehire provisions
11shall be deemed an invalid distribution; providing an
12effective date.
13
14Be It Enacted by the Legislature of the State of Florida:
15
16     Section 1.  Subsection (39) of section 121.021, Florida
17Statutes, is amended to read:
18     121.021  Definitions.--The following words and phrases as
19used in this chapter have the respective meanings set forth
20unless a different meaning is plainly required by the context:
21     (39)(a)  "Termination" occurs, except as provided in
22paragraph (b), when a member ceases all employment relationships
23with employers under this system, as defined in subsection (10),
24but in the event a member should be employed by any such
25employer within the next calendar month, or in violation of the
26rehire provisions provided for in s. 121.091(9)(b)1.b.,
27termination shall be deemed not to have occurred. A leave of
28absence shall constitute a continuation of the employment
29relationship, except that a leave of absence without pay due to
30disability may constitute termination for a member, if such
31member makes application for and is approved for disability
32retirement in accordance with s. 121.091(4). The department or
33board may require other evidence of termination as it deems
34necessary.
35     (b)  "Termination" for a member electing to participate
36under the Deferred Retirement Option Program occurs when the
37Deferred Retirement Option Program participant ceases all
38employment relationships with employers under this system in
39accordance with s. 121.091(13), but in the event the Deferred
40Retirement Option Program participant should be employed by any
41such employer within the next calendar month, or in violation of
42the rehire provisions provided for in s. 121.091(9)(b)1.b.,
43termination will be deemed not to have occurred, except as
44provided in s. 121.091(13)(b)4.c. A leave of absence shall
45constitute a continuation of the employment relationship.
46     Section 2.  Paragraph (b) of subsection (9) of section
47121.091, Florida Statutes, is amended to read:
48     121.091  Benefits payable under the system.--Benefits may
49not be paid under this section unless the member has terminated
50employment as provided in s. 121.021(39)(a) or begun
51participation in the Deferred Retirement Option Program as
52provided in subsection (13), and a proper application has been
53filed in the manner prescribed by the department. The department
54may cancel an application for retirement benefits when the
55member or beneficiary fails to timely provide the information
56and documents required by this chapter and the department's
57rules. The department shall adopt rules establishing procedures
58for application for retirement benefits and for the cancellation
59of such application when the required information or documents
60are not received.
61     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
62     (b)1.a.  Any person who is retired under this chapter,
63except under the disability retirement provisions of subsection
64(4), may be reemployed by any private or public employer after
65retirement and receive retirement benefits and compensation from
66his or her employer without any limitations, except that a
67person may not receive both a salary from reemployment with any
68agency participating in the Florida Retirement System and
69retirement benefits under this chapter for a period of 12 months
70immediately subsequent to the date of retirement. However, a
71DROP participant shall continue employment and receive a salary
72during the period of participation in the Deferred Retirement
73Option Program, as provided in subsection (13).
74     b.  Except as provided for in subparagraphs 3., 4., 5., 6.,
75and 11., and notwithstanding any other provisions in this
76chapter to the contrary, a member may not be reemployed by the
77same employer from which the member retired for a period of 12
78months immediately subsequent to the date of retirement or, in
79the case of a DROP participant, for a period of 12 months
80immediately subsequent to the date the participant terminates
81employment in accordance with subparagraph (13)(b)3. Any person
82who is reemployed in violation of this sub-subparagraph shall
83void his or her application for retirement benefits. Further,
84any person who violates this sub-subparagraph and any employing
85agency which knowingly employs or appoints such person in
86violation of this sub-subparagraph shall be jointly and
87severally liable for reimbursements to the retirement trust fund
88of any retirement benefits improperly paid during this
89reemployment limitation period. This provision shall not
90otherwise limit the employment or appointment opportunities for
91a person at any other employing agency. The limitations provided
92for in this sub-subparagraph shall not be applicable when a
93retiree is elected to an office or appointed by the Governor to
94an elective office.
