Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. SB 2848

115912

585-05590A-08

Proposed Committee Substitute by the Committee on Governmental

Operations

A bill to be entitled

An act relating to the Florida Retirement System; amending

s. 121.021, F.S.; redefining the terms "employer,"

"officer or employee," "past service," "normal retirement

date," "regularly established position," and temporary

position"; defining the terms "state board" and

"trustees"; amending s. 121.031, F.S.; requiring

promotional materials that refer to the Florida Retirement

System to include a disclaimer unless approval is obtained

from the Department of Management Services; amending s.

121.051, F.S.; conforming a cross-reference; revising

provisions relating to participation in the system;

excluding the participation of entities under a lease

agreement; amending s. 121.071, F.S.; expanding the

mechanisms for employees to pay contributions to the

system; amending s. 121.081, F.S.; revising provisions

relating to receiving credit for past or prior service;

prohibiting a member from receiving credit for service

covered and reported by both a public employer and a

private employer; amending s. 121.091, F.S.; revising

provisions relating to retirement benefits; deleting a

restriction on the reemployment of certain personnel by

the Florida School for the Deaf and the Blind; extending

the period of time that instructional personnel employed

by a developmental research school may participate in the

Deferred Retirement Option Program; clarifying that DROP

participation cannot be cancelled; providing for the

suspension of DROP benefits to a participant who is

reemployed; deleting obsolete provisions; authorizing the

Division of Retirement to issue benefits pursuant to a

qualified domestic relations order directly to the

alternate payee; amending s. 121.1115, F.S.; revising

provisions relating to receiving retirement credit for

out-of-state service; providing that a member is not

eligible for and may not receive a benefit based on that

service; amending s. 121.1122, F.S.; revising provisions

relating to receiving retirement credit for in-state

service; providing that a member may not be eligible for

or receiving a benefit based on service; amending s.

121.136, F.S.; revising provisions relating to the annual

statement of benefits provided to certain active members

of the Florida Retirement System; amending s. 121.1905,

F.S.; deleting provision describing the mission of the

Division of Retirement; amending s. 121.23, F.S.;

requiring the State Retirement Commission to meet the same

requirements used by the Secretary of Management Services

before approving a disability retirement benefit; amending

s. 121.24, F.S.; requiring a quorum of three members for

all appeal hearings held by the State Retirement

Commission; amending s. 1012.33, F.S.; deleting the

provision preventing persons who have retired from the

public school system from renewing membership in the

Florida Retirement System upon reemployment by the school

system; repealing s. 121.093, F.S., relating to

instructional personnel reemployment after retirement from

the developmental research school or the Florida School

for the Deaf and the Blind; repealing s. 121.094, F.S.,

relating to instructional personnel reemployment after

retirement from a charter school; repealing s. 121.45,

F.S., relating to interstate compacts relating to pension

portability; providing a declaration of important state

interest; providing an effective date.

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

Section 1. Subsections (10), (11), (18), (29), (52), and

(53) of section 121.021, Florida Statutes, are amended, and

subsections (63) and (64) are added to that section, to read:

121.021 Definitions.--The following words and phrases as

used in this chapter have the respective meanings set forth

unless a different meaning is plainly required by the context:

(10) "Employer" means any agency, branch, department,

institution, university, institution of higher education, or

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

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

or any city of the state which participates in the system for the

benefit of certain of its employees, or a charter school or

charter technical career center that participates as provided in

s. 121.051(2)(d). Employers are not agents of the department, the

state board, or the Division of Retirement, and the department,

the state board, and the division are not responsible for

erroneous information provided by representatives of employers.

(11) "Officer or employee" means any person receiving

salary payments for work performed in a regularly established

position and, if employed by a city, a metropolitan planning

organization, or a special district, employed in a covered group.

The term does not apply to state employees covered by a leasing

agreement under s. 110.191, other public employees covered by a

leasing agreement, or to a co-employer relationship.

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

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

fractional part of a month, recognized and credited by an

employer and approved by the administrator, during which the

member was in the active employ of a governmental an employer and

for which the employee is not entitled to a benefit prior to his

or her date of participation.

(29) "Normal retirement date" means the first day of any

month following the date a member attains normal retirement age

and is vested, which is determined as follows one of the

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following statuses:

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(a) If a Regular Class member, the member:

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1. The first day of the month the member completes 6 or

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more years of creditable service and attains age 62; or

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2. The first day of the month following the date the member

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completes 30 years of creditable service, regardless of age,

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which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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(b) If a Special Risk Class member, the member:

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1. The first day of the month the member completes 6 or

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more years of creditable service in the Special Risk Class and

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attains age 55;

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2. The first day of the month following the date the member

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completes 25 years of creditable service in the Special Risk

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Class, regardless of age; or

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3. The first day of the month following the date the member

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completes 25 years of creditable service and attains age 52,

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which service may include a maximum of 4 years of military

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service credit as long as such credit is not claimed under any

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other system and the remaining years are in the Special Risk

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Class.

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member:

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1. The first day of the month the member completes 6 years

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of creditable service in the Senior Management Service Class and

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attains age 62; or

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2. The first day of the month following the date the member

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completes 30 years of any creditable service, regardless of age,

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which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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(d) If an Elected Officers' Class member, the member:

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1. The first day of the month the member completes 6 years

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of creditable service in the Elected Officers' Class and attains

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age 62; or

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2. The first day of the month following the date the member

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completes 30 years of any creditable service, regardless of age,

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which may include a maximum of 4 years of military service credit

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as long as such credit is not claimed under any other system.

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"Normal retirement age" is attained on the "normal retirement

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date."

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(52) "Regularly established position" is defined as

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follows:

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(a) With respect to employment for In a state employer

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agency, the term means a position that which is authorized and

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established pursuant to law and is compensated from a salaries

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appropriation pursuant to s. 216.011(1)(dd), or an established

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position which is authorized pursuant to s. 216.262(1)(a) and (b)

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and is compensated from a salaries account as provided by rule.

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(b) With respect to employment for In a local employer

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agency (district school board, county agency, community college,

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city, metropolitan planning organization, or special district),

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the term means a regularly established position that which will

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

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as provided by rule.

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(53) "Temporary position" is defined as follows:

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(a) With respect to employment for In a state employer

157

agency, the term means an employment position that which is

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

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

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(b) With respect to employment for In a local employer

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agency, the term means an employment position that which will

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exist for less than 6 consecutive months, or other employment

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position as determined by rule of the division, regardless of

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whether it will exist for 6 consecutive months or longer.

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(63) "State board" or "board" means the State Board of

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Administration.

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(64) "Trustees" means the Board of Trustees of the State

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Board of Administration.

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Section 2. Subsection (6) is added to section 121.031,

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Florida Statutes, to read:

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121.031 Administration of system; appropriation; oaths;

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actuarial studies; public records.--

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(6) Unless prior written approval is obtained from the

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department or state board, any promotional materials or

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advertisements that, directly or indirectly, refer to the Florida

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Retirement System or the FRS, must contain a disclaimer that the

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information is not approved or endorsed by the Florida Retirement

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System.

