Florida Senate - 2008 SB 2848

By Senator Lawson

6-03577-08 20082848__

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"; 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. 121.23,

F.S.; requiring the State Retirement Commission to use the

same standard of proof 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. 121.1905,

F.S., relating to the establishment of the Division of

Retirement in the Department of Management Services;

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 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 or

the Division of Retirement and the department and 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 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,

which is determined as follows one of the following statuses:

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

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

more years of creditable service and attains age 62; or

100

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

101

completes 30 years of creditable service, regardless of age,

102

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

103

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

104

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

105

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

106

more years of creditable service in the Special Risk Class and

107

attains age 55;

108

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

109

completes 25 years of creditable service in the Special Risk

110

Class, regardless of age; or

111

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

112

completes 25 years of creditable service and attains age 52,

113

which service may include a maximum of 4 years of military

114

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

115

other system and the remaining years are in the Special Risk

116

Class.

117

118

member:

119

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

120

of creditable service in the Senior Management Service Class and

121

attains age 62; or

122

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

123

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

124

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

125

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

126

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

127

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

128

of creditable service in the Elected Officers' Class and attains

129

age 62; or

130

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

131

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

132

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

133

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

134

135

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

136

date."

137

(52) "Regularly established position" is defined as

138

follows:

139

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

140

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

141

established pursuant to law and is compensated from a salaries

142

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

143

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

144

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

145

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

146

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

147

metropolitan planning organization, or special district), the

148

term means a regularly established position that which will be in

149

existence for a period beyond 6 consecutive months, except as

150

provided by rule.

151

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

152

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

153

agency, the term means an employment position that which is

154

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

155

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

156

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

157

agency, the term means an employment position that which will

158

exist for less than 6 consecutive months, or other employment

159

position as determined by rule of the division, regardless of

160

whether it will exist for 6 consecutive months or longer.

161

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

162

Florida Statutes, to read:

163

121.031 Administration of system; appropriation; oaths;

164

actuarial studies; public records.--

165

(6) Unless prior written approval is obtained from the

166

department, any promotional materials or advertisements that,

167

directly or indirectly, refer to the Florida Retirement System or

168

the FRS, must contain a disclaimer that the information is not

169

approved or endorsed by the Florida Retirement System.

170

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

171

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

172

amended to read:

173

121.051 Participation in the system.--

174

(1) COMPULSORY PARTICIPATION.--

175

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

176

to all officers and employees, except elected officers who meet

177

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

178

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

179

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

180

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

181

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

182

any state retirement system and is reemployed on or after

183

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

184

membership in any state retirement system except as provided in

185

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

186

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

187

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

188

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

189

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

190

nonprofit association connected with the University of Florida,

191

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

192

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

193

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

194

Hillis Miller Health Center at the University of Florida or the

195

Medical Center at the University of South Florida which has a

196

faculty practice plan adopted provided by rule may adopted by the

197

Board of Regents shall not participate in the Florida Retirement

198

System. A faculty member so appointed shall participate in the

199

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

200

funded compensation, notwithstanding the provisions of s.

201

121.35(2)(a).

202

(2) OPTIONAL PARTICIPATION.--

203

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

204

Florida Retirement System undertakes the transfer, merger, or

205

consolidation of governmental services or assumes the functions

206

and activities of an employing governmental entity that was not

207

an employer under the system, the employer must notify the

208

department at least 60 days prior to such action and shall

209

provide documentation as required by the department. The

210

transfer, merger, or consolidation of governmental services or

211

assumption of governmental functions and activities must occur

212

between public employers. The current or former employer may pay

213

the employees' past service cost unless prohibited under this

214

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

215

or consolidation of governmental services or assumption of

216

functions and activities of a public entity under a leasing

217

agreement having a co-employer relationship. Employers and

218

employees of a public governmental employer whose service is

219

covered by a leasing agreement under s. 110.091 or a co-employer

220

relationship are not eligible to participate in the Florida

221

Retirement System.

222

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

223

transferred, merged, or consolidated does not participate in the

224

Florida Retirement System, a member may shall elect in writing to

225

remain in the Florida Retirement System or to transfer to the

226

local retirement system operated by the such agency. If such

227

agency does not participate in a local retirement system, the

228

member shall continue membership in the Florida Retirement

229

System. In either case, the membership continues shall continue

230

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

231

or her unit was transferred, merged, or consolidated.

232

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

233

121.071, Florida Statutes, is amended to read:

234

121.071 Contributions.--Contributions to the system shall

235

be made as follows:

236

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

237

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

238

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

239

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

240

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

241

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

242

from a qualified plan as provided under the Internal Revenue

243

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

244

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

245

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

246

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

247

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

248

rule.

