Florida Senate - 2008 CS for SB 2848

By the Committee on Governmental Operations; and Senator Lawson

585-06021-08 20082848c1

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. 121.052, F.S.; changing the dates

for when a governing body of a municipality or special

district may elect to designate its elected positions for

inclusion in the Elected Officers' Class; 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.

100

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

101

month following the date a member attains normal retirement age

102

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

103

following statuses:

104

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

105

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

106

more years of creditable service and attains age 62; or

107

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

108

completes 30 years of creditable service, regardless of age,

109

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

110

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

111

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

112

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

114

attains age 55;

115

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

116

completes 25 years of creditable service in the Special Risk

117

Class, regardless of age; or

118

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

119

completes 25 years of creditable service and attains age 52,

120

which service may include a maximum of 4 years of military

121

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

122

other system and the remaining years are in the Special Risk

123

Class.

124

125

member:

126

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

127

of creditable service in the Senior Management Service Class and

128

attains age 62; or

129

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

130

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

131

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

132

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

133

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

134

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

135

of creditable service in the Elected Officers' Class and attains

136

age 62; or

137

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

138

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

139

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

140

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

141

142

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

143

date."

144

(52) "Regularly established position" is defined as

145

follows:

146

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

147

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

148

established pursuant to law and is compensated from a salaries

149

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

150

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

151

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

152

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

153

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

154

city, metropolitan planning organization, or special district),

155

the term means a regularly established position that which will

156

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

157

as provided by rule.

158

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

159

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

160

agency, the term means an employment position that which is

161

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

162

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

163

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

164

agency, the term means an employment position that which will

165

exist for less than 6 consecutive months, or other employment

166

position as determined by rule of the division, regardless of

167

whether it will exist for 6 consecutive months or longer.

168

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

169

Administration.

170

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

171

Board of Administration.

172

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

173

Florida Statutes, to read:

174

121.031 Administration of system; appropriation; oaths;

175

actuarial studies; public records.--

176

(6) Unless prior written approval is obtained from the

177

department or state board, any promotional materials or

178

advertisements that, directly or indirectly, refer to the Florida

179

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

180

information is not approved or endorsed by the Florida Retirement

181

System.

182

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

183

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

184

amended to read:

185

121.051 Participation in the system.--

186

(1) COMPULSORY PARTICIPATION.--

187

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

188

to all officers and employees, except elected officers who meet

189

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

190

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

191

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

192

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

193

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

194

any state retirement system and is reemployed on or after

195

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

196

membership in any state retirement system except as provided in

197

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

198

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

199

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

200

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

201

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

202

nonprofit association connected with the University of Florida,

203

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

204

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

205

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

206

Hillis Miller Health Center at the University of Florida or the

207

Medical Center at the University of South Florida which has a

208

faculty practice plan adopted provided by rule may adopted by the

209

Board of Regents shall not participate in the Florida Retirement

210

System. A faculty member so appointed shall participate in the

211

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

212

funded compensation, notwithstanding the provisions of s.

213

121.35(2)(a).

214

(2) OPTIONAL PARTICIPATION.--

215

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

216

Florida Retirement System undertakes the transfer, merger, or

217

consolidation of governmental services or assumes the functions

218

or activities of an employing governmental entity that was not an

219

employer under the system, the employer must notify the

220

department at least 60 days prior to such action and shall

221

provide documentation as required by the department. The

222

transfer, merger, or consolidation of governmental services or

223

assumption of governmental functions and activities must occur

224

between public employers. The current or former employer may pay

225

the employees' past service cost unless prohibited under this

226

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

227

or consolidation of governmental services or assumption of

228

functions and activities of a public entity under a leasing

229

agreement having a co-employer relationship. Employers and

230

employees of a public governmental employer whose service is

231

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

232

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

233

participate in the Florida Retirement System.

234

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

235

transferred, merged, or consolidated does not participate in the

236

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

237

remain in the Florida Retirement System or to transfer to the

238

local retirement system operated by the such agency. If such

239

agency does not participate in a local retirement system, the

240

member shall continue membership in the Florida Retirement

241

System. In either case, the membership continues shall continue

242

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

243

or her unit was transferred, merged, or consolidated.

244

Section 4. Paragraph (e) of subsection (3) of section

245

121.052, Florida Statutes, is amended to read:

246

121.052 Membership class of elected officers.--

247

(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective

248

July 1, 1990, participation in the Elected Officers' Class shall

249

be compulsory for elected officers listed in paragraphs (2)(a)-

250

(d) and (f) assuming office on or after said date, unless the

251

elected officer elects membership in another class or withdraws

252

from the Florida Retirement System as provided in paragraphs

253

(3)(a)-(d):

254

(e) Effective July 1, 2008 July 1, 2001, the governing body

255

of a municipality or special district may, by majority vote,

256

elect to designate all its elected positions for inclusion in the

257

Elected Officers' Class. Such election shall be made between July

258

1, 2008, and December 31, 2008 July 1, 2001, and December 31,

259

2001, and shall be irrevocable. The designation of such positions

260

shall be effective the first day of the month following receipt

261

by the department of the ordinance or resolution passed by the

262

governing body.