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Section 3. Paragraph (a) of subsection (1) and paragraph

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(f) of subsection (2) of section 121.051, Florida Statutes, are

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amended to read:

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121.051 Participation in the system.--

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(1) COMPULSORY PARTICIPATION.--

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(a) The provisions of this law are shall be compulsory as

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to all officers and employees, except elected officers who meet

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the requirements of s. 121.052(3), who are employed on or after

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December 1, 1970, by of an employer other than those referred to

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in paragraph (2)(b), and each officer or employee, as a condition

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of employment, shall become a member of the system as of his or

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her date of employment, except that a person who is retired from

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any state retirement system and is reemployed on or after

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December 1, 1970, may shall not be permitted to renew his or her

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membership in any state retirement system except as provided in

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s. 121.091(4)(h) for a person who recovers from disability, and

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as provided in s. 121.091(9)(b)10. s. 121.091(9)(b)8. for a

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person who is elected to public office, and, effective July 1,

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1991, as provided in s. 121.122 for all other retirees. Officers

198

and employees of the University Athletic Association, Inc., a

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nonprofit association connected with the University of Florida,

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employed on and after July 1, 1979, may shall not participate in

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any state-supported retirement system. Any person appointed on or

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after July 1, 1989, to a faculty position in a college at the J.

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Hillis Miller Health Center at the University of Florida or the

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Medical Center at the University of South Florida which has a

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faculty practice plan adopted provided by rule may adopted by the

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Board of Regents shall not participate in the Florida Retirement

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System. A faculty member so appointed shall participate in the

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optional retirement program on the basis of his or her state-

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funded compensation, notwithstanding the provisions of s.

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121.35(2)(a).

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(2) OPTIONAL PARTICIPATION.--

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(f)1. If Whenever an employer that participates in the

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Florida Retirement System undertakes the transfer, merger, or

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consolidation of governmental services or assumes the functions

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or activities of an employing governmental entity that was not an

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employer under the system, the employer must notify the

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department at least 60 days prior to such action and shall

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provide documentation as required by the department. The

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transfer, merger, or consolidation of governmental services or

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assumption of governmental functions and activities must occur

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between public employers. The current or former employer may pay

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the employees' past service cost unless prohibited under this

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chapter. This paragraph does not apply to the transfer, merger,

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or consolidation of governmental services or assumption of

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functions and activities of a public entity under a leasing

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agreement having a co-employer relationship. Employers and

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employees of a public governmental employer whose service is

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covered by a leasing agreement under s. 110.191, other leasing

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agreement, or a co-employer relationship are not eligible to

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participate in the Florida Retirement System.

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2. If When the agency to which a member's employing unit is

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transferred, merged, or consolidated does not participate in the

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remain in the Florida Retirement System or to transfer to the

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local retirement system operated by the such agency. If such

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agency does not participate in a local retirement system, the

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member shall continue membership in the Florida Retirement

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System. In either case, the membership continues shall continue

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for as long as the member is employed by the agency to which his

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or her unit was transferred, merged, or consolidated.

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Section 4. Paragraph (a) of subsection (6) of section

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121.071, Florida Statutes, is amended to read:

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121.071 Contributions.--Contributions to the system shall

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be made as follows:

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(6)(a) Required employee contributions for all service

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other than current service, including, but not limited to, prior

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service, past service, military service, leave-of-absence

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service, out-of-state service, and certain non-Florida Retirement

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System in-state service, shall be paid by cash, personal check,

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cashier's check, or money order, or a direct rollover or transfer

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from a qualified plan as provided under the Internal Revenue

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Code. The payment must only; shall be accompanied by a statement

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identifying the service for which payment is made,; and shall be

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made in a lump sum for the total amount due or in annual payments

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of not less than $100, except for the final payment if less than

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$100, unless another method of payment is authorized by law or

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rule.

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Section 5. Paragraphs (f) and (h) of subsection (1) of

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section 121.081, Florida Statutes, are amended to read:

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121.081 Past service; prior service;

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contributions.--Conditions under which past service or prior

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service may be claimed and credited are:

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(1)

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(f) If When any person, either prior to this act or

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hereafter, becomes entitled to and participates does participate

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in one of the retirement systems under consolidated within or

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created by this chapter through the consolidation or merger of

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governments or the transfer of functions between units of

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government, either at the state or local level or between state

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and local units, or through the assumption of functions or

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activities by a state or local unit from an employing

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governmental entity that which was not an employer under the

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system, and such person becomes a member of the Florida

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Retirement System, such person is shall be entitled to receive

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past-service credit as defined in s. 121.021(18) for the time the

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such person performed services for, and was an employee of, such

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state or local unit or other governmental employing entity prior

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to the transfer, merger, consolidation, or assumption of

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functions and activities. Past-service credit allowed by this

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paragraph is shall also be available to any person who becomes a

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member of an existing system, as defined in s. 121.021(2), prior

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to December 1, 1970, through the transfer, merger, consolidation,

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or assumption of functions and activities set forth in this

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paragraph and who subsequently becomes a member of the Florida

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Retirement System. However, credit for the past service may not

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be granted until contributions are made in the manner provided in

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this subsection. If a person rejected Florida Retirement System

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membership at the time of the transfer, merger, or consolidation,

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or assumption the required contributions shall be at total

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actuarial cost as specified in paragraph (e). Such contributions

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or accrued interest may not be paid from any public state funds.

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(h) The following provisions apply to the purchase of past

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service:

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1. Notwithstanding any of the provisions of this

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subsection, past-service credit may not be purchased under this

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chapter for any service that is used to obtain a pension or

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benefit from a any local retirement system. Eligibility to

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receive or the receipt of contributions to a retirement plan made

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by the employer on behalf of the employee is considered a

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benefit.

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2. A member may not receive past service credit under

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paragraphs (a), (b), (e), or (f) for any leaves of absence

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without pay, except that credit for active military service

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leaves of absence may be claimed under paragraphs (a), (b), and

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(f), in accordance with s. 121.111(1).

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3. A member may not receive past service credit for co-

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employer service. Co-employer service or a co-employer

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relationship is employment in a single position simultaneously

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covered and reported by both a public employer and a private

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employer.

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4.3. If a member does not want desire to receive credit for

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all of his or her past service, the period the member claims must

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be the most recent past service prior to his or her participation

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in the Florida Retirement System.

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5.4. The cost of past service purchased by an employing

316

agency for its employees may be amortized over the such period of

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time as is provided in the agreement, but not to exceed 15 years,

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calculated in accordance with rule 60S-1.007(5)(f), Florida

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Administrative Code.

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6.5. The retirement account of each member for whom past

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service is being provided by his or her employer shall be

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credited with all past service the employer agrees to purchase as

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soon as the agreement between the employer and the department is

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executed. Pursuant thereto:

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a. Each such member's account shall also be posted with the

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total contribution his or her employer agrees to make on in the

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member's behalf for past service earned prior to October 1, 1975,

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excluding those contributions representing the employer's

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matching share and the compound interest calculation on the total

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contribution. However, a portion of any contributions paid by an

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employer for past service credit earned on and after October 1,

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1975, may not be posted to the a member's account.

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b. A refund of contributions payable after an employer has

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made a written agreement to purchase past service for employees

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of the covered group includes shall include contributions for

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past service which are posted to a member's account. However,

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contributions for past service earned on and after October 1,

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1975, are not refundable.