249

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

250

section 121.081, Florida Statutes, are amended to read:

251

121.081 Past service; prior service;

252

contributions.--Conditions under which past service or prior

253

service may be claimed and credited are:

254

(1)

255

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

256

hereafter, becomes entitled to and participates does participate

257

in one of the retirement systems under consolidated within or

258

created by this chapter through the consolidation or merger of

259

governments or the transfer of functions between units of

260

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

261

and local units, or through the assumption of functions or

262

activities by a state or local unit from an employing

263

governmental entity that which was not an employer under the

264

system, and such person becomes a member of the Florida

265

Retirement System, such person is shall be entitled to receive

266

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

267

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

268

state or local unit or other governmental employing entity prior

269

to the transfer, merger, consolidation, or assumption of

270

functions and activities. Past-service credit allowed by this

271

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

272

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

273

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

274

or assumption of functions and activities set forth in this

275

paragraph and who subsequently becomes a member of the Florida

276

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

277

be granted until contributions are made in the manner provided in

278

this subsection. If a person rejected Florida Retirement System

279

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

280

or assumption the required contributions shall be at total

281

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

282

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

283

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

284

service:

285

1. Notwithstanding any of the provisions of this

286

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

287

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

288

benefit from a any local retirement system. Eligibility to

289

receive or the receipt of contributions to a retirement plan made

290

by the employer on behalf of the employee is considered a

291

benefit.

292

2. A member may not receive past service credit under

293

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

294

without pay, except that credit for active military service

295

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

296

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

297

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

298

employer service. Co-employer service is employment in a single

299

position simultaneously covered and reported by both a public

300

employer and a private employer.

301

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

302

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

303

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

304

in the Florida Retirement System.

305

5.4. The cost of past service purchased by an employing

306

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

307

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

308

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

309

Administrative Code.

310

6.5. The retirement account of each member for whom past

311

service is being provided by his or her employer shall be

312

credited with all past service the employer agrees to purchase as

313

soon as the agreement between the employer and the department is

314

executed. Pursuant thereto:

315

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

316

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

317

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

318

excluding those contributions representing the employer's

319

matching share and the compound interest calculation on the total

320

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

321

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

322

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

323

b. A refund of contributions payable after an employer has

324

made a written agreement to purchase past service for employees

325

of the covered group includes shall include contributions for

326

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

327

contributions for past service earned on and after October 1,

328

1975, are not refundable.

329

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

330

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

331

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

332

amended to read:

333

121.091 Benefits payable under the system.--Benefits may

334

not be paid under this section unless the member has terminated

335

employment as provided in s. 121.021(39)(a) or begun

336

participation in the Deferred Retirement Option Program as

337

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

338

filed in the manner prescribed by the department. The department

339

may cancel an application for retirement benefits when the member

340

or beneficiary fails to timely provide the information and

341

documents required by this chapter and the department's rules.

342

The department shall adopt rules establishing procedures for

343

application for retirement benefits and for the cancellation of

344

such application when the required information or documents are

345

not received.

346

(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--

347

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

348

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

349

be reemployed by any private or public employer after retirement

350

and receive retirement benefits and compensation from the his or

351

her employer without limitation any limitations, except that the

352

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

353

agency participating in the Florida Retirement System and

354

retirement benefits under this chapter for a period of 12 months

355

immediately after subsequent to the date of retirement. However,

356

a DROP participant may shall continue employment and receive a

357

salary during the period of participation in DROP the Deferred

358

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

359

2. Any person to whom the limitation in subparagraph 1.

360

applies who violates such reemployment limitation and who is

361

reemployed with any agency participating in the Florida

362

Retirement System after he or she has been retired for 1 calendar

363

month but before completion of the 12-month limitation period

364

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

365

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

366

her retirement benefits suspended while employed during for the

367

balance of the 12-month limitation period unless the person

368

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

369

5., subparagraph 6., or subparagraph 11. Any person employed in

370

violation of this paragraph and any employing agency that which

371

knowingly employs or appoints such person without notifying the

372

division of Retirement to suspend retirement benefits are shall

373

be jointly and severally liable for reimbursement to the

374

retirement trust fund of any benefits paid during the

375

reemployment limitation period. To avoid liability, the such

376

employing agency must shall have a written statement from the

377

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

378

retirement system. Any retirement benefits received while

379

reemployed during this reemployment limitation period must shall

380

be repaid to the Florida Retirement System Trust Fund, and

381

retirement benefits shall remain suspended until such repayment

382

has been made. Benefits suspended beyond the reemployment

383

limitation shall apply toward repayment of benefits received in

384

violation of the reemployment limitation.