263

Section 5. Paragraph (a) of subsection (6) of section

264

121.071, Florida Statutes, is amended to read:

265

121.071 Contributions.--Contributions to the system shall

266

be made as follows:

267

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

268

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

269

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

270

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

271

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

272

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

273

from a qualified plan as provided under the Internal Revenue

274

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

275

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

276

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

277

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

278

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

279

rule.

280

Section 6. Paragraphs (f) and (h) of subsection (1) of

281

section 121.081, Florida Statutes, are amended to read:

282

121.081 Past service; prior service;

283

contributions.--Conditions under which past service or prior

284

service may be claimed and credited are:

285

(1)

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

287

hereafter, becomes entitled to and participates does participate

288

in one of the retirement systems under consolidated within or

289

created by this chapter through the consolidation or merger of

290

governments or the transfer of functions between units of

291

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

292

and local units, or through the assumption of functions or

293

activities by a state or local unit from an employing

294

governmental entity that which was not an employer under the

295

system, and such person becomes a member of the Florida

296

Retirement System, such person is shall be entitled to receive

297

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

298

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

299

state or local unit or other governmental employing entity prior

300

to the transfer, merger, consolidation, or assumption of

301

functions and activities. Past-service credit allowed by this

302

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

303

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

304

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

305

or assumption of functions and activities set forth in this

306

paragraph and who subsequently becomes a member of the Florida

307

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

308

be granted until contributions are made in the manner provided in

309

this subsection. If a person rejected Florida Retirement System

310

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

311

or assumption the required contributions shall be at total

312

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

313

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

314

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

315

service:

316

1. Notwithstanding any of the provisions of this

317

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

318

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

319

benefit from a any local retirement system. Eligibility to

320

receive or the receipt of contributions to a retirement plan made

321

by the employer on behalf of the employee is considered a

322

benefit.

323

2. A member may not receive past service credit under

324

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

325

without pay, except that credit for active military service

326

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

327

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

328

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

329

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

330

relationship is employment in a single position simultaneously

331

covered and reported by both a public employer and a private

332

employer.

333

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

334

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

335

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

336

in the Florida Retirement System.

337

5.4. The cost of past service purchased by an employing

338

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

339

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

340

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

341

Administrative Code.

342

6.5. The retirement account of each member for whom past

343

service is being provided by his or her employer shall be

344

credited with all past service the employer agrees to purchase as

345

soon as the agreement between the employer and the department is

346

executed. Pursuant thereto:

347

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

348

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

349

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

350

excluding those contributions representing the employer's

351

matching share and the compound interest calculation on the total

352

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

353

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

354

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

355

b. A refund of contributions payable after an employer has

356

made a written agreement to purchase past service for employees

357

of the covered group includes shall include contributions for

358

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

359

contributions for past service earned on and after October 1,

360

1975, are not refundable.

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Section 7. Paragraph (b) of subsection (9), paragraphs (a),

362

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

363

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

364

amended to read:

365

121.091 Benefits payable under the system.--Benefits may

366

not be paid under this section unless the member has terminated

367

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

368

participation in the Deferred Retirement Option Program as

369

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

370

filed in the manner prescribed by the department. The department

371

may cancel an application for retirement benefits when the member

372

or beneficiary fails to timely provide the information and

373

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

374

The department shall adopt rules establishing procedures for

375

application for retirement benefits and for the cancellation of

376

such application when the required information or documents are

377

not received.

378

(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--

379

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

380

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

381

be reemployed by any private or public employer after retirement

382

and receive retirement benefits and compensation from the his or

383

her employer without limitation any limitations, except that the

384

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

385

agency participating in the Florida Retirement System and

386

retirement benefits under this chapter for a period of 12 months

387

immediately after subsequent to the date of retirement. However,

388

a DROP participant may shall continue employment and receive a

389

salary during the period of participation in DROP the Deferred

390

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

391

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

392

applies who violates such reemployment limitation and who is

393

reemployed with any agency participating in the Florida

394

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

395

month but before completion of the 12-month limitation period

396

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

397

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

398

her retirement benefits suspended while employed during for the

399

balance of the 12-month limitation period unless the person

400

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

401

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

402

paragraph and any employing agency that which knowingly employs

403

or appoints such person without notifying the division of

404

Retirement to suspend retirement benefits are shall be jointly

405

and severally liable for reimbursement to the retirement trust

406

fund of any benefits paid during the reemployment limitation

407

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

408

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

409

retired from a state-administered retirement system. Any

410

retirement benefits received while reemployed during this

411

reemployment limitation period must shall be repaid to the

412

Florida Retirement System Trust Fund, and retirement benefits

413

shall remain suspended until such repayment has been made.

