Florida Senate - 2009 SB 1182
By Senators Fasano and Gaetz
11-00712-09 20091182__
1 A bill to be entitled
2 An act relating to state retirement; amending s.
3 121.091, F.S.; prohibiting a retired person from
4 receiving both a salary from an employer in the state
5 administered retirement system and retirement
6 benefits, and from reenrolling in the State Retirement
7 System; providing exemptions; amending s. 121.122,
8 F.S.; prohibiting a retired member from reenrolling in
9 the State Retirement System after a certain date;
10 providing an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Paragraph (b) of subsection (9) of section
15 121.091, Florida Statutes, is amended to read:
16 121.091 Benefits payable under the system.—Benefits may not
17 be paid under this section unless the member has terminated
18 employment as provided in s. 121.021(39)(a) or begun
19 participation in the Deferred Retirement Option Program as
20 provided in subsection (13), and a proper application has been
21 filed in the manner prescribed by the department. The department
22 may cancel an application for retirement benefits when the
23 member or beneficiary fails to timely provide the information
24 and documents required by this chapter and the department's
25 rules. The department shall adopt rules establishing procedures
26 for application for retirement benefits and for the cancellation
27 of such application when the required information or documents
28 are not received.
29 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
30 (b)1. Any person who is retired under this chapter, except
31 under the disability retirement provisions of subsection (4),
32 may be reemployed by an employer participating in the Florida
33 Retirement System. However, except as provided under ss. 121.053
34 and 121.122, the any private or public employer after retirement
35 and receive retirement benefits and compensation from his or her
36 employer without any limitations, except that a person may not
37 receive both a salary from reemployment with any agency
38 participating in the Florida Retirement System and retirement
39 benefits, may not be reenrolled in the Florida Retirement
40 System, and the employer is not subject to retirement
41 contributions on behalf of such employee for that employment
42 under this chapter for a period of 12 months immediately
43 subsequent to the date of retirement. However, a DROP
44 participant may shall continue employment and receive a salary
45 during the period of participation in DROP the Deferred
46 Retirement Option Program, as provided in subsection (13).
47 2. Any person to whom the limitation in subparagraph 1.
48 applies who violates such reemployment limitation and who is
49 reemployed with any agency participating in the Florida
50 Retirement System before completion of the 12-month limitation
51 period shall give timely notice of this fact in writing to the
52 employer and to the division and shall have his or her
53 retirement benefits suspended for the balance of the 12-month
54 limitation period. Any person employed in violation of this
55 paragraph and any employing agency that which knowingly employs
56 or appoints such person without notifying the division of
57 Retirement to suspend retirement benefits are shall be jointly
58 and severally liable for reimbursement to the retirement trust
59 fund of any benefits paid during the reemployment limitation
60 period. To avoid liability, the such employing agency must shall
61 have a written statement from the retiree that he or she is not
62 retired from a state-administered retirement system. Any
63 retirement benefits received while reemployed must during this
64 reemployment limitation period shall be repaid to the Florida
65 Retirement System Trust Fund, and the salary from employment
66 remains retirement benefits shall remain suspended until such
67 repayment has been made. Any salary suspended Benefits suspended
68 beyond the reemployment limitation shall be applied apply toward
69 repayment of retirement benefits received in violation of this
70 paragraph the reemployment limitation. This provision is subject
71 to the following limited exemptions.
72 1.3. A district school board may reemploy a retired member
73 as a substitute or hourly teacher, education paraprofessional,
74 transportation assistant, bus driver, or food service worker on
75 a part-time, noncontractual basis after he or she has been
76 retired for 1 calendar month, in accordance with s. 121.021(39).
77 A district school board may reemploy a retired member as
78 instructional personnel, as defined in s. 1012.01(2)(a), on an
79 annual contractual basis after he or she has been retired for 1
80 calendar month, in accordance with s. 121.021(39). Any other
81 retired member who is reemployed within 1 calendar month after
82 retirement shall void his or her application for retirement
83 benefits. District school boards reemploying such teachers,
84 education paraprofessionals, transportation assistants, bus
85 drivers, or food service workers are subject to the retirement
86 contribution required by subparagraph 7.