385

3. A district school board may reemploy a retired member as

386

a substitute or hourly teacher, education paraprofessional,

387

transportation assistant, bus driver, or food service worker on a

388

noncontractual basis after he or she has been retired for 1

389

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

390

school board may reemploy a retired member as instructional

391

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

392

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

393

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

394

retired member who is reemployed within 1 calendar month after

395

retirement voids shall void his or her application for retirement

396

benefits. District school boards reemploying such teachers,

397

education paraprofessionals, transportation assistants, bus

398

drivers, or food service workers are subject to the retirement

399

contribution required by subparagraph 9. 7.

400

4. A community college board of trustees may reemploy a

401

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

402

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

403

phased retirement program within the Florida Community College

404

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

405

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

406

reemployed within 1 calendar month after retirement voids shall

407

void his or her application for retirement benefits. Boards of

408

trustees reemploying such instructors are subject to the

409

retirement contribution required in subparagraph 7. A retired

410

member may be reemployed as an adjunct instructor for no more

411

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

412

retired member reemployed for more than 780 hours during the

413

first 12 months of retirement must shall give timely notice in

414

writing to the employer and to the Division of Retirement of the

415

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

416

suspend his or her retirement benefits for the remainder of the

417

first 12 months of retirement. Any person employed in violation

418

of this subparagraph and any employing agency that which

419

knowingly employs or appoints such person without notifying the

420

division of Retirement to suspend retirement benefits are shall

421

be jointly and severally liable for reimbursement to the

422

retirement trust fund of any benefits paid during the

423

reemployment limitation period. To avoid liability, the such

424

employing agency must shall have a written statement from the

425

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

426

retirement system. Any retirement benefits received by a retired

427

member while reemployed in excess of 780 hours during the first

428

12 months of retirement must shall be repaid to the Florida

429

Retirement System Trust Fund, and retirement benefits shall

430

remain suspended until repayment is made. Benefits suspended

431

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

432

retirement shall apply toward repayment of benefits received in

433

violation of the 780-hour reemployment limitation.

434

5. The State University System may reemploy a retired

435

member as an adjunct faculty member or as a participant in a

436

phased retirement program within the State University System

437

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

438

in accordance with s. 121.021(39). Such Any retired member voids

439

who is reemployed within 1 calendar month after retirement shall

440

void his or her application for retirement benefits. The State

441

University System is subject to the retired contribution required

442

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

443

reemployed as an adjunct faculty member or a participant in a

444

phased retirement program for no more than 780 hours during the

445

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

446

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

447

retirement must shall give timely notice in writing to the

448

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

449

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

450

retirement benefits for the remainder of the first 12 months of

451

retirement. Any person employed in violation of this subparagraph

452

and any employing agency that which knowingly employs or appoints

453

such person without notifying the division of Retirement to

454

suspend retirement benefits are shall be jointly and severally

455

liable for reimbursement to the retirement trust fund of any

456

benefits paid during the reemployment limitation period. To avoid

457

liability, such employing agency must shall have a written

458

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

459

state-administered retirement system. Any retirement benefits

460

received by a retired member while reemployed in excess of 780

461

hours during the first 12 months of retirement must shall be

462

repaid to the Florida Retirement System Trust Fund, and

463

retirement benefits shall remain suspended until repayment is

464

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

465

first 12 months of retirement shall apply toward repayment of

466

benefits received in violation of the 780-hour reemployment

467

limitation.

468

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

469

and the Blind may reemploy a retired member as a substitute

470

teacher, substitute residential instructor, or substitute nurse

471

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

472

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

473

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

474

reemploy a retired member as instructional personnel, as defined

475

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

476

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

477

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

478

calendar month after retirement voids shall void his or her

479

application for retirement benefits. The Board of Trustees of the

480

Florida School for the Deaf and the Blind reemploying such

481

teachers, residential instructors, or nurses is subject to the

482

retirement contribution required by subparagraph 9. 7.

483

Reemployment of a retired member as a substitute teacher,

484

substitute residential instructor, or substitute nurse is limited

485

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

486

Any retired member reemployed for more than 780 hours during the

487

first 12 months of retirement shall give timely notice in writing

488

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

489

exceed the limitation. The division shall suspend his or her

490

retirement benefits for the remainder of the first 12 months of

491

retirement. Any person employed in violation of this subparagraph

492

and any employing agency which knowingly employs or appoints such

493

person without notifying the Division of Retirement to suspend

494

retirement benefits shall be jointly and severally liable for

495

reimbursement to the retirement trust fund of any benefits paid

496

during the reemployment limitation period. To avoid liability,

497

such employing agency shall have a written statement from the

498

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

499

retirement system. Any retirement benefits received by a retired

500

member while reemployed in excess of 780 hours during the first

501

12 months of retirement shall be repaid to the Retirement System

502

Trust Fund, and his or her retirement benefits shall remain

503

suspended until payment is made. Benefits suspended beyond the

504

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

505

apply toward repayment of benefits received in violation of the

506

780-hour reemployment limitation.