414

Benefits suspended beyond the reemployment limitation shall apply

415

toward repayment of benefits received in violation of the

416

reemployment limitation.

417

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

418

a substitute or hourly teacher, education paraprofessional,

419

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

420

noncontractual basis after he or she has been retired for 1

421

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

422

school board may reemploy a retired member as instructional

423

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

424

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

425

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

426

member who is reemployed within 1 calendar month after retirement

427

voids shall void his or her application for retirement benefits.

428

District school boards reemploying such teachers, education

429

paraprofessionals, transportation assistants, bus drivers, or

430

food service workers are subject to the retirement contribution

431

required by subparagraph 9. 7.

432

4. A community college board of trustees may reemploy a

433

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

434

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

435

phased retirement program within the Florida Community College

436

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

437

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

438

reemployed within 1 calendar month after retirement voids shall

439

void his or her application for retirement benefits. Boards of

440

trustees reemploying such instructors are subject to the

441

retirement contribution required in subparagraph 7. A retired

442

member may be reemployed as an adjunct instructor for no more

443

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

444

retired member reemployed for more than 780 hours during the

445

first 12 months of retirement must shall give timely notice in

446

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

447

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

448

suspend his or her retirement benefits for the remainder of the

449

first 12 months of retirement. Any person employed in violation

450

of this subparagraph and any employing agency that which

451

knowingly employs or appoints such person without notifying the

452

division of Retirement to suspend retirement benefits are shall

453

be jointly and severally liable for reimbursement to the

454

retirement trust fund of any benefits paid during the

455

reemployment limitation period. To avoid liability, the such

456

employing agency must shall have a written statement from the

457

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

458

retirement system. Any retirement benefits received by a retired

459

member while reemployed in excess of 780 hours during the first

460

12 months of retirement must shall be repaid to the Florida

461

Retirement System Trust Fund, and retirement benefits shall

462

remain suspended until repayment is made. Benefits suspended

463

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

464

retirement shall apply toward repayment of benefits received in

465

violation of the 780-hour reemployment limitation.

466

5. The State University System may reemploy a retired

467

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

468

phased retirement program within the State University System

469

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

470

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

471

reemployed within 1 calendar month after retirement voids shall

472

void his or her application for retirement benefits. The State

473

University System is subject to the retired contribution required

474

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

475

reemployed as an adjunct faculty member or a participant in a

476

phased retirement program for no more than 780 hours during the

477

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

478

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

479

retirement must shall give timely notice in writing to the

480

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

481

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

482

retirement benefits for the remainder of the first 12 months of

483

retirement. Any person employed in violation of this subparagraph

484

and any employing agency that which knowingly employs or appoints

485

such person without notifying the division of Retirement to

486

suspend retirement benefits are shall be jointly and severally

487

liable for reimbursement to the retirement trust fund of any

488

benefits paid during the reemployment limitation period. To avoid

489

liability, such employing agency must shall have a written

490

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

491

state-administered retirement system. Any retirement benefits

492

received by a retired member while reemployed in excess of 780

493

hours during the first 12 months of retirement must shall be

494

repaid to the Florida Retirement System Trust Fund, and

495

retirement benefits shall remain suspended until repayment is

496

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

497

first 12 months of retirement shall apply toward repayment of

498

benefits received in violation of the 780-hour reemployment

499

limitation.

500

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

501

and the Blind may reemploy a retired member as a substitute

502

teacher, substitute residential instructor, or substitute nurse

503

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

504

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

505

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

506

reemploy a retired member as instructional personnel, as defined

507

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

508

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

509

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

510

calendar month after retirement voids shall void his or her

511

application for retirement benefits. The Board of Trustees of the

512

Florida School for the Deaf and the Blind reemploying such

513

teachers, residential instructors, or nurses is subject to the

514

retirement contribution required by subparagraph 9. 7.

515

Reemployment of a retired member as a substitute teacher,

516

substitute residential instructor, or substitute nurse is limited

517

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

518

Any retired member reemployed for more than 780 hours during the

519

first 12 months of retirement shall give timely notice in writing

520

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

521

exceed the limitation. The division shall suspend his or her

522

retirement benefits for the remainder of the first 12 months of

523

retirement. Any person employed in violation of this subparagraph

524

and any employing agency which knowingly employs or appoints such

525

person without notifying the Division of Retirement to suspend

526

retirement benefits shall be jointly and severally liable for

527

reimbursement to the retirement trust fund of any benefits paid

528

during the reemployment limitation period. To avoid liability,

529

such employing agency shall have a written statement from the

530

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

531

retirement system. Any retirement benefits received by a retired

532

member while reemployed in excess of 780 hours during the first

533

12 months of retirement shall be repaid to the Retirement System

534

Trust Fund, and his or her retirement benefits shall remain

535

suspended until payment is made. Benefits suspended beyond the

536

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

537

apply toward repayment of benefits received in violation of the

538

780-hour reemployment limitation.