87 2.4. A community college board of trustees may reemploy a
88 retired member as an adjunct instructor, that is, an instructor
89 who is noncontractual and part-time, or as a participant in a
90 phased retirement program within the Florida Community College
91 System, after he or she has been retired for 1 calendar month,
92 in accordance with s. 121.021(39). Any retired member who is
93 reemployed within 1 calendar month after retirement voids shall
94 void his or her application for retirement benefits. Boards of
95 trustees reemploying such instructors are subject to the
96 retirement contribution required in subparagraph 7. A retired
97 member may be reemployed as an adjunct instructor for no more
98 than 780 hours per year during the first 12 months of
99 retirement. Any retired member reemployed for more than 780
100 hours per year must during the first 12 months of retirement
101 shall give timely notice in writing to the employer and to the
102 Division of Retirement of the date he or she will exceed the
103 limitation. The division shall suspend his or her retirement
104 benefits for the remainder of the year first 12 months of
105 retirement. Any person employed in violation of this
106 subparagraph and any employing agency that which knowingly
107 employs or appoints such person without notifying the division
108 of Retirement to suspend retirement benefits are shall be
109 jointly and severally liable for reimbursement to the retirement
110 trust fund of any benefits paid during the reemployment
111 limitation period. To avoid liability, the such employing agency
112 must shall have a written statement from the retiree that he or
113 she is not retired from a state-administered retirement system.
114 Any retirement benefits received by a retired member while
115 reemployed in excess of 780 hours per year must during the first
116 12 months of retirement shall be repaid to the Florida
117 Retirement System Trust Fund, and any wages from employment
118 retirement benefits shall remain suspended until repayment is
119 made. Any wages suspended Benefits suspended beyond the end of
120 the retired member's first 12 months of retirement shall be
121 applied apply toward repayment of benefits received in violation
122 of the 780-hour reemployment limitation.
123 3.5. The State University System may reemploy a retired
124 member as an adjunct faculty member or as a participant in a
125 phased retirement program within the State University System
126 after the retired member has been retired for 1 calendar month,
127 in accordance with s. 121.021(39). Any retired member who is
128 reemployed within 1 calendar month after retirement voids shall
129 void his or her application for retirement benefits. The State
130 University System is subject to the retired contribution
131 required in subparagraph 7., as appropriate. A retired member
132 may be reemployed as an adjunct faculty member or a participant
133 in a phased retirement program for no more than 780 hours per
134 year during the first 12 months of his or her retirement. Any
135 retired member reemployed for more than 780 hours per year must
136 during the first 12 months of retirement shall give timely
137 notice in writing to the employer and to the Division of
138 Retirement of the date he or she will exceed the limitation. The
139 division shall suspend his or her retirement benefits for the
140 remainder of the year first 12 months of retirement. Any person
141 employed in violation of this subparagraph and any employing
142 agency that which knowingly employs or appoints such person
143 without notifying the division of Retirement to suspend
144 retirement benefits are shall be jointly and severally liable
145 for reimbursement to the retirement trust fund of any benefits
146 paid during the reemployment limitation period. To avoid
147 liability, such employing agency must shall have a written
148 statement from the retiree that he or she is not retired from a
149 state-administered retirement system. Any retirement benefits
150 received by a retired member while reemployed in excess of 780
151 hours per year must during the first 12 months of retirement
152 shall be repaid to the Florida Retirement System Trust Fund, and
153 any wages from employment retirement benefits shall remain
154 suspended until repayment is made. Any wages Benefits suspended
155 beyond the end of the retired member's first 12 months of
156 retirement shall be applied apply toward repayment of benefits
157 received in violation of the 780-hour reemployment limitation.
158 4.6. The Board of Trustees of the Florida School for the
159 Deaf and the Blind may reemploy a retired member as a substitute
160 teacher, substitute residential instructor, or substitute nurse
161 on a part-time noncontractual basis after he or she has been
162 retired for 1 calendar month, in accordance with s. 121.021(39).
163 Any retired member who is reemployed within 1 calendar month
164 after retirement voids shall void his or her application for
165 retirement benefits. The Board of Trustees of the Florida School
166 for the Deaf and the Blind reemploying such teachers,
167 residential instructors, or nurses is subject to the retirement
168 contribution required by subparagraph 7. Reemployment of a
169 retired member as a substitute teacher, substitute residential
170 instructor, or substitute nurse is limited to 780 hours per year
171 during the first 12 months of his or her retirement. Any retired
172 member reemployed for more than 780 hours per year must during
173 the first 12 months of retirement shall give timely notice in
174 writing to the employer and to the Division of Retirement of the
175 date he or she will exceed the limitation. The division shall
176 suspend his or her retirement benefits for the remainder of the
177 year first 12 months of retirement. Any person employed in
178 violation of this subparagraph and any employing agency that
179 which knowingly employs or appoints such person without
180 notifying the division of Retirement to suspend retirement
181 benefits are shall be jointly and severally liable for
182 reimbursement to the retirement trust fund of any benefits paid
183 during the reemployment limitation period. To avoid liability,
184 such employing agency must shall have a written statement from
185 the retiree that he or she is not retired from a state
186 administered retirement system. Any retirement benefits received
187 by a retired member while reemployed in excess of 780 hours per
188 year must during the first 12 months of retirement shall be
189 repaid to the Retirement System Trust Fund, and any wages from
190 employment his or her retirement benefits shall remain suspended
191 until payment is made. Any wages Benefits suspended beyond the
192 end of the retired member's first 12 months of retirement shall
193 be applied apply toward repayment of benefits received in
194 violation of the 780-hour reemployment limitation.
