CS for CS for SB 2848 First Engrossed
20082848e1
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A bill to be entitled
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An act relating to retirement; amending s. 121.021, F.S.;
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redefining the terms "employer," "officer or employee,"
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"past service," "compensation," "normal retirement date,"
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"regularly established position," and temporary position";
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defining the terms "state board" and "trustees"; amending
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s. 121.031, F.S.; requiring promotional materials that
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refer to the Florida Retirement System to include a
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disclaimer unless approval is obtained from the Department
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of Management Services; amending s. 121.051, F.S.;
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conforming a cross-reference; revising provisions relating
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to participation in the system; requiring that a person
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appointed to a faculty position at a state university
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having a faculty practice plan participate in the optional
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retirement program of the State University System rather
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than the Florida Retirement System; providing definitions;
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excluding the participation of entities under a lease
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agreement; excluding the participation of prisoners and
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inmates in the system; amending s. 121.052, F.S.; changing
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the dates for when a governing body of a municipality or
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special district may elect to designate its elected
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positions for inclusion in the Elected Officers' Class;
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amending s. 121.071, F.S.; expanding the mechanisms for
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employees to pay contributions to the system; amending s.
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121.081, F.S.; revising provisions relating to receiving
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credit for past or prior service; prohibiting a member
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from receiving credit for service covered and reported by
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both a public employer and a private employer; amending s.
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121.091, F.S.; revising provisions relating to retirement
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benefits; deleting a restriction on the reemployment of
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certain personnel by the Florida School for the Deaf and
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the Blind; extending the period of time that instructional
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personnel employed by a developmental research school may
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participate in the Deferred Retirement Option Program;
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clarifying that DROP participation cannot be cancelled;
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providing for the suspension of DROP benefits to a
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participant who is reemployed; deleting obsolete
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provisions; authorizing the Division of Retirement to
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issue benefits pursuant to a qualified domestic relations
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order directly to the alternate payee; amending s.
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121.1115, F.S.; revising provisions relating to receiving
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retirement credit for out-of-state service; providing that
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a member is not eligible for and may not receive a benefit
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based on that service; amending s. 121.1122, F.S.;
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revising provisions relating to receiving retirement
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credit for in-state service; providing that a member may
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not be eligible for or receiving a benefit based on
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service; amending s. 121.136, F.S.; revising provisions
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relating to the annual statement of benefits provided to
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certain active members of the Florida Retirement System;
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amending s. 121.1905, F.S.; deleting provision describing
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the mission of the Division of Retirement; amending s.
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121.23, F.S.; requiring the State Retirement Commission to
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meet the same requirements used by the Secretary of
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Management Services before approving a disability
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retirement benefit; amending s. 121.24, F.S.; requiring a
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quorum of three members for all appeal hearings held by
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the State Retirement Commission; amending s. 1012.33,
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F.S.; deleting the provision preventing persons who have
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retired from the public school system from renewing
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membership in the Florida Retirement System upon
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reemployment by the school system; amending s. 121.35,
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F.S.; requiring the participating employee in the optional
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retirement program to execute a contract, not just an
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annuity contract, with a designated company in order for
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employee contributions to be forwarded to the company and
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for interest to accrue; defining the term "participant's
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gross monthly compensation" for purposes of the optional
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retirement program for the State University System;
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creating s. 121.355, F.S.; authorizing certain former
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participants in the Community College Optional Retirement
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Program or the State University System Optional Retirement
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Program and present mandatory participants in the Florida
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Retirement System to receive a specified amount of service
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credit under certain conditions; providing a specified
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time period for the election of such transfer; limiting
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certain service credit; repealing s. 121.093, F.S.,
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relating to instructional personnel reemployment after
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retirement from the developmental research school or the
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Florida School for the Deaf and the Blind; repealing s.
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121.094, F.S., relating to instructional personnel
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reemployment after retirement from a charter school;
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repealing s. 121.45, F.S., relating to interstate compacts
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relating to pension portability; providing a declaration
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of important state interest; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Subsections (10), (11), (18), paragraph (b) of
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subsection (22), and subsections (29), (52), and (53) of section
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121.021, Florida Statutes, are amended, and subsections (63) and
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(64) are added to that section, to read:
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121.021 Definitions.--The following words and phrases as
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used in this chapter have the respective meanings set forth
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unless a different meaning is plainly required by the context:
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(10) "Employer" means any agency, branch, department,
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institution, university, institution of higher education, or
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board of the state, or any county agency, branch, department,
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board, district school board, or special district of the state,
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or any city of the state which participates in the system for the
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benefit of certain of its employees, or a charter school or
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charter technical career center that participates as provided in
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s. 121.051(2)(d). Employers are not agents of the department, the
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state board, or the Division of Retirement, and the department,
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the state board, and the division are not responsible for
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erroneous information provided by representatives of employers.
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(11) "Officer or employee" means any person receiving
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salary payments for work performed in a regularly established
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position and, if employed by a city, a metropolitan planning
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organization, or a special district, employed in a covered group.
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The term does not apply to:
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(a) State employees covered by a leasing agreement under s.
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110.191, other public employees covered by a leasing agreement,
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or to a co-employer relationship.
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(b) A person who is an inmate or prisoner at the time the
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work is performed.
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(18) "Past service" of any member, as provided in s.
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121.081(1), means the number of years and complete months and any
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fractional part of a month, recognized and credited by an
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employer and approved by the administrator, during which the
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member was in the active employ of a governmental an employer and
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for which the employee is not entitled to a benefit prior to his
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or her date of participation.
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(22) "Compensation" means the monthly salary paid a member
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by his or her employer for work performed arising from that
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employment.
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(b) Under no circumstances shall compensation for a member
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participating in the defined benefit retirement program or the
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Public Employee Optional Retirement Program of the Florida
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Retirement System include:
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1. Fees paid professional persons for special or particular
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services or include salary payments made from a faculty practice
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plan authorized by the Board of Governors of the State University
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System for eligible clinical faculty at a college in a state
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university that has with a faculty practice plan; or
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2. Any Bonuses or other payments prohibited from inclusion
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in the member's average final compensation and defined in
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subsection (47); or.
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3. Payment for work given to a person who is an inmate or
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prisoner at the time the work is performed.
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(29) "Normal retirement date" means the first day of any
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month following the date a member attains normal retirement age
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and is vested, which is determined as follows one of the
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following statuses:
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(a) If a Regular Class member, the member:
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1. The first day of the month the member completes 6 or
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more years of creditable service and attains age 62; or
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2. The first day of the month following the date the member
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completes 30 years of creditable service, regardless of age,
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which may include a maximum of 4 years of military service credit
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as long as such credit is not claimed under any other system.
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(b) If a Special Risk Class member, the member:
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1. The first day of the month the member completes 6 or
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more years of creditable service in the Special Risk Class and
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attains age 55;
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2. The first day of the month following the date the member
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completes 25 years of creditable service in the Special Risk
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Class, regardless of age; or
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3. The first day of the month following the date the member
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completes 25 years of creditable service and attains age 52,
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which service may include a maximum of 4 years of military
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service credit as long as such credit is not claimed under any
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other system and the remaining years are in the Special Risk
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Class.
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(c) If a Senior Management Service Class member, the
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member:
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1. The first day of the month the member completes 6 years
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of creditable service in the Senior Management Service Class and
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attains age 62; or
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2. The first day of the month following the date the member
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completes 30 years of any creditable service, regardless of age,
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which may include a maximum of 4 years of military service credit
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as long as such credit is not claimed under any other system.
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(d) If an Elected Officers' Class member, the member:
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1. The first day of the month the member completes 6 years
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of creditable service in the Elected Officers' Class and attains
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age 62; or
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2. The first day of the month following the date the member
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completes 30 years of any creditable service, regardless of age,
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which may include a maximum of 4 years of military service credit
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as long as such credit is not claimed under any other system.
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"Normal retirement age" is attained on the "normal retirement
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date."
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(52) "Regularly established position" is defined as
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follows:
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(a) With respect to employment for In a state employer
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agency, the term means a position that which is authorized and
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established pursuant to law and is compensated from a salaries
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appropriation pursuant to s. 216.011(1)(dd), or an established
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position which is authorized pursuant to s. 216.262(1)(a) and (b)
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and is compensated from a salaries account as provided by rule.
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(b) With respect to employment for In a local employer
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agency (district school board, county agency, community college,
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city, metropolitan planning organization, or special district),
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the term means a regularly established position that which will
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be in existence for a period beyond 6 consecutive months, except
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as provided by rule.