95     2.  Any person to whom the limitation in subparagraph 1.
96applies who violates such reemployment limitation and who is
97reemployed with any agency participating in the Florida
98Retirement System before completion of the 12-month limitation
99period shall give timely notice of this fact in writing to the
100employer and to the division and shall have his or her
101retirement benefits suspended for the balance of the 12-month
102limitation period. Any person employed in violation of this
103paragraph and any employing agency which knowingly employs or
104appoints such person without notifying the Division of
105Retirement to suspend retirement benefits shall be jointly and
106severally liable for reimbursement to the retirement trust fund
107of any benefits paid during the reemployment limitation period.
108To avoid liability, such employing agency shall have a written
109statement from the retiree that he or she is not retired from a
110state-administered retirement system. Any retirement benefits
111received while reemployed during this reemployment limitation
112period shall be repaid to the retirement trust fund, and
113retirement benefits shall remain suspended until such repayment
114has been made. Benefits suspended beyond the reemployment
115limitation shall apply toward repayment of benefits received in
116violation of the reemployment limitation.
117     3.  A district school board may reemploy a retired member
118as a substitute or hourly teacher, education paraprofessional,
119transportation assistant, bus driver, or food service worker on
120a noncontractual basis after he or she has been retired for 1
121calendar month, in accordance with s. 121.021(39). A district
122school board may reemploy a retired member as instructional
123personnel, as defined in s. 1012.01(2)(a), on an annual
124contractual basis after he or she has been retired for 1
125calendar month, in accordance with s. 121.021(39). Any other
126retired member who is reemployed within 1 calendar month after
127retirement shall void his or her application for retirement
128benefits. District school boards reemploying such teachers,
129education paraprofessionals, transportation assistants, bus
130drivers, or food service workers are subject to the retirement
131contribution required by subparagraph 7.
132     4.  A community college board of trustees may reemploy a
133retired member as an adjunct instructor, that is, an instructor
134who is noncontractual and part-time, or as a participant in a
135phased retirement program within the Florida Community College
136System, after he or she has been retired for 1 calendar month,
137in accordance with s. 121.021(39). Any retired member who is
138reemployed within 1 calendar month after retirement shall void
139his or her application for retirement benefits. Boards of
140trustees reemploying such instructors are subject to the
141retirement contribution required in subparagraph 7. A retired
142member may be reemployed as an adjunct instructor for no more
143than 780 hours during the first 12 months of retirement. Any
144retired member reemployed for more than 780 hours during the
145first 12 months of retirement shall give timely notice in
146writing to the employer and to the division of the date he or
147she will exceed the limitation. The division shall suspend his
148or her retirement benefits for the remainder of the first 12
149months of retirement. Any person employed in violation of this
150subparagraph and any employing agency which knowingly employs or
151appoints such person without notifying the Division of
152Retirement to suspend retirement benefits shall be jointly and
153severally liable for reimbursement to the retirement trust fund
154of any benefits paid during the reemployment limitation period.
155To avoid liability, such employing agency shall have a written
156statement from the retiree that he or she is not retired from a
157state-administered retirement system. Any retirement benefits
158received by a retired member while reemployed in excess of 780
159hours during the first 12 months of retirement shall be repaid
160to the Retirement System Trust Fund, and retirement benefits
161shall remain suspended until repayment is made. Benefits
162suspended beyond the end of the retired member's first 12 months
163of retirement shall apply toward repayment of benefits received
164in violation of the 780-hour reemployment limitation.