539

7. A developmental research school may reemploy a retired

540

member as a substitute or hourly teacher or an education

541

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

542

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

543

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

544

may reemploy a retired member as instructional personnel, as

545

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

546

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

547

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

548

within 1 calendar month after retirement voids his or her

549

application for retirement benefits. A developmental research

550

school that reemploys retired teachers and education

551

paraprofessionals are subject to the retirement contribution

552

required by subparagraph 9.

553

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

554

substitute or hourly teacher on a noncontractual basis after he

555

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

556

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

557

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

558

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

559

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

560

retired member who is reemployed within 1 calendar month after

561

retirement voids his or her application for retirement benefits.

562

A charter school that reemploys such teachers is subject to the

563

retirement contribution required by subparagraph 9.

564

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

565

participant of a any state-administered retirement system does

566

not affect shall have no effect on the average final compensation

567

or years of creditable service of the retiree or DROP

568

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

569

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

570

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

571

program, the employer shall pay retirement contributions in an

572

amount equal to the unfunded actuarial liability portion of the

573

employer contribution which would be required for regular members

574

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

575

contributions shall be made as provided in s. 121.122 for

576

retirees who have with renewed membership or, as provided in

577

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

578

10.8. Any person who has previously retired and who is

579

holding an elective public office or an appointment to an

580

elective public office eligible for the Elected Officers' Class

581

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

582

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

583

an elective public office that does not qualify for the Elected

584

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

585

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

586

shall continue to receive retirement benefits as well as

587

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

588

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

589

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

590

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

591

Retirement System membership reinstated shall, upon retirement

592

from such office, have his or her retirement benefit recalculated

593

to include the additional service and compensation earned.

594

11.9. Any person who is holding an elective public office

595

which is covered by the Florida Retirement System and who is

596

concurrently employed in nonelected covered employment may elect

597

to retire while continuing employment in the elective public

598

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

599

to terminate his or her nonelected covered employment. Any person

600

who exercises this election shall receive his or her retirement

601

benefits in addition to the compensation of the elective office

602

without regard to the time limitations otherwise provided in this

603

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

604

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

605

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

606

unless such person is eligible to retire under the provisions of

607

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

608

10. The limitations of this paragraph apply to reemployment

609

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

610

irrespective of the category of funds from which the person is

611

compensated.

612

12.11. An employing agency may reemploy a retired member as

613

a firefighter or paramedic after the retired member has been

614

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

615

Any retired member who is reemployed within 1 calendar month

616

after retirement voids shall void his or her application for

617

retirement benefits. The employing agency reemploying such

618

firefighter or paramedic is subject to the retired contribution

619

required in subparagraph 9. 8. Reemployment of a retired

620

firefighter or paramedic is limited to no more than 780 hours

621

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

622

member reemployed for more than 780 hours during the first 12

623

months of retirement must shall give timely notice in writing to

624

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

625

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

626

her retirement benefits for the remainder of the first 12 months

627

of retirement. Any person employed in violation of this

628

subparagraph and any employing agency that which knowingly

629

employs or appoints such person without notifying the division of

630

Retirement to suspend retirement benefits shall be jointly and

631

severally liable for reimbursement to the Retirement System Trust

632

Fund of any benefits paid during the reemployment limitation

633

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

634

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

635

retired from a state-administered retirement system. Any

636

retirement benefits received by a retired member while reemployed

637

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

638

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

639

and retirement benefits shall remain suspended until repayment is

640

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

641

first 12 months of retirement shall apply toward repayment of

642

benefits received in violation of the 780-hour reemployment

643

limitation.

644

13. The limitations of this paragraph apply to reemployment

645

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

646

irrespective of the category of funds from which the person is

647

compensated.

648

14. The reemployment after retirement provisions of this

649

paragraph apply to DROP participants effective upon termination

650

from employment and the end of DROP participation.

651

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

652

subject to the provisions of this section, the Deferred

653

Retirement Option Program, hereinafter referred to as the DROP,

654

is a program under which an eligible member of the Florida

655

Retirement System may elect to participate, deferring receipt of

656

retirement benefits while continuing employment with his or her

657

Florida Retirement System employer. The deferred monthly benefits

658

shall accrue in the System Trust Fund on behalf of the

659

participant, plus interest compounded monthly, for the specified

660

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

661

Upon termination of employment, the participant shall receive the

662

total DROP benefits and begin to receive the previously

663

determined normal retirement benefits. Participation in the DROP

664

does not guarantee employment for the specified period of DROP.

