Florida Senate - 2009 SB 1214
By Senator Fasano
11-00670A-09 20091214__
1 A bill to be entitled
2 An act relating to state retirement; amending s.
3 121.053, F.S.; deleting a provision that allows a
4 retired member of the Elected Officers' Class to
5 receive retirement benefits while receiving
6 compensation for elected officer service; amending s.
7 121.091, F.S.; prohibiting an elected officer from
8 receiving both a salary from an employer in the state
9 administered retirement system and retirement
10 benefits; 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 (1) and subsections
15 (2) and (3) of section 121.053, Florida Statutes, are amended to
16 read:
17 121.053 Participation in the Elected Officers' Class for
18 retired members.—
19 (1)
20 (b) Any retired member of the Florida Retirement System, or
21 any existing system as defined in s. 121.021(2), who, on or
22 after July 1, 1990, is serving in, or is elected or appointed
23 to, an elective office covered by the Elected Officers' Class
24 shall be enrolled in the appropriate subclass of the Elected
25 Officers' Class of the Florida Retirement System, and applicable
26 contributions shall be paid into the Florida Retirement System
27 Trust Fund as provided in s. 121.052(7). Pursuant thereto:
28 1. Any such retired member shall be eligible to continue to
29 receive retirement benefits as well as compensation for the
30 elected officer service for as long as he or she remains in an
31 elective office covered by the Elected Officers' Class.
32 1.2. If any such member serves in an elective office
33 covered by the Elected Officers' Class and becomes vested under
34 that class, he or she is shall be entitled to receive an
35 additional retirement benefit for such elected officer service.
36 2.3. Such member shall be entitled to purchase additional
37 retirement credit in the Elected Officers' Class for any
38 postretirement service performed in an elected position eligible
39 for the Elected Officers' Class before prior to July 1, 1990, or
40 in the Regular Class for any postretirement service performed in
41 any other regularly established position before prior to July 1,
42 1991, by paying the applicable Elected Officers' Class or
43 Regular Class employee and employer contributions for the period
44 being claimed, plus 4 percent interest compounded annually from
45 the first year of service claimed until July 1, 1975, and 6.5
46 percent interest compounded thereafter, until full payment is
47 made to the Florida Retirement System Trust Fund. The
48 contribution for postretirement Regular Class service between
49 July 1, 1985, and July 1, 1991, for which the reemployed retiree
50 contribution was paid, is shall be the difference between such
51 contribution and the total applicable contribution for the
52 period being claimed, plus interest. The employer of such member
53 may pay the applicable employer contribution in lieu of the
54 member. If a member does not wish to claim credit for all of the
55 postretirement service for which he or she is eligible, the
56 service the member claims must be the most recent service.
57 3.4. Creditable service for which credit was received, or
58 which remained unclaimed, at retirement may not be claimed or
59 applied toward service credit earned following renewed
60 membership. However, service earned in accordance with the
61 renewed membership provisions in s. 121.122 may be used in
62 conjunction with creditable service earned under this paragraph,
63 provided applicable vesting requirements and other existing
64 statutory conditions required by this chapter are met.
65 4.5. An elected officer who is elected or appointed to an
66 elective office and is participating in the Deferred Retirement
67 Option Program is not subject to termination as provided in s.
68 121.021(39)(b), or reemployment limitations as provided in s.
69 121.091(9), until the end of his or her current term of office
70 or, if the officer is consecutively elected or reelected to an
71 elective office eligible for coverage under the Florida
72 Retirement System, until he or she no longer holds such an
73 elective office, as follows:
74 a. At the end of the 60-month DROP period:
75 (I) The officer's DROP account shall accrue no additional
76 monthly benefits, but shall continue to earn interest as
77 provided in s. 121.091(13).