165     5.  The State University System may reemploy a retired
166member as an adjunct faculty member or as a participant in a
167phased retirement program within the State University System
168after the retired member has been retired for 1 calendar month,
169in accordance with s. 121.021(39). Any retired member who is
170reemployed within 1 calendar month after retirement shall void
171his or her application for retirement benefits. The State
172University System is subject to the retired contribution
173required in subparagraph 7., as appropriate. A retired member
174may be reemployed as an adjunct faculty member or a participant
175in a phased retirement program for no more than 780 hours during
176the first 12 months of his or her retirement. Any retired member
177reemployed for more than 780 hours during the first 12 months of
178retirement shall give timely notice in writing to the employer
179and to the division of the date he or she will exceed the
180limitation. The division shall suspend his or her retirement
181benefits for the remainder of the first 12 months of retirement.
182Any person employed in violation of this subparagraph and any
183employing agency which knowingly employs or appoints such person
184without notifying the Division of Retirement to suspend
185retirement benefits shall be jointly and severally liable for
186reimbursement to the retirement trust fund of any benefits paid
187during the reemployment limitation period. To avoid liability,
188such employing agency shall have a written statement from the
189retiree that he or she is not retired from a state-administered
190retirement system. Any retirement benefits received by a retired
191member while reemployed in excess of 780 hours during the first
19212 months of retirement shall be repaid to the Retirement System
193Trust Fund, and retirement benefits shall remain suspended until
194repayment is made. Benefits suspended beyond the end of the
195retired member's first 12 months of retirement shall apply
196toward repayment of benefits received in violation of the 780-
197hour reemployment limitation.
198     6.  The Board of Trustees of the Florida School for the
199Deaf and the Blind may reemploy a retired member as a substitute
200teacher, substitute residential instructor, or substitute nurse
201on a noncontractual basis after he or she has been retired for 1
202calendar month, in accordance with s. 121.021(39). Any retired
203member who is reemployed within 1 calendar month after
204retirement shall void his or her application for retirement
205benefits. The Board of Trustees of the Florida School for the
206Deaf and the Blind reemploying such teachers, residential
207instructors, or nurses is subject to the retirement contribution
208required by subparagraph 7. Reemployment of a retired member as
209a substitute teacher, substitute residential instructor, or
210substitute nurse is limited to 780 hours during the first 12
211months of his or her retirement. Any retired member reemployed
212for more than 780 hours during the first 12 months of retirement
213shall give timely notice in writing to the employer and to the
214division of the date he or she will exceed the limitation. The
215division shall suspend his or her retirement benefits for the
216remainder of the first 12 months of retirement. Any person
217employed in violation of this subparagraph and any employing
218agency which knowingly employs or appoints such person without
219notifying the Division of Retirement to suspend retirement
220benefits shall be jointly and severally liable for reimbursement
221to the retirement trust fund of any benefits paid during the
222reemployment limitation period. To avoid liability, such
223employing agency shall have a written statement from the retiree
224that he or she is not retired from a state-administered
225retirement system. Any retirement benefits received by a retired
226member while reemployed in excess of 780 hours during the first
22712 months of retirement shall be repaid to the Retirement System
228Trust Fund, and his or her retirement benefits shall remain
229suspended until payment is made. Benefits suspended beyond the
230end of the retired member's first 12 months of retirement shall
231apply toward repayment of benefits received in violation of the
232780-hour reemployment limitation.
233     7.  The employment by an employer of any retiree or DROP
234participant of any state-administered retirement system shall
235have no effect on the average final compensation or years of
236creditable service of the retiree or DROP participant. Prior to
237July 1, 1991, upon employment of any person, other than an
238elected officer as provided in s. 121.053, who has been retired
239under any state-administered retirement program, the employer
240shall pay retirement contributions in an amount equal to the
241unfunded actuarial liability portion of the employer
242contribution which would be required for regular members of the
243Florida Retirement System. Effective July 1, 1991, contributions
244shall be made as provided in s. 121.122 for retirees with
245renewed membership or subsection (13) with respect to DROP
246participants.