665

Participation in the DROP by an eligible member beyond the

666

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

667

on an annual contractual basis for all participants.

668

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

669

active Florida Retirement System members in a regularly

670

established position, and all active members of either the

671

Teachers' Retirement System established in chapter 238 or the

672

State and County Officers' and Employees' Retirement System

673

established in chapter 122, which systems are consolidated within

674

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

675

elect participation in the DROP if provided that:

676

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

677

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

678

Community College System Optional Retirement Program under s.

679

121.051, the Senior Management Service Optional Annuity Program

680

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

681

State University System under s. 121.35.

682

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

683

participate is made within 12 months immediately following the

684

date on which the member first reaches normal retirement date,

685

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

686

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

687

Risk Class members, election to participate may be deferred to

688

the 12 months immediately following the date the member attains

689

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

690

first reached normal retirement date or the deferred eligibility

691

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

692

election to participate shall be made within 12 months after the

693

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

694

election within the such 12-month limitation period forfeits

695

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

696

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

697

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

698

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

699

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

700

members who are instructional personnel employed by the Florida

701

School for the Deaf and the Blind and who have received

702

authorization by the Board of Trustees of the Florida School for

703

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

704

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

705

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

706

authorization by the district school superintendent to

707

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

708

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

709

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

710

month or, with respect to members who are instructional personnel

711

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

712

have received authorization by the Board of Trustees of the

713

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

714

DROP beyond 60 months, or who are instructional personnel as

715

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

716

received authorization by the district school superintendent to

717

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

718

participation period, the member may elect to include or exclude

719

any optional service credit purchased by the member from the

720

total service used to establish the normal retirement date. A

721

member who has with dual normal retirement dates is shall be

722

eligible to elect to participate in DROP within 12 months after

723

attaining normal retirement date in either class.

724

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

725

DROP, or employers if dually employed, shall acknowledge in

726

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

727

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

728

participation will terminate.

729

4. Simultaneous employment of a participant by additional

730

Florida Retirement System employers subsequent to the

731

commencement of participation in the DROP is shall be permissible

732

if provided such employers acknowledge in writing a DROP

733

termination date no later than the participant's existing

734

termination date or the maximum participation 60-month limitation

735

period as provided in subparagraph (b)1.

736

5. A DROP participant may change employers while

737

participating in the DROP, subject to the following:

738

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

739

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

740

continuous DROP participation. If a member receives no salary

741

during a month, DROP participation shall cease unless the

742

employer verifies a continuation of the employment relationship

743

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

744

b. Such participant and new employer shall notify the

745

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

746

the division as to the identity of the new employer.

747

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

748

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

749

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

750

to members who are instructional personnel employed by the

751

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

752

authorization by the Board of Trustees of the Florida School for

753

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

754

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

755

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

756

authorization by the district school superintendent to

757

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

758

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

759

any additional retirement contributions and interest required if

760

the participant fails to timely terminate employment, and is

761

shall be subject to the adjustment required in sub-subparagraph

762

763

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

764

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

765

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

766

first reaches normal retirement date. The member shall advise his

767

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

768

DROP begins the Deferred Retirement Option Program shall begin.

769

When establishing eligibility of the member to participate in the

770

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

771

instructional personnel employed by the Florida School for the

772

Deaf and the Blind and who have received authorization by the

773

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

774

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

775

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

776

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

777

school superintendent to participate in the DROP beyond 60

778

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

779

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

780

elect to include or exclude any optional service credit purchased

781

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

782

retirement date. A member who has with dual normal retirement

783

dates is shall be eligible to elect to participate in either

784

class.

785

(b) Participation in the DROP.--

786

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

787

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

788

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

789

b. Members who are instructional personnel employed by the

790

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

791

received authorization by the Board of Trustees of the Florida

792

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

793

beyond 60 months, or who are instructional personnel as defined

794

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

795

received authorization by the district school superintendent to

796

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

797

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

798

a developmental research school and authorized by the school's

799

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

800

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

801

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

802

calendar months immediately following the date on which the

803

member first reaches his or her normal retirement date or the

804

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

805

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

806

member who has reached normal retirement date prior to the

807

effective date of the DROP shall be eligible to participate in

808

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

809

or, with respect to members who are instructional personnel

810

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

811

have received authorization by the Board of Trustees of the

812

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

813

DROP beyond 60 months, or who are instructional personnel as

814

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

815

received authorization by the district school superintendent to

816

participate in the DROP beyond 60 calendar months, 96 calendar

817

months immediately following the effective date of the DROP,

818

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

819

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

820

total accrued value exceeds 75 percent of average final

821

compensation as of his or her effective date of retirement shall

822

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

823

calendar months immediately following the effective date of the

824

DROP.