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(53) "Temporary position" is defined as follows:
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(a) With respect to employment for In a state employer
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agency, the term means an employment position that which is
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compensated from an other personal services (OPS) account, as
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provided for in s. 216.011(1)(dd).
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(b) With respect to employment for In a local employer
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agency, the term means an employment position that which will
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exist for less than 6 consecutive months, or other employment
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position as determined by rule of the division, regardless of
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whether it will exist for 6 consecutive months or longer.
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(63) "State board" or "board" means the State Board of
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Administration.
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(64) "Trustees" means the Board of Trustees of the State
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Board of Administration.
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Section 2. Subsection (6) is added to section 121.031,
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Florida Statutes, to read:
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121.031 Administration of system; appropriation; oaths;
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actuarial studies; public records.--
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(6) Unless prior written approval is obtained from the
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department or state board, any promotional materials or
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advertisements that, directly or indirectly, refer to the Florida
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Retirement System or the FRS, must contain a disclaimer that the
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information is not approved or endorsed by the Florida Retirement
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System.
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Section 3. Paragraph (a) of subsection (1) and paragraph
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(f) of subsection (2) of section 121.051, Florida Statutes, are
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amended, and subsection (10) is added to that section, to read:
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121.051 Participation in the system.--
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(1) COMPULSORY PARTICIPATION.--
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(a) The provisions of this law are shall be compulsory as
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to all officers and employees, except elected officers who meet
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the requirements of s. 121.052(3), who are employed on or after
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December 1, 1970, by of an employer other than those referred to
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in paragraph (2)(b), and each officer or employee, as a condition
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of employment, shall become a member of the system as of his or
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her date of employment, except that a person who is retired from
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any state retirement system and is reemployed on or after
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December 1, 1970, may shall not be permitted to renew his or her
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membership in any state retirement system except as provided in
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s. 121.091(4)(h) for a person who recovers from disability, and
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person who is elected to public office, and, effective July 1,
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1991, as provided in s. 121.122 for all other retirees. Officers
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and employees of the University Athletic Association, Inc., a
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nonprofit association connected with the University of Florida,
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employed on and after July 1, 1979, may shall not participate in
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any state-supported retirement system. Any person appointed on or
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after July 1, 1989, to a faculty position in a college at the J.
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Hillis Miller Health Center at the University of Florida or the
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Medical Center at the University of South Florida which has a
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faculty practice plan adopted provided by rule may adopted by the
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any state-supported retirement system.
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1.a. Any person appointed on or after July 1, 1989, to a
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faculty position in a college at the J. Hillis Miller Health
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Center at the University of Florida or the Medical Center at the
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University of South Florida which has a faculty practice plan
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adopted provided by rule may adopted by the Board of Regents
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shall not participate in the Florida Retirement System. Effective
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July 1, 2008, any person appointed thereafter to a faculty
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position, including clinical faculty, in a college at a state
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university that has a faculty practice plan authorized by the
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Board of Governors may not participate in the Florida Retirement
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System. A faculty member so appointed shall participate in the
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optional retirement program for the State University System on
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the basis of his or her state-funded compensation,
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notwithstanding the provisions of s. 121.35(2)(a).
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b. For purposes of this subparagraph, the term "faculty
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position" is defined as a position assigned the principal
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responsibility of teaching, research, or public service
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activities or administrative responsibility directly related to
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the academic mission of the college. The term "clinical faculty"
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is defined as a faculty position appointment in conjunction with
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a professional position in a hospital or other clinical
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environment at a college. The term "faculty practice plan"
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includes professional services to patients, institutions, or
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other parties which are rendered by the clinical faculty employed
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by a college that has a faculty practice plan at a state
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university authorized by the Board of Governors.
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(2) OPTIONAL PARTICIPATION.--
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(f)1. If Whenever an employer that participates in the
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Florida Retirement System undertakes the transfer, merger, or
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consolidation of governmental services or assumes the functions
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or activities of an employing governmental entity that was not an
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employer under the system, the employer must notify the
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department at least 60 days prior to such action and shall
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provide documentation as required by the department. The
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transfer, merger, or consolidation of governmental services or
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assumption of governmental functions and activities must occur
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between public employers. The current or former employer may pay
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the employees' past service cost unless prohibited under this
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chapter. This paragraph does not apply to the transfer, merger,
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or consolidation of governmental services or assumption of
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functions and activities of a public entity under a leasing
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agreement having a co-employer relationship. Employers and
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employees of a public governmental employer whose service is
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covered by a leasing agreement under s. 110.191, other leasing
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agreement, or a co-employer relationship are not eligible to
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participate in the Florida Retirement System.
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2. If When the agency to which a member's employing unit is
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transferred, merged, or consolidated does not participate in the
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Florida Retirement System, a member may shall elect in writing to
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remain in the Florida Retirement System or to transfer to the
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local retirement system operated by the such agency. If such
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agency does not participate in a local retirement system, the
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member shall continue membership in the Florida Retirement
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System. In either case, the membership continues shall continue
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for as long as the member is employed by the agency to which his
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or her unit was transferred, merged, or consolidated.
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(10) PROHIBITED PARTICIPATION.--A person who is an inmate
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or prisoner at the time the work is performed is prohibited from
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participating in, or receiving benefits from, any part of the
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Florida Retirement System based on such work.
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Section 4. Paragraph (e) of subsection (3) of section
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121.052, Florida Statutes, is amended to read:
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121.052 Membership class of elected officers.--
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(3) PARTICIPATION AND WITHDRAWAL, GENERALLY.--Effective
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July 1, 1990, participation in the Elected Officers' Class shall
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be compulsory for elected officers listed in paragraphs (2)(a)-
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(d) and (f) assuming office on or after said date, unless the
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elected officer elects membership in another class or withdraws
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from the Florida Retirement System as provided in paragraphs
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(3)(a)-(d):
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(e) Effective July 1, 2008 July 1, 2001, the governing body
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of a municipality or special district may, by majority vote,
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elect to designate all its elected positions for inclusion in the
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Elected Officers' Class. Such election shall be made between July
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1, 2008, and December 31, 2008 July 1, 2001, and December 31,
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2001, and shall be irrevocable. The designation of such positions
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shall be effective the first day of the month following receipt
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by the department of the ordinance or resolution passed by the
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governing body.
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Section 5. Paragraph (a) of subsection (6) of section
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121.071, Florida Statutes, is amended to read:
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121.071 Contributions.--Contributions to the system shall
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be made as follows:
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(6)(a) Required employee contributions for all service
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other than current service, including, but not limited to, prior
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service, past service, military service, leave-of-absence
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service, out-of-state service, and certain non-Florida Retirement
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System in-state service, shall be paid by cash, personal check,
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cashier's check, or money order, or a direct rollover or transfer
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from a qualified plan as provided under the Internal Revenue
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Code. The payment must only; shall be accompanied by a statement
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identifying the service for which payment is made,; and shall be
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made in a lump sum for the total amount due or in annual payments
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of not less than $100, except for the final payment if less than
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$100, unless another method of payment is authorized by law or
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rule.
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Section 6. Paragraphs (f) and (h) of subsection (1) of
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section 121.081, Florida Statutes, are amended to read:
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121.081 Past service; prior service;
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contributions.--Conditions under which past service or prior
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service may be claimed and credited are:
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(1)
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(f) If When any person, either prior to this act or
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hereafter, becomes entitled to and participates does participate
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in one of the retirement systems under consolidated within or
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created by this chapter through the consolidation or merger of
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governments or the transfer of functions between units of
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government, either at the state or local level or between state
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and local units, or through the assumption of functions or
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activities by a state or local unit from an employing
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governmental entity that which was not an employer under the
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system, and such person becomes a member of the Florida
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Retirement System, such person is shall be entitled to receive
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past-service credit as defined in s. 121.021(18) for the time the
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such person performed services for, and was an employee of, such
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state or local unit or other governmental employing entity prior
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to the transfer, merger, consolidation, or assumption of
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functions and activities. Past-service credit allowed by this
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paragraph is shall also be available to any person who becomes a
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member of an existing system, as defined in s. 121.021(2), prior
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to December 1, 1970, through the transfer, merger, consolidation,
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or assumption of functions and activities set forth in this
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paragraph and who subsequently becomes a member of the Florida
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Retirement System. However, credit for the past service may not
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be granted until contributions are made in the manner provided in
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this subsection. If a person rejected Florida Retirement System
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membership at the time of the transfer, merger, or consolidation,
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or assumption the required contributions shall be at total
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actuarial cost as specified in paragraph (e). Such contributions
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or accrued interest may not be paid from any public state funds.