78 (II) No Retirement contributions are not shall be required
79 of the employer of the elected officer and no additional
80 retirement credit may not shall be earned under the Florida
81 Retirement System.
82 b. The Nothing herein shall prevent an elected officer may
83 from voluntarily terminate terminating his or her elective
84 office at any time and elect electing to receive his or her DROP
85 proceeds. However, until termination, the requirements are
86 fulfilled as provided in s. 121.021(39), any elected officer
87 whose termination limitations are extended by this section is
88 shall be ineligible for renewed membership in the system and may
89 not shall receive no pension payments, DROP lump sum payments,
90 or any other state payment other than the statutorily determined
91 salary, travel, and per diem for the elective office.
92 c. Upon termination, the officer shall receive his or her
93 accumulated DROP account, plus interest, and shall accrue and
94 commence receiving monthly retirement benefits, which shall be
95 paid on a prospective basis only.
96 However, an officer electing to participate in the Deferred
97 Retirement Option Program on or before June 30, 2002, is shall
98 not be required to terminate and remains shall remain subject to
99 the provisions of this subparagraph as adopted in section 1 of
100 chapter 2001-235, Laws of Florida.
101 (2) Upon attaining his or her normal retirement date and
102 payment of the amount specified in paragraphs (1)(a) and (b),
103 and upon application to the administrator of the intent to
104 retire, the member shall receive a monthly benefit under this
105 section, in addition to any benefits already being received,
106 which shall commence on the last day of the month of retirement
107 and be payable on the last day of the month thereafter during
108 his or her lifetime. The amount of such monthly benefit is shall
109 be the total percentage of retirement credit purchased under
110 this section multiplied by the member's average monthly
111 compensation as an elected officer, adjusted according to the
112 option selected at retirement under s. 121.091(6).
113 (3) Any renewed member, as described in subsection (1), who
114 is not receiving the maximum health insurance subsidy provided
115 in s. 112.363 is shall be entitled to earn additional credit
116 toward the maximum health insurance subsidy. Any additional
117 subsidy due because of such additional credit shall be received
118 only at the time of payment of the second career retirement
119 benefit. In no case shall The total health insurance subsidy
120 received by a retiree receiving benefits may not from initial
121 and renewed membership exceed the maximum allowed in s. 112.363.
122 Section 2. Paragraphs (a) and (b) of subsection (9) of
123 section 121.091, Florida Statutes, are amended to read:
124 121.091 Benefits payable under the system.—Benefits may not
125 be paid under this section unless the member has terminated
126 employment as provided in s. 121.021(39)(a) or begun
127 participation in the Deferred Retirement Option Program as
128 provided in subsection (13), and a proper application has been
129 filed in the manner prescribed by the department. The department
130 may cancel an application for retirement benefits when the
131 member or beneficiary fails to timely provide the information
132 and documents required by this chapter and the department's
133 rules. The department shall adopt rules establishing procedures
134 for application for retirement benefits and for the cancellation
135 of such application when the required information or documents
136 are not received.
137 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
138 (a) Any person who is retired under this chapter, except
139 under the disability retirement provisions of subsection (4),
140 may be employed by an employer that does not participate in a
141 state-administered retirement system and may receive
142 compensation from that employment without limiting or
143 restricting in any way the retirement benefits payable to that
144 person under this chapter.
145 (b)1. Any person who is retired under this chapter, except
146 under the disability retirement provisions of subsection (4),
147 may be reemployed by an employer participating in the Florida
148 Retirement System any private or public employer after
149 retirement and receive retirement benefits and compensation from
150 his or her employer without any limitations, except that the a
151 person may not receive both a salary from reemployment with any
152 agency participating in the Florida Retirement System and
153 retirement benefits under this chapter for a period of 12 months
154 immediately after subsequent to the date of retirement. However,
155 a DROP participant may shall continue employment and receive a
156 salary during the period of participation in DROP the Deferred
157 Retirement Option Program, as provided in subsection (13).
158 2. Any person to whom the limitation in subparagraph 1.