825

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

826

shall submit, on forms required by the division:

827

a. A written election to participate in the DROP;

828

b. Selection of the DROP participation and termination

829

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

830

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

831

binding letter of resignation to with the employer, establishing

832

a deferred termination date. The member may change the

833

termination date within the limitations of subparagraph 1., but

834

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

835

c. A properly completed DROP application for service

836

retirement as provided in this section; and

837

d. Any other information required by the division.

838

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

839

Florida Retirement System for all purposes, except for paragraph

840

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

841

121.122. DROP participation is final and cannot be cancelled by

842

the participant after the first payment is credited during the

843

DROP participation period. However, participation in the DROP

844

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

845

is such employee shall not be deemed retired from employment

846

until his or her deferred resignation is effective and

847

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

848

4. Elected officers are shall be eligible to participate in

849

the DROP subject to the following:

850

a. An elected officer who reaches normal retirement date

851

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

852

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

853

elected officer who exercises this option may participate in the

854

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

855

the such succeeding term of office, whichever is less.

856

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

857

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

858

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

859

such additional term of office exceeds the 60-month limitation

860

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

861

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

862

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

863

sub-subparagraph (c)5.d.

864

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

865

participate in DROP must shall be required to satisfy the

866

definition of termination within the 60-month participation or,

867

with respect to members who are instructional personnel employed

868

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

869

received authorization by the Board of Trustees of the Florida

870

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

871

beyond 60 months, or who are instructional personnel as defined

872

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

873

authorization by the district school superintendent to

874

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

875

period as provided in subparagraph 1. for the nonelected position

876

and may continue employment as an elected officer as provided in

877

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

878

renewed member in the Elected Officers' Class or the Regular

879

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

880

of the month after termination of employment in the nonelected

881

position and termination of DROP. Distribution of the DROP

882

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

883

884

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

885

member's initial normal monthly benefit, including creditable

886

service, optional form of payment, and average final

887

compensation, and the effective date of retirement are shall be

888

fixed. The beneficiary established under the Florida Retirement

889

System shall be the beneficiary eligible to receive any DROP

890

benefits payable if the DROP participant dies prior to the

891

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

892

joint annuitant predeceases the member, the member may name a

893

beneficiary to receive accumulated DROP benefits payable. The

894

Such retirement benefit, the annual cost of living adjustments

895

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

896

Florida Retirement System Trust Fund. The Such interest shall

897

accrue at an effective annual rate of 6.5 percent compounded

898

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

899

the month of termination or death.

900

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

901

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

902

accrued annual leave earned in accordance with agency policy upon

903

beginning participation in the DROP. The Such accumulated leave

904

payment certified to the division upon commencement of DROP shall

905

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

906

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

907

upon beginning participation in DROP will not be eligible to

908

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

909

extent the employee has earned additional annual leave which,

910

combined with the original payment, does not exceed the maximum

911

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

912

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

913

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

914

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

915

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

916

termination of employment with the employer, any accumulated

917

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

918

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

919

law when the employee elected to participate in the DROP.

920

3. The effective date of DROP participation and the

921

effective date of retirement of a DROP participant shall be the

922

first day of the month selected by the member to begin

923

participation in the DROP, provided such date is properly

924

established, with the written confirmation of the employer, and

925

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

926

4. Normal retirement benefits and any interest thereon

927

shall continue to accrue in the DROP until the established

928

termination date of the DROP, or until the participant terminates

929

employment or dies prior to such date. Although individual DROP

930

accounts shall not be established, a separate accounting of each

931

participant's accrued benefits under the DROP shall be calculated

932

and provided to participants.

933

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

934

division shall distribute the participant's total accumulated

935

DROP benefits, subject to the following provisions:

936

a. The division shall receive verification by the

937

participant's employer or employers that the such participant has

938

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

939

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

940

such participant's named beneficiary, shall elect on forms

941

provided by the division to receive payment of the DROP benefits

942

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

943

participant or beneficiary who fails to elect a method of payment

944

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

945

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

946

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

947

less withholding taxes remitted to the Internal Revenue Service,

948

shall be paid to the DROP participant or surviving beneficiary.

949

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

950

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

951

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

952

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

953

rollover distribution to the surviving spouse of a deceased

954

participant, an eligible retirement plan is an individual

955

retirement account or an individual retirement annuity as

956

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

957

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

958

benefits shall be paid to the DROP participant or surviving

959

spouse, less withholding taxes remitted to the Internal Revenue

960

Service, and the remaining DROP benefits shall be transferred

961

directly to the custodian of an eligible retirement plan as

962

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

963

in the case of an eligible rollover distribution to the surviving

964

spouse of a deceased participant, an eligible retirement plan is

965

an individual retirement account or an individual retirement

966

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

967

Code. The proportions shall be specified by the DROP participant

968

or surviving beneficiary.