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(h) The following provisions apply to the purchase of past
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service:
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1. Notwithstanding any of the provisions of this
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subsection, past-service credit may not be purchased under this
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chapter for any service that is used to obtain a pension or
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benefit from a any local retirement system. Eligibility to
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receive or the receipt of contributions to a retirement plan made
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by the employer on behalf of the employee is considered a
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benefit.
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2. A member may not receive past service credit under
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paragraphs (a), (b), (e), or (f) for any leaves of absence
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without pay, except that credit for active military service
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leaves of absence may be claimed under paragraphs (a), (b), and
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(f), in accordance with s. 121.111(1).
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3. A member may not receive past service credit for co-
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employer service. Co-employer service or a co-employer
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relationship is employment in a single position simultaneously
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covered and reported by both a public employer and a private
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employer.
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4.3. If a member does not want desire to receive credit for
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all of his or her past service, the period the member claims must
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be the most recent past service prior to his or her participation
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in the Florida Retirement System.
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5.4. The cost of past service purchased by an employing
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agency for its employees may be amortized over the such period of
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time as is provided in the agreement, but not to exceed 15 years,
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calculated in accordance with rule 60S-1.007(5)(f), Florida
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Administrative Code.
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6.5. The retirement account of each member for whom past
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service is being provided by his or her employer shall be
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credited with all past service the employer agrees to purchase as
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soon as the agreement between the employer and the department is
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executed. Pursuant thereto:
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a. Each such member's account shall also be posted with the
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total contribution his or her employer agrees to make on in the
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member's behalf for past service earned prior to October 1, 1975,
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excluding those contributions representing the employer's
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matching share and the compound interest calculation on the total
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contribution. However, a portion of any contributions paid by an
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employer for past service credit earned on and after October 1,
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1975, may not be posted to the a member's account.
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b. A refund of contributions payable after an employer has
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made a written agreement to purchase past service for employees
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of the covered group includes shall include contributions for
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past service which are posted to a member's account. However,
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contributions for past service earned on and after October 1,
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1975, are not refundable.
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Section 7. Paragraph (b) of subsection (9), paragraphs (a),
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(b), and (c) of subsection (13), and paragraphs (b) through (f)
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of subsection (14) of section 121.091, Florida Statutes, are
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amended to read:
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121.091 Benefits payable under the system.--Benefits may
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not be paid under this section unless the member has terminated
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employment as provided in s. 121.021(39)(a) or begun
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participation in the Deferred Retirement Option Program as
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provided in subsection (13), and a proper application has been
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filed in the manner prescribed by the department. The department
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may cancel an application for retirement benefits when the member
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or beneficiary fails to timely provide the information and
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documents required by this chapter and the department's rules.
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The department shall adopt rules establishing procedures for
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application for retirement benefits and for the cancellation of
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such application when the required information or documents are
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not received.
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(9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
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(b)1. Any person who is retired under this chapter, except
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under the disability retirement provisions of subsection (4), may
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be reemployed by any private or public employer after retirement
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and receive retirement benefits and compensation from the his or
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her employer without limitation any limitations, except that the
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a person may not receive both a salary from reemployment with any
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agency participating in the Florida Retirement System and
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retirement benefits under this chapter for a period of 12 months
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immediately after subsequent to the date of retirement. However,
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a DROP participant may shall continue employment and receive a
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salary during the period of participation in DROP the Deferred
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Retirement Option Program, as provided in subsection (13).
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2. Any person to whom the limitation in subparagraph 1.
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applies who violates such reemployment limitation and who is
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reemployed with any agency participating in the Florida
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Retirement System after he or she has been retired for 1 calendar
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month but before completion of the 12-month limitation period
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must shall give timely notice of this fact in writing to the
464
employer and to the Division of Retirement and shall have his or
465
her retirement benefits suspended while employed during for the
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balance of the 12-month limitation period unless the person
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exceeds the 780-hour limitation in subparagraph 4., subparagraph
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5., or subparagraph 11. Any person employed in violation of this
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paragraph and any employing agency that which knowingly employs
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or appoints such person without notifying the division of
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Retirement to suspend retirement benefits are shall be jointly
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and severally liable for reimbursement to the retirement trust
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fund of any benefits paid during the reemployment limitation
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period. To avoid liability, the such employing agency must shall
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have a written statement from the retiree that he or she is not
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retired from a state-administered retirement system. Any
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retirement benefits received while reemployed during this
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reemployment limitation period must shall be repaid to the
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Florida Retirement System Trust Fund, and retirement benefits
480
shall remain suspended until such repayment has been made.
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Benefits suspended beyond the reemployment limitation shall apply
482
toward repayment of benefits received in violation of the
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reemployment limitation.
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3. A district school board may reemploy a retired member as
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a substitute or hourly teacher, education paraprofessional,
486
transportation assistant, bus driver, or food service worker on a
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noncontractual basis after he or she has been retired for 1
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calendar month, in accordance with s. 121.021(39). A district
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school board may reemploy a retired member as instructional
490
personnel, as defined in s. 1012.01(2)(a), on an annual
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contractual basis after he or she has been retired for 1 calendar
492
month, in accordance with s. 121.021(39). Any other retired
493
member who is reemployed within 1 calendar month after retirement
494
voids shall void his or her application for retirement benefits.
495
District school boards reemploying such teachers, education
496
paraprofessionals, transportation assistants, bus drivers, or
497
food service workers are subject to the retirement contribution
498
required by subparagraph 9. 7.
499
4. A community college board of trustees may reemploy a
500
retired member as an adjunct instructor, that is, an instructor
501
who is noncontractual and part-time, or as a participant in a
502
phased retirement program within the Florida Community College
503
System, after he or she has been retired for 1 calendar month, in
504
accordance with s. 121.021(39). Any retired member who is
505
reemployed within 1 calendar month after retirement voids shall
506
void his or her application for retirement benefits. Boards of
507
trustees reemploying such instructors are subject to the
508
retirement contribution required in subparagraph 7. A retired
509
member may be reemployed as an adjunct instructor for no more
510
than 780 hours during the first 12 months of retirement. Any
511
retired member reemployed for more than 780 hours during the
512
first 12 months of retirement must shall give timely notice in
513
writing to the employer and to the Division of Retirement of the
514
date he or she will exceed the limitation. The division shall
515
suspend his or her retirement benefits for the remainder of the
516
first 12 months of retirement. Any person employed in violation
517
of this subparagraph and any employing agency that which
518
knowingly employs or appoints such person without notifying the
519
division of Retirement to suspend retirement benefits are shall
520
be jointly and severally liable for reimbursement to the
521
retirement trust fund of any benefits paid during the
522
reemployment limitation period. To avoid liability, the such
523
employing agency must shall have a written statement from the
524
retiree that he or she is not retired from a state-administered
525
retirement system. Any retirement benefits received by a retired
526
member while reemployed in excess of 780 hours during the first
527
12 months of retirement must shall be repaid to the Florida
528
Retirement System Trust Fund, and retirement benefits shall
529
remain suspended until repayment is made. Benefits suspended
530
beyond the end of the retired member's first 12 months of
531
retirement shall apply toward repayment of benefits received in
532
violation of the 780-hour reemployment limitation.
533
5. The State University System may reemploy a retired
534
member as an adjunct faculty member or as a participant in a
535
phased retirement program within the State University System
536
after the retired member has been retired for 1 calendar month,
537
in accordance with s. 121.021(39). A Any retired member who is
538
reemployed within 1 calendar month after retirement voids shall
539
void his or her application for retirement benefits. The State
540
University System is subject to the retired contribution required
541
in subparagraph 9. 7., as appropriate. A retired member may be
542
reemployed as an adjunct faculty member or a participant in a
543
phased retirement program for no more than 780 hours during the
544
first 12 months of his or her retirement. Any retired member
545
reemployed for more than 780 hours during the first 12 months of
546
retirement must shall give timely notice in writing to the
547
employer and to the Division of Retirement of the date he or she
548
will exceed the limitation. The division shall suspend his or her
549
retirement benefits for the remainder of the first 12 months of
550
retirement. Any person employed in violation of this subparagraph
551
and any employing agency that which knowingly employs or appoints
552
such person without notifying the division of Retirement to
553
suspend retirement benefits are shall be jointly and severally
554
liable for reimbursement to the retirement trust fund of any
555
benefits paid during the reemployment limitation period. To avoid
556
liability, such employing agency must shall have a written
557
statement from the retiree that he or she is not retired from a
558
state-administered retirement system. Any retirement benefits
559
received by a retired member while reemployed in excess of 780
560
hours during the first 12 months of retirement must shall be
561
repaid to the Florida Retirement System Trust Fund, and
562
retirement benefits shall remain suspended until repayment is
563
made. Benefits suspended beyond the end of the retired member's
564
first 12 months of retirement shall apply toward repayment of
565
benefits received in violation of the 780-hour reemployment
566
limitation.