507

7. A developmental research school may reemploy a retired

508

member as a substitute or hourly teacher or an education

509

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

510

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

511

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

512

may reemploy a retired member as instructional personnel, as

513

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

514

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

515

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

516

1 calendar month after retirement voids his or her application

517

for retirement benefits. A developmental research school that

518

reemploys retired teachers and education paraprofessionals are

519

subject to the retirement contribution required by subparagraph

520

521

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

522

substitute or hourly teacher on a noncontractual basis after he

523

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

524

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

525

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

526

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

527

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

528

retired member who is reemployed within 1 calendar month after

529

retirement voids his or her application for retirement benefits.

530

A charter school that reemploys such teachers is subject to the

531

retirement contribution required by subparagraph 9.

532

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

533

participant of a any state-administered retirement system does

534

not affect shall have no effect on the average final compensation

535

or years of creditable service of the retiree or DROP

536

participant. Prior to July 1, 1991, upon employment of any

537

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

538

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

539

program, the employer shall pay retirement contributions in an

540

amount equal to the unfunded actuarial liability portion of the

541

employer contribution which would be required for regular members

542

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

543

contributions shall be made as provided in s. 121.122 for

544

retirees who have with renewed membership or, as provided in

545

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

546

10.8. Any person who has previously retired and who is

547

holding an elective public office or an appointment to an

548

elective public office eligible for the Elected Officers' Class

549

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

550

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

551

an elective public office that does not qualify for the Elected

552

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

553

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

554

shall continue to receive retirement benefits as well as

555

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

556

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

557

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

558

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

559

Retirement System membership reinstated shall, upon retirement

560

from such office, have his or her retirement benefit recalculated

561

to include the additional service and compensation earned.

562

11.9. Any person who is holding an elective public office

563

which is covered by the Florida Retirement System and who is

564

concurrently employed in nonelected covered employment may elect

565

to retire while continuing employment in the elective public

566

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

567

to terminate his or her nonelected covered employment. Any person

568

who exercises this election shall receive his or her retirement

569

benefits in addition to the compensation of the elective office

570

without regard to the time limitations otherwise provided in this

571

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

572

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

573

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

574

unless such person is eligible to retire under the provisions of

575

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

576

10. The limitations of this paragraph apply to reemployment

577

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

578

irrespective of the category of funds from which the person is

579

compensated.

580

12.11. An employing agency may reemploy a retired member as

581

a firefighter or paramedic after the retired member has been

582

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

583

Any retired member who is reemployed within 1 calendar month

584

after retirement voids shall void his or her application for

585

retirement benefits. The employing agency reemploying such

586

firefighter or paramedic is subject to the retired contribution

587

required in subparagraph 10. 8. Reemployment of a retired

588

firefighter or paramedic is limited to no more than 780 hours

589

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

590

member reemployed for more than 780 hours during the first 12

591

months of retirement must shall give timely notice in writing to

592

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

593

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

594

her retirement benefits for the remainder of the first 12 months

595

of retirement. Any person employed in violation of this

596

subparagraph and any employing agency that which knowingly

597

employs or appoints such person without notifying the division of

598

Retirement to suspend retirement benefits shall be jointly and

599

severally liable for reimbursement to the Retirement System Trust

600

Fund of any benefits paid during the reemployment limitation

601

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

602

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

603

retired from a state-administered retirement system. Any

604

retirement benefits received by a retired member while reemployed

605

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

606

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

607

and retirement benefits shall remain suspended until repayment is

608

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

609

first 12 months of retirement shall apply toward repayment of

610

benefits received in violation of the 780-hour reemployment

611

limitation.

612

13. The limitations of this paragraph apply to reemployment

613

in any capacity with an employer irrespective of the category of

614

funds from which the person is compensated.

615

14. The reemployment after retirement provisions of this

616

paragraph apply to DROP participants effective upon termination

617

from employment and the end of DROP participation.

618

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

619

subject to the provisions of this section, the Deferred

620

Retirement Option Program, hereinafter referred to as the DROP,

621

is a program under which an eligible member of the Florida

622

Retirement System may elect to participate, deferring receipt of

623

retirement benefits while continuing employment with his or her

624

Florida Retirement System employer. The deferred monthly benefits

625

shall accrue in the System Trust Fund on behalf of the

626

participant, plus interest compounded monthly, for the specified

627

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

628

Upon termination of employment, the participant shall receive the

629

total DROP benefits and begin to receive the previously

630

determined normal retirement benefits. Participation in the DROP

631

does not guarantee employment for the specified period of DROP.

632

Participation in the DROP by an eligible member beyond the

633

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

634

on an annual contractual basis for all participants.

