Florida Senate - 2008 SENATOR AMENDMENT
Bill No. CS for SB 2170
407502
Senate
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House
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Senator Fasano moved the following amendment:
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Senate Amendment (with title amendment)
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Delete line(s) 101-141
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and insert:
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Section 3. Effective January 1, 2009, subsections (1) and
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(2) of section 121.053, Florida Statutes, are amended to read:
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121.053 Participation in the Elected Officers' Class for
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retired members.--
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(1)(a)1. Any retiree of a state-administered retirement
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system who initially serves in an elective office in a regularly
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established position with a covered employer on or after January
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1, 2009, shall not be enrolled in the Florida Retirement System.
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2. An elected officer who is elected or appointed to an
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elective office and is participating in the Deferred Retirement
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Option Program is subject to termination as provided in s.
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121.021(39)(b), and reemployment limitations as provided in s.
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121.091(9), upon completion of his or her DROP participation
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period.
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(b) Before January 1, 2009, any member who retired under
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any existing system as defined in s. 121.021(2), and receives a
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benefit thereof, and who serves in an office covered by the
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Elected Officers' Class for a period of at least 6 years, shall
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be entitled to receive an additional retirement benefit for such
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elected officer service prior to July 1, 1990, under the Elected
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Officers' Class of the Florida Retirement System, as follows:
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1. Upon completion of 6 or more years of creditable service
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in an office covered by the Elected Officers' Class, s. 121.052,
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such member shall notify the administrator of his or her intent
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to purchase elected officer service prior to July 1, 1990, and
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shall pay the member contribution applicable for the period being
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claimed, plus 4 percent interest compounded annually from the
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first year of service claimed until July 1, 1975, and 6.5 percent
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interest compounded annually thereafter, until full payment is
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made to the Florida Retirement System Trust Fund; however, such
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member may purchase retirement credit under the Elected Officers'
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Class only for such service as an elected officer.
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2. Upon payment of the amount specified in subparagraph 1.,
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the employer shall pay into the Florida Retirement System Trust
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Fund the applicable employer contribution for the period of
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elected officer service prior to July 1, 1990, being claimed by
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the member, plus 4 percent interest compounded annually from the
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first year of service claimed until July 1, 1975, and 6.5 percent
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interest compounded annually thereafter, until full payment is
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made to the Florida Retirement System Trust Fund.
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(c)(b) Any retired member of the Florida Retirement System,
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or any existing system as defined in s. 121.021(2), who, on or
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after July 1, 1990, through December 31, 2008, is serving in, or
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is elected or appointed to, an elective office covered by the
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Elected Officers' Class shall be enrolled in the appropriate
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subclass of the Elected Officers' Class of the Florida Retirement
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System, and applicable contributions shall be paid into the
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Florida Retirement System Trust Fund as provided in s.
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121.052(7). Pursuant thereto:
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1. Any such retired member shall be eligible to continue to
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receive retirement benefits as well as compensation for the
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elected officer service for as long as he or she remains in an
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elective office covered by the Elected Officers' Class.
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2. If any such member serves in an elective office covered
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by the Elected Officers' Class and becomes vested under that
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class, he or she shall be entitled to receive an additional
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retirement benefit for such elected officer service.
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3. Such member shall be entitled to purchase additional
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retirement credit in the Elected Officers' Class for any
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postretirement service performed in an elected position eligible
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for the Elected Officers' Class prior to July 1, 1990, or in the
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Regular Class for any postretirement service performed in any
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other regularly established position prior to July 1, 1991, by
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paying the applicable Elected Officers' Class or Regular Class
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employee and employer contributions for the period being claimed,
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plus 4 percent interest compounded annually from the first year
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of service claimed until July 1, 1975, and 6.5 percent interest
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compounded thereafter, until full payment is made to the Florida
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Retirement System Trust Fund. The contribution for postretirement
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Regular Class service between July 1, 1985, and July 1, 1991, for
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which the reemployed retiree contribution was paid, shall be the
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difference between such contribution and the total applicable
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contribution for the period being claimed, plus interest. The
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employer of such member may pay the applicable employer
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contribution in lieu of the member. If a member does not wish to
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claim credit for all of the postretirement service for which he
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or she is eligible, the service the member claims must be the
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most recent service.
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4. Creditable service for which credit was received, or
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which remained unclaimed, at retirement may not be claimed or
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applied toward service credit earned following renewed
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membership. However, service earned in accordance with the
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renewed membership provisions in s. 121.122 may be used in
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conjunction with creditable service earned under this paragraph,
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provided applicable vesting requirements and other existing
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statutory conditions required by this chapter are met.
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5. An elected officer who is elected or appointed to an
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elective office and is participating in the Deferred Retirement
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Option Program before January 1, 2009, is not subject to
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termination as provided in s. 121.021(39)(b), or reemployment
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limitations as provided in s. 121.091(9), until the end of his or
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her current term of office or, if the officer is consecutively
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elected or reelected to an elective office eligible for coverage
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under the Florida Retirement System, until he or she no longer
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holds such an elective office, as follows:
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a. At the end of the 60-month DROP period:
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(I) The officer's DROP account shall accrue no additional
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monthly benefits, but shall continue to earn interest as provided
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in s. 121.091(13).
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(II) No retirement contributions shall be required of the
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employer of the elected officer and no additional retirement
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credit shall be earned under the Florida Retirement System.
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b. Nothing herein shall prevent an elected officer from
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voluntarily terminating his or her elective office at any time
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and electing to receive his or her DROP proceeds. However, until
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termination requirements are fulfilled as provided in s.
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121.021(39), any elected officer whose termination limitations
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are extended by this section shall be ineligible for renewed
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membership in the system and shall receive no pension payments,
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DROP lump sum payments, or any other state payment other than the
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statutorily determined salary, travel, and per diem for the
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elective office.
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c. Upon termination, the officer shall receive his or her
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accumulated DROP account, plus interest, and shall accrue and
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commence receiving monthly retirement benefits, which shall be
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paid on a prospective basis only.
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However, an officer electing to participate in the Deferred
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Retirement Option Program on or before June 30, 2002, shall not
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be required to terminate and shall remain subject to the
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provisions of this subparagraph as adopted in section 1 of
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chapter 2001-235, Laws of Florida.
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(2) Upon attaining his or her normal retirement date and
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payment of the amount specified in paragraphs (1)(b) and (c)
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(1)(a) and (b), and upon application to the administrator of the
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intent to retire, the member shall receive a monthly benefit
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under this section, in addition to any benefits already being
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received, which shall commence on the last day of the month of
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retirement and be payable on the last day of the month thereafter
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during his or her lifetime. The amount of such monthly benefit
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shall be the total percentage of retirement credit purchased
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under this section multiplied by the member's average monthly
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compensation as an elected officer, adjusted according to the
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option selected at retirement under s. 121.091(6).
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Section 4. Effective January 1, 2009, paragraph (f) of
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subsection (1) and paragraph (c) of subsection (6) of section
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121.055, Florida Statutes, are amended to read:
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121.055 Senior Management Service Class.--There is hereby
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established a separate class of membership within the Florida
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Retirement System to be known as the "Senior Management Service
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Class," which shall become effective February 1, 1987.
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(1)
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(f) Effective July 1, 1997:
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1. Except as provided in subparagraph 3., any elected state
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officer eligible for membership in the Elected Officers' Class
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under s. 121.052(2)(a), (b), or (c) who elects membership in the
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Senior Management Service Class under s. 121.052(3)(c) may,
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within 6 months after assuming office or within 6 months after
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this act becomes a law for serving elected state officers, elect
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to participate in the Senior Management Service Optional Annuity
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Program, as provided in subsection (6), in lieu of membership in
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the Senior Management Service Class.
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2. Except as provided in subparagraph 3., any elected
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county officer eligible for membership in the Elected Officers'
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Class under s. 121.052(2)(d) who elects membership in the Senior
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Management Service Class under s. 121.052(3)(c) may, within 6
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months after assuming office, or within 6 months after this act
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becomes a law for serving elected county officers, elect to
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withdraw from the Florida Retirement System participate in a
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lifetime monthly annuity program, as provided in subparagraph
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(b)2., in lieu of membership in the Senior Management Service
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Class.