159 applies who violates such reemployment limitation and who is
160 reemployed with any agency participating in the Florida
161 Retirement System after he or she has been retired for 1
162 calendar month but before completion of the 12-month limitation
163 period must shall give timely notice of this fact in writing to
164 the employer and to the Division of Retirement and shall have
165 his or her retirement benefits suspended while employed during
166 for the balance of the 12-month limitation period. Any person
167 employed in violation of this paragraph and any employing agency
168 that which knowingly employs or appoints such person without
169 notifying the division of Retirement to suspend retirement
170 benefits are shall be jointly and severally liable for
171 reimbursement to the retirement trust fund of any benefits paid
172 during the reemployment limitation period. To avoid liability,
173 the such employing agency must shall have a written statement
174 from the retiree that he or she is not retired from a state
175 administered retirement system. Any retirement benefits received
176 while reemployed during this reemployment limitation period must
177 shall be repaid to the Florida Retirement System Trust Fund, and
178 retirement benefits shall remain suspended until such repayment
179 has been made. Benefits suspended beyond the reemployment
180 limitation shall apply toward repayment of benefits received in
181 violation of the reemployment limitation.
182 3. A district school board may reemploy a retired member as
183 a substitute or hourly teacher, education paraprofessional,
184 transportation assistant, bus driver, or food service worker on
185 a noncontractual basis after he or she has been retired for 1
186 calendar month, in accordance with s. 121.021(39). A district
187 school board may reemploy a retired member as instructional
188 personnel, as defined in s. 1012.01(2)(a), on an annual
189 contractual basis after he or she has been retired for 1
190 calendar month, in accordance with s. 121.021(39). Any other
191 retired member who is reemployed within 1 calendar month after
192 retirement voids shall void his or her application for
193 retirement benefits. District school boards reemploying such
194 teachers, education paraprofessionals, transportation
195 assistants, bus drivers, or food service workers are subject to
196 the retirement contribution required by subparagraph 9. 7.
197 4. A community college board of trustees may reemploy a
198 retired member as an adjunct instructor, that is, an instructor
199 who is noncontractual and part-time, or as a participant in a
200 phased retirement program within the Florida Community College
201 System, after he or she has been retired for 1 calendar month,
202 in accordance with s. 121.021(39). Any retired member who is
203 reemployed within 1 calendar month after retirement voids shall
204 void his or her application for retirement benefits. Boards of
205 trustees reemploying such instructors are subject to the
206 retirement contribution required in subparagraph 7. A retired
207 member may be reemployed as an adjunct instructor for no more
208 than 780 hours during the first 12 months of retirement. Any
209 retired member reemployed for more than 780 hours during the
210 first 12 months of retirement must shall give timely notice in
211 writing to the employer and to the Division of Retirement of the
212 date he or she will exceed the limitation. The division shall
213 suspend his or her retirement benefits for the remainder of the
214 first 12 months of retirement. Any person employed in violation
215 of this subparagraph and any employing agency that which
216 knowingly employs or appoints such person without notifying the
217 division of Retirement to suspend retirement benefits are shall
218 be jointly and severally liable for reimbursement to the
219 retirement trust fund of any benefits paid during the
220 reemployment limitation period. To avoid liability, the such
221 employing agency must shall have a written statement from the
222 retiree that he or she is not retired from a state-administered
223 retirement system. Any retirement benefits received by a retired
224 member while reemployed in excess of 780 hours during the first
225 12 months of retirement must shall be repaid to the Florida
226 Retirement System Trust Fund, and retirement benefits shall
227 remain suspended until repayment is made. Benefits suspended
228 beyond the end of the retired member's first 12 months of
229 retirement shall apply toward repayment of benefits received in
230 violation of the 780-hour reemployment limitation.