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Section 6. Paragraph (b) of subsection (9), paragraphs (a),

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(b), and (c) of subsection (13), and paragraphs (b) through (f)

341

of subsection (14) of section 121.091, Florida Statutes, are

342

amended 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

347

provided in subsection (13), and a proper application has been

348

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

353

application for retirement benefits and for the cancellation of

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such application when the required information or documents are

355

not received.

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(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--

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(b)1. Any person who is retired under this chapter, except

358

under the disability retirement provisions of subsection (4), may

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be reemployed by any private or public employer after retirement

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and receive retirement benefits and compensation from the his or

361

her employer without limitation any limitations, except that the

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a person may not receive both a salary from reemployment with any

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agency participating in the Florida Retirement System and

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retirement benefits under this chapter for a period of 12 months

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immediately after subsequent to the date of retirement. However,

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a DROP participant may shall continue employment and receive a

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salary during the period of participation in DROP the Deferred

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Retirement Option Program, as provided in subsection (13).

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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 for 1 calendar

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month but before completion of the 12-month limitation period

374

must shall give timely notice of this fact in writing to the

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employer and to the Division of Retirement and shall have his or

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her retirement benefits suspended while employed during for the

377

balance of the 12-month limitation period unless the person

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exceeds the 780-hour limitation in subparagraph 4., subparagraph

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5., or subparagraph 11. Any person employed in violation of this

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paragraph and any employing agency that which knowingly employs

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or appoints such person without notifying the division of

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Retirement to suspend retirement benefits are shall be jointly

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and severally liable for reimbursement to the retirement trust

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fund of any benefits paid during the reemployment limitation

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period. To avoid liability, the such employing agency must shall

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have a written statement from the retiree that he or she is not

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retired from a state-administered retirement system. Any

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retirement benefits received while reemployed during this

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reemployment limitation period must shall be repaid to the

390

Florida Retirement System Trust Fund, and retirement benefits

391

shall remain suspended until such repayment has been made.

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Benefits suspended beyond the reemployment limitation shall apply

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toward repayment of benefits received in violation of the

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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 for 1

399

calendar month, in accordance with s. 121.021(39). A district

400

school board may reemploy a retired member as instructional

401

personnel, as defined in s. 1012.01(2)(a), on an annual

402

contractual basis after he or she has been retired for 1 calendar

403

month, in accordance with s. 121.021(39). Any other retired

404

member who is reemployed within 1 calendar month after retirement

405

voids shall void his or her application for retirement benefits.

406

District school boards reemploying such teachers, education

407

paraprofessionals, transportation assistants, bus drivers, or

408

food service workers are subject to the retirement contribution

409

required by subparagraph 9. 7.

410

4. A community college board of trustees may reemploy a

411

retired member as an adjunct instructor, that is, an instructor

412

who is noncontractual and part-time, or as a participant in a

413

phased retirement program within the Florida Community College

414

System, after he or she has been retired for 1 calendar month, in

415

accordance with s. 121.021(39). Any retired member who is

416

reemployed within 1 calendar month after retirement voids shall

417

void his or her application for retirement benefits. Boards of

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trustees reemploying such instructors are subject to the

419

retirement contribution required in subparagraph 7. A retired

420

member may be reemployed as an adjunct instructor for no more

421

than 780 hours during the first 12 months of retirement. Any

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retired member reemployed for more than 780 hours during the

423

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

425

date he or she will exceed the limitation. The division shall

426

suspend his or her retirement benefits for the remainder of the

427

first 12 months of retirement. Any person employed in violation

428

of this subparagraph and any employing agency that which

429

knowingly employs or appoints such person without notifying the

430

division of Retirement to suspend retirement benefits are shall

431

be jointly and severally liable for reimbursement to the

432

retirement trust fund of any benefits paid during the

433

reemployment limitation period. To avoid liability, the such

434

employing agency must shall have a written statement from the

435

retiree that he or she is not retired from a state-administered

436

retirement system. Any retirement benefits received by a retired

437

member while reemployed in excess of 780 hours during the first

438

12 months of retirement must shall be repaid to the Florida

439

Retirement System Trust Fund, and retirement benefits shall

440

remain suspended until repayment is made. Benefits suspended

441

beyond the end of the retired member's first 12 months of

442

retirement shall apply toward repayment of benefits received in

443

violation of the 780-hour reemployment limitation.

444

5. The State University System may reemploy a retired

445

446

phased retirement program within the State University System

447

after the retired member has been retired for 1 calendar month,

448

in accordance with s. 121.021(39). A Any retired member who is

449

reemployed within 1 calendar month after retirement voids shall

450

void his or her application for retirement benefits. The State

451

University System is subject to the retired contribution required

452

in subparagraph 9. 7., as appropriate. A retired member may be

453

reemployed as an adjunct faculty member or a participant in a

454

455

first 12 months of his or her retirement. Any retired member

456

reemployed for more than 780 hours during the first 12 months of

457

retirement must shall give timely notice in writing to the

458

employer and to the Division of Retirement of the date he or she

459

will exceed the limitation. The division shall suspend his or her

460

retirement benefits for the remainder of the first 12 months of

461

retirement. Any person employed in violation of this subparagraph

462

and any employing agency that which knowingly employs or appoints

463

such person without notifying the division of Retirement to

464

suspend retirement benefits are shall be jointly and severally

465

liable for reimbursement to the retirement trust fund of any

466

benefits paid during the reemployment limitation period. To avoid

467

liability, such employing agency must shall have a written

468

statement from the retiree that he or she is not retired from a

469

state-administered retirement system. Any retirement benefits

470

received by a retired member while reemployed in excess of 780

471

hours during the first 12 months of retirement must shall be

472

repaid to the Florida Retirement System Trust Fund, and

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retirement benefits shall remain suspended until repayment is

474

made. Benefits suspended beyond the end of the retired member's

475

first 12 months of retirement shall apply toward repayment of

476

benefits received in violation of the 780-hour reemployment

477

limitation.

478

6. The Board of Trustees of the Florida School for the Deaf

479

and the Blind may reemploy a retired member as a substitute

480

teacher, substitute residential instructor, or substitute nurse

481

on a noncontractual basis after he or she has been retired for 1

482

calendar month, in accordance with s. 121.021(39). The Board of

483

Trustees of the Florida School for the Deaf and the Blind may

484

reemploy a retired member as instructional personnel, as defined

485

in s. 1012.01(2)(a), on an annual contractual basis after he or

486

she has been retired for 1 calendar month, in accordance with s.

487

121.021(39). Any retired member who is reemployed within 1

488

calendar month after retirement voids shall void his or her

489

application for retirement benefits. The Board of Trustees of the

490

Florida School for the Deaf and the Blind reemploying such

491

teachers, residential instructors, or nurses is subject to the

492

retirement contribution required by subparagraph 9. 7.

493

Reemployment of a retired member as a substitute teacher,

494

substitute residential instructor, or substitute nurse is limited

495

to 780 hours during the first 12 months of his or her retirement.