567
6. The Board of Trustees of the Florida School for the Deaf
568
and the Blind may reemploy a retired member as a substitute
569
teacher, substitute residential instructor, or substitute nurse
570
on a noncontractual basis after he or she has been retired for 1
571
calendar month, in accordance with s. 121.021(39). The Board of
572
Trustees of the Florida School for the Deaf and the Blind may
573
reemploy a retired member as instructional personnel, as defined
574
in s. 1012.01(2)(a), on an annual contractual basis after he or
575
she has been retired for 1 calendar month, in accordance with s.
576
121.021(39). Any retired member who is reemployed within 1
577
calendar month after retirement voids shall void his or her
578
application for retirement benefits. The Board of Trustees of the
579
Florida School for the Deaf and the Blind reemploying such
580
teachers, residential instructors, or nurses is subject to the
581
retirement contribution required by subparagraph 9. 7.
582
Reemployment of a retired member as a substitute teacher,
583
substitute residential instructor, or substitute nurse is limited
584
to 780 hours during the first 12 months of his or her retirement.
585
Any retired member reemployed for more than 780 hours during the
586
first 12 months of retirement shall give timely notice in writing
587
to the employer and to the division of the date he or she will
588
exceed the limitation. The division shall suspend his or her
589
retirement benefits for the remainder of the first 12 months of
590
retirement. Any person employed in violation of this subparagraph
591
and any employing agency which knowingly employs or appoints such
592
person without notifying the Division of Retirement to suspend
593
retirement benefits shall be jointly and severally liable for
594
reimbursement to the retirement trust fund of any benefits paid
595
during the reemployment limitation period. To avoid liability,
596
such employing agency shall have a written statement from the
597
retiree that he or she is not retired from a state-administered
598
retirement system. Any retirement benefits received by a retired
599
member while reemployed in excess of 780 hours during the first
600
12 months of retirement shall be repaid to the Retirement System
601
Trust Fund, and his or her retirement benefits shall remain
602
suspended until payment is made. Benefits suspended beyond the
603
end of the retired member's first 12 months of retirement shall
604
apply toward repayment of benefits received in violation of the
605
780-hour reemployment limitation.
606
7. A developmental research school may reemploy a retired
607
member as a substitute or hourly teacher or an education
608
paraprofessional as defined in s. 1012.01(2) on a noncontractual
609
basis after he or she has been retired for 1 calendar month, in
610
accordance with s. 121.021(39). A developmental research school
611
may reemploy a retired member as instructional personnel, as
612
defined in s. 1012.01(2)(a), on an annual contractual basis after
613
he or she has been retired for 1 calendar month, in accordance
614
with s. 121.021(39). Any other retired member who is reemployed
615
within 1 calendar month after retirement voids his or her
616
application for retirement benefits. A developmental research
617
school that reemploys retired teachers and education
618
paraprofessionals are subject to the retirement contribution
619
required by subparagraph 9.
620
8. A charter school may reemploy a retired member as a
621
substitute or hourly teacher on a noncontractual basis after he
622
or she has been retired for 1 calendar month, in accordance with
623
s. 121.021(39). A charter school may reemploy a retired member as
624
instructional personnel, as defined in s. 1012.01(2(a), on an
625
annual contractual basis after he or she has been retired for 1
626
calendar month, in accordance with s. 121.021(39). Any other
627
retired member who is reemployed within 1 calendar month after
628
retirement voids his or her application for retirement benefits.
629
A charter school that reemploys such teachers is subject to the
630
retirement contribution required by subparagraph 9.
631
9.7. The employment by an employer of a any retiree or DROP
632
participant of a any state-administered retirement system does
633
not affect shall have no effect on the average final compensation
634
or years of creditable service of the retiree or DROP
635
participant. Prior to July 1, 1991, upon employment of any
636
person, other than an elected officer as provided in s. 121.053,
637
who is has been retired under a any state-administered retirement
638
program, the employer shall pay retirement contributions in an
639
amount equal to the unfunded actuarial liability portion of the
640
employer contribution which would be required for regular members
641
of the Florida Retirement System. Effective July 1, 1991,
642
contributions shall be made as provided in s. 121.122 for
643
retirees who have with renewed membership or, as provided in
644
subsection (13), for with respect to DROP participants.
645
10.8. Any person who has previously retired and who is
646
holding an elective public office or an appointment to an
647
elective public office eligible for the Elected Officers' Class
648
on or after July 1, 1990, shall be enrolled in the Florida
649
Retirement System as provided in s. 121.053(1)(b) or, if holding
650
an elective public office that does not qualify for the Elected
651
Officers' Class on or after July 1, 1991, shall be enrolled in
652
the Florida Retirement System as provided in s. 121.122, and
653
shall continue to receive retirement benefits as well as
654
compensation for the elected officer's service for as long as he
655
or she remains in elective office. However, any retired member
656
who served in an elective office prior to July 1, 1990, suspended
657
his or her retirement benefit, and had his or her Florida
658
Retirement System membership reinstated shall, upon retirement
659
from such office, have his or her retirement benefit recalculated
660
to include the additional service and compensation earned.
661
11.9. Any person who is holding an elective public office
662
which is covered by the Florida Retirement System and who is
663
concurrently employed in nonelected covered employment may elect
664
to retire while continuing employment in the elective public
665
office, if provided that he or she terminates shall be required
666
to terminate his or her nonelected covered employment. Any person
667
who exercises this election shall receive his or her retirement
668
benefits in addition to the compensation of the elective office
669
without regard to the time limitations otherwise provided in this
670
subsection. A No person who seeks to exercise the provisions of
671
this subparagraph, as they the same existed prior to May 3, 1984,
672
may not shall be deemed to be retired under those provisions,
673
unless such person is eligible to retire under the provisions of
674
this subparagraph, as amended by chapter 84-11, Laws of Florida.
675
10. The limitations of this paragraph apply to reemployment
676
in any capacity with an "employer" as defined in s. 121.021(10),
677
irrespective of the category of funds from which the person is
678
compensated.
679
12.11. An employing agency may reemploy a retired member as
680
a firefighter or paramedic after the retired member has been
681
retired for 1 calendar month, in accordance with s. 121.021(39).
682
Any retired member who is reemployed within 1 calendar month
683
after retirement voids shall void his or her application for
684
retirement benefits. The employing agency reemploying such
685
firefighter or paramedic is subject to the retired contribution
686
required in subparagraph 9. 8. Reemployment of a retired
687
firefighter or paramedic is limited to no more than 780 hours
688
during the first 12 months of his or her retirement. Any retired
689
member reemployed for more than 780 hours during the first 12
690
months of retirement must shall give timely notice in writing to
691
the employer and to the Division of Retirement of the date he or
692
she will exceed the limitation. The division shall suspend his or
693
her retirement benefits for the remainder of the first 12 months
694
of retirement. Any person employed in violation of this
695
subparagraph and any employing agency that which knowingly
696
employs or appoints such person without notifying the division of
697
Retirement to suspend retirement benefits shall be jointly and
698
severally liable for reimbursement to the Retirement System Trust
699
Fund of any benefits paid during the reemployment limitation
700
period. To avoid liability, such employing agency must shall have
701
a written statement from the retiree that he or she is not
702
retired from a state-administered retirement system. Any
703
retirement benefits received by a retired member while reemployed
704
in excess of 780 hours during the first 12 months of retirement
705
must shall be repaid to the Florida Retirement System Trust Fund,
706
and retirement benefits shall remain suspended until repayment is
707
made. Benefits suspended beyond the end of the retired member's
708
first 12 months of retirement shall apply toward repayment of
709
benefits received in violation of the 780-hour reemployment
710
limitation.
711
13. The limitations of this paragraph apply to reemployment
712
in any capacity with an employer, as defined in s. 121.021,
713
irrespective of the category of funds from which the person is
714
compensated.
715
14. The reemployment after retirement provisions of this
716
paragraph apply to DROP participants effective upon termination
717
from employment and the end of DROP participation.