195 5.7. The employment by an employer of a any retiree or DROP
196 participant of a any state-administered retirement system does
197 not affect shall have no effect on the average final
198 compensation or years of creditable service of the retiree or
199 DROP participant. Before Prior to July 1, 1991, upon employment
200 of any person, other than an elected officer as provided in s.
201 121.053, who is has been retired under a any state-administered
202 retirement program, the employer shall pay retirement
203 contributions in an amount equal to the unfunded actuarial
204 liability portion of the employer contribution which would be
205 required for regular members of the Florida Retirement System.
206 Effective July 1, 2009 1991, contributions shall be made as
207 provided in s. 121.122 for elected officers retirees with
208 renewed membership or subsection (13) with respect to DROP
209 participants.
210 8. Any person who has previously retired and who is holding
211 an elective public office or an appointment to an elective
212 public office eligible for the Elected Officers' Class on or
213 after July 1, 1990, shall be enrolled in the Florida Retirement
214 System as provided in s. 121.053(1)(b) or, if holding an
215 elective public office that does not qualify for the Elected
216 Officers' Class on or after July 1, 1991, shall be enrolled in
217 the Florida Retirement System as provided in s. 121.122, and
218 shall continue to receive retirement benefits as well as
219 compensation for the elected officer's service for as long as he
220 or she remains in elective office. However, any retired member
221 who served in an elective office prior to July 1, 1990,
222 suspended his or her retirement benefit, and had his or her
223 Florida Retirement System membership reinstated shall, upon
224 retirement from such office, have his or her retirement benefit
225 recalculated to include the additional service and compensation
226 earned.
227 9. Any person who is holding an elective public office
228 which is covered by the Florida Retirement System and who is
229 concurrently employed in nonelected covered employment may elect
230 to retire while continuing employment in the elective public
231 office, provided that he or she shall be required to terminate
232 his or her nonelected covered employment. Any person who
233 exercises this election shall receive his or her retirement
234 benefits in addition to the compensation of the elective office
235 without regard to the time limitations otherwise provided in
236 this subsection. No person who seeks to exercise the provisions
237 of this subparagraph, as the same existed prior to May 3, 1984,
238 shall be deemed to be retired under those provisions, unless
239 such person is eligible to retire under the provisions of this
240 subparagraph, as amended by chapter 84-11, Laws of Florida.
241 10. The limitations of this paragraph apply to reemployment
242 in any capacity with an “employer” as defined in s. 121.021(10),
243 irrespective of the category of funds from which the person is
244 compensated.
245 6.11. An employing agency may reemploy a retired member as
246 a firefighter or paramedic after the retired member has been
247 retired for 1 calendar month, in accordance with s. 121.021(39).
248 Any retired member who is reemployed within 1 calendar month
249 after retirement voids shall void his or her application for
250 retirement benefits. The employing agency reemploying such
251 firefighter or paramedic is subject to the retired contribution
252 required in subparagraph 8. Reemployment of a retired
253 firefighter or paramedic is limited to no more than 780 hours
254 per year during the first 12 months of his or her retirement.
255 Any retired member reemployed for more than 780 hours per year
256 must during the first 12 months of retirement shall give timely
257 notice in writing to the employer and to the Division of
258 Retirement of the date he or she will exceed the limitation. The
259 division shall suspend his or her retirement benefits for the
260 remainder of the year first 12 months of retirement. Any person
261 employed in violation of this subparagraph and any employing
262 agency that which knowingly employs or appoints such person
263 without notifying the division of Retirement to suspend
264 retirement benefits shall be jointly and severally liable for
265 reimbursement to the Retirement System Trust Fund of any
266 benefits paid during the reemployment limitation period. To
267 avoid liability, such employing agency must shall have a written
268 statement from the retiree that he or she is not retired from a
269 state-administered retirement system. Any retirement benefits
270 received by a retired member while reemployed in excess of 780
271 hours per year must during the first 12 months of retirement
272 shall be repaid to the Florida Retirement System Trust Fund, and
273 retirement benefits shall remain suspended until repayment is
274 made. Any wages suspended shall be applied Benefits suspended
275 beyond the end of the retired member's first 12 months of
276 retirement shall apply toward repayment of benefits received in
277 violation of the 780-hour reemployment limitation.