231 5. The State University System may reemploy a retired
232 member as an adjunct faculty member or as a participant in a
233 phased retirement program within the State University System
234 after the retired member has been retired for 1 calendar month,
235 in accordance with s. 121.021(39). A Any retired member who is
236 reemployed within 1 calendar month after retirement voids shall
237 void his or her application for retirement benefits. The State
238 University System is subject to the retired contribution
239 required in subparagraph 9. 7., as appropriate. A retired member
240 may be reemployed as an adjunct faculty member or a participant
241 in a phased retirement program for no more than 780 hours during
242 the first 12 months of his or her retirement. Any retired member
243 reemployed for more than 780 hours during the first 12 months of
244 retirement must shall give timely notice in writing to the
245 employer and to the Division of Retirement of the date he or she
246 will exceed the limitation. The division shall suspend his or
247 her retirement benefits for the remainder of the first 12 months
248 of retirement. Any person employed in violation of this
249 subparagraph and any employing agency that which knowingly
250 employs or appoints such person without notifying the division
251 of Retirement to suspend retirement benefits are shall be
252 jointly and severally liable for reimbursement to the retirement
253 trust fund of any benefits paid during the reemployment
254 limitation period. To avoid liability, such employing agency
255 must shall have a written statement from the retiree that he or
256 she is not retired from a state-administered retirement system.
257 Any retirement benefits received by a retired member while
258 reemployed in excess of 780 hours during the first 12 months of
259 retirement must shall be repaid to the Florida Retirement System
260 Trust Fund, and retirement benefits shall remain suspended until
261 repayment is made. Benefits suspended beyond the end of the
262 retired member's first 12 months of retirement shall apply
263 toward repayment of benefits received in violation of the 780
264 hour reemployment limitation.
265 6. The Board of Trustees of the Florida School for the Deaf
266 and the Blind may reemploy a retired member as a substitute
267 teacher, substitute residential instructor, or substitute nurse
268 on a noncontractual basis after he or she has been retired for 1
269 calendar month, in accordance with s. 121.021(39). Any retired
270 member who is reemployed within 1 calendar month after
271 retirement voids shall void his or her application for
272 retirement benefits. The Board of Trustees of the Florida School
273 for the Deaf and the Blind reemploying such teachers,
274 residential instructors, or nurses is subject to the retirement
275 contribution required by subparagraph 7. Reemployment of a
276 retired member as a substitute teacher, substitute residential
277 instructor, or substitute nurse is limited to 780 hours during
278 the first 12 months of his or her retirement. Any retired member
279 reemployed for more than 780 hours during the first 12 months of
280 retirement shall give timely notice in writing to the employer
281 and to the division of the date he or she will exceed the
282 limitation. The division shall suspend his or her retirement
283 benefits for the remainder of the first 12 months of retirement.
284 Any person employed in violation of this subparagraph and any
285 employing agency which knowingly employs or appoints such person
286 without notifying the Division of Retirement to suspend
287 retirement benefits shall be jointly and severally liable for
288 reimbursement to the retirement trust fund of any benefits paid
289 during the reemployment limitation period. To avoid liability,
290 such employing agency shall have a written statement from the
291 retiree that he or she is not retired from a state-administered
292 retirement system. Any retirement benefits received by a retired
293 member while reemployed in excess of 780 hours during the first
294 12 months of retirement shall be repaid to the Retirement System
295 Trust Fund, and his or her retirement benefits shall remain
296 suspended until payment is made. Benefits suspended beyond the
297 end of the retired member's first 12 months of retirement shall
298 apply toward repayment of benefits received in violation of the
299 780-hour reemployment limitation.
300 7. The employment by an employer of a any retiree or DROP
301 participant of a any state-administered retirement system does
302 not affect shall have no effect on the average final
303 compensation or years of creditable service of the retiree or
304 DROP participant. Before Prior to July 1, 1991, upon employment
305 of any person, other than an elected officer as provided in s.
306 121.053, who is has been retired under a any state-administered
307 retirement program, the employer shall pay retirement
308 contributions in an amount equal to the unfunded actuarial
309 liability portion of the employer contribution which would be
310 required for regular members of the Florida Retirement System.
311 Effective July 1, 2009 1991, contributions shall be made as
312 provided in s. 121.122 for elected officers retirees with
313 renewed membership or subsection (13) with respect to DROP
314 participants.