496

Any retired member reemployed for more than 780 hours during the

497

first 12 months of retirement shall give timely notice in writing

498

to the employer and to the division of the date he or she will

499

exceed the limitation. The division shall suspend his or her

500

retirement benefits for the remainder of the first 12 months of

501

retirement. Any person employed in violation of this subparagraph

502

and any employing agency which knowingly employs or appoints such

503

person without notifying the Division of Retirement to suspend

504

retirement benefits shall be jointly and severally liable for

505

reimbursement to the retirement trust fund of any benefits paid

506

during the reemployment limitation period. To avoid liability,

507

such employing agency shall have a written statement from the

508

retiree that he or she is not retired from a state-administered

509

retirement system. Any retirement benefits received by a retired

510

member while reemployed in excess of 780 hours during the first

511

12 months of retirement shall be repaid to the Retirement System

512

Trust Fund, and his or her retirement benefits shall remain

513

suspended until payment is made. Benefits suspended beyond the

514

end of the retired member's first 12 months of retirement shall

515

apply toward repayment of benefits received in violation of the

516

780-hour reemployment limitation.

517

7. A developmental research school may reemploy a retired

518

member as a substitute or hourly teacher or an education

519

paraprofessional as defined in s. 1012.01(2) on a noncontractual

520

basis after he or she has been retired for 1 calendar month, in

521

accordance with s. 121.021(39). A developmental research school

522

may reemploy a retired member as instructional personnel, as

523

defined in s. 1012.01(2)(a), on an annual contractual basis after

524

he or she has been retired for 1 calendar month, in accordance

525

with s. 121.021(39). Any other retired member who is reemployed

526

within 1 calendar month after retirement voids his or her

527

application for retirement benefits. A developmental research

528

school that reemploys retired teachers and education

529

paraprofessionals are subject to the retirement contribution

530

required by subparagraph 9.

531

8. A charter school may reemploy a retired member as a

532

substitute or hourly teacher on a noncontractual basis after he

533

or she has been retired for 1 calendar month, in accordance with

534

s. 121.021(39). A charter school may reemploy a retired member as

535

instructional personnel, as defined in s. 1012.01(2(a), on an

536

annual contractual basis after he or she has been retired for 1

537

calendar month, in accordance with s. 121.021(39). Any other

538

retired member who is reemployed within 1 calendar month after

539

retirement voids his or her application for retirement benefits.

540

A charter school that reemploys such teachers is subject to the

541

retirement contribution required by subparagraph 9.

542

9.7. The employment by an employer of a any retiree or DROP

543

participant of a any state-administered retirement system does

544

not affect shall have no effect on the average final compensation

545

or years of creditable service of the retiree or DROP

546

547

person, other than an elected officer as provided in s. 121.053,

548

who is has been retired under a any state-administered retirement

549

program, the employer shall pay retirement contributions in an

550

amount equal to the unfunded actuarial liability portion of the

551

employer contribution which would be required for regular members

552

of the Florida Retirement System. Effective July 1, 1991,

553

contributions shall be made as provided in s. 121.122 for

554

retirees who have with renewed membership or, as provided in

555

subsection (13), for with respect to DROP participants.

556

10.8. Any person who has previously retired and who is

557

holding an elective public office or an appointment to an

558

elective public office eligible for the Elected Officers' Class

559

on or after July 1, 1990, shall be enrolled in the Florida

560

Retirement System as provided in s. 121.053(1)(b) or, if holding

561

an elective public office that does not qualify for the Elected

562

Officers' Class on or after July 1, 1991, shall be enrolled in

563

the Florida Retirement System as provided in s. 121.122, and

564

shall continue to receive retirement benefits as well as

565

compensation for the elected officer's service for as long as he

566

or she remains in elective office. However, any retired member

567

who served in an elective office prior to July 1, 1990, suspended

568

his or her retirement benefit, and had his or her Florida

569

Retirement System membership reinstated shall, upon retirement

570

from such office, have his or her retirement benefit recalculated

571

to include the additional service and compensation earned.

572

11.9. Any person who is holding an elective public office

573

which is covered by the Florida Retirement System and who is

574

concurrently employed in nonelected covered employment may elect

575

to retire while continuing employment in the elective public

576

office, if provided that he or she terminates shall be required

577

to terminate his or her nonelected covered employment. Any person

578

who exercises this election shall receive his or her retirement

579

benefits in addition to the compensation of the elective office

580

without regard to the time limitations otherwise provided in this

581

subsection. A No person who seeks to exercise the provisions of

582

this subparagraph, as they the same existed prior to May 3, 1984,

583

may not shall be deemed to be retired under those provisions,

584

unless such person is eligible to retire under the provisions of

585

this subparagraph, as amended by chapter 84-11, Laws of Florida.

586

10. The limitations of this paragraph apply to reemployment

587

in any capacity with an "employer" as defined in s. 121.021(10),

588

irrespective of the category of funds from which the person is

589

compensated.

590

12.11. An employing agency may reemploy a retired member as

591

a firefighter or paramedic after the retired member has been

592

retired for 1 calendar month, in accordance with s. 121.021(39).

593

Any retired member who is reemployed within 1 calendar month

594

after retirement voids shall void his or her application for

595

retirement benefits. The employing agency reemploying such

596

firefighter or paramedic is subject to the retired contribution

597

598

firefighter or paramedic is limited to no more than 780 hours

599

during the first 12 months of his or her retirement. Any retired

600

member reemployed for more than 780 hours during the first 12

601

months of retirement must shall give timely notice in writing to

602

the employer and to the Division of Retirement of the date he or

603

she will exceed the limitation. The division shall suspend his or

604

her retirement benefits for the remainder of the first 12 months

605

of retirement. Any person employed in violation of this

606

subparagraph and any employing agency that which knowingly

607

employs or appoints such person without notifying the division of

608

Retirement to suspend retirement benefits shall be jointly and

609

severally liable for reimbursement to the Retirement System Trust

610

Fund of any benefits paid during the reemployment limitation

611

period. To avoid liability, such employing agency must shall have

612

a written statement from the retiree that he or she is not

613

retired from a state-administered retirement system. Any

614

retirement benefits received by a retired member while reemployed

615

in excess of 780 hours during the first 12 months of retirement

616

must shall be repaid to the Florida Retirement System Trust Fund,

617

and retirement benefits shall remain suspended until repayment is

618

made. Benefits suspended beyond the end of the retired member's

619

first 12 months of retirement shall apply toward repayment of

620

benefits received in violation of the 780-hour reemployment

621

limitation.

622

13. The limitations of this paragraph apply to reemployment

623

in any capacity with an employer, as defined in s. 121.021,

624

irrespective of the category of funds from which the person is

625

compensated.

626

14. The reemployment after retirement provisions of this

627

paragraph apply to DROP participants effective upon termination

628

from employment and the end of DROP participation.

629

(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and

630

631

Retirement Option Program, hereinafter referred to as the DROP,

632

is a program under which an eligible member of the Florida

633

Retirement System may elect to participate, deferring receipt of

634

retirement benefits while continuing employment with his or her

635

Florida Retirement System employer. The deferred monthly benefits

636

shall accrue in the System Trust Fund on behalf of the

637

participant, plus interest compounded monthly, for the specified

638

period of the DROP participation, as provided in paragraph (c).

639

Upon termination of employment, the participant shall receive the

640

total DROP benefits and begin to receive the previously

641

determined normal retirement benefits. Participation in the DROP

642

does not guarantee employment for the specified period of DROP.

643

Participation in the DROP by an eligible member beyond the

644

initial 60-month period as authorized in this subsection shall be

645

on an annual contractual basis for all participants.