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3. Any retiree of a state-administered retirement system
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who is initially reemployed on or after January 1, 2009, as an
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elected official eligible for Elected Officers' Class membership
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shall not be eligible for renewed membership in the Senior
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Management Service Optional Annuity Program as provided in
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subsection (6) or to withdraw from the Florida Retirement System
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as a renewed member as provided in subparagraph (b)2., as
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applicable, in lieu of Senior Management Service Class
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membership.
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(6)
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(c) Participation.--
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1. Any eligible employee who is employed on or before
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February 1, 1987, may elect to participate in the optional
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annuity program in lieu of participation in the Senior Management
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Service Class. Such election shall be made in writing and filed
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with the department and the personnel officer of the employer on
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or before May 1, 1987. Any eligible employee who is employed on
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or before February 1, 1987, and who fails to make an election to
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participate in the optional annuity program by May 1, 1987, shall
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be deemed to have elected membership in the Senior Management
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Service Class.
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2. Except as provided in subparagraph 6., any employee who
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becomes eligible to participate in the optional annuity program
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by reason of initial employment commencing after February 1,
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1987, may, within 90 days after the date of commencement of
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employment, elect to participate in the optional annuity program.
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Such election shall be made in writing and filed with the
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personnel officer of the employer. Any eligible employee who does
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not within 90 days after commencement of such employment elect to
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participate in the optional annuity program shall be deemed to
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have elected membership in the Senior Management Service Class.
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3. A person who is appointed to a position in the Senior
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Management Service Class and who is a member of an existing
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retirement system or the Special Risk or Special Risk
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Administrative Support Classes of the Florida Retirement System
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may elect to remain in such system or class in lieu of
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participation in the Senior Management Service Class or optional
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annuity program. Such election shall be made in writing and filed
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with the department and the personnel officer of the employer
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within 90 days of such appointment. Any eligible employee who
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fails to make an election to participate in the existing system,
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the Special Risk Class of the Florida Retirement System, the
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Special Risk Administrative Support Class of the Florida
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Retirement System, or the optional annuity program shall be
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deemed to have elected membership in the Senior Management
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Service Class.
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4. Except as provided in subparagraph 5., an employee's
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election to participate in the optional annuity program is
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irrevocable as long as such employee continues to be employed in
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an eligible position and continues to meet the eligibility
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requirements set forth in this paragraph.
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5. Effective from July 1, 2002, through September 30, 2002,
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any active employee in a regularly established position who has
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elected to participate in the Senior Management Service Optional
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Annuity Program has one opportunity to choose to move from the
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Senior Management Service Optional Annuity Program to the Florida
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Retirement System defined benefit program.
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a. The election must be made in writing and must be filed
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with the department and the personnel officer of the employer
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before October 1, 2002, or, in the case of an active employee who
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is on a leave of absence on July 1, 2002, within 90 days after
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the conclusion of the leave of absence. This election is
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irrevocable.
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b. The employee will receive service credit under the
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defined benefit program of the Florida Retirement System equal to
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his or her years of service under the Senior Management Service
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Optional Annuity Program. The cost for such credit shall be an
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amount representing the present value of that employee's
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accumulated benefit obligation for the affected period of
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service.
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c. The employee must transfer the total accumulated
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employer contributions and earnings on deposit in his or her
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Senior Management Service Optional Annuity Program account. If
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the transferred amount is not sufficient to pay the amount due,
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the employee must pay a sum representing the remainder of the
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amount due. In no case may the employee retain any employer
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contributions or earnings thereon from the Senior Management
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Service Optional Annuity Program account.
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6. Any retiree of a state-administered retirement system
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who is initially reemployed on or after January 1, 2009, shall
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not be eligible for renewed membership in the Senior Management
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Service Optional Annuity Program.
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Section 5. Effective January 1, 2009, subsections (9),
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(13), and (14) of section 121.091, Florida Statutes, are amended
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to read:
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121.091 Benefits payable under the system.--Benefits may
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not be paid under this section unless the member has terminated
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employment as provided in s. 121.021(39)(a) or begun
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participation in the Deferred Retirement Option Program as
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provided in subsection (13), and a proper application has been
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filed in the manner prescribed by the department. The department
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may cancel an application for retirement benefits when the member
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or beneficiary fails to timely provide the information and
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documents required by this chapter and the department's rules.
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The department shall adopt rules establishing procedures for
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application for retirement benefits and for the cancellation of
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such application when the required information or documents are
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not received.
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(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
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(a) Any person who is retired under this chapter, except
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under the disability retirement provisions of subsection (4), may
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be employed by an employer that does not participate in a state-
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administered retirement system and may receive compensation from
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that employment without limiting or restricting in any way the
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retirement benefits payable to that person.
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(b)1.a. Any person who is retired under this chapter,
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except under the disability retirement provisions of subsection
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(4), may be reemployed by any private or public employer after
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retirement and receive retirement benefits and compensation from
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the his or her employer without limitation any limitations,
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except that the a person may not receive both a salary from
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reemployment with any agency participating in the Florida
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Retirement System and retirement benefits under this chapter for
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a period of 12 calendar months immediately after subsequent to
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the calendar month that termination is met as defined in s.
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121.021(39), except as provided in sub-subparagraph b. date of
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retirement. However, a DROP participant may shall continue
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employment and receive a salary during the period of
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participation in DROP the Deferred Retirement Option Program, as
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provided in subsection (13).
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b. Any person who is retired under a state-administered
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retirement system may not receive a retirement benefit if he or
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she receives compensation totaling $100,000 or more from an
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employer participating in the Florida Retirement System. This
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limitation begins immediately upon employment if the annualized
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compensation meets or exceeds the limit, or in the month that
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reported compensation meets or exceeds the limit during the plan
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year, and continues for as long as the expected payments equal or
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exceed $100,000. This limitation includes payments as defined in
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s. 121.021(22) for work performed in regularly established
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positions. The employer is responsible for notifying the Division
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of Retirement when this occurs, either at employment or if salary
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increases lead to the level specified. Any person employed in
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violation of this sub-subparagraph and any employing agency that
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knowingly employs or appoints such person without notifying the
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Division of Retirement to suspend retirement benefits shall be
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jointly and severally liable for reimbursement to the Florida
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Retirement System Trust Fund of any benefits paid during the
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reemployment limitation period.
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2. Any person to whom the limitation in subparagraph 1.
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applies who violates such reemployment limitation and who is
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reemployed with any agency participating in the Florida
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Retirement System after he or she has been retired and met the
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definition of termination in s. 121.021(39), but before
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completion of the 12-month limitation period, must shall give
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timely notice of this fact in writing to the employer and to the
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Division of Retirement and shall have his or her retirement
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benefits suspended while employed during for the balance of the
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12-month limitation period unless the person exceeds the 780-hour
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limitation in subparagraph 4. or subparagraph 5. Any person
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employed in violation of this paragraph and any employing agency
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that which knowingly employs or appoints such person without
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notifying the division of Retirement to suspend retirement
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benefits are shall be jointly and severally liable for
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reimbursement to the retirement trust fund of any benefits paid
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during the reemployment limitation period. To avoid liability,
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the such employing agency must shall have a written statement
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from the retiree that he or she is not retired from a state-
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administered retirement system. Any retirement benefits received
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while reemployed during this reemployment limitation period must
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shall be repaid to the Florida Retirement System Trust Fund
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retirement trust fund, and retirement benefits shall remain
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suspended until such repayment has been made. Benefits suspended
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beyond the reemployment limitation shall apply toward repayment
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of benefits received in violation of the reemployment limitation.
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3. A district school board may reemploy a retired member as
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a substitute or hourly teacher, education paraprofessional,
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transportation assistant, bus driver, or food service worker on a
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noncontractual basis after he or she has been retired and met the
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definition of termination for 1 calendar month, in accordance
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with s. 121.021(39). A district school board may reemploy a
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retired member as instructional personnel, as defined in s.
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1012.01(2)(a), on an annual contractual basis after he or she has
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been retired for 1 calendar month, in accordance with s.