718
(13) DEFERRED RETIREMENT OPTION PROGRAM.--In general, and
719
subject to the provisions of this section, the Deferred
720
Retirement Option Program, hereinafter referred to as the DROP,
721
is a program under which an eligible member of the Florida
722
Retirement System may elect to participate, deferring receipt of
723
retirement benefits while continuing employment with his or her
724
Florida Retirement System employer. The deferred monthly benefits
725
shall accrue in the System Trust Fund on behalf of the
726
participant, plus interest compounded monthly, for the specified
727
period of the DROP participation, as provided in paragraph (c).
728
Upon termination of employment, the participant shall receive the
729
total DROP benefits and begin to receive the previously
730
determined normal retirement benefits. Participation in the DROP
731
does not guarantee employment for the specified period of DROP.
732
Participation in the DROP by an eligible member beyond the
733
initial 60-month period as authorized in this subsection shall be
734
on an annual contractual basis for all participants.
735
(a) Eligibility of member to participate in the DROP.--All
736
active Florida Retirement System members in a regularly
737
established position, and all active members of either the
738
Teachers' Retirement System established in chapter 238 or the
739
State and County Officers' and Employees' Retirement System
740
established in chapter 122, which systems are consolidated within
741
the Florida Retirement System under s. 121.011, are eligible to
742
elect participation in the DROP if provided that:
743
1. The member is not a renewed member of the Florida
744
Retirement System under s. 121.122, or a member of the State
745
Community College System Optional Retirement Program under s.
746
121.051, the Senior Management Service Optional Annuity Program
747
under s. 121.055, or the optional retirement program for the
748
State University System under s. 121.35.
749
2. Except as provided in subparagraph 6., election to
750
participate is made within 12 months immediately following the
751
date on which the member first reaches normal retirement date,
752
or, for a member who reaches normal retirement date based on
753
service before he or she reaches age 62, or age 55 for Special
754
Risk Class members, election to participate may be deferred to
755
the 12 months immediately following the date the member attains
756
57, or age 52 for Special Risk Class members. For a member who
757
first reached normal retirement date or the deferred eligibility
758
date described above prior to the effective date of this section,
759
election to participate shall be made within 12 months after the
760
effective date of this section. A member who fails to make an
761
election within the such 12-month limitation period forfeits
762
shall forfeit all rights to participate in the DROP. The member
763
shall advise his or her employer and the division in writing of
764
the date on which the DROP begins shall begin. The Such beginning
765
date may be subsequent to the 12-month election period, but must
766
be within the original 60-month participation or, with respect to
767
members who are instructional personnel employed by the Florida
768
School for the Deaf and the Blind and who have received
769
authorization by the Board of Trustees of the Florida School for
770
the Deaf and the Blind to participate in the DROP beyond 60
771
months, or who are instructional personnel as defined in s.
772
1012.01(2)(a)-(d) in grades K-12 and who have received
773
authorization by the district school superintendent to
774
participate in the DROP beyond 60 months, the 96-month limitation
775
period as provided in subparagraph (b)1. When establishing
776
eligibility of the member to participate in the DROP for the 60-
777
month or, with respect to members who are instructional personnel
778
employed by the Florida School for the Deaf and the Blind and who
779
have received authorization by the Board of Trustees of the
780
Florida School for the Deaf and the Blind to participate in the
781
DROP beyond 60 months, or who are instructional personnel as
782
defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
783
received authorization by the district school superintendent to
784
participate in the DROP beyond 60 months, the 96-month maximum
785
participation period, the member may elect to include or exclude
786
any optional service credit purchased by the member from the
787
total service used to establish the normal retirement date. A
788
member who has with dual normal retirement dates is shall be
789
eligible to elect to participate in DROP within 12 months after
790
attaining normal retirement date in either class.
791
3. The employer of a member electing to participate in the
792
DROP, or employers if dually employed, shall acknowledge in
793
writing to the division the date the member's participation in
794
the DROP begins and the date the member's employment and DROP
795
participation will terminate.
796
4. Simultaneous employment of a participant by additional
797
Florida Retirement System employers subsequent to the
798
commencement of participation in the DROP is shall be permissible
799
if provided such employers acknowledge in writing a DROP
800
termination date no later than the participant's existing
801
termination date or the maximum participation 60-month limitation
802
period as provided in subparagraph (b)1.
803
5. A DROP participant may change employers while
804
participating in the DROP, subject to the following:
805
a. A change of employment must take place without a break
806
in service so that the member receives salary for each month of
807
continuous DROP participation. If a member receives no salary
808
during a month, DROP participation shall cease unless the
809
employer verifies a continuation of the employment relationship
810
for such participant pursuant to s. 121.021(39)(b).
811
b. Such participant and new employer shall notify the
812
division of the identity of the new employer on forms required by
813
the division as to the identity of the new employer.
814
c. The new employer shall acknowledge, in writing, the
815
participant's DROP termination date, which may be extended but
816
not beyond the original 60-month participation or, with respect
817
to members who are instructional personnel employed by the
818
Florida School for the Deaf and the Blind and who have received
819
authorization by the Board of Trustees of the Florida School for
820
the Deaf and the Blind to participate in the DROP beyond 60
821
months, or who are instructional personnel as defined in s.
822
1012.01(2)(a)-(d) in grades K-12 and who have received
823
authorization by the district school superintendent to
824
participate in the DROP beyond 60 months, the 96-month period
825
provided in subparagraph (b)1., shall acknowledge liability for
826
any additional retirement contributions and interest required if
827
the participant fails to timely terminate employment, and is
828
shall be subject to the adjustment required in sub-subparagraph
829
(c)5.d.
830
6. Effective July 1, 2001, for instructional personnel as
831
defined in s. 1012.01(2), election to participate in the DROP may
832
shall be made at any time following the date on which the member
833
first reaches normal retirement date. The member shall advise his
834
or her employer and the division in writing of the date on which
835
DROP begins the Deferred Retirement Option Program shall begin.
836
When establishing eligibility of the member to participate in the
837
DROP for the 60-month or, with respect to members who are
838
instructional personnel employed by the Florida School for the
839
Deaf and the Blind and who have received authorization by the
840
Board of Trustees of the Florida School for the Deaf and the
841
Blind to participate in the DROP beyond 60 months, or who are
842
instructional personnel as defined in s. 1012.01(2)(a)-(d) in
843
grades K-12 and who have received authorization by the district
844
school superintendent to participate in the DROP beyond 60
845
months, the 96-month maximum participation period, as provided in
846
sub-subparagraph (b)(1)a. subparagraph (b)1., the member may
847
elect to include or exclude any optional service credit purchased
848
by the member from the total service used to establish the normal
849
retirement date. A member who has with dual normal retirement
850
dates is shall be eligible to elect to participate in either
851
class.
852
(b) Participation in the DROP.--
853
1.a. Except as provided in sub-subparagraph b., an eligible
854
member may elect to participate in the DROP for a period not to
855
exceed a maximum of 60 calendar months. or, with respect to
856
b. Members who are instructional personnel employed by the
857
Florida School for the Deaf and the Blind and authorized who have
858
received authorization by the Board of Trustees of the Florida
859
School for the Deaf and the Blind to participate in the DROP
860
beyond 60 months, or who are instructional personnel as defined
861
in s. 1012.01(2)(a)-(d) in grades K-12 and authorized who have
862
received authorization by the district school superintendent to
863
participate in the DROP beyond 60 calendar months, or who are
864
instructional personnel, as defined in s. 1012.01(2), employed by
865
a developmental research school and authorized by the school's
866
director, or if the school has no director, by the school's
867
principal, may participate in DROP for up to 36 calendar months
868
beyond the 60-month period specified in sub-subparagraph a. 96
869
calendar months immediately following the date on which the
870
member first reaches his or her normal retirement date or the
871
date to which he or she is eligible to defer his or her election
872
to participate as provided in subparagraph (a)2. However, a
873
member who has reached normal retirement date prior to the
874
effective date of the DROP shall be eligible to participate in
875
the DROP for a period of time not to exceed 60 calendar months
876
or, with respect to members who are instructional personnel
877
employed by the Florida School for the Deaf and the Blind and who
878
have received authorization by the Board of Trustees of the
879
Florida School for the Deaf and the Blind to participate in the
880
DROP beyond 60 months, or who are instructional personnel as
881
defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
882
received authorization by the district school superintendent to
883
participate in the DROP beyond 60 calendar months, 96 calendar
884
months immediately following the effective date of the DROP,
885
except a member of the Special Risk Class who has reached normal
886
retirement date prior to the effective date of the DROP and whose
887
total accrued value exceeds 75 percent of average final
888
compensation as of his or her effective date of retirement shall
889
be eligible to participate in the DROP for no more than 36
890
calendar months immediately following the effective date of the
891
DROP.