635

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

636

active Florida Retirement System members in a regularly

637

established position, and all active members of either the

638

Teachers' Retirement System established in chapter 238 or the

639

State and County Officers' and Employees' Retirement System

640

established in chapter 122, which systems are consolidated within

641

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

642

elect participation in the DROP if provided that:

643

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

644

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

645

Community College System Optional Retirement Program under s.

646

121.051, the Senior Management Service Optional Annuity Program

647

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

648

State University System under s. 121.35.

649

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

650

participate is made within 12 months immediately following the

651

date on which the member first reaches normal retirement date,

652

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

653

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

654

Risk Class members, election to participate may be deferred to

655

the 12 months immediately following the date the member attains

656

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

657

first reached normal retirement date or the deferred eligibility

658

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

659

election to participate shall be made within 12 months after the

660

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

661

election within the such 12-month limitation period forfeits

662

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

663

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

664

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

665

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

666

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

667

members who are instructional personnel employed by the Florida

668

School for the Deaf and the Blind and who have received

669

authorization by the Board of Trustees of the Florida School for

670

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

671

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

672

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

673

authorization by the district school superintendent to

674

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

675

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

676

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

677

month or, with respect to members who are instructional personnel

678

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

679

have received authorization by the Board of Trustees of the

680

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

681

DROP beyond 60 months, or who are instructional personnel as

682

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

683

received authorization by the district school superintendent to

684

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

685

participation period, the member may elect to include or exclude

686

any optional service credit purchased by the member from the

687

total service used to establish the normal retirement date. A

688

member who has with dual normal retirement dates is shall be

689

eligible to elect to participate in DROP within 12 months after

690

attaining normal retirement date in either class.

691

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

692

DROP, or employers if dually employed, shall acknowledge in

693

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

694

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

695

participation will terminate.

696

4. Simultaneous employment of a participant by additional

697

Florida Retirement System employers subsequent to the

698

commencement of participation in the DROP is shall be permissible

699

if provided such employers acknowledge in writing a DROP

700

termination date no later than the participant's existing

701

termination date or the maximum participation 60-month limitation

702

period as provided in subparagraph (b)1.

703

5. A DROP participant may change employers while

704

participating in the DROP, subject to the following:

705

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

706

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

707

continuous DROP participation. If a member receives no salary

708

during a month, DROP participation shall cease unless the

709

employer verifies a continuation of the employment relationship

710

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

711

b. Such participant and new employer shall notify the

712

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

713

the division as to the identity of the new employer.

714

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

715

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

716

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

717

respect to members who are instructional personnel employed by

718

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

719

received authorization by the Board of Trustees of the Florida

720

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

721

beyond 60 months, or who are instructional personnel as defined

722

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

723

authorization by the district school superintendent to

724

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

725

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

726

any additional retirement contributions and interest required if

727

the participant fails to timely terminate employment, and is

728

shall be subject to the adjustment required in sub-subparagraph

729

730

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

731

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

732

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

733

first reaches normal retirement date. The member shall advise his

734

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

735

DROP begins the Deferred Retirement Option Program shall begin.

736

When establishing eligibility of the member to participate in the

737

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

738

instructional personnel employed by the Florida School for the

739

Deaf and the Blind and who have received authorization by the

740

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

741

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

742

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

743

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

744

school superintendent to participate in the DROP beyond 60

745

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

746

subparagraph (b)1., the member may elect to include or exclude

747

any optional service credit purchased by the member from the

748

total service used to establish the normal retirement date. A

749

member who has with dual normal retirement dates is shall be

750

eligible to elect to participate in either class.

751

(b) Participation in the DROP.--

752

1. An eligible member may elect to participate in the DROP

753

for a period not to exceed a maximum of 60 calendar months or,

754

with respect to members who are instructional personnel employed

755

by the Florida School for the Deaf and the Blind and authorized

756

who have received authorization by the Board of Trustees of the

757

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

758

DROP beyond 60 months, or who are instructional personnel as

759

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

760

have received authorization by the district school superintendent

761

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

762

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

763

a developmental research school and authorized by the school's

764

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

765

principal, to participate in the DROP beyond 60 months, 96

766

calendar months immediately following the date on which the

767

member first reaches his or her normal retirement date or the

768

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

769

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

770

member who has reached normal retirement date prior to the

771

effective date of the DROP shall be eligible to participate in

772

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

773

or, with respect to members who are instructional personnel

774

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

775

have received authorization by the Board of Trustees of the

776

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

777

DROP beyond 60 months, or who are instructional personnel as

778

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

779

received authorization by the district school superintendent to

780

participate in the DROP beyond 60 calendar months, 96 calendar

781

months immediately following the effective date of the DROP,

782

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

783

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

784

total accrued value exceeds 75 percent of average final

785

compensation as of his or her effective date of retirement shall

786

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

787

calendar months immediately following the effective date of the

788

DROP.