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121.021(39). Any other retired member who is reemployed before
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meeting the definition of termination voids within 1 calendar
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month after retirement shall void his or her application for
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retirement benefits. District school boards reemploying such
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teachers, education paraprofessionals, transportation assistants,
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bus drivers, or food service workers are subject to the
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retirement contribution required by subparagraph 7.
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4. A community college board of trustees may reemploy a
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retired member as an adjunct instructor, that is, an instructor
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who is noncontractual and part-time, or as a participant in a
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phased retirement program within the Florida Community College
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System, after he or she has been retired and met the definition
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of termination for 1 calendar month, in accordance with s.
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121.021(39). Any retired member who is reemployed before meeting
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the definition of termination voids within 1 calendar month after
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retirement shall void his or her application for retirement
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benefits. Boards of trustees reemploying such instructors are
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subject to the retirement contribution required in subparagraph
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7. A retired member may be reemployed as an adjunct instructor
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for no more than 780 hours during the first 12 calendar months
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after meeting the definition of termination of retirement. Any
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retired member reemployed for more than 780 hours during the
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first 12 months of retirement must shall give timely notice in
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writing to the employer and to the Division of Retirement of the
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date he or she will exceed the limitation. The division shall
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suspend his or her retirement benefits for the remainder of the
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12-month limitation period first 12 months of retirement. Any
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person employed in violation of this subparagraph and any
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employing agency that which knowingly employs or appoints such
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person without notifying the division of Retirement to suspend
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retirement benefits are shall be jointly and severally liable for
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reimbursement to the retirement trust fund of any benefits paid
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during the reemployment limitation period. To avoid liability,
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the such employing agency must shall have a written statement
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from the retiree that he or she is not retired from a state-
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administered retirement system. Any retirement benefits received
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by a retired member while reemployed in excess of 780 hours
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during the 12-month limitation period must first 12 months of
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retirement shall be repaid to the Florida Retirement System Trust
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Fund, and retirement benefits shall remain suspended until
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repayment is made. Benefits suspended beyond the end of the 12-
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month limitation period retired member's first 12 months of
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retirement shall apply toward repayment of benefits received in
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violation of the 780-hour reemployment limitation.
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5. The State University System may reemploy a retired
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member as an adjunct faculty member or as a participant in a
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phased retirement program within the State University System
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after the retired member has met the definition of termination
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been retired for 1 calendar month, in accordance with s.
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121.021(39). Any retired member who is reemployed before meeting
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the definition of termination voids within 1 calendar month after
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retirement shall void his or her application for retirement
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benefits. The State University System is subject to the retired
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contribution required in subparagraph 7., as appropriate. A
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retired member may be reemployed as an adjunct faculty member or
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a participant in a phased retirement program for no more than 780
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hours during the first 12 calendar months after meeting the
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definition of termination of his or her retirement. Any retired
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member reemployed for more than 780 hours during the 12-month
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limitation period first 12 months of retirement shall give timely
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notice in writing to the employer and to the Division of
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Retirement of the date he or she will exceed the limitation. The
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division shall suspend his or her retirement benefits for the
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remainder of the 12-month limitation period first 12 months of
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retirement. Any person employed in violation of this subparagraph
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and any employing agency that which knowingly employs or appoints
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such person without notifying the division of Retirement to
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suspend retirement benefits are shall be jointly and severally
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liable for reimbursement to the retirement trust fund of any
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benefits paid during the reemployment limitation period. To avoid
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liability, such employing agency must shall have a written
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statement from the retiree that he or she is not retired from a
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state-administered retirement system. Any retirement benefits
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received by a retired member while reemployed in excess of 780
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hours during the first 12 months of retirement must shall be
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repaid to the Florida Retirement System Trust Fund, and
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retirement benefits shall remain suspended until repayment is
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made. Benefits suspended beyond the end of the retired member's
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12-month limitation period first 12 months of retirement shall
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apply toward repayment of benefits received in violation of the
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780-hour reemployment limitation.
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6. The Board of Trustees of the Florida School for the Deaf
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and the Blind may reemploy a retired member as a substitute
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teacher, substitute residential instructor, or substitute nurse
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on a noncontractual basis after he or she has met the definition
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of termination been retired for 1 calendar month, in accordance
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with s. 121.021(39). The Board of Trustees of the Florida School
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for the Deaf and the Blind may reemploy a retired member as
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instructional personnel, as defined in s. 1012.01(2)(a), on an
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annual contractual basis after he or she has been retired and met
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the definition of termination in s. 121.021(39). Any retired
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member who is reemployed before meeting the definition of
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termination voids within 1 calendar month after retirement shall
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void his or her application for retirement benefits. The Board of
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Trustees of the Florida School for the Deaf and the Blind
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reemploying such teachers, residential instructors, or nurses is
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subject to the retirement contribution required by subparagraph
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7. Reemployment of a retired member as a substitute teacher,
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substitute residential instructor, or substitute nurse is limited
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to 780 hours during the first 12 months of his or her retirement.
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Any retired member reemployed for more than 780 hours during the
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first 12 months of retirement shall give timely notice in writing
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to the employer and to the division of the date he or she will
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exceed the limitation. The division shall suspend his or her
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retirement benefits for the remainder of the first 12 months of
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retirement. Any person employed in violation of this subparagraph
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and any employing agency which knowingly employs or appoints such
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person without notifying the Division of Retirement to suspend
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retirement benefits shall be jointly and severally liable for
451
reimbursement to the retirement trust fund of any benefits paid
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during the reemployment limitation period. To avoid liability,
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such employing agency shall have a written statement from the
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retiree that he or she is not retired from a state-administered
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retirement system. Any retirement benefits received by a retired
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member while reemployed in excess of 780 hours during the first
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12 months of retirement shall be repaid to the Retirement System
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Trust Fund, and his or her retirement benefits shall remain
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suspended until payment is made. Benefits suspended beyond the
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end of the retired member's first 12 months of retirement shall
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apply toward repayment of benefits received in violation of the
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780-hour reemployment limitation.
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7.a. The employment by an employer of a any retiree or DROP
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participant of any state-administered retirement system does not
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affect shall have no effect on the average final compensation or
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years of creditable service of the retiree or DROP participant.
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b. Prior to July 1, 1991, and for initial enrollment as a
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renewed member through December 31, 2008, upon employment of any
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person, other than an elected officer as provided in s. 121.053,
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who is has been retired under a any state-administered retirement
471
program, the employer shall pay retirement contributions in an
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amount equal to the unfunded actuarial liability portion of the
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employer contribution which would be required for regular members
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of the Florida Retirement System. Effective July 1, 1991,
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contributions shall be made as provided in s. 121.122 for
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retirees who have with renewed membership or, as provided in
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subsection (13) for with respect to DROP participants.
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c. Any person who is retired under a state-administered
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retirement program and who is initially reemployed on or after
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January 1, 2009, may not renew membership in the Florida
481
Retirement System. The employer shall pay retirement
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contributions in an amount equal to the unfunded actuarial
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liability portion of the employer contribution that would be
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required for active members of the Florida Retirement System in
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addition to the contributions required by s. 121.76.
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8.a. Any person who has previously retired and who is
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holding an elective public office or an appointment to an
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elective public office initially eligible for the Elected
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Officers' Class on or after July 1, 1990, through December 31,
490
2008, shall be enrolled in the Florida Retirement System as
491
provided in s. 121.053(1)(c)(b) or, if holding an elective public
492
office that does not qualify for the Elected Officers' Class on
493
or after July 1, 1991, through December 31, 2008, shall be
494
enrolled in the Florida Retirement System as provided in s.
495
121.122, and shall continue to receive retirement benefits as
496
well as compensation for the elected officer's service for as
497
long as he or she remains in elective office. However, any
498
retired member who served in an elective office prior to July 1,
499
1990, suspended his or her retirement benefit, and had his or her
500
Florida Retirement System membership reinstated shall, upon
501
retirement from such office, have his or her retirement benefit
502
recalculated to include the additional service and compensation
503
earned.