892
2. Upon deciding to participate in the DROP, the member
893
shall submit, on forms required by the division:
894
a. A written election to participate in the DROP;
895
b. Selection of the DROP participation and termination
896
dates, which satisfy the limitations stated in paragraph (a) and
897
subparagraph 1. The Such termination date must shall be in a
898
binding letter of resignation to with the employer, establishing
899
a deferred termination date. The member may change the
900
termination date within the limitations of subparagraph 1., but
901
only with the written approval of the his or her employer;
902
c. A properly completed DROP application for service
903
retirement as provided in this section; and
904
d. Any other information required by the division.
905
3. The DROP participant is shall be a retiree under the
906
Florida Retirement System for all purposes, except for paragraph
908
121.122. DROP participation is final and cannot be cancelled by
909
the participant after the first payment is credited during the
910
DROP participation period. However, participation in the DROP
911
does not alter the participant's employment status and the member
912
is such employee shall not be deemed retired from employment
913
until his or her deferred resignation is effective and
914
termination occurs as provided in s. 121.021(39).
915
4. Elected officers are shall be eligible to participate in
916
the DROP subject to the following:
917
a. An elected officer who reaches normal retirement date
918
during a term of office may defer the election to participate in
919
the DROP until the next succeeding term in that office. An Such
920
elected officer who exercises this option may participate in the
921
DROP for up to 60 calendar months or a period of no longer than
922
the such succeeding term of office, whichever is less.
923
b. An elected or a nonelected participant may run for a
924
term of office while participating in DROP and, if elected,
925
extend the DROP termination date accordingly, except, however, if
926
such additional term of office exceeds the 60-month limitation
927
established in subparagraph 1., and the officer does not resign
928
from office within such 60-month limitation, the retirement and
929
the participant's DROP is shall be null and void as provided in
930
sub-subparagraph (c)5.d.
931
c. An elected officer who is dually employed and elects to
932
participate in DROP must shall be required to satisfy the
933
definition of termination within the 60-month participation or,
934
with respect to members who are instructional personnel employed
935
by the Florida School for the Deaf and the Blind and who have
936
received authorization by the Board of Trustees of the Florida
937
School for the Deaf and the Blind to participate in the DROP
938
beyond 60 months, or who are instructional personnel as defined
939
in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
940
authorization by the district school superintendent to
941
participate in the DROP beyond 60 months, the 96-month limitation
942
period as provided in subparagraph 1. for the nonelected position
943
and may continue employment as an elected officer as provided in
944
s. 121.053. The elected officer shall will be enrolled as a
945
renewed member in the Elected Officers' Class or the Regular
947
of the month after termination of employment in the nonelected
948
position and termination of DROP. Distribution of the DROP
949
benefits shall be made as provided in paragraph (c).
950
(c) Benefits payable under the DROP.--
951
1. Effective on with the date of DROP participation, the
952
member's initial normal monthly benefit, including creditable
953
service, optional form of payment, and average final
954
compensation, and the effective date of retirement are shall be
955
fixed. The beneficiary established under the Florida Retirement
956
System shall be the beneficiary eligible to receive any DROP
957
benefits payable if the DROP participant dies prior to the
958
completion of the period of DROP participation. If In the event a
959
joint annuitant predeceases the member, the member may name a
960
beneficiary to receive accumulated DROP benefits payable. The
961
Such retirement benefit, the annual cost of living adjustments
962
provided in s. 121.101, and interest shall accrue monthly in the
963
Florida Retirement System Trust Fund. The Such interest shall
964
accrue at an effective annual rate of 6.5 percent compounded
965
monthly, on the prior month's accumulated ending balance, up to
966
the month of termination or death.
967
2. Each employee who elects to participate in the DROP may
968
shall be allowed to elect to receive a lump-sum payment for
969
accrued annual leave earned in accordance with agency policy upon
970
beginning participation in the DROP. The Such accumulated leave
971
payment certified to the division upon commencement of DROP shall
972
be included in the calculation of the member's average final
973
compensation. The employee electing the such lump-sum payment is
974
upon beginning participation in DROP will not be eligible to
975
receive a second lump-sum payment upon termination, except to the
976
extent the employee has earned additional annual leave which,
977
combined with the original payment, does not exceed the maximum
978
lump-sum payment allowed by the employing agency's policy or
979
rules. An Such early lump-sum payment shall be based on the
980
hourly wage of the employee at the time he or she begins
981
participation in the DROP. If the member elects to wait and
982
receive a such lump-sum payment upon termination of DROP and
983
termination of employment with the employer, any accumulated
984
leave payment made at that time may not cannot be included in the
985
member's retirement benefit, which was determined and fixed by
986
law when the employee elected to participate in the DROP.
987
3. The effective date of DROP participation and the
988
effective date of retirement of a DROP participant shall be the
989
first day of the month selected by the member to begin
990
participation in the DROP, provided such date is properly
991
established, with the written confirmation of the employer, and
992
the approval of the division, on forms required by the division.
993
4. Normal retirement benefits and any interest thereon
994
shall continue to accrue in the DROP until the established
995
termination date of the DROP, or until the participant terminates
996
employment or dies prior to such date. Although individual DROP
997
accounts shall not be established, a separate accounting of each
998
participant's accrued benefits under the DROP shall be calculated
999
and provided to participants.
1000
5. At the conclusion of the participant's DROP, the
1001
division shall distribute the participant's total accumulated
1002
DROP benefits, subject to the following provisions:
1003
a. The division shall receive verification by the
1004
participant's employer or employers that the such participant has
1005
terminated employment as provided in s. 121.021(39)(b).
1006
b. The terminated DROP participant or, if deceased, the
1007
such participant's named beneficiary, shall elect on forms
1008
provided by the division to receive payment of the DROP benefits
1009
in accordance with one of the options listed below. If For a
1010
participant or beneficiary who fails to elect a method of payment
1011
within 60 days of termination of the DROP, the division shall
1012
will pay a lump sum as provided in sub-sub-subparagraph (I).
1013
(I) Lump sum.--All accrued DROP benefits, plus interest,
1014
less withholding taxes remitted to the Internal Revenue Service,
1015
shall be paid to the DROP participant or surviving beneficiary.
1016
(II) Direct rollover.--All accrued DROP benefits, plus
1017
interest, shall be paid from the DROP directly to the custodian
1018
of an eligible retirement plan as defined in s. 402(c)(8)(B) of
1019
the Internal Revenue Code. However, in the case of an eligible
1020
rollover distribution to the surviving spouse of a deceased
1021
participant, an eligible retirement plan is an individual
1022
retirement account or an individual retirement annuity as
1023
described in s. 402(c)(9) of the Internal Revenue Code.
1024
(III) Partial lump sum.--A portion of the accrued DROP
1025
benefits shall be paid to the DROP participant or surviving
1026
spouse, less withholding taxes remitted to the Internal Revenue
1027
Service, and the remaining DROP benefits shall be transferred
1028
directly to the custodian of an eligible retirement plan as
1029
defined in s. 402(c)(8)(B) of the Internal Revenue Code. However,
1030
in the case of an eligible rollover distribution to the surviving
1031
spouse of a deceased participant, an eligible retirement plan is
1032
an individual retirement account or an individual retirement
1033
annuity as described in s. 402(c)(9) of the Internal Revenue
1034
Code. The proportions shall be specified by the DROP participant
1035
or surviving beneficiary.
1036
c. The form of payment selected by the DROP participant or
1037
surviving beneficiary must comply complies with the minimum
1038
distribution requirements of the Internal Revenue Code.
1039
d. A DROP participant who fails to terminate employment as
1040
defined in s. 121.021(39)(b) shall be deemed as not to be
1041
retired, and the DROP election is shall be null and void. Florida
1042
Retirement System membership shall be reestablished retroactively
1043
to the date of the commencement of the DROP, and each employer
1044
with whom the participant continues employment must shall be
1045
required to pay to the Florida Retirement System Trust Fund the
1046
difference between the DROP contributions paid in paragraph (i)
1047
and the contributions required for the applicable Florida
1048
Retirement System class of membership during the period the
1049
member participated in the DROP, plus 6.5 percent interest
1050
compounded annually.
1051
6. The retirement benefits of any DROP participant who
1052
meets the definition of termination, as provided in s.