646

(a) Eligibility of member to participate in the DROP.--All

647

active Florida Retirement System members in a regularly

648

established position, and all active members of either the

649

Teachers' Retirement System established in chapter 238 or the

650

State and County Officers' and Employees' Retirement System

651

established in chapter 122, which systems are consolidated within

652

the Florida Retirement System under s. 121.011, are eligible to

653

elect participation in the DROP if provided that:

654

1. The member is not a renewed member of the Florida

655

Retirement System under s. 121.122, or a member of the State

656

Community College System Optional Retirement Program under s.

657

121.051, the Senior Management Service Optional Annuity Program

658

under s. 121.055, or the optional retirement program for the

659

State University System under s. 121.35.

660

2. Except as provided in subparagraph 6., election to

661

participate is made within 12 months immediately following the

662

date on which the member first reaches normal retirement date,

663

or, for a member who reaches normal retirement date based on

664

service before he or she reaches age 62, or age 55 for Special

665

Risk Class members, election to participate may be deferred to

666

the 12 months immediately following the date the member attains

667

57, or age 52 for Special Risk Class members. For a member who

668

first reached normal retirement date or the deferred eligibility

669

date described above prior to the effective date of this section,

670

election to participate shall be made within 12 months after the

671

effective date of this section. A member who fails to make an

672

election within the such 12-month limitation period forfeits

673

shall forfeit all rights to participate in the DROP. The member

674

shall advise his or her employer and the division in writing of

675

the date on which the DROP begins shall begin. The Such beginning

676

date may be subsequent to the 12-month election period, but must

677

be within the original 60-month participation or, with respect to

678

members who are instructional personnel employed by the Florida

679

School for the Deaf and the Blind and who have received

680

authorization by the Board of Trustees of the Florida School for

681

the Deaf and the Blind to participate in the DROP beyond 60

682

months, or who are instructional personnel as defined in s.

683

1012.01(2)(a)-(d) in grades K-12 and who have received

684

authorization by the district school superintendent to

685

participate in the DROP beyond 60 months, the 96-month limitation

686

period as provided in subparagraph (b)1. When establishing

687

eligibility of the member to participate in the DROP for the 60-

688

month or, with respect to members who are instructional personnel

689

employed by the Florida School for the Deaf and the Blind and who

690

have received authorization by the Board of Trustees of the

691

Florida School for the Deaf and the Blind to participate in the

692

DROP beyond 60 months, or who are instructional personnel as

693

defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have

694

received authorization by the district school superintendent to

695

participate in the DROP beyond 60 months, the 96-month maximum

696

participation period, the member may elect to include or exclude

697

any optional service credit purchased by the member from the

698

total service used to establish the normal retirement date. A

699

member who has with dual normal retirement dates is shall be

700

eligible to elect to participate in DROP within 12 months after

701

attaining normal retirement date in either class.

702

3. The employer of a member electing to participate in the

703

DROP, or employers if dually employed, shall acknowledge in

704

writing to the division the date the member's participation in

705

the DROP begins and the date the member's employment and DROP

706

participation will terminate.

707

4. Simultaneous employment of a participant by additional

708

Florida Retirement System employers subsequent to the

709

commencement of participation in the DROP is shall be permissible

710

if provided such employers acknowledge in writing a DROP

711

termination date no later than the participant's existing

712

termination date or the maximum participation 60-month limitation

713

period as provided in subparagraph (b)1.

714

5. A DROP participant may change employers while

715

participating in the DROP, subject to the following:

716

a. A change of employment must take place without a break

717

in service so that the member receives salary for each month of

718

continuous DROP participation. If a member receives no salary

719

during a month, DROP participation shall cease unless the

720

employer verifies a continuation of the employment relationship

721

for such participant pursuant to s. 121.021(39)(b).

722

b. Such participant and new employer shall notify the

723

division of the identity of the new employer on forms required by

724

the division as to the identity of the new employer.

725

c. The new employer shall acknowledge, in writing, the

726

participant's DROP termination date, which may be extended but

727

not beyond the original 60-month participation or, with respect

728

to members who are instructional personnel employed by the

729

Florida School for the Deaf and the Blind and who have received

730

authorization by the Board of Trustees of the Florida School for

731

the Deaf and the Blind to participate in the DROP beyond 60

732

months, or who are instructional personnel as defined in s.

733

1012.01(2)(a)-(d) in grades K-12 and who have received

734

authorization by the district school superintendent to

735

participate in the DROP beyond 60 months, the 96-month period

736

provided in subparagraph (b)1., shall acknowledge liability for

737

any additional retirement contributions and interest required if

738

the participant fails to timely terminate employment, and is

739

shall be subject to the adjustment required in sub-subparagraph

740

741

6. Effective July 1, 2001, for instructional personnel as

742

defined in s. 1012.01(2), election to participate in the DROP may

743

shall be made at any time following the date on which the member

744

first reaches normal retirement date. The member shall advise his

745

or her employer and the division in writing of the date on which

746

DROP begins the Deferred Retirement Option Program shall begin.

747

When establishing eligibility of the member to participate in the

748

DROP for the 60-month or, with respect to members who are

749

instructional personnel employed by the Florida School for the

750

Deaf and the Blind and who have received authorization by the

751

Board of Trustees of the Florida School for the Deaf and the

752

Blind to participate in the DROP beyond 60 months, or who are

753

instructional personnel as defined in s. 1012.01(2)(a)-(d) in

754

grades K-12 and who have received authorization by the district

755

school superintendent to participate in the DROP beyond 60

756

months, the 96-month maximum participation period, as provided in

757

sub-subparagraph (b)(1)a. subparagraph (b)1., the member may

758

elect to include or exclude any optional service credit purchased

759

by the member from the total service used to establish the normal

760

retirement date. A member who has with dual normal retirement

761

dates is shall be eligible to elect to participate in either

762

class.

763

(b) Participation in the DROP.--

764

1.a. Except as provided in sub-subparagraph b., an eligible

765

member may elect to participate in the DROP for a period not to

766

exceed a maximum of 60 calendar months. or, with respect to

767

b. Members who are instructional personnel employed by the

768

Florida School for the Deaf and the Blind and authorized who have

769

received authorization by the Board of Trustees of the Florida

770

School for the Deaf and the Blind to participate in the DROP

771

beyond 60 months, or who are instructional personnel as defined

772

in s. 1012.01(2)(a)-(d) in grades K-12 and authorized who have

773

received authorization by the district school superintendent to

774

participate in the DROP beyond 60 calendar months, or who are

775

instructional personnel, as defined in s. 1012.01(2), employed by

776

a developmental research school and authorized by the school's

777

director, or if the school has no director, by the school's

778

principal, may participate in DROP for up to 36 calendar months

779

beyond the 60-month period specified in sub-subparagraph a. 96

780

calendar months immediately following the date on which the

781

member first reaches his or her normal retirement date or the

782

date to which he or she is eligible to defer his or her election

783

to participate as provided in subparagraph (a)2. However, a

784

member who has reached normal retirement date prior to the

785

effective date of the DROP shall be eligible to participate in

786

the DROP for a period of time not to exceed 60 calendar months

787

or, with respect to members who are instructional personnel

788

employed by the Florida School for the Deaf and the Blind and who

789

have received authorization by the Board of Trustees of the

790

Florida School for the Deaf and the Blind to participate in the

791

DROP beyond 60 months, or who are instructional personnel as

792

defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have

793

received authorization by the district school superintendent to

794

participate in the DROP beyond 60 calendar months, 96 calendar

795

months immediately following the effective date of the DROP,

796

except a member of the Special Risk Class who has reached normal

797

retirement date prior to the effective date of the DROP and whose

798

total accrued value exceeds 75 percent of average final

799

compensation as of his or her effective date of retirement shall

800

be eligible to participate in the DROP for no more than 36

801

calendar months immediately following the effective date of the

802

DROP.