315 8. Any person who has previously retired from a nonelective
316 position and who is now holding an elective public office or an
317 appointment to an elective public office eligible for the
318 Elected Officers' Class on or after July 1, 1990, or who has
319 retired from a position eligible for the Elected Officers' Class
320 and is now employed in a nonelective position or reappointed to
321 an elective office, shall be enrolled in the Florida Retirement
322 System as provided in s. 121.053(1)(b) or, if holding an
323 elective public office that does not qualify for the Elected
324 Officers' Class on or after July 1, 1991, shall be enrolled in
325 the Florida Retirement System as provided in s. 121.122, and
326 shall continue to receive retirement benefits as well as
327 compensation for the elected officer's service for as long as he
328 or she remains in elective office. However, his or her
329 retirement benefits shall be suspended while holding office,
330 shall be recalculated any retired member who served in an
331 elective office prior to July 1, 1990, suspended his or her
332 retirement benefit, and had his or her Florida Retirement System
333 membership reinstated shall, upon retirement from such office,
334 have his or her retirement benefit recalculated to include the
335 additional service and compensation earned, and shall be
336 reinstated upon retirement from such office. This restriction
337 applies to successive terminations and resumptions of
338 employment, regardless of retirement class.
339 9. Any person who is holding an elective public office
340 which is covered by the Florida Retirement System and who is
341 concurrently employed in nonelected covered employment may elect
342 to retire while continuing employment in the elective public
343 office, provided that he or she shall be required to terminate
344 his or her nonelected covered employment. Any person who
345 exercises this election shall receive his or her retirement
346 benefits in addition to the compensation of the elective office
347 without regard to the time limitations otherwise provided in
348 this subsection. No person who seeks to exercise the provisions
349 of this subparagraph, as the same existed prior to May 3, 1984,
350 shall be deemed to be retired under those provisions, unless
351 such person is eligible to retire under the provisions of this
352 subparagraph, as amended by chapter 84-11, Laws of Florida.
353 10. The limitations of this paragraph apply to reemployment
354 in any capacity with an “employer” as defined in s. 121.021(10),
355 irrespective of the category of funds from which the person is
356 compensated.
357 9.11. An employing agency may reemploy a retired member as
358 a firefighter or paramedic after the retired member has been
359 retired for 1 calendar month, in accordance with s. 121.021(39).
360 Any retired member who is reemployed within 1 calendar month
361 after retirement voids shall void his or her application for
362 retirement benefits. The employing agency reemploying such
363 firefighter or paramedic is subject to the retired contribution
364 required in subparagraph 7. 8. Reemployment of a retired
365 firefighter or paramedic is limited to no more than 780 hours
366 during the first 12 months of his or her retirement. Any retired
367 member reemployed for more than 780 hours during the first 12
368 months of retirement must shall give timely notice in writing to
369 the employer and to the Division of Retirement of the date he or
370 she will exceed the limitation. The division shall suspend his
371 or her retirement benefits for the remainder of the first 12
372 months of retirement. Any person employed in violation of this
373 subparagraph and any employing agency that which knowingly
374 employs or appoints such person without notifying the division
375 of Retirement to suspend retirement benefits shall be jointly
376 and severally liable for reimbursement to the Retirement System
377 Trust Fund of any benefits paid during the reemployment
378 limitation period. To avoid liability, such employing agency
379 must shall have a written statement from the retiree that he or
380 she is not retired from a state-administered retirement system.
381 Any retirement benefits received by a retired member while
382 reemployed in excess of 780 hours during the first 12 months of
383 retirement must shall be repaid to the Florida Retirement System
384 Trust Fund, and retirement benefits shall remain suspended until
385 repayment is made. Benefits suspended beyond the end of the
386 retired member's first 12 months of retirement shall apply
387 toward repayment of benefits received in violation of the 780
388 hour reemployment limitation.
389 10. The limitations of this paragraph apply to reemployment
390 in any capacity with an employer, as defined in s. 121.021,
391 irrespective of the category of funds from which the person is
392 compensated.
393 Section 3. This act shall take effect July 1, 2009.