1053
121.021(39)(b), but is in violation of the reemployment
1054
provisions as provided in subsection (9), shall be suspended
1055
during those months in which the member is in violation. Any
1056
member employed in violation of this subparagraph and any
1057
employing agency that knowingly employs or appoints such member
1058
without notifying the Division of Retirement to suspend
1059
retirement benefits are jointly and severally liable for any
1060
benefits paid during the reemployment limitation period. To avoid
1061
liability, the employing agency must have a written statement
1062
from the retiree that he or she is not retired from a state-
1063
administered retirement system. Any retirement benefits received
1064
by a retired member while employed in violation of the
1065
reemployment limitations during the first 12 months of retirement
1066
must be repaid to the Florida Retirement System Trust Fund, and
1067
his or her retirement benefits shall remain suspended until
1068
payment is made. Benefits suspended beyond the end of the retired
1069
member's first 12 months of retirement shall apply toward
1070
repayment of benefits received in violation of the reemployment
1071
limitations.
1072
7.6. The accrued benefits of any DROP participant, and any
1073
contributions accumulated under the such program, are shall not
1074
be subject to assignment, execution, attachment, or to any legal
1075
process whatsoever, except for qualified domestic relations
1076
orders by a court of competent jurisdiction, income deduction
1077
orders as provided in s. 61.1301, and federal income tax levies.
1078
8.7. DROP participants are shall not be eligible for
1079
disability retirement benefits as provided in subsection (4).
1080
(14) PAYMENT OF BENEFITS.--This subsection applies to the
1081
payment of benefits to a payee (retiree or beneficiary) under the
1082
Florida Retirement System:
1083
(b) Subject to approval by the division in accordance with
1084
rule 60S-4.015, Florida Administrative Code, a payee receiving
1085
retirement benefits under the Florida Retirement system may also
1086
have the following payments deducted from his or her monthly
1087
benefit:
1088
1. Premiums for life and health-related insurance policies
1089
from approved companies.
1090
2. Life insurance premiums for the State Group Life
1091
Insurance Plan, if authorized in writing by the payee and by the
1092
department of Management Services.
1093
3. Repayment of overpayments from the Florida Retirement
1094
System Trust Fund, the State Employees' Health Insurance Trust
1095
Fund, or the State Employees' Life Insurance Trust Fund, upon
1096
notification of the payee.
1097
4. Payments to an alternate payee for alimony or, child
1098
support pursuant to an income deduction order under s. 61.1301,
1099
or division of marital assets pursuant to a qualified domestic
1100
relations order under s. 222.21 or an income deduction order
1101
under s. 61.1301.
1102
5. Payments to the Internal Revenue Service for federal
1103
income tax levies, upon notification of the division by the
1104
Internal Revenue Service.
1105
(c) A payee must shall notify the division of any change in
1106
his or her address. The division may suspend benefit payments to
1107
a payee if correspondence sent to the payee's mailing address is
1108
returned due to an incorrect address. Benefit payments shall be
1109
resumed upon notification to the division of the payee's new
1110
address.
1111
(d) A payee whose retirement benefits are reduced by the
1112
application of maximum benefit limits under s. 415(b) of the
1113
Internal Revenue Code, as specified in s. 121.30(5), shall have
1114
the portion of his or her calculated benefit in the Florida
1115
Retirement System defined benefit plan which exceeds such federal
1116
limitation paid through the Florida Retirement System
1117
Preservation of Benefits Plan, as provided in s. 121.1001.
1118
(e). The Division of Retirement may issue retirement
1119
benefits payable for division of marital assets pursuant to a
1120
qualified domestic relations order directly to the alternate
1121
payee, any court order to the contrary notwithstanding, in order
1122
to meet Internal Revenue Code requirements.
1123
(f)(e) A No benefit may not be reduced for the purpose of
1124
preserving the member's eligibility for a federal program.
1125
(g)(f) The division shall adopt rules establishing
1126
procedures for determining that the persons to whom benefits are
1127
being paid are still living. The division shall suspend the
1128
benefits being paid to any payee if when it is unable to contact
1129
such payee and to confirm that he or she is still living.
1130
Section 8. Section 121.1115, Florida Statutes, is amended
1131
to read:
1132
121.1115 Purchase of retirement credit for out-of-state or
1133
and federal service.--Effective January 1, 1995, a member of the
1134
Florida Retirement System may purchase creditable service for
1135
periods of public employment in another state and receive
1136
creditable service for such periods of employment. Service with
1137
the Federal Government, including any active military service,
1138
may be claimed. Upon completion of each year of service earned
1139
under the Florida Retirement System, a member may purchase up to
1140
1 year of retirement credit for his or her out-of-state service,
1141
subject to the following provisions:
1142
(1) LIMITATIONS AND CONDITIONS.--To receive credit for the
1143
out-of-state service:
1144
(a) The out-of-state service being claimed must have been:
1145
1. Performed in a position of employment with the state or
1146
a political subdivision thereof or with the Federal Government;
1147
2. Covered by a retirement or pension plan provided by the
1148
state or political subdivision, or by the Federal Government, as
1149
appropriate; and
1150
3. Performed prior to a period of membership in the Florida
1151
Retirement System.
1152
(b) The member must have completed a minimum of 6 years of
1153
creditable service under the Florida Retirement System, excluding
1154
out-of-state service and in-state service claimed and purchased
1155
under s. 121.1122.
1156
(c) Not more than 5 years of creditable service may be
1157
claimed for creditable service aggregated under the provisions of
1158
this section and s. 121.1122.
1159
(d) The out-of-state service credit claimed under this
1160
section shall be credited only as service in the Regular Class of
1161
membership, and any benefit or pension based thereon is shall be
1162
subject to the limitations and restrictions of s. 112.65.
1163
(e) The member is not eligible for and may not receive a
1164
pension or benefit from a retirement or pension plan based on or
1165
including the out-of-state service. Eligibility for or the
1166
receipt of contributions to a retirement plan made by the
1167
employer on behalf of the employee is considered a benefit.
1168
(f)(e) To receive A member shall be eligible to receive
1169
service credit for out-of-state service performed after leaving
1170
the Florida Retirement System, the member must complete only upon
1171
return to membership and completion of at least 1 year of
1172
creditable service in the Florida Retirement System following the
1173
out-of-state service.
1174
(2) COST.--For each year claimed, the member must pay into
1175
the Florida Retirement System Trust Fund an amount equal to 20
1176
percent of the member's annual compensation for the first full
1177
work year of creditable service earned under the Florida
1178
Retirement System, but not less than $12,000, plus interest at
1179
6.5 percent compounded annually from the date of first annual
1180
salary earned until full payment is made. The employer may pay
1181
all or a portion of the cost of this service credit.
1182
Section 9. Subsection (2) of section 121.1122, Florida
1183
Statutes, is amended to read:
1184
121.1122 Purchase of retirement credit for in-state public
1185
service and in-state service in accredited nonpublic schools and
1186
colleges, including charter schools and charter technical career
1187
centers.--Effective January 1, 1998, a member of the Florida
1188
Retirement System may purchase creditable service for periods of
1189
certain public or nonpublic employment performed in this state,
1190
as provided in this section.
1191
(2) LIMITATIONS AND CONDITIONS.--
1192
(a) A member is not eligible to receive credit for in-state
1193
service under this section until he or she has completed 6 years
1194
of creditable service under the Florida Retirement System,
1195
excluding service purchased under this section and out-of-state
1196
service claimed and purchased under s. 121.1115.
1197
(b) A member may not purchase and receive credit for more
1198
than 5 years of creditable service aggregated under the
1199
provisions of this section and s. 121.1115.
1200
(c) Service credit claimed under this section shall be
1201
credited only as service in the Regular Class of membership and
1202
is shall be subject to the provisions of s. 112.65.
1203
(d) Service credit may not be purchased under this section
1204
if the member is eligible to receive or is receiving a pension or
1205
benefit from a retirement or pension plan based on or including
1206
the service. Eligibility for or the receipt of contributions to a
1207
retirement plan made by the employer on behalf of the employee is
1208
considered a benefit.
1209
(e)(d) A member is shall be eligible to receive service
1210
credit for in-state service performed after leaving the Florida
1211
Retirement System only after upon returning to membership and
1212
completing at least 1 year of creditable service in the Florida
1213
Retirement System following the in-state service.
1214
(f)(e) The service claimed must have been service covered
1215
by a retirement or pension plan provided by the employer.
1216
Section 10. Section 121.136, Florida Statutes, is amended
1217
to read:
1218
121.136 Annual benefit statement to members.--Beginning
1219
January 1, 1993, and Each January thereafter, the department
1220
shall provide each active member of the Florida Retirement System
1221
with 5 or more years of creditable service an annual statement of
1222
benefits which provides. Such statement should provide the member
1223
with basic data about the member's retirement account. At a
1224
minimum Minimally, it must shall include the member's retirement
1225
plan, accrued service credit the amount of funds on deposit in
1226
the retirement account, and an estimate of retirement benefits.