803

2. Upon deciding to participate in the DROP, the member

804

shall submit, on forms required by the division:

805

806

a. A written election to participate in the DROP;

807

b. Selection of the DROP participation and termination

808

dates, which satisfy the limitations stated in paragraph (a) and

809

subparagraph 1. The Such termination date must shall be in a

810

binding letter of resignation to with the employer, establishing

811

a deferred termination date. The member may change the

812

termination date within the limitations of subparagraph 1., but

813

only with the written approval of the his or her employer;

814

c. A properly completed DROP application for service

815

retirement as provided in this section; and

816

d. Any other information required by the division.

817

3. The DROP participant is shall be a retiree under the

818

Florida Retirement System for all purposes, except for paragraph

819

(5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053, and

820

121.122. DROP participation is final and cannot be cancelled by

821

the participant after the first payment is credited during the

822

DROP participation period. However, participation in the DROP

823

does not alter the participant's employment status and the member

824

is such employee shall not be deemed retired from employment

825

until his or her deferred resignation is effective and

826

termination occurs as provided in s. 121.021(39).

827

4. Elected officers are shall be eligible to participate in

828

the DROP subject to the following:

829

a. An elected officer who reaches normal retirement date

830

during a term of office may defer the election to participate in

831

the DROP until the next succeeding term in that office. An Such

832

elected officer who exercises this option may participate in the

833

DROP for up to 60 calendar months or a period of no longer than

834

the such succeeding term of office, whichever is less.

835

b. An elected or a nonelected participant may run for a

836

term of office while participating in DROP and, if elected,

837

extend the DROP termination date accordingly, except, however, if

838

such additional term of office exceeds the 60-month limitation

839

established in subparagraph 1., and the officer does not resign

840

from office within such 60-month limitation, the retirement and

841

the participant's DROP is shall be null and void as provided in

842

sub-subparagraph (c)5.d.

843

c. An elected officer who is dually employed and elects to

844

participate in DROP must shall be required to satisfy the

845

definition of termination within the 60-month participation or,

846

with respect to members who are instructional personnel employed

847

by the Florida School for the Deaf and the Blind and who have

848

received authorization by the Board of Trustees of the Florida

849

School for the Deaf and the Blind to participate in the DROP

850

beyond 60 months, or who are instructional personnel as defined

851

in s. 1012.01(2)(a)-(d) in grades K-12 and who have received

852

authorization by the district school superintendent to

853

participate in the DROP beyond 60 months, the 96-month limitation

854

period as provided in subparagraph 1. for the nonelected position

855

and may continue employment as an elected officer as provided in

856

s. 121.053. The elected officer shall will be enrolled as a

857

renewed member in the Elected Officers' Class or the Regular

858

Class, as provided in ss. 121.053 and 121.122, on the first day

859

of the month after termination of employment in the nonelected

860

position and termination of DROP. Distribution of the DROP

861

benefits shall be made as provided in paragraph (c).

862

863

1. Effective on with the date of DROP participation, the

864

member's initial normal monthly benefit, including creditable

865

service, optional form of payment, and average final

866

compensation, and the effective date of retirement are shall be

867

fixed. The beneficiary established under the Florida Retirement

868

System shall be the beneficiary eligible to receive any DROP

869

benefits payable if the DROP participant dies prior to the

870

871

joint annuitant predeceases the member, the member may name a

872

beneficiary to receive accumulated DROP benefits payable. The

873

Such retirement benefit, the annual cost of living adjustments

874

provided in s. 121.101, and interest shall accrue monthly in the

875

Florida Retirement System Trust Fund. The Such interest shall

876

accrue at an effective annual rate of 6.5 percent compounded

877

monthly, on the prior month's accumulated ending balance, up to

878

the month of termination or death.

879

2. Each employee who elects to participate in the DROP may

880

shall be allowed to elect to receive a lump-sum payment for

881

accrued annual leave earned in accordance with agency policy upon

882

beginning participation in the DROP. The Such accumulated leave

883

payment certified to the division upon commencement of DROP shall

884

be included in the calculation of the member's average final

885

compensation. The employee electing the such lump-sum payment is

886

upon beginning participation in DROP will not be eligible to

887

receive a second lump-sum payment upon termination, except to the

888

extent the employee has earned additional annual leave which,

889

combined with the original payment, does not exceed the maximum

890

lump-sum payment allowed by the employing agency's policy or

891

rules. An Such early lump-sum payment shall be based on the

892

hourly wage of the employee at the time he or she begins

893

participation in the DROP. If the member elects to wait and

894

receive a such lump-sum payment upon termination of DROP and

895

termination of employment with the employer, any accumulated

896

leave payment made at that time may not cannot be included in the

897

member's retirement benefit, which was determined and fixed by

898

law when the employee elected to participate in the DROP.

899

3. The effective date of DROP participation and the

900

effective date of retirement of a DROP participant shall be the

901

first day of the month selected by the member to begin

902

participation in the DROP, provided such date is properly

903

established, with the written confirmation of the employer, and

904

the approval of the division, on forms required by the division.

905

4. Normal retirement benefits and any interest thereon

906

shall continue to accrue in the DROP until the established

907

termination date of the DROP, or until the participant terminates

908

employment or dies prior to such date. Although individual DROP

909

accounts shall not be established, a separate accounting of each

910

participant's accrued benefits under the DROP shall be calculated

911

and provided to participants.

912

5. At the conclusion of the participant's DROP, the

913

division shall distribute the participant's total accumulated

914

DROP benefits, subject to the following provisions:

915

a. The division shall receive verification by the

916

participant's employer or employers that the such participant has

917

terminated employment as provided in s. 121.021(39)(b).

918

b. The terminated DROP participant or, if deceased, the

919

such participant's named beneficiary, shall elect on forms

920

provided by the division to receive payment of the DROP benefits

921

in accordance with one of the options listed below. If For a

922

participant or beneficiary who fails to elect a method of payment

923

within 60 days of termination of the DROP, the division shall

924

will pay a lump sum as provided in sub-sub-subparagraph (I).

925

(I) Lump sum.--All accrued DROP benefits, plus interest,

926

less withholding taxes remitted to the Internal Revenue Service,

927

shall be paid to the DROP participant or surviving beneficiary.

928

(II) Direct rollover.--All accrued DROP benefits, plus

929

interest, shall be paid from the DROP directly to the custodian

930

of an eligible retirement plan as defined in s. 402(c)(8)(B) of

931

932

rollover distribution to the surviving spouse of a deceased

933

participant, an eligible retirement plan is an individual

934

retirement account or an individual retirement annuity as

935

described in s. 402(c)(9) of the Internal Revenue Code.