504
b. Any person who has retired and who is holding an
505
elective public office or an appointment to an elective public
506
office initially eligible for the Elected Officers' Class on or
507
after January 1, 2009, shall not be enrolled in the Florida
508
Retirement System as provided in s. 121.053(1)(c) or, if holding
509
an elective public office that does not qualify for the Elected
510
Officers' Class and is initially eligible on or after January 1,
511
2009, shall not be enrolled in the Florida Retirement System as
512
provided in s. 121.122, and shall not continue to receive
513
retirement benefits during the first 12 calendar months after
514
meeting the definition of termination in s. 121.021(39).
515
9.a. Any person who is holding an elective public office
516
which is covered by the Florida Retirement System and who is
517
concurrently employed in nonelected covered employment before
518
January 1, 2009, may elect to retire while continuing employment
519
in the elective public office, if provided that he or she
520
terminates shall be required to terminate his or her nonelected
521
covered employment. Any person who exercises this election shall
522
receive his or her retirement benefits in addition to the
523
compensation of the elective office without regard to the time
524
limitations otherwise provided in this subsection. A No person
525
who seeks to exercise the provisions of this subparagraph, as
526
they the same existed prior to May 3, 1984, may not shall be
527
deemed to be retired under those provisions, unless such person
528
is eligible to retire under the provisions of this subparagraph,
529
as amended by chapter 84-11, Laws of Florida.
530
b. Any person who is holding an elective public office
531
which is covered by the Florida Retirement System and who is
532
concurrently employed in nonelected covered employment on or
533
after January 1, 2009, may not elect to retire while continuing
534
employment in the elective public office. Such person must meet
535
the definition of termination in s. 121.021(39) and is subject to
536
the limitations provided in this section.
537
10. The limitations of this paragraph apply to reemployment
538
in any capacity with an "employer" as defined in s. 121.021(10),
539
irrespective of the category of funds from which the person is
540
compensated.
541
11. A developmental research school may reemploy a retired
542
member as a substitute or hourly teacher or an education
543
paraprofessional, as defined in s. 1012.01(2), on a
544
noncontractual basis after he or she has been retired and met the
545
definition of termination in s. 121.021(39). A developmental
546
research school may reemploy a retired member as instructional
547
personnel, as defined in s. 1012.01(2)(a), on an annual
548
contractual basis after he or she has been retired and met the
549
definition of termination in s. 121.021(39). Any other retired
550
member who is reemployed within 12 calendar months after
551
retirement voids his or her application for retirement benefits.
552
A developmental research school that reemploys retired teachers
553
and education paraprofessionals are subject to the retirement
554
contribution required by subparagraph 7.
555
12. A charter school may reemploy a retired member as a
556
substitute or hourly teacher on a noncontractual basis after he
557
or she has been retired and met the definition of termination in
558
s. 121.021(39). A charter school may reemploy a retired member as
559
instructional personnel, as defined in s. 1012.01(2)(a), on an
560
annual contractual basis after he or she has been retired and met
561
the definition of termination in s. 121.021(39). Any other
562
retired member who is reemployed within 12 calendar months after
563
retirement voids his or her application for retirement benefits.
564
A charter school that reemploys such teachers is subject to the
565
retirement contribution required by subparagraph 7.
566
13. The reemployment after retirement provisions of this
567
paragraph apply to DROP participants effective upon the end of
568
DROP participation and meeting the definition of termination in
569
s. 121.021(39).
570
11. An employing agency may reemploy a retired member as a
571
firefighter or paramedic after the retired member has been
572
retired for 1 calendar month, in accordance with s. 121.021(39).
573
Any retired member who is reemployed within 1 calendar month
574
after retirement shall void his or her application for retirement
575
benefits. The employing agency reemploying such firefighter or
576
paramedic is subject to the retired contribution required in
577
subparagraph 8. Reemployment of a retired firefighter or
578
paramedic is limited to no more than 780 hours during the first
579
12 months of his or her retirement. Any retired member reemployed
580
for more than 780 hours during the first 12 months of retirement
581
shall give timely notice in writing to the employer and to the
582
division of the date he or she will exceed the limitation. The
583
division shall suspend his or her retirement benefits for the
584
remainder of the first 12 months of retirement. Any person
585
employed in violation of this subparagraph and any employing
586
agency which knowingly employs or appoints such person without
587
notifying the Division of Retirement to suspend retirement
588
benefits shall be jointly and severally liable for reimbursement
589
to the Retirement System Trust Fund of any benefits paid during
590
the reemployment limitation period. To avoid liability, such
591
employing agency shall have a written statement from the retiree
592
that he or she is not retired from a state-administered
593
retirement system. Any retirement benefits received by a retired
594
member while reemployed in excess of 780 hours during the first
595
12 months of retirement shall be repaid to the Retirement System
596
Trust Fund, and retirement benefits shall remain suspended until
597
repayment is made. Benefits suspended beyond the end of the
598
retired member's first 12 months of retirement shall apply toward
599
repayment of benefits received in violation of the 780-hour
600
reemployment limitation.
601
(c) The provisions of this subsection apply to retirees, as
602
defined in s. 121.4501(2)(j), of the Public Employee Optional
603
Retirement Program created in part II, subject to the following
604
conditions:
605
1. Such retirees may not be reemployed with an employer
606
participating in the Florida Retirement System as provided in
607
paragraph (b) until such person has been retired for 12 3
608
calendar months, unless the participant has reached the normal
609
retirement requirements of the defined benefit plan as provided
610
in s. 121.021(29).
611
2. Such retiree employed in violation of this subsection
612
and any employing agency that knowingly employs or appoints such
613
person shall be jointly and severally liable for reimbursement of
614
any benefits paid to the retirement trust fund from which the
615
benefits were paid, including the Retirement System Trust Fund
616
and the Public Employee Optional Retirement Program Trust Fund,
617
as appropriate. To avoid liability, such employing agency must
618
have a written statement from the retiree that he or she is not
619
retired from a state-administered retirement system.
620
(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
621
subject to the provisions of this section, the Deferred
622
Retirement Option Program, hereinafter referred to as the DROP,
623
is a program under which an eligible member of the Florida
624
Retirement System may elect to participate, deferring receipt of
625
retirement benefits while continuing employment with his or her
626
Florida Retirement System employer. The deferred monthly benefits
627
shall accrue in the System Trust Fund on behalf of the
628
participant, plus interest compounded monthly, for the specified
629
period of the DROP participation, as provided in paragraph (c).
630
Upon termination of employment as required in s. 121.021(39)(b),
631
the participant shall receive the total DROP benefits and begin
632
to receive the previously determined normal retirement benefits.
633
Participation in the DROP does not guarantee employment for the
634
specified period of DROP. Participation in the DROP by an
635
eligible member beyond the initial 60-month period as authorized
636
in this subsection shall be on an annual contractual basis for
637
all participants.
638
(a) Eligibility of member to participate in the DROP.--All
639
active Florida Retirement System members in a regularly
640
established position, and all active members of either the
641
Teachers' Retirement System established in chapter 238 or the
642
State and County Officers' and Employees' Retirement System
643
established in chapter 122, which systems are consolidated within
644
the Florida Retirement System under s. 121.011, are eligible to
645
elect participation in the DROP if provided that:
646
1. The member is not a renewed member of the Florida
647
Retirement System under s. 121.122, or a member or renewed member
648
of the State Community College System Optional Retirement Program
649
under s. 121.051, the Senior Management Service Optional Annuity
650
Program under s. 121.055, or the optional retirement program for
651
the State University System under s. 121.35.
652
2. Except as provided in subparagraph 6., election to
653
participate is made within 12 months immediately following the
654
date on which the member first reaches normal retirement date,
655
or, for a member who reaches normal retirement date based on
656
service before he or she reaches age 62, or age 55 for Special
657
Risk Class members, election to participate may be deferred to
658
the 12 months immediately following the date the member attains
659
57, or age 52 for Special Risk Class members. For a member who
660
first reached normal retirement date or the deferred eligibility
661
date described above prior to the effective date of this section,
662
election to participate shall be made within 12 months after the
663
effective date of this section. A member who fails to make an
664
election within the such 12-month limitation period forfeits
665
shall forfeit all rights to participate in the DROP. The member
666
shall advise his or her employer and the division in writing of
667
the date on which the DROP begins shall begin. The Such beginning
668
date may be subsequent to the 12-month election period, but must
669
be within the original 60-month participation or, with respect to
670
members who are instructional personnel employed by the Florida
671
School for the Deaf and the Blind and who have received
672
authorization by the Board of Trustees of the Florida School for
673
the Deaf and the Blind to participate in the DROP beyond 60
674
months, or who are instructional personnel as defined in s.