969

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

970

surviving beneficiary must comply complies with the minimum

971

distribution requirements of the Internal Revenue Code.

972

d. A DROP participant who fails to terminate employment as

973

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

974

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

975

Retirement System membership shall be reestablished retroactively

976

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

977

with whom the participant continues employment must shall be

978

required to pay to the Florida Retirement System Trust Fund the

979

difference between the DROP contributions paid in paragraph (i)

980

and the contributions required for the applicable Florida

981

Retirement System class of membership during the period the

982

member participated in the DROP, plus 6.5 percent interest

983

compounded annually.

984

6. The retirement benefits of any DROP participant who

985

meets the definition of termination, as provided in s.

986

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

987

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

988

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

989

member employed in violation of this subparagraph and any

990

employing agency that knowingly employs or appoints such member

991

without notifying the Division of Retirement to suspend

992

retirement benefits are jointly and severally liable for any

993

benefits paid during the reemployment limitation period. To avoid

994

liability, the employing agency must have a written statement

995

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

996

administered retirement system. Any retirement benefits received

997

by a retired member while employed in violation of the

998

reemployment limitations during the first 12 months of retirement

999

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

1000

his or her retirement benefits shall remain suspended until

1001

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

1002

member's first 12 months of retirement shall apply toward

1003

repayment of benefits received in violation of the reemployment

1004

limitations.

1005

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

1006

contributions accumulated under the such program, are shall not

1007

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

1008

process whatsoever, except for qualified domestic relations

1009

orders by a court of competent jurisdiction, income deduction

1010

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

1011

8.7. DROP participants are shall not be eligible for

1012

disability retirement benefits as provided in subsection (4).

1013

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

1014

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

1015

Florida Retirement System:

1016

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

1017

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

1018

retirement benefits under the Florida Retirement system may also

1019

have the following payments deducted from his or her monthly

1020

benefit:

1021

1. Premiums for life and health-related insurance policies

1022

from approved companies.

1023

2. Life insurance premiums for the State Group Life

1024

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

1025

department of Management Services.

1026

3. Repayment of overpayments from the Florida Retirement

1027

System Trust Fund, the State Employees' Health Insurance Trust

1028

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

1029

notification of the payee.

1030

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

1031

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

1032

or division of marital assets pursuant to a qualified domestic

1033

relations order under s. 222.21 or an income deduction order

1034

under s. 61.1301.

1035

5. Payments to the Internal Revenue Service for federal

1036

income tax levies, upon notification of the division by the

1037

Internal Revenue Service.

1038

1039

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

1040

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

1041

returned due to an incorrect address. Benefit payments shall be

1042

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

1043

address.

1044

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

1045

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

1046

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

1047

the portion of his or her calculated benefit in the Florida

1048

Retirement System defined benefit plan which exceeds such federal

1049

limitation paid through the Florida Retirement System

1050

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

1051

(e). The Division of Retirement may issue retirement

1052

benefits payable for division of marital assets pursuant to a

1053

qualified domestic relations order directly to the alternate

1054

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

1055

to meet Internal Revenue Code requirements.

1056

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

1057

preserving the member's eligibility for a federal program.

1058

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

1059

procedures for determining that the persons to whom benefits are

1060

being paid are still living. The division shall suspend the

1061

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

1062

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

1063

Section 8. Section 121.1115, Florida Statutes, is amended

1064

to read:

1065

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

1066

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

1067

Florida Retirement System may purchase creditable service for

1068

periods of public employment in another state and receive

1069

creditable service for such periods of employment. Service with

1070

the Federal Government, including any active military service,

1071

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

1072

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

1073

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

1074

subject to the following provisions:

1075

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

1076

out-of-state service:

1077

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

1078

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

1079

a political subdivision thereof or with the Federal Government;

1080

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

1081

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

1082

appropriate; and

1083

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

1084

Retirement System.

1085

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

1086

creditable service under the Florida Retirement System, excluding

1087

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

1088

under s. 121.1122.

1089

1090

claimed for creditable service aggregated under the provisions of

1091

this section and s. 121.1122.

1092

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

1093

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

1094

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

1095

subject to the limitations and restrictions of s. 112.65.

1096

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

1097

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

1098

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

1099

receipt of contributions to a retirement plan made by the

1100

employer on behalf of the employee is considered a benefit.

1101

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

1102

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

1103

the Florida Retirement System, the member must complete only upon

1104

return to membership and completion of at least 1 year of

1105

creditable service in the Florida Retirement System following the

1106

out-of-state service.