247     8.  Any person who has previously retired and who is
248holding an elective public office or an appointment to an
249elective public office eligible for the Elected Officers' Class
250on or after July 1, 1990, shall be enrolled in the Florida
251Retirement System as provided in s. 121.053(1)(b) or, if holding
252an elective public office that does not qualify for the Elected
253Officers' Class on or after July 1, 1991, shall be enrolled in
254the Florida Retirement System as provided in s. 121.122, and
255shall continue to receive retirement benefits as well as
256compensation for the elected officer's service for as long as he
257or she remains in elective office. However, any retired member
258who served in an elective office prior to July 1, 1990,
259suspended his or her retirement benefit, and had his or her
260Florida Retirement System membership reinstated shall, upon
261retirement from such office, have his or her retirement benefit
262recalculated to include the additional service and compensation
263earned.
264     9.  Any person who is holding an elective public office
265which is covered by the Florida Retirement System and who is
266concurrently employed in nonelected covered employment may elect
267to retire while continuing employment in the elective public
268office, provided that he or she shall be required to terminate
269his or her nonelected covered employment. Any person who
270exercises this election shall receive his or her retirement
271benefits in addition to the compensation of the elective office
272without regard to the time limitations otherwise provided in
273this subsection. No person who seeks to exercise the provisions
274of this subparagraph, as the same existed prior to May 3, 1984,
275shall be deemed to be retired under those provisions, unless
276such person is eligible to retire under the provisions of this
277subparagraph, as amended by chapter 84-11, Laws of Florida.
278     10.  The limitations of this paragraph apply to
279reemployment in any capacity with an "employer" as defined in s.
280121.021(10), irrespective of the category of funds from which
281the person is compensated.
282     11.  An employing agency may reemploy a retired member as a
283firefighter or paramedic after the retired member has been
284retired for 1 calendar month, in accordance with s. 121.021(39).
285Any retired member who is reemployed within 1 calendar month
286after retirement shall void his or her application for
287retirement benefits. The employing agency reemploying such
288firefighter or paramedic is subject to the retired contribution
289required in subparagraph 8. Reemployment of a retired
290firefighter or paramedic is limited to no more than 780 hours
291during the first 12 months of his or her retirement. Any retired
292member reemployed for more than 780 hours during the first 12
293months of retirement shall give timely notice in writing to the
294employer and to the division of the date he or she will exceed
295the limitation. The division shall suspend his or her retirement
296benefits for the remainder of the first 12 months of retirement.
297Any person employed in violation of this subparagraph and any
298employing agency which knowingly employs or appoints such person
299without notifying the Division of Retirement to suspend
300retirement benefits shall be jointly and severally liable for
301reimbursement to the Retirement System Trust Fund of any
302benefits paid during the reemployment limitation period. To
303avoid liability, such employing agency shall have a written
304statement from the retiree that he or she is not retired from a
305state-administered retirement system. Any retirement benefits
306received by a retired member while reemployed in excess of 780
307hours during the first 12 months of retirement shall be repaid
308to the Retirement System Trust Fund, and retirement benefits
309shall remain suspended until repayment is made. Benefits
310suspended beyond the end of the retired member's first 12 months
311of retirement shall apply toward repayment of benefits received
312in violation of the 780-hour reemployment limitation.
313     Section 3.  Paragraph (a) of subsection (1) of section
314121.591, Florida Statutes, is amended to read:
315     121.591  Benefits payable under the Public Employee
316Optional Retirement Program of the Florida Retirement
317System.--Benefits may not be paid under this section unless the
318member has terminated employment as provided in s.