675
1012.01(2)(a)-(d) in grades K-12 and who have received
676
authorization by the district school superintendent to
677
participate in the DROP beyond 60 months, the 96-month limitation
678
period as provided in subparagraph (b)1. When establishing
679
eligibility of the member to participate in the DROP for the 60-
680
month or, with respect to members who are instructional personnel
681
employed by the Florida School for the Deaf and the Blind and who
682
have received authorization by the Board of Trustees of the
683
Florida School for the Deaf and the Blind to participate in the
684
DROP beyond 60 months, or who are instructional personnel as
685
defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
686
received authorization by the district school superintendent to
687
participate in the DROP beyond 60 months, the 96-month maximum
688
participation period, the member may elect to include or exclude
689
any optional service credit purchased by the member from the
690
total service used to establish the normal retirement date. A
691
member who has with dual normal retirement dates is shall be
692
eligible to elect to participate in DROP within 12 months after
693
attaining normal retirement date in either class.
694
3. The employer of a member electing to participate in the
695
DROP, or employers if dually employed, shall acknowledge in
696
writing to the division the date the member's participation in
697
the DROP begins and the date the member's employment and DROP
698
participation will terminate.
699
4. Simultaneous employment of a participant by additional
700
Florida Retirement System employers subsequent to the
701
commencement of participation in the DROP is shall be permissible
702
if provided such employers acknowledge in writing a DROP
703
termination date no later than the participant's existing
704
termination date or the maximum participation 60-month limitation
705
period as provided in subparagraph (b)1.
706
5. A DROP participant may change employers while
707
participating in the DROP, subject to the following:
708
a. A change of employment must take place without a break
709
in service so that the member receives salary for each month of
710
continuous DROP participation. If a member receives no salary
711
during a month, DROP participation shall cease unless the
712
employer verifies a continuation of the employment relationship
713
for such participant pursuant to s. 121.021(39)(b).
714
b. Such participant and new employer shall notify the
715
division of the identity of the new employer on forms required by
716
the division as to the identity of the new employer.
717
c. The new employer shall acknowledge, in writing, the
718
participant's DROP termination date, which may be extended but
719
not beyond the maximum participation original 60-month or, with
720
respect to members who are instructional personnel employed by
721
the Florida School for the Deaf and the Blind and who have
722
received authorization by the Board of Trustees of the Florida
723
School for the Deaf and the Blind to participate in the DROP
724
beyond 60 months, or who are instructional personnel as defined
725
in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
726
authorization by the district school superintendent to
727
participate in the DROP beyond 60 months, the 96-month period
728
provided in subparagraph (b)1., shall acknowledge liability for
729
any additional retirement contributions and interest required if
730
the participant fails to timely terminate employment, and is
731
shall be subject to the adjustment required in sub-subparagraph
732
(c)5.d.
733
6. Effective July 1, 2001, for instructional personnel as
734
defined in s. 1012.01(2), election to participate in the DROP may
735
shall be made at any time following the date on which the member
736
first reaches normal retirement date. The member shall advise his
737
or her employer and the division in writing of the date on which
738
DROP begins the Deferred Retirement Option Program shall begin.
739
When establishing eligibility of the member to participate in the
740
DROP for the 60-month or, with respect to members who are
741
instructional personnel employed by the Florida School for the
742
Deaf and the Blind and who have received authorization by the
743
Board of Trustees of the Florida School for the Deaf and the
744
Blind to participate in the DROP beyond 60 months, or who are
745
instructional personnel as defined in s. 1012.01(2)(a)-(d) in
746
grades K-12 and who have received authorization by the district
747
school superintendent to participate in the DROP beyond 60
748
months, the 96-month maximum participation period, as provided in
749
subparagraph (b)1., the member may elect to include or exclude
750
any optional service credit purchased by the member from the
751
total service used to establish the normal retirement date. A
752
member who has with dual normal retirement dates is shall be
753
eligible to elect to participate in either class.
754
(b) Participation in the DROP.--
755
1.a. An eligible member may elect to participate in the
756
DROP for a period not to exceed a maximum of 60 calendar months
757
or, except as provided in subparagraph b.
758
b. Members with respect to members who are instructional
759
personnel employed by the Florida School for the Deaf and the
760
Blind and who are authorized have received authorization by the
761
Board of Trustees of the Florida School for the Deaf and the
762
Blind to participate in the DROP beyond 60 months, or who are
763
instructional personnel as defined in s. 1012.01(2)(a)-(d) in
764
grades K-12 and who are authorized have received authorization by
765
the district school superintendent to participate in the DROP
766
beyond 60 calendar months, or who are instructional personnel as
767
defined in s. 1012.01(2)(a)-(d) employed by a developmental
768
research school and who are authorized by the school's director,
769
or if the school has no director, by the school's principal, to
770
participate in DROP beyond the original 60-month period, for up
771
to 36 96 calendar months immediately following the DROP
772
termination date selected for participation in sub-subparagraph
773
a. date on which the member first reaches his or her normal
774
retirement date or the date to which he or she is eligible to
775
defer his or her election to participate as provided in
776
subparagraph (a)2. However, a member who has reached normal
777
retirement date prior to the effective date of the DROP shall be
778
eligible to participate in the DROP for a period of time not to
779
exceed 60 calendar months or, with respect to members who are
780
instructional personnel employed by the Florida School for the
781
Deaf and the Blind and who have received authorization by the
782
Board of Trustees of the Florida School for the Deaf and the
783
Blind to participate in the DROP beyond 60 months, or who are
784
instructional personnel as defined in s. 1012.01(2)(a)-(d) in
785
grades K-12 and who have received authorization by the district
786
school superintendent to participate in the DROP beyond 60
787
calendar months, 96 calendar months immediately following the
788
effective date of the DROP, except a member of the Special Risk
789
Class who has reached normal retirement date prior to the
790
effective date of the DROP and whose total accrued value exceeds
791
75 percent of average final compensation as of his or her
792
effective date of retirement shall be eligible to participate in
793
the DROP for no more than 36 calendar months immediately
794
following the effective date of the DROP.
795
2. Upon deciding to participate in the DROP, the member
796
shall submit, on forms required by the division:
797
a. A written election to participate in the DROP;
798
b. Selection of the DROP participation and termination
799
dates, which satisfy the limitations stated in paragraph (a) and
800
subparagraph 1. The Such termination date must shall be in a
801
binding letter of resignation to with the employer, establishing
802
a deferred termination date. The member may change the
803
termination date within the limitations of subparagraph 1., but
804
only with the written approval of the his or her employer;
805
c. A properly completed DROP application for service
806
retirement as provided in this section; and
807
d. Any other information required by the division.
808
3. The DROP participant is shall be a retiree under the
809
Florida Retirement System for all purposes, except for paragraph
810
(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, and
811
121.122. DROP participation is final and cannot be canceled by
812
the participant after the first payment is credited during the
813
DROP participation period. However, participation in the DROP
814
does not alter the participant's employment status and the member
815
is such employee shall not be deemed retired from employment
816
until his or her deferred resignation is effective and
817
termination occurs as provided in s. 121.021(39).
818
4. Elected officers are shall be eligible to participate in
819
the DROP subject to the following:
820
a. An elected officer who reaches normal retirement date
821
during a term of office may defer the election to participate in
822
the DROP until the next succeeding term in that office. An Such
823
elected officer who exercises this option may participate in the
824
DROP for up to 60 calendar months or a period of no longer than
825
the such succeeding term of office, whichever is less.
826
b. An elected or a nonelected participant may run for a
827
term of office while participating in DROP and, if elected,
828
extend the DROP termination date accordingly, except, however, if
829
such additional term of office exceeds the 60-month limitation
830
established in subparagraph 1., and the officer does not resign
831
from office within such 60-month limitation, the retirement and
832
the participant's DROP is shall be null and void as provided in
833
sub-subparagraph (c)5.d.