1107

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

1108

the Florida Retirement System Trust Fund an amount equal to 20

1109

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

1110

work year of creditable service earned under the Florida

1111

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

1112

6.5 percent compounded annually from the date of first annual

1113

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

1114

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

1115

Section 9. Subsection (2) of section 121.1122, Florida

1116

Statutes, is amended to read:

1117

121.1122 Purchase of retirement credit for in-state public

1118

service and in-state service in accredited nonpublic schools and

1119

colleges, including charter schools and charter technical career

1120

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

1121

Retirement System may purchase creditable service for periods of

1122

certain public or nonpublic employment performed in this state,

1123

as provided in this section.

1124

(2) LIMITATIONS AND CONDITIONS.--

1125

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

1126

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

1127

of creditable service under the Florida Retirement System,

1128

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

1129

service claimed and purchased under s. 121.1115.

1130

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

1131

than 5 years of creditable service aggregated under the

1132

provisions of this section and s. 121.1115.

1133

1134

credited only as service in the Regular Class of membership and

1135

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

1136

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

1137

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

1138

benefit from a retirement or pension plan based on or including

1139

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

1140

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

1141

considered a benefit.

1142

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

1143

credit for in-state service performed after leaving the Florida

1144

Retirement System only after upon returning to membership and

1145

completing at least 1 year of creditable service in the Florida

1146

Retirement System following the in-state service.

1147

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

1148

by a retirement or pension plan provided by the employer.

1149

Section 10. Section 121.136, Florida Statutes, is amended

1150

to read:

1151

121.136 Annual benefit statement to members.--Beginning

1152

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

1153

shall provide each active member of the Florida Retirement System

1154

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

1155

benefits which provides. Such statement should provide the member

1156

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

1157

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

1158

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

1159

the retirement account, and an estimate of retirement benefits.

1160

Section 11. Section 121.1905, Florida Statutes, is amended

1161

to read:

1162

121.1905 Division of Retirement; creation.--

1163

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

1164

Department of Management Services.

1165

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

1166

quality and cost-effective retirement services as measured by

1167

member satisfaction and by comparison with administrative costs

1168

of comparable retirement systems.

1169

Section 12. Paragraph (a) of subsection (2) of section

1170

121.23, Florida Statutes, is amended to read:

1171

121.23 Disability retirement and special risk membership

1172

applications; Retirement Commission; powers and duties; judicial

1173

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

1174

in which the administrator has made a written final decision on

1175

the merits respecting applications for disability retirement,

1176

reexamination of retired members receiving disability benefits,

1177

applications for special risk membership, and reexamination of

1178

special risk members in the Florida Retirement System. The

1179

jurisdiction of the State Retirement Commission under this

1180

section shall be limited to written final decisions of the

1181

administrator on the merits.

1182

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

1183

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

1184

on the merits of any written adverse decision of the

1185

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

1186

request for such hearing within 21 days after receipt of such

1187

written decision from the administrator. For the purpose of such

1188

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

1189

s. 120.52.

1190

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

1191

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

1192

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

1193

action that it deems appropriate. Any disability retirement order

1194

of the commission issued pursuant to this subsection which

1195

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

1196

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

1197

and taxable costs, which shall be calculated in accordance with

1198

the statewide uniform guidelines for taxation of costs in civil

1199

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

1200

percent of the initial yearly benefit awarded under s.

1201

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

1202

Retirement commission shall require the member to present

1203

competent substantial medical evidence and meet the requirements

1204

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

1205

evidence, before awarding disability retirement benefits.

1206

Section 13. Paragraph (a) of subsection (1) of section

1207

121.24, Florida Statutes, is amended to read:

1208

121.24 Conduct of commission business; legal and other

1209

assistance; compensation.--

1210

(1) The commission shall conduct its business within the

1211

following guidelines:

1212

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

1213

commission may meet in panels consisting of no not fewer than

1214

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

1215

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

1216

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

1217

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

1218

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

1219

commission.

1220

Section 14. Subsection (8) of section 1012.33, Florida

1221

Statutes, is amended to read:

1222

1012.33 Contracts with instructional staff, supervisors,

1223

and school principals.--

1224

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

1225

any member who has retired may interrupt retirement and be

1226

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

1227

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

1228

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

1229

however, no regular retirement employee shall be eligible to

1230

renew membership under a retirement system created by chapter 121

1231

or chapter 238.

1232

Section 15. Sections 121.093, 121.094, and 121.45, Florida

1233

Statutes, are repealed.

1234

Section 16. The Legislature finds that a proper and

1235

legitimate state purpose is served when employees and retirees of

1236

the state and its political subdivisions, as well as the

1237

dependents, survivors, and beneficiaries of such employees and

1238

retiree, are extended the basic protections afforded by

1239

governmental retirement systems that provide fair and adequate

1240

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

1241

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

1242

State Constitution, and part VII of chapter 112, Florida

1243

Statutes. Therefore, the Legislature determines and declares that

1244

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

1245

fulfills an important state interest.

1246

Section 17. This act shall take effect July 1, 2008.

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