319121.021(39)(a) or is deceased and a proper application has been
320filed in the manner prescribed by the state board or the
321department. The state board or department, as appropriate, may
322cancel an application for retirement benefits when the member or
323beneficiary fails to timely provide the information and
324documents required by this chapter and the rules of the state
325board and department. In accordance with their respective
326responsibilities as provided herein, the State Board of
327Administration and the Department of Management Services shall
328adopt rules establishing procedures for application for
329retirement benefits and for the cancellation of such application
330when the required information or documents are not received. The
331State Board of Administration and the Department of Management
332Services, as appropriate, are authorized to cash out a de
333minimis account of a participant who has been terminated from
334Florida Retirement System covered employment for a minimum of 6
335calendar months. A de minimis account is an account containing
336employer contributions and accumulated earnings of not more than
337$5,000 made under the provisions of this chapter. Such cash-out
338must either be a complete lump-sum liquidation of the account
339balance, subject to the provisions of the Internal Revenue Code,
340or a lump-sum direct rollover distribution paid directly to the
341custodian of an eligible retirement plan, as defined by the
342Internal Revenue Code, on behalf of the participant. If any
343financial instrument issued for the payment of retirement
344benefits under this section is not presented for payment within
345180 days after the last day of the month in which it was
346originally issued, the third-party administrator or other duly
347authorized agent of the State Board of Administration shall
348cancel the instrument and credit the amount of the instrument to
349the suspense account of the Public Employee Optional Retirement
350Program Trust Fund authorized under s. 121.4501(6). Any such
351amounts transferred to the suspense account are payable upon a
352proper application, not to include earnings thereon, as provided
353in this section, within 10 years after the last day of the month
354in which the instrument was originally issued, after which time
355such amounts and any earnings thereon shall be forfeited. Any
356such forfeited amounts are assets of the Public Employee
357Optional Retirement Program Trust Fund and are not subject to
358the provisions of chapter 717.
359     (1)  NORMAL BENEFITS.--Under the Public Employee Optional
360Retirement Program:
361     (a)  Benefits in the form of vested accumulations as
362described in s. 121.4501(6) shall be payable under this
363subsection in accordance with the following terms and
364conditions:
365     1.  To the extent vested, benefits shall be payable only to
366a participant.
367     2.  Benefits shall be paid by the third-party administrator
368or designated approved providers in accordance with the law, the
369contracts, and any applicable board rule or policy.
370     3.  To receive benefits under this subsection, the
371participant must be terminated from all employment with all
372Florida Retirement System employers, as provided in s.
373121.021(39).
374     4.  Benefit payments may not be made until the participant
375has been terminated for 3 calendar months, except that the board
376may authorize by rule for the distribution of up to 10 percent
377of the participant's account after being terminated for 1
378calendar month if a participant has reached the normal
379retirement requirements of the defined benefit plan, as provided
380in s. 121.021(29).
381     5.  If a member or former member of the Florida Retirement
382System receives an invalid distribution from the Public Employee
383Optional Retirement Program Trust Fund, such person shall repay
384the full invalid distribution to the trust fund within 90 days
385after receipt of final notification by the State Board of
386Administration or the third-party administrator that the
387distribution was invalid. If such person fails to repay the full
388invalid distribution within 90 days after receipt of final
389notification, the person may be deemed retired from the Public
390Employee Optional Retirement Program by the state board, as
391provided pursuant to s. 121.4501(2)(j), and shall be subject to
392the provisions of s. 121.122. If such person is deemed retired
393by the state board, any joint and several liability set out in
394s. 121.091(9)(c)2. becomes null and void, and the state board,
395the Department of Management Services, or the employing agency
396is not liable for gains on payroll contributions that have not
397been deposited to the person's account in the Public Employee
398Optional Retirement Program, pending resolution of the invalid
399distribution. The member or former member who has been deemed
400retired or who has been determined by the board to have taken an
401invalid distribution may appeal the agency decision through the
402complaint process as provided under s. 121.4501(9)(f)3. As used
403in this subparagraph, the term "invalid distribution" means any
404distribution from an account in the Public Employee Optional
405Retirement Program which is taken in violation of the provisions
406of this section, s. 121.091(9), or s. 121.4501. Further,
407violation of the rehire provisions provided for in s.
408121.091(9)(b)1.b. shall be deemed an invalid distribution and
409the penalties provided for in this section shall apply.
410     Section 4.  This act shall take effect July 1, 2007.


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