789

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

790

shall submit, on forms required by the division:

791

a. A written election to participate in the DROP;

792

b. Selection of the DROP participation and termination

793

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

794

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

795

binding letter of resignation to with the employer, establishing

796

a deferred termination date. The member may change the

797

termination date within the limitations of subparagraph 1., but

798

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

799

c. A properly completed DROP application for service

800

retirement as provided in this section; and

801

d. Any other information required by the division.

802

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

803

Florida Retirement System for all purposes, except for paragraph

804

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

805

121.122. DROP participation is final and cannot be cancelled by

806

the participant after the first payment is credited during the

807

DROP participation period. However, participation in the DROP

808

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

809

is such employee shall not be deemed retired from employment

810

until his or her deferred resignation is effective and

811

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

812

4. Elected officers are shall be eligible to participate in

813

the DROP subject to the following:

814

a. An elected officer who reaches normal retirement date

815

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

816

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

817

elected officer who exercises this option may participate in the

818

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

819

the such succeeding term of office, whichever is less.

820

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

821

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

822

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

823

such additional term of office exceeds the 60-month limitation

824

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

825

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

826

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

827

sub-subparagraph (c)5.d.

828

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

829

participate in DROP must shall be required to satisfy the

830

definition of termination within the 60-month or, with respect to

831

members who are instructional personnel employed by the Florida

832

School for the Deaf and the Blind and who have received

833

authorization by the Board of Trustees of the Florida School for

834

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

835

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

836

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

837

authorization by the district school superintendent to

838

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

839

participation limitation period as provided in subparagraph 1.

840

for the nonelected position and may continue employment as an

841

elected officer as provided in s. 121.053. The elected officer

842

shall will be enrolled as a renewed member in the Elected

843

Officers' Class or the Regular Class, as provided in ss. 121.053

844

and 121.122, on the first day of the month after termination of

845

employment in the nonelected position and termination of DROP.

846

Distribution of the DROP benefits shall be made as provided in

847

paragraph (c).

848

849

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

850

member's initial normal monthly benefit, including creditable

851

service, optional form of payment, and average final

852

compensation, and the effective date of retirement are shall be

853

fixed. The beneficiary established under the Florida Retirement

854

System shall be the beneficiary eligible to receive any DROP

855

benefits payable if the DROP participant dies prior to the

856

completion of the period of DROP participation. If In the event a

857

joint annuitant predeceases the member, the member may name a

858

beneficiary to receive accumulated DROP benefits payable. The

859

Such retirement benefit, the annual cost of living adjustments

860

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

861

Florida Retirement System Trust Fund. The Such interest shall

862

accrue at an effective annual rate of 6.5 percent compounded

863

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

864

the month of termination or death.

865

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

866

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

867

accrued annual leave earned in accordance with agency policy upon

868

beginning participation in the DROP. The Such accumulated leave

869

payment certified to the division upon commencement of DROP shall

870

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

871

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

872

upon beginning participation in DROP will not be eligible to

873

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

874

extent the employee has earned additional annual leave which,

875

combined with the original payment, does not exceed the maximum

876

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

877

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

878

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

879

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

880

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

881

termination of employment with the employer, any accumulated

882

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

883

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

884

law when the employee elected to participate in the DROP.

885

3. The effective date of DROP participation and the

886

effective date of retirement of a DROP participant shall be the

887

first day of the month selected by the member to begin

888

participation in the DROP, provided such date is properly

889

established, with the written confirmation of the employer, and

890

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

891

4. Normal retirement benefits and any interest thereon

892

shall continue to accrue in the DROP until the established

893

termination date of the DROP, or until the participant terminates

894

employment or dies prior to such date. Although individual DROP

895

accounts shall not be established, a separate accounting of each

896

participant's accrued benefits under the DROP shall be calculated

897

and provided to participants.

898

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

899

division shall distribute the participant's total accumulated

900

DROP benefits, subject to the following provisions:

901

a. The division shall receive verification by the

902

participant's employer or employers that the such participant has

903

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

904

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

905

such participant's named beneficiary, shall elect on forms

906

provided by the division to receive payment of the DROP benefits

907

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

908

participant or beneficiary who fails to elect a method of payment

909

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

910

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

911

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

912

less withholding taxes remitted to the Internal Revenue Service,

913

shall be paid to the DROP participant or surviving beneficiary.

914

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

915

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

916

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

917

the Internal Revenue Code. However, in the case of an eligible

918

rollover distribution to the surviving spouse of a deceased

919

participant, an eligible retirement plan is an individual

920

retirement account or an individual retirement annuity as

921

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

922

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

923

benefits shall be paid to the DROP participant or surviving

924

spouse, less withholding taxes remitted to the Internal Revenue

925

Service, and the remaining DROP benefits shall be transferred

926

directly to the custodian of an eligible retirement plan as

927

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

928

in the case of an eligible rollover distribution to the surviving

929

spouse of a deceased participant, an eligible retirement plan is

930

an individual retirement account or an individual retirement

931

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

932

Code. The proportions shall be specified by the DROP participant

933

or surviving beneficiary.