936

(III) Partial lump sum.--A portion of the accrued DROP

937

benefits shall be paid to the DROP participant or surviving

938

spouse, less withholding taxes remitted to the Internal Revenue

939

Service, and the remaining DROP benefits shall be transferred

940

directly to the custodian of an eligible retirement plan as

941

defined in s. 402(c)(8)(B) of the Internal Revenue Code. However,

942

in the case of an eligible rollover distribution to the surviving

943

spouse of a deceased participant, an eligible retirement plan is

944

an individual retirement account or an individual retirement

945

annuity as described in s. 402(c)(9) of the Internal Revenue

946

Code. The proportions shall be specified by the DROP participant

947

or surviving beneficiary.

948

c. The form of payment selected by the DROP participant or

949

surviving beneficiary must comply complies with the minimum

950

distribution requirements of the Internal Revenue Code.

951

d. A DROP participant who fails to terminate employment as

952

defined in s. 121.021(39)(b) shall be deemed as not to be

953

retired, and the DROP election is shall be null and void. Florida

954

Retirement System membership shall be reestablished retroactively

955

to the date of the commencement of the DROP, and each employer

956

with whom the participant continues employment must shall be

957

required to pay to the Florida Retirement System Trust Fund the

958

difference between the DROP contributions paid in paragraph (i)

959

and the contributions required for the applicable Florida

960

Retirement System class of membership during the period the

961

member participated in the DROP, plus 6.5 percent interest

962

compounded annually.

963

6. The retirement benefits of any DROP participant who

964

meets the definition of termination, as provided in s.

965

121.021(39)(b), but is in violation of the reemployment

966

provisions as provided in subsection (9), shall be suspended

967

during those months in which the member is in violation. Any

968

member employed in violation of this subparagraph and any

969

employing agency that knowingly employs or appoints such member

970

without notifying the Division of Retirement to suspend

971

retirement benefits are jointly and severally liable for any

972

benefits paid during the reemployment limitation period. To avoid

973

liability, the employing agency must have a written statement

974

from the retiree that he or she is not retired from a state-

975

administered retirement system. Any retirement benefits received

976

by a retired member while employed in violation of the

977

reemployment limitations during the first 12 months of retirement

978

must be repaid to the Florida Retirement System Trust Fund, and

979

his or her retirement benefits shall remain suspended until

980

payment is made. Benefits suspended beyond the end of the retired

981

member's first 12 months of retirement shall apply toward

982

repayment of benefits received in violation of the reemployment

983

limitations.

984

7.6. The accrued benefits of any DROP participant, and any

985

contributions accumulated under the such program, are shall not

986

be subject to assignment, execution, attachment, or to any legal

987

process whatsoever, except for qualified domestic relations

988

orders by a court of competent jurisdiction, income deduction

989

orders as provided in s. 61.1301, and federal income tax levies.

990

8.7. DROP participants are shall not be eligible for

991

disability retirement benefits as provided in subsection (4).

992

(14) PAYMENT OF BENEFITS.--This subsection applies to the

993

payment of benefits to a payee (retiree or beneficiary) under the

994

Florida Retirement System:

995

(b) Subject to approval by the division in accordance with

996

997

retirement benefits under the Florida Retirement system may also

998

have the following payments deducted from his or her monthly

999

benefit:

1000

1. Premiums for life and health-related insurance policies

1001

from approved companies.

1002

2. Life insurance premiums for the State Group Life

1003

Insurance Plan, if authorized in writing by the payee and by the

1004

department of Management Services.

1005

3. Repayment of overpayments from the Florida Retirement

1006

System Trust Fund, the State Employees' Health Insurance Trust

1007

Fund, or the State Employees' Life Insurance Trust Fund, upon

1008

notification of the payee.

1009

4. Payments to an alternate payee for alimony or, child

1010

support pursuant to an income deduction order under s. 61.1301,

1011

or division of marital assets pursuant to a qualified domestic

1012

relations order under s. 222.21 or an income deduction order

1013

under s. 61.1301.

1014

5. Payments to the Internal Revenue Service for federal

1015

income tax levies, upon notification of the division by the

1016

Internal Revenue Service.

1017

1018

his or her address. The division may suspend benefit payments to

1019

a payee if correspondence sent to the payee's mailing address is

1020

returned due to an incorrect address. Benefit payments shall be

1021

resumed upon notification to the division of the payee's new

1022

address.

1023

(d) A payee whose retirement benefits are reduced by the

1024

application of maximum benefit limits under s. 415(b) of the

1025

Internal Revenue Code, as specified in s. 121.30(5), shall have

1026

the portion of his or her calculated benefit in the Florida

1027

Retirement System defined benefit plan which exceeds such federal

1028

limitation paid through the Florida Retirement System

1029

Preservation of Benefits Plan, as provided in s. 121.1001.

1030

(e). The Division of Retirement may issue retirement

1031

benefits payable for division of marital assets pursuant to a

1032

qualified domestic relations order directly to the alternate

1033

payee, any court order to the contrary notwithstanding, in order

1034

to meet Internal Revenue Code requirements.

1035

(f)(e) A No benefit may not be reduced for the purpose of

1036

preserving the member's eligibility for a federal program.

1037

(g)(f) The division shall adopt rules establishing

1038

procedures for determining that the persons to whom benefits are

1039

being paid are still living. The division shall suspend the

1040

benefits being paid to any payee if when it is unable to contact

1041

such payee and to confirm that he or she is still living.

1042

Section 7. Section 121.1115, Florida Statutes, is amended

1043

to read:

1044

121.1115 Purchase of retirement credit for out-of-state or

1045

and federal service.--Effective January 1, 1995, a member of the

1046

Florida Retirement System may purchase creditable service for

1047

periods of public employment in another state and receive

1048

creditable service for such periods of employment. Service with

1049

the Federal Government, including any active military service,

1050

may be claimed. Upon completion of each year of service earned

1051

under the Florida Retirement System, a member may purchase up to

1052

1 year of retirement credit for his or her out-of-state service,

1053

subject to the following provisions:

1054

(1) LIMITATIONS AND CONDITIONS.--To receive credit for the

1055

out-of-state service:

1056

(a) The out-of-state service being claimed must have been:

1057

1. Performed in a position of employment with the state or

1058

a political subdivision thereof or with the Federal Government;

1059

2. Covered by a retirement or pension plan provided by the

1060

state or political subdivision, or by the Federal Government, as

1061

appropriate; and

1062

3. Performed prior to a period of membership in the Florida

1063

Retirement System.

1064

(b) The member must have completed a minimum of 6 years of

1065

creditable service under the Florida Retirement System, excluding

1066

out-of-state service and in-state service claimed and purchased

1067

1068

1069

claimed for creditable service aggregated under the provisions of

1070

this section and s. 121.1122.

1071

(d) The out-of-state service credit claimed under this

1072

section shall be credited only as service in the Regular Class of

1073

membership, and any benefit or pension based thereon is shall be

1074

subject to the limitations and restrictions of s. 112.65.

1075

(e) The member is not eligible for and may not receive a

1076

pension or benefit from a retirement or pension plan based on or

1077

including the out-of-state service. Eligibility for or the

1078

receipt of contributions to a retirement plan made by the

1079

employer on behalf of the employee is considered a benefit.