278 7. The limitations of this paragraph apply to reemployment
279 in any capacity with an employer, as defined in s. 121.021,
280 irrespective of the category of funds from which the person is
281 compensated.
282 Section 2. Section 121.122, Florida Statutes, is amended to
283 read:
284 121.122 Renewed membership in system.—Except as provided in
285 s. 121.053, effective July 1, 1991, through July 1, 2009, any
286 retiree of a state-administered retirement system who is
287 employed in a regularly established position with a covered
288 employer shall be enrolled as a compulsory member of the Regular
289 Class of the Florida Retirement System or, effective July 1,
290 1997, through July 1, 2009, any retiree of a state-administered
291 retirement system who is employed in a position included in the
292 Senior Management Service Class shall be enrolled as a
293 compulsory member of the Senior Management Service Class of the
294 Florida Retirement System as provided in s. 121.055, and is
295 shall be entitled to receive an additional retirement benefit,
296 subject to the following conditions:
297 (1)(a) Such member must shall resatisfy the age and service
298 requirements as provided in this chapter for initial membership
299 under the system, unless such member elects to participate in
300 the Senior Management Service Optional Annuity Program in lieu
301 of the Senior Management Service Class, as provided in s.
302 121.055(6).
303 (b) Such member is shall not be entitled to disability
304 benefits as provided in s. 121.091(4).
305 (c) Such member must meet the reemployment after retirement
306 limitations as provided in s. 121.091(9), as applicable.
307 (2) Upon renewed membership, the employer of such member
308 shall pay the applicable employer contributions as required by
309 ss. 121.055(3) and 121.071(1)(a) and (4).
310 (3) Such member is shall be entitled to purchase additional
311 retirement credit in the Regular Class or the Senior Management
312 Service Class, as applicable, for any postretirement service
313 performed in a regularly established position as follows:
314 (a) For regular class service prior to July 1, 1991, by
315 paying the Regular Class applicable employee and employer
316 contributions for the period being claimed, plus 4 percent
317 interest compounded annually from first year of service claimed
318 until July 1, 1975, and 6.5 percent interest compounded
319 thereafter, until full payment is made to the Florida Retirement
320 System Trust Fund; or
321 (b) For Senior Management Service Class prior to June 1,
322 1997, as provided in s. 121.055(1)(j).
323 The contribution for postretirement service between July 1,
324 1985, and July 1, 1991, for which the reemployed retiree
325 contribution was paid, is shall be the difference between such
326 contribution and the total applicable contribution for the
327 period being claimed, plus interest. The employer of such member
328 may pay the applicable employer contribution in lieu of the
329 member. If a member does not wish to claim credit for all of the
330 postretirement service for which he or she is eligible, the
331 service the member claims must be the most recent service.
332 (4) No Creditable service for which credit was received, or
333 which remained unclaimed, at retirement may not be claimed or
334 applied toward service credit earned following renewed
335 membership. However, service earned as an elected officer with
336 renewed membership in the Elected Officers' Class may be used in
337 conjunction with creditable service earned under this section,
338 provided the applicable vesting requirements and other existing
339 statutory conditions required by this chapter are met.
340 (5) Notwithstanding any other limitations provided in this
341 section, a participant of the State University System Optional
342 Retirement Program or the Senior Management Service Optional
343 Annuity Program who terminated employment and commenced
344 receiving an annuity under the provisions of the optional
345 program, who renews membership in the Regular Class as required
346 by this section upon reemployment after retirement, and who,
347 before July 1, 2009, had previously earned creditable Florida
348 Retirement System service that was not included in any
349 retirement benefit may include such previous service toward
350 vesting and service credit in the second career benefit provided
351 under renewed membership.
352 (6) Any renewed member who is not receiving the maximum
353 health insurance subsidy provided in s. 112.363 shall be
354 entitled to earn additional credit toward the maximum health
355 insurance subsidy. Any additional subsidy due because of such
356 additional credit shall be received only at the time of payment
357 of the second career retirement benefit. In no case shall the
358 total health insurance subsidy received by a retiree receiving
359 benefits from initial and renewed membership exceed the maximum
360 allowed in s. 112.363.
361 (7) Except for a retired member who renewed before July 1,
362 2009, on or after that date a retiree of the state-administered
363 retirement system may not be enrolled in the Florida Retirement
364 System.
365 Section 3. This act shall take effect July 1, 2009.