934

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

935

surviving beneficiary must comply complies with the minimum

936

distribution requirements of the Internal Revenue Code.

937

d. A DROP participant who fails to terminate employment as

938

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

939

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

940

Retirement System membership shall be reestablished retroactively

941

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

942

with whom the participant continues employment must shall be

943

required to pay to the Florida Retirement System Trust Fund the

944

difference between the DROP contributions paid in paragraph (i)

945

and the contributions required for the applicable Florida

946

Retirement System class of membership during the period the

947

member participated in the DROP, plus 6.5 percent interest

948

compounded annually.

949

6. The retirement benefits of any DROP participant who

950

meets the definition of termination, as provided in s.

951

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

952

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

953

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

954

member employed in violation of this subparagraph and any

955

employing agency that knowingly employs or appoints such member

956

without notifying the Division of Retirement to suspend

957

retirement benefits are jointly and severally liable for any

958

benefits paid during the reemployment limitation period. To avoid

959

liability, the employing agency must have a written statement

960

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

961

administered retirement system. Any retirement benefits received

962

by a retired member while employed in violation of the

963

reemployment limitations during the first 12 months of retirement

964

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

965

his or her retirement benefits shall remain suspended until

966

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

967

member's first 12 months of retirement shall apply toward

968

repayment of benefits received in violation of the reemployment

969

limitations.

970

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

971

contributions accumulated under the such program, are shall not

972

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

973

process whatsoever, except for qualified domestic relations

974

orders by a court of competent jurisdiction, income deduction

975

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

976

8.7. DROP participants are shall not be eligible for

977

disability retirement benefits as provided in subsection (4).

978

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

979

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

980

Florida Retirement System:

981

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

982

rule 60S-4.015, Florida Administrative Code, a payee receiving

983

retirement benefits under the Florida Retirement system may also

984

have the following payments deducted from his or her monthly

985

benefit:

986

1. Premiums for life and health-related insurance policies

987

from approved companies.

988

2. Life insurance premiums for the State Group Life

989

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

990

department of Management Services.

991

3. Repayment of overpayments from the Florida Retirement

992

System Trust Fund, the State Employees' Health Insurance Trust

993

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

994

notification of the payee.

995

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

996

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

997

or division of marital assets pursuant to a qualified domestic

998

relations order under s. 222.21 or an income deduction order

999

under s. 61.1301.

1000

5. Payments to the Internal Revenue Service for federal

1001

income tax levies, upon notification of the division by the

1002

Internal Revenue Service.

1003

1004

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

1005

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

1006

returned due to an incorrect address. Benefit payments shall be

1007

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

1008

address.

1009

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

1010

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

1011

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

1012

the portion of his or her calculated benefit in the Florida

1013

Retirement System defined benefit plan which exceeds such federal

1014

limitation paid through the Florida Retirement System

1015

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

1016

(e). The Division of Retirement may issue retirement

1017

benefits payable for division of marital assets pursuant to a

1018

qualified domestic relations order directly to the alternate

1019

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

1020

to meet Internal Revenue Code requirements.

1021

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

1022

preserving the member's eligibility for a federal program.

1023

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

1024

procedures for determining that the persons to whom benefits are

1025

being paid are still living. The division shall suspend the

1026

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

1027

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

1028

Section 7. Section 121.1115, Florida Statutes, is amended

1029

to read:

1030

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

1031

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

1032

Florida Retirement System may purchase creditable service for

1033

periods of public employment in another state and receive

1034

creditable service for such periods of employment. Service with

1035

the Federal Government, including any active military service,

1036

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

1037

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

1038

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

1039

subject to the following provisions:

1040

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

1041

out-of-state service:

1042

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

1043

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

1044

a political subdivision thereof or with the Federal Government;

1045

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

1046

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

1047

appropriate; and

1048

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

1049

Retirement System.

1050

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

1051

creditable service under the Florida Retirement System, excluding

1052

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

1053

under s. 121.1122.

1054

1055

claimed for creditable service aggregated under the provisions of

1056

this section and s. 121.1122.

1057

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

1058

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

1059

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

1060

subject to the limitations and restrictions of s. 112.65.

1061

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

1062

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

1063

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

1064

receipt of contributions to a retirement plan made by the

1065

employer on behalf of the employee is considered a benefit.

1066

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

1067

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

1068

the Florida Retirement System, the member must complete only upon

1069

return to membership and completion of at least 1 year of

1070

creditable service in the Florida Retirement System following the

1071

out-of-state service.