834
c.(I) For DROP participation ending before January 1, 2009,
835
an elected officer who is dually employed and elects to
836
participate in DROP must shall be required to satisfy the
837
definition of termination within the original 60-month period or
838
maximum participation, with respect to members who are
839
instructional personnel employed by the Florida School for the
840
Deaf and the Blind and who have received authorization by the
841
Board of Trustees of the Florida School for the Deaf and the
842
Blind to participate in the DROP beyond 60 months, or who are
843
instructional personnel as defined in s. 1012.01(2)(a)-(d) in
844
grades K-12 and who have received authorization by the district
845
school superintendent to participate in the DROP beyond 60
846
months, the 96-month limitation period as provided in
847
subparagraph 1. for the nonelected position and may continue
848
employment as an elected officer as provided in s. 121.053. The
849
elected officer shall will be enrolled as a renewed member in the
850
Elected Officers' Class or the Regular Class, as provided in ss.
851
121.053 and 121.122, on the first day of the month after
852
termination of employment in the nonelected position and
853
termination of DROP. Distribution of the DROP benefits shall be
854
made as provided in paragraph (c).
855
(II) For DROP participation ending on or after January 1,
856
2009, an elected officer who is dually employed and elects to
857
participate in DROP must satisfy the definition of termination in
858
s. 121.021(39) within the original 60-month period or maximum
859
period as provided in subparagraph 1.
860
(c) Benefits payable under the DROP.--
861
1. Effective on with the date of DROP participation, the
862
member's initial normal monthly benefit, including creditable
863
service, optional form of payment, and average final
864
compensation, and the effective date of retirement are shall be
865
fixed. The beneficiary established under the Florida Retirement
866
System shall be the beneficiary eligible to receive any DROP
867
benefits payable if the DROP participant dies prior to the
868
completion of the period of DROP participation. If In the event a
869
joint annuitant predeceases the member, the member may name a
870
beneficiary to receive accumulated DROP benefits payable. The
871
Such retirement benefit, the annual cost of living adjustments
872
provided in s. 121.101, and interest shall accrue monthly in the
873
System Trust Fund. The Such interest shall accrue at an effective
874
annual rate of 6.5 percent compounded monthly, on the prior
875
month's accumulated ending balance, up to the month of
876
termination or death.
877
2. Each employee who elects to participate in the DROP may
878
shall be allowed to elect to receive a lump-sum payment for
879
accrued annual leave earned in accordance with agency policy upon
880
beginning participation in the DROP. The Such accumulated leave
881
payment certified to the division upon commencement of DROP shall
882
be included in the calculation of the member's average final
883
compensation. The employee electing the such lump-sum payment is
884
upon beginning participation in DROP will not be eligible to
885
receive a second lump-sum payment upon termination, except to the
886
extent the employee has earned additional annual leave which
887
combined with the original payment does not exceed the maximum
888
lump-sum payment allowed by the employing agency's policy or
889
rules. An Such early lump-sum payment shall be based on the
890
hourly wage of the employee at the time he or she begins
891
participation in the DROP. If the member elects to wait and
892
receive such lump-sum payment upon termination of DROP and
893
termination of employment with the employer, any accumulated
894
leave payment made at that time may not cannot be included in the
895
member's retirement benefit, which was determined and fixed by
896
law when the employee elected to participate in the DROP.
897
3. The effective date of DROP participation and the
898
effective date of retirement of a DROP participant shall be the
899
first day of the month selected by the member to begin
900
participation in the DROP, provided such date is properly
901
established, with the written confirmation of the employer, and
902
the approval of the division, on forms required by the division.
903
4. Normal retirement benefits and any interest thereon
904
shall continue to accrue in the DROP until the established
905
termination date of the DROP, or until the participant terminates
906
employment or dies prior to such date. Although individual DROP
907
accounts shall not be established, a separate accounting of each
908
participant's accrued benefits under the DROP shall be calculated
909
and provided to participants.
910
5. At the conclusion of the participant's DROP, the
911
division shall distribute the participant's total accumulated
912
DROP benefits, subject to the following provisions:
913
a. The division shall receive verification by the
914
participant's employer or employers that the such participant has
915
terminated employment as provided in s. 121.021(39)(b).
916
b. The terminated DROP participant or, if deceased, the
917
such participant's named beneficiary, shall elect on forms
918
provided by the division to receive payment of the DROP benefits
919
in accordance with one of the options listed below. If For a
920
participant or beneficiary who fails to elect a method of payment
921
within 60 days of termination of the DROP, the division shall
922
will pay a lump sum as provided in sub-sub-subparagraph (I).
923
(I) Lump sum.--All accrued DROP benefits, plus interest,
924
less withholding taxes remitted to the Internal Revenue Service,
925
shall be paid to the DROP participant or surviving beneficiary.
926
(II) Direct rollover.--All accrued DROP benefits, plus
927
interest, shall be paid from the DROP directly to the custodian
928
of an eligible retirement plan as defined in s. 402(c)(8)(B) of
929
the Internal Revenue Code. However, in the case of an eligible
930
rollover distribution to the surviving spouse of a deceased
931
participant, an eligible retirement plan is an individual
932
retirement account or an individual retirement annuity as
933
described in s. 402(c)(9) of the Internal Revenue Code.
934
(III) Partial lump sum.--A portion of the accrued DROP
935
benefits shall be paid to the DROP participant or surviving
936
spouse, less withholding taxes remitted to the Internal Revenue
937
Service, and the remaining DROP benefits shall be transferred
938
directly to the custodian of an eligible retirement plan as
939
defined in s. 402(c)(8)(B) of the Internal Revenue Code. However,
940
in the case of an eligible rollover distribution to the surviving
941
spouse of a deceased participant, an eligible retirement plan is
942
an individual retirement account or an individual retirement
943
annuity as described in s. 402(c)(9) of the Internal Revenue
944
Code. The proportions shall be specified by the DROP participant
945
or surviving beneficiary.
946
c. The form of payment selected by the DROP participant or
947
surviving beneficiary must comply complies with the minimum
948
distribution requirements of the Internal Revenue Code.
949
d. A DROP participant who fails to terminate employment as
950
defined in s. 121.021(39)(b) shall be deemed not to be retired,
951
and the DROP election is shall be null and void. Florida
952
Retirement System membership shall be reestablished retroactively
953
to the date of the commencement of the DROP, and each employer
954
with whom the participant continues employment must shall be
955
required to pay to the Florida Retirement System Trust Fund the
956
difference between the DROP contributions paid in paragraph (i)
957
and the contributions required for the applicable Florida
958
Retirement System class of membership during the period the
959
member participated in the DROP, plus 6.5 percent interest
960
compounded annually.
961
6. The retirement benefits of any DROP participant who
962
meets the definition of termination in s. 121.021(39)(b), but is
963
in violation of the reemployment provisions as provided in
964
subsection (9), shall be suspended during those months in which
965
the member is in violation. Any member employed in violation of
966
this subparagraph and any employing agency that knowingly employs
967
or appoints such member without notifying the Division of
968
Retirement to suspend retirement benefits are jointly and
969
severally liable for any benefits paid during the reemployment
970
limitation period. To avoid liability, the employing agency must
971
have a written statement from the retiree that he or she is not
972
retired from a state-administered retirement system. Any
973
retirement benefits received by a retired member while employed
974
in violation of the reemployment limitations during the first 12
975
months after meeting termination must be repaid to the Florida
976
Retirement System Trust Fund, and his or her retirement benefits
977
shall remain suspended until payment is made. Benefits suspended
978
beyond the end of the retired member's first 12 calendar months
979
after meeting the definition of termination in s. 121.021(39)(b)
980
shall apply toward repayment of benefits received in violation of
981
the reemployment limitations.
982
7.6. The accrued benefits of any DROP participant, and any
983
contributions accumulated under the such program, are shall not
984
be subject to assignment, execution, attachment, or to any legal
985
process whatsoever, except for qualified domestic relations
986
orders by a court of competent jurisdiction, income deduction
987
orders as provided in s. 61.1301, and federal income tax levies.
988
8.7. DROP participants are shall not be eligible for
989
disability retirement benefits as provided in subsection (4).