1227
Section 11. Section 121.1905, Florida Statutes, is amended
1228
to read:
1229
121.1905 Division of Retirement; creation.--
1230
(1) There is created the Division of Retirement within the
1231
Department of Management Services.
1232
(2) The mission of the Division of Retirement is to provide
1233
quality and cost-effective retirement services as measured by
1234
member satisfaction and by comparison with administrative costs
1235
of comparable retirement systems.
1236
Section 12. Paragraph (a) of subsection (2) of section
1237
121.23, Florida Statutes, is amended to read:
1238
121.23 Disability retirement and special risk membership
1239
applications; Retirement Commission; powers and duties; judicial
1240
review.--The provisions of this section apply to all proceedings
1241
in which the administrator has made a written final decision on
1242
the merits respecting applications for disability retirement,
1243
reexamination of retired members receiving disability benefits,
1244
applications for special risk membership, and reexamination of
1245
special risk members in the Florida Retirement System. The
1246
jurisdiction of the State Retirement Commission under this
1247
section shall be limited to written final decisions of the
1248
administrator on the merits.
1249
(2) A member shall be entitled to a hearing before the
1251
on the merits of any written adverse decision of the
1252
administrator, if he or she files with the commission a written
1253
request for such hearing within 21 days after receipt of such
1254
written decision from the administrator. For the purpose of such
1255
hearings, the commission shall be an "agency head" as defined by
1256
s. 120.52.
1257
(a) The commission may shall have the authority to issue
1258
orders as a result of the a hearing that are shall be binding on
1259
all parties to the dispute and. The commission may order any
1260
action that it deems appropriate. Any disability retirement order
1261
of the commission issued pursuant to this subsection which
1262
sustains the application of the member may include an amount, to
1263
be determined by the commission, for reasonable attorney's fees
1264
and taxable costs, which shall be calculated in accordance with
1265
the statewide uniform guidelines for taxation of costs in civil
1266
actions. The amount of the attorney's fee may not exceed 50
1267
percent of the initial yearly benefit awarded under s.
1268
121.091(4). In cases involving disability retirement, the State
1269
Retirement commission shall require the member to present
1270
competent substantial medical evidence and meet the requirements
1271
of s. 121.091(4)(c)2. and 3., and may require vocational
1272
evidence, before awarding disability retirement benefits.
1273
Section 13. Paragraph (a) of subsection (1) of section
1274
121.24, Florida Statutes, is amended to read:
1275
121.24 Conduct of commission business; legal and other
1276
assistance; compensation.--
1277
(1) The commission shall conduct its business within the
1278
following guidelines:
1279
(a) For purposes of hearing appeals under s. 121.23, the
1280
commission may meet in panels consisting of no not fewer than
1281
three members. For the purpose of meeting in these panels, a
1282
quorum shall be not fewer than two members. For all other
1283
purposes, A quorum shall consist of three members. The concurring
1284
vote of a majority of the members present is shall be required to
1285
reach a decision, issue orders, and conduct the business of the
1286
commission.
1287
Section 14. Subsection (8) of section 1012.33, Florida
1288
Statutes, is amended to read:
1289
1012.33 Contracts with instructional staff, supervisors,
1290
and school principals.--
1291
(8) Notwithstanding any other provision of law, a retired
1292
any member who has retired may interrupt retirement and be
1293
reemployed in any public school. A Any member so reemployed by
1294
the same district from which he or she retired may be employed on
1295
a probationary contractual basis as provided in subsection (1);
1296
however, no regular retirement employee shall be eligible to
1297
renew membership under a retirement system created by chapter 121
1298
or chapter 238.
1299
Section 15. Paragraph (a) of subsection (4) of section
1300
121.35, Florida Statutes, is amended, and paragraph (g) is added
1301
to that subsection, to read:
1302
121.35 Optional retirement program for the State University
1303
System.--
1304
(4) CONTRIBUTIONS.--
1305
(a) Through June 30, 2001, each employer shall contribute
1306
on behalf of each participant in the optional retirement program
1307
an amount equal to the normal cost portion of the employer
1308
retirement contribution which would be required if the
1309
participant were a regular member of the Florida Retirement
1310
System defined benefit program, plus the portion of the
1311
contribution rate required in s. 112.363(8) that would otherwise
1312
be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1313
Effective July 1, 2001, each employer shall contribute on behalf
1314
of each participant in the optional program an amount equal to
1315
10.43 percent of the participant's gross monthly compensation.
1316
The department shall deduct an amount approved by the Legislature
1317
to provide for the administration of this program. The payment of
1318
the contributions to the optional program which is required by
1319
this paragraph for each participant shall be made by the employer
1320
to the department, which shall forward the contributions to the
1321
designated company or companies contracting for payment of
1322
benefits for the participant under the program. However, such
1323
contributions paid on behalf of an employee described in
1324
paragraph (3)(c) shall not be forwarded to a company and shall
1325
not begin to accrue interest until the employee has executed a an
1326
annuity contract and notified the department.
1327
(g) Effective July 1, 2008, for purposes of paragraph (a)
1328
and notwithstanding s. 121.021(22)(b)1., the term "participant's
1329
gross monthly compensation" includes salary payments made to
1330
eligible clinical faculty from a state university using funds
1331
provided by a faculty practice plan authorized by the Board of
1332
Governors of the State University System if:
1333
1. There is not any employer contribution from the state
1334
university to any other retirement program with respect to such
1335
salary payments; and
1336
2. The employer contribution on behalf of the participant
1337
in the optional retirement program with respect to such salary
1338
payments is made using funds provided by the faculty practice
1339
plan.
1340
Section 16. Section 121.355, Florida Statutes, is created
1341
to read:
1342
121.355 Community College Optional Retirement Program and
1343
State University System Optional Retirement Program member
1344
transfer.--Effective January 1, 2009, through December 31, 2009,
1345
an employee who is a former participant in the Community College
1346
Optional Retirement Program or the State University System
1347
Optional Retirement Program and present mandatory participant in
1348
the Florida Retirement System defined benefit plan may receive
1349
service credit equal to his or her years of service under the
1350
Community College Optional Retirement Program or the State
1351
University System Optional Retirement Program under the following
1352
conditions:
1353
(1) The cost for such credit shall be an amount
1354
representing the actuarial accrued liability for the affected
1355
period of service. The cost shall be calculated using the
1356
discount rate and other relevant actuarial assumptions that were
1357
used to value the Florida Retirement System defined benefit plan
1358
liabilities in the most recent actuarial valuation. The
1359
calculation shall include any service already maintained under
1360
the defined benefit plan in addition to the years under the
1361
Community College Optional Retirement Program or the State
1362
University System Optional Retirement Program. The actuarial
1363
accrued liability of any service already maintained under the
1364
defined benefit plan shall be applied as a credit to total cost
1365
resulting from the calculation. The division shall ensure that
1366
the transfer sum is prepared using a formula and methodology
1367
certified by an enrolled actuary.
1368
(2) The employee must transfer from his or her Community
1369
College Optional Retirement Program account or State University
1370
System Optional Retirement Program account, subject to the terms
1371
of the applicable optional retirement program contract, and from
1372
other employee moneys as necessary, a sum representing the
1373
actuarial accrued liability immediately following the time of
1374
such movement, determined assuming that attained service equals
1375
the sum of service in the defined benefit program and service in
1376
the Community College Optional Retirement Program or State
1377
University System Optional Retirement Program.
1378
(3) The employee may not receive service credit for a
1379
period of mandatory participation in the State University
1380
Optional Retirement Program or for a period for which a
1381
distribution was received from the Community College Optional
1382
Retirement Program or State University System Optional Retirement
1383
Program.
1385
Statutes, are repealed.
1386
Section 18. The Legislature finds that a proper and
1387
legitimate state purpose is served when employees and retirees of
1388
the state and its political subdivisions, as well as the
1389
dependents, survivors, and beneficiaries of such employees and
1390
retiree, are extended the basic protections afforded by
1391
governmental retirement systems that provide fair and adequate
1392
benefits and that are managed, administered, and funded in an
1393
actuarially sound manner as required by s. 14, Art. X of the
1394
State Constitution, and part VII of chapter 112, Florida
1395
Statutes. Therefore, the Legislature determines and declares that
1396
the amendment of s. 121.091, Florida Statutes, by this act
1397
fulfills an important state interest.
1398
Section 19. This act shall take effect July 1, 2008.
CODING: Words stricken are deletions; words underlined are additions.