1072

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

1073

the Florida Retirement System Trust Fund an amount equal to 20

1074

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

1075

work year of creditable service earned under the Florida

1076

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

1077

6.5 percent compounded annually from the date of first annual

1078

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

1079

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

1080

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

1081

Statutes, is amended to read:

1082

121.1122 Purchase of retirement credit for in-state public

1083

service and in-state service in accredited nonpublic schools and

1084

colleges, including charter schools and charter technical career

1085

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

1086

Retirement System may purchase creditable service for periods of

1087

certain public or nonpublic employment performed in this state,

1088

as provided in this section.

1089

(2) LIMITATIONS AND CONDITIONS.--

1090

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

1091

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

1092

of creditable service under the Florida Retirement System,

1093

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

1094

service claimed and purchased under s. 121.1115.

1095

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

1096

than 5 years of creditable service aggregated under the

1097

provisions of this section and s. 121.1115.

1098

1099

credited only as service in the Regular Class of membership and

1100

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

1101

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

1102

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

1103

benefit from a retirement or pension plan based on or including

1104

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

1105

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

1106

considered a benefit.

1107

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

1108

credit for in-state service performed after leaving the Florida

1109

Retirement System only after upon returning to membership and

1110

completing at least 1 year of creditable service in the Florida

1111

Retirement System following the in-state service.

1112

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

1113

by a retirement or pension plan provided by the employer.

1114

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

1115

read:

1116

121.136 Annual benefit statement to members.--Beginning

1117

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

1118

shall provide each active member of the Florida Retirement System

1119

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

1120

benefits which provides. Such statement should provide the member

1121

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

1122

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

1123

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

1124

the retirement account, and an estimate of retirement benefits.

1125

Section 10. Paragraph (a) of subsection (2) of section

1126

121.23, Florida Statutes, is amended to read:

1127

121.23 Disability retirement and special risk membership

1128

applications; Retirement Commission; powers and duties; judicial

1129

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

1130

in which the administrator has made a written final decision on

1131

the merits respecting applications for disability retirement,

1132

reexamination of retired members receiving disability benefits,

1133

applications for special risk membership, and reexamination of

1134

special risk members in the Florida Retirement System. The

1135

jurisdiction of the State Retirement Commission under this

1136

section shall be limited to written final decisions of the

1137

administrator on the merits.

1138

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

1139

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

1140

on the merits of any written adverse decision of the

1141

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

1142

request for such hearing within 21 days after receipt of such

1143

written decision from the administrator. For the purpose of such

1144

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

1145

s. 120.52.

1146

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

1147

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

1148

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

1149

action that it deems appropriate. Any disability retirement order

1150

of the commission issued pursuant to this subsection which

1151

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

1152

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

1153

and taxable costs, which shall be calculated in accordance with

1154

the statewide uniform guidelines for taxation of costs in civil

1155

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

1156

percent of the initial yearly benefit awarded under s.

1157

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

1158

Retirement commission shall require the member to present proof

1159

of total and permanent disability in accordance with s.

1160

121.091(4) competent medical evidence and may require vocational

1161

evidence before awarding disability retirement benefits.

1162

Section 11. Paragraph (a) of subsection (1) of section

1163

121.24, Florida Statutes, is amended to read:

1164

121.24 Conduct of commission business; legal and other

1165

assistance; compensation.--

1166

(1) The commission shall conduct its business within the

1167

following guidelines:

1168

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

1169

commission may meet in panels consisting of no not fewer than

1170

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

1171

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

1172

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

1173

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

1174

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

1175

commission.

1176

Section 12. Subsection (8) of section 1012.33, Florida

1177

Statutes, is amended to read:

1178

1012.33 Contracts with instructional staff, supervisors,

1179

and school principals.--

1180

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

1181

any member who has retired may interrupt retirement and be

1182

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

1183

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

1184

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

1185

however, no regular retirement employee shall be eligible to

1186

renew membership under a retirement system created by chapter 121

1187

or chapter 238.

1188

Section 13. Sections 121.093, 121.094, 121.1905, and

1189

121.45, Florida Statutes, are repealed.

1190

Section 14. The Legislature finds that a proper and

1191

legitimate state purpose is served when employees and retirees of

1192

the state and its political subdivisions, as well as the

1193

dependents, survivors, and beneficiaries of such employees and

1194

retiree, are extended the basic protections afforded by

1195

governmental retirement systems that provide fair and adequate

1196

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

1197

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

1198

State Constitution, and part VII of chapter 112, Florida

1199

Statutes. Therefore, the Legislature determines and declares that

1200

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

1201

fulfills an important state interest.

1202

Section 15. This act shall take effect July 1, 2008

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