990
(d) Death benefits under the DROP.--
991
1. Upon the death of a DROP participant, the named
992
beneficiary shall be entitled to apply for and receive the
993
accrued benefits in the DROP as provided in sub-subparagraph
994
(c)5.b.
995
2. The normal retirement benefit accrued to the DROP during
996
the month of a participant's death shall be the final monthly
997
benefit credited for such DROP participant.
998
3. Eligibility to participate in the DROP terminates upon
999
death of the participant. If the participant dies on or after the
1000
effective date of enrollment in the DROP, but prior to the first
1001
monthly benefit being credited to the DROP, Florida Retirement
1002
System benefits shall be paid in accordance with subparagraph
1003
(7)(c)1. or subparagraph 2.
1004
4. A DROP participants' survivors shall not be eligible to
1005
receive Florida Retirement System death benefits as provided in
1006
paragraph (7)(d).
1007
(e) Cost-of-living adjustment.--On each July 1, the
1008
participants' normal retirement benefit shall be increased as
1009
provided in s. 121.101.
1010
(f) Retiree health insurance subsidy.--DROP participants
1011
are not eligible to apply for the retiree health insurance
1012
subsidy payments as provided in s. 112.363 until such
1013
participants have terminated employment and participation in the
1014
DROP.
1015
(g) Renewed membership.--DROP participants must meet the
1016
definition of termination in s. 121.021(39)(b) and must meet
1017
eligibility requirements shall not be eligible for renewed
1018
membership in the Florida Retirement System under ss. 121.053 and
1019
121.122 until termination of employment is effectuated as
1020
provided in s. 121.021(39)(b).
1021
(h) Employment limitation after DROP participation.--Upon
1022
satisfying the definition of termination of employment as
1023
provided in s. 121.021(39)(b), DROP participants shall be subject
1024
to such reemployment limitations as other retirees. Reemployment
1025
restrictions applicable to retirees as provided in subsection (9)
1026
shall not apply to DROP participants until their employment and
1027
participation in the DROP are terminated.
1028
(i) Contributions.--
1029
1. All employers paying the salary of a DROP participant
1030
filling a regularly established position shall contribute 8.0
1031
percent of such participant's gross compensation for the period
1032
of July 1, 2002, through June 30, 2003, and 11.56 percent of such
1033
compensation thereafter, which shall constitute the entire
1034
employer DROP contribution with respect to such participant. Such
1035
contributions, payable to the System Trust Fund in the same
1036
manner as required in s. 121.071, shall be made as appropriate
1037
for each pay period and are in addition to contributions required
1038
for social security and the Retiree Health Insurance Subsidy
1039
Trust Fund. Such employer, social security, and health insurance
1040
subsidy contributions are not included in the DROP.
1041
2. The employer shall, in addition to subparagraph 1., also
1042
withhold one-half of the entire social security contribution
1043
required for the participant. Contributions for social security
1044
by each participant and each employer, in the amount required for
1045
social security coverage as now or hereafter provided by the
1046
federal Social Security Act, shall be in addition to
1047
contributions specified in subparagraph 1.
1048
3. All employers paying the salary of a DROP participant
1049
filling a regularly established position shall contribute the
1050
percent of such participant's gross compensation required in s.
1051
121.071(4), which shall constitute the employer's health
1052
insurance subsidy contribution with respect to such participant.
1053
Such contributions shall be deposited by the administrator in the
1054
Retiree Health Insurance Subsidy Trust Fund.
1055
(j) Forfeiture of retirement benefits.--Nothing in this
1056
section shall be construed to remove DROP participants from the
1057
scope of s. 8(d), Art. II of the State Constitution, s. 112.3173,
1058
and paragraph (5)(f). DROP participants who commit a specified
1059
felony offense while employed will be subject to forfeiture of
1060
all retirement benefits, including DROP benefits, pursuant to
1061
those provisions of law.
1062
(k) Administration of program.--The division shall make
1063
such rules as are necessary for the effective and efficient
1064
administration of this subsection. The division shall not be
1065
required to advise members of the federal tax consequences of an
1066
election related to the DROP but may advise members to seek
1067
independent advice.
1068
(14) PAYMENT OF BENEFITS.--This subsection applies to the
1069
payment of benefits to a payee (retiree or beneficiary) under the
1070
Florida Retirement System:
1071
(a) Federal income tax shall be withheld in accordance with
1072
federal law, unless the payee elects otherwise on Form W-4P. The
1073
division shall prepare and distribute to each recipient of
1074
monthly retirement benefits an appropriate income tax form that
1075
reflects the recipient's income and federal income tax withheld
1076
for the calendar year just ended.
1077
(b) Subject to approval by the division in accordance with
1078
rule 60S-4.015, Florida Administrative Code, a payee receiving
1079
retirement benefits under the Florida Retirement system may also
1080
have the following payments deducted from his or her monthly
1081
benefit:
1082
1. Premiums for life and health-related insurance policies
1083
from approved companies.
1084
2. Life insurance premiums for the State Group Life
1085
Insurance Plan, if authorized in writing by the payee and by the
1086
department of Management Services.
1087
3. Repayment of overpayments from the Florida Retirement
1088
System Trust Fund, the State Employees' Health Insurance Trust
1089
Fund, or the State Employees' Life Insurance Trust Fund, upon
1090
notification of the payee.
1091
4. Payments to an alternate payee for alimony or, child
1092
support pursuant to an income deduction order under s. 61.1301,
1093
or division of marital assets pursuant to a qualified domestic
1094
relations order under s. 222.21 or an income deduction order
1095
under s. 61.1301.
1096
5. Payments to the Internal Revenue Service for federal
1097
income tax levies, upon notification of the division by the
1098
Internal Revenue Service.
1099
(c) A payee must shall notify the division of any change in
1100
his or her address. The division may suspend benefit payments to
1101
a payee if correspondence sent to the payee's mailing address is
1102
returned due to an incorrect address. Benefit payments shall be
1103
resumed upon notification to the division of the payee's new
1104
address.
1105
(d) A payee whose retirement benefits are reduced by the
1106
application of maximum benefit limits under s. 415(b) of the
1107
Internal Revenue Code, as specified in s. 121.30(5), shall have
1108
the portion of his or her calculated benefit in the Florida
1109
Retirement System defined benefit plan which exceeds such federal
1110
limitation paid through the Florida Retirement System
1111
Preservation of Benefits Plan, as provided in s. 121.1001.
1112
(e) The division may issue retirement benefits payable for
1113
division of marital assets pursuant to a qualified domestic
1114
relations order directly to the alternate payee, any court order
1115
to the contrary notwithstanding, in order to meet Internal
1116
Revenue Code requirements.
1117
(f)(e) A No benefit may not be reduced for the purpose of
1118
preserving the member's eligibility for a federal program.
1119
(g)(f) The division shall adopt rules establishing
1120
procedures for determining that the persons to whom benefits are
1121
being paid are still living. The division shall suspend the
1122
benefits being paid to any payee if when it is unable to contact
1123
such payee and to confirm that he or she is still living.
1124
Section 6. Effective January 1, 2009, sections 121.093 and
1125
121.094, Florida Statutes, are repealed.
1126
Section 7. Effective January 1, 2009, section 121.122,
1127
Florida Statutes, is amended to read:
1128
121.122 Renewed membership in system.--
1129
(1) Any retiree of a state-administered retirement system
1130
who is initially reemployed on or after January 1, 2009, shall
1131
not be eligible for renewed membership.
1132
(2) Except as provided in s. 121.053, effective July 1,
1133
1991, through December 31, 2008, any retiree of a state-
1134
administered retirement system who is initially reemployed
1135
employed in a regularly established position with a covered
1136
employer shall be enrolled as a compulsory member of the Regular
1137
Class of the Florida Retirement System or, effective July 1,
1138
1997, through December 31, 2008, any retiree of a state-
1139
administered retirement system who is initially reemployed
1140
employed in a position included in the Senior Management Service
1141
Class shall be enrolled as a compulsory member of the Senior
1142
Management Service Class of the Florida Retirement System as
1143
provided in s. 121.055, and shall be entitled to receive an
1144
additional retirement benefit, subject to the following
1145
conditions:
1146
(1)(a) Such member shall resatisfy the age and service
1147
requirements as provided in this chapter for initial membership
1148
under the system, unless such member elects to participate in the
1149
Senior Management Service Optional Annuity Program in lieu of the
1150
Senior Management Service Class, as provided in s. 121.055(6).