1080

(f)(e) To receive A member shall be eligible to receive

1081

service credit for out-of-state service performed after leaving

1082

the Florida Retirement System, the member must complete only upon

1083

return to membership and completion of at least 1 year of

1084

creditable service in the Florida Retirement System following the

1085

out-of-state service.

1086

(2) COST.--For each year claimed, the member must pay into

1087

the Florida Retirement System Trust Fund an amount equal to 20

1088

percent of the member's annual compensation for the first full

1089

work year of creditable service earned under the Florida

1090

Retirement System, but not less than $12,000, plus interest at

1091

6.5 percent compounded annually from the date of first annual

1092

salary earned until full payment is made. The employer may pay

1093

all or a portion of the cost of this service credit.

1094

Section 8. Subsection (2) of section 121.1122, Florida

1095

Statutes, is amended to read:

1096

121.1122 Purchase of retirement credit for in-state public

1097

service and in-state service in accredited nonpublic schools and

1098

colleges, including charter schools and charter technical career

1099

centers.--Effective January 1, 1998, a member of the Florida

1100

Retirement System may purchase creditable service for periods of

1101

certain public or nonpublic employment performed in this state,

1102

as provided in this section.

1103

(2) LIMITATIONS AND CONDITIONS.--

1104

(a) A member is not eligible to receive credit for in-state

1105

service under this section until he or she has completed 6 years

1106

of creditable service under the Florida Retirement System,

1107

excluding service purchased under this section and out-of-state

1108

service claimed and purchased under s. 121.1115.

1109

(b) A member may not purchase and receive credit for more

1110

than 5 years of creditable service aggregated under the

1111

provisions of this section and s. 121.1115.

1112

1113

credited only as service in the Regular Class of membership and

1114

is shall be subject to the provisions of s. 112.65.

1115

(d) Service credit may not be purchased under this section

1116

if the member is eligible to receive or is receiving a pension or

1117

benefit from a retirement or pension plan based on or including

1118

the service. Eligibility for or the receipt of contributions to a

1119

retirement plan made by the employer on behalf of the employee is

1120

considered a benefit.

1121

(e)(d) A member is shall be eligible to receive service

1122

credit for in-state service performed after leaving the Florida

1123

Retirement System only after upon returning to membership and

1124

completing at least 1 year of creditable service in the Florida

1125

Retirement System following the in-state service.

1126

(f)(e) The service claimed must have been service covered

1127

by a retirement or pension plan provided by the employer.

1128

Section 9. Section 121.136, Florida Statutes, is amended to

1129

read:

1130

121.136 Annual benefit statement to members.--Beginning

1131

January 1, 1993, and Each January thereafter, the department

1132

shall provide each active member of the Florida Retirement System

1133

with 5 or more years of creditable service an annual statement of

1134

benefits which provides. Such statement should provide the member

1135

with basic data about the member's retirement account. At a

1136

minimum Minimally, it must shall include the member's retirement

1137

plan, accrued service credit the amount of funds on deposit in

1138

the retirement account, and an estimate of retirement benefits.

1139

Section 10. Section 121.1905, Florida Statutes, is amended

1140

to read:

1141

121.1905 Division of Retirement; creation.--

1142

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

1143

Department of Management Services.

1144

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

1145

quality and cost-effective retirement services as measured by

1146

member satisfaction and by comparison with administrative costs

1147

of comparable retirement systems.

1148

Section 11. Paragraph (a) of subsection (2) of section

1149

121.23, Florida Statutes, is amended to read:

1150

121.23 Disability retirement and special risk membership

1151

applications; Retirement Commission; powers and duties; judicial

1152

review.--The provisions of this section apply to all proceedings

1153

in which the administrator has made a written final decision on

1154

the merits respecting applications for disability retirement,

1155

1156

applications for special risk membership, and reexamination of

1157

special risk members in the Florida Retirement System. The

1158

jurisdiction of the State Retirement Commission under this

1159

section shall be limited to written final decisions of the

1160

administrator on the merits.

1161

(2) A member shall be entitled to a hearing before the

1162

State Retirement Commission pursuant to ss. 120.569 and 120.57(1)

1163

on the merits of any written adverse decision of the

1164

administrator, if he or she files with the commission a written

1165

request for such hearing within 21 days after receipt of such

1166

written decision from the administrator. For the purpose of such

1167

hearings, the commission shall be an "agency head" as defined by

1168

s. 120.52.

1169

(a) The commission may shall have the authority to issue

1170

orders as a result of the a hearing that are shall be binding on

1171

all parties to the dispute and. The commission may order any

1172

action that it deems appropriate. Any disability retirement order

1173

of the commission issued pursuant to this subsection which

1174

sustains the application of the member may include an amount, to

1175

be determined by the commission, for reasonable attorney's fees

1176

and taxable costs, which shall be calculated in accordance with

1177

the statewide uniform guidelines for taxation of costs in civil

1178

actions. The amount of the attorney's fee may not exceed 50

1179

percent of the initial yearly benefit awarded under s.

1180

121.091(4). In cases involving disability retirement, the State

1181

Retirement commission shall require the member to present

1182

competent substantial medical evidence and meet the requirements

1183

of s. 121.091(4)(c)2. and 3., and may require vocational

1184

evidence, before awarding disability retirement benefits.

1185

Section 12. Paragraph (a) of subsection (1) of section

1186

121.24, Florida Statutes, is amended to read:

1187

121.24 Conduct of commission business; legal and other

1188

assistance; compensation.--

1189

(1) The commission shall conduct its business within the

1190

following guidelines:

1191

(a) For purposes of hearing appeals under s. 121.23, the

1192

commission may meet in panels consisting of no not fewer than

1193

three members. For the purpose of meeting in these panels, a

1194

quorum shall be not fewer than two members. For all other

1195

purposes, A quorum shall consist of three members. The concurring

1196

vote of a majority of the members present is shall be required to

1197

reach a decision, issue orders, and conduct the business of the

1198

commission.

1199

Section 13. Subsection (8) of section 1012.33, Florida

1200

Statutes, is amended to read:

1201

1012.33 Contracts with instructional staff, supervisors,

1202

and school principals.--

1203

(8) Notwithstanding any other provision of law, a retired

1204

any member who has retired may interrupt retirement and be

1205

reemployed in any public school. A Any member so reemployed by

1206

the same district from which he or she retired may be employed on

1207

a probationary contractual basis as provided in subsection (1);

1208

however, no regular retirement employee shall be eligible to

1209

renew membership under a retirement system created by chapter 121

1210

or chapter 238.

1211

Section 14. Sections 121.093, 121.094, and 121.45, Florida

1212

Statutes, are repealed.

1213

Section 15. The Legislature finds that a proper and

1214

legitimate state purpose is served when employees and retirees of

1215

the state and its political subdivisions, as well as the

1216

dependents, survivors, and beneficiaries of such employees and

1217

retiree, are extended the basic protections afforded by

1218

governmental retirement systems that provide fair and adequate

1219

benefits and that are managed, administered, and funded in an

1220

actuarially sound manner as required by s. 14, Art. X of the

1221

State Constitution, and part VII of chapter 112, Florida

1222

Statutes. Therefore, the Legislature determines and declares that

1223

the amendment of s. 121.091, Florida Statutes, by this act

1224

fulfills an important state interest.

1225

Section 16. This act shall take effect July 1, 2008