1151
(b) Such member shall not be entitled to disability
1152
benefits as provided in s. 121.091(4).
1153
(c) Such member must meet the reemployment after retirement
1154
limitations as provided in s. 121.091(9), as applicable.
1155
(3)(2) Upon renewed membership or reemployment of a
1156
retiree, the employer of such member shall pay the applicable
1157
employer contributions as required by ss. 121.71, 121.74, 121.76,
1158
and 112.363 121.055(3) and 121.071(1)(a) and (4).
1159
(4)(3) The retiree of a state-administered retirement
1160
system who is initially reemployed before January 1, 2009, Such
1161
member shall be entitled to purchase additional retirement credit
1162
in the Regular Class or the Senior Management Service Class, as
1163
applicable, for any postretirement service performed in a
1164
regularly established position as follows:
1165
(a) For regular class service prior to July 1, 1991, by
1166
paying the Regular Class applicable employee and employer
1167
contributions for the period being claimed, plus 4 percent
1168
interest compounded annually from first year of service claimed
1169
until July 1, 1975, and 6.5 percent interest compounded
1170
thereafter, until full payment is made to the Florida Retirement
1171
System Trust Fund; or
1172
(b) For Senior Management Service Class prior to June 1,
1173
1997, as provided in s. 121.055(1)(j).
1174
1175
The contribution for postretirement service between July 1, 1985,
1176
and July 1, 1991, for which the reemployed retiree contribution
1177
was paid, shall be the difference between such contribution and
1178
the total applicable contribution for the period being claimed,
1179
plus interest. The employer of such member may pay the applicable
1180
employer contribution in lieu of the member. If a member does not
1181
wish to claim credit for all of the postretirement service for
1182
which he or she is eligible, the service the member claims must
1183
be the most recent service.
1184
(5)(4) No creditable service for which credit was received,
1185
or which remained unclaimed, at retirement may be claimed or
1186
applied toward service credit earned following renewed
1187
membership. However, for retirees initially reemployed before
1188
January 1, 2009, service earned as an elected officer with
1189
renewed membership in the Elected Officers' Class may be used in
1190
conjunction with creditable service earned under this section,
1191
provided the applicable vesting requirements and other existing
1192
statutory conditions required by this chapter are met.
1193
(6)(5) Notwithstanding any other limitations provided in
1194
this section, a participant of the State University System
1195
Optional Retirement Program or the Senior Management Service
1196
Optional Annuity Program who terminated employment and received a
1197
distribution commenced receiving an annuity under the provisions
1198
of the optional program, who initially renews membership before
1199
January 1, 2009, in the Regular Class as required by this section
1200
upon reemployment after retirement, and who had previously earned
1201
creditable Florida Retirement System service that was not
1202
included in any retirement benefit may include such previous
1203
service toward vesting and service credit in the second career
1204
benefit provided under renewed membership.
1205
(7)(6) Any renewed member who is not receiving the maximum
1206
health insurance subsidy provided in s. 112.363 shall be entitled
1207
to earn additional credit toward the maximum health insurance
1208
subsidy. Any additional subsidy due because of such additional
1209
credit shall be received only at the time of payment of the
1210
second career retirement benefit. In no case shall the total
1211
health insurance subsidy received by a retiree receiving benefits
1212
from initial and renewed membership exceed the maximum allowed in
1213
s. 112.363.
1214
Section 8. Paragraph (a) of subsection (4) of section
1215
121.35, Florida Statutes, is amended, paragraph (g) is added to
1216
that subsection, and effective January 1, 2009, paragraph (e) of
1217
subsection (5) is amended, to read:
1218
121.35 Optional retirement program for the State University
1219
System.--
1220
(4) CONTRIBUTIONS.--
1221
(a) Through June 30, 2001, each employer shall contribute
1222
on behalf of each participant in the optional retirement program
1223
an amount equal to the normal cost portion of the employer
1224
retirement contribution which would be required if the
1225
participant were a regular member of the Florida Retirement
1226
System defined benefit program, plus the portion of the
1227
contribution rate required in s. 112.363(8) that would otherwise
1228
be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1229
Effective July 1, 2001, each employer shall contribute on behalf
1230
of each participant in the optional program an amount equal to
1231
10.43 percent of the participant's gross monthly compensation.
1232
The department shall deduct an amount approved by the Legislature
1233
to provide for the administration of this program. The payment of
1234
the contributions to the optional program which is required by
1235
this paragraph for each participant shall be made by the employer
1236
to the department, which shall forward the contributions to the
1237
designated company or companies contracting for payment of
1238
benefits for the participant under the program. However, such
1239
contributions paid on behalf of an employee described in
1240
paragraph (3)(c) shall not be forwarded to a company and shall
1241
not begin to accrue interest until the employee has executed a an
1242
annuity contract and notified the department.
1243
(g) Effective July 1, 2008, for purposes of paragraph (a)
1244
and notwithstanding s. 121.021(22)(b)1., the term "participant's
1245
gross monthly compensation" includes salary payments made to
1246
eligible clinical faculty from a state university using funds
1247
provided by a faculty practice plan authorized by the Board of
1248
Governors of the State University System if:
1249
1. There is not any employer contribution from the state
1250
university to any other retirement program with respect to such
1251
salary payments; and
1252
2. The employer contribution on behalf of the participant
1253
in the optional retirement program with respect to such salary
1254
payments is made using funds provided by the faculty practice
1255
plan.
1256
(5) BENEFITS.--
1257
(e) A participant who chooses to receive his or her
1258
benefits upon termination of employment as defined in s.
1259
121.021(39) shall have responsibility to notify the provider
1260
company of the date on which he or she wishes benefits funded by
1261
employer contributions to begin. Benefits may be deferred until
1262
such time as the participant chooses to make such application.
1263
1264
================ T I T L E A M E N D M E N T ================
1265
And the title is amended as follows:
1266
Delete line(s) 15-22
1267
and insert:
1268
amending s. 121.053, F.S.; revising provisions relating to
1269
participation in the Elected Officers' Class for retired
1270
members; amending s. 121.055, F.S.; revising provisions
1271
relating to participation in the Senior Management Service
1272
Class; amending s. 121.091, F.S.; revising limitations on
1273
the payment of retirement benefits for certain retired
1274
persons who are reemployed by an employer participating in
1275
a state-administered retirement system; deleting a
1276
restriction on the reemployment of certain personnel by
1277
the Florida School for the Deaf and the Blind; prohibiting
1278
certain persons holding public office from electing to
1279
retire while continuing employment in that elected office;
1280
deleting a provision authorizing an employing agency to
1281
reemploy a retired member as a firefighter or paramedic
1282
after a specified period; providing certain limitations
1283
for DROP participants; clarifying that DROP participation
1284
cannot be canceled; providing for the suspension of DROP
1285
benefits to a participant who is reemployed; authorizing
1286
the Division of Retirement to issue benefits directly to
1287
the alternate payee pursuant to an income deduction order
1288
or a qualified domestic relations order; repealing s.
1289
121.093, F.S., authorizing a developmental research school
1290
and the Florida School for the Deaf and the Blind to
1291
reemploy instructional personnel after retirement;
1292
repealing s. 121.094, F.S., authorizing charter schools to
1293
reemploy instructional personnel after retirement;
1294
amending s. 121.122, F.S.; providing that certain persons
1295
are ineligible for renewed membership in the Florida
1296
Retirement System;amending s. 121.35, F.S.; requiring the
1297
participating employee in the optional retirement program
1298
to execute a contract, not just an annuity contract, with
1299
a designated company in order for employee contributions
1300
to be forwarded to the company and for interest to accrue;
1301
defining the term "participant's gross monthly
1302
compensation" for purposes of the optional retirement
1303
program for the State University System; providing a
1304
cross-reference; creating s.
4/24/2008 7:31:00 AM 11-08536-08
CODING: Words stricken are deletions; words underlined are additions.