Florida Senate - 2009 (PROPOSED COMMITTEE BILL) SPB 7036
FOR CONSIDERATION By the Committee on Governmental Oversight and
Accountability
585-01399-09 20097036__
1 A bill to be entitled
2 An act relating to the Florida Retirement System;
3 amending s. 121.021, F.S.; redefining the terms
4 “employer,” “officer or employee,” “past service,”
5 “normal retirement date,” “regularly established
6 position,” and “temporary position”; defining the
7 terms “state board” and “trustees”; amending s.
8 121.031, F.S.; requiring promotional materials that
9 refer to the Florida Retirement System to include a
10 disclaimer unless approval is obtained from the
11 Department of Management Services; amending s.
12 121.051, F.S.; conforming a cross-reference; revising
13 provisions relating to participation in the system;
14 excluding the participation of entities under a lease
15 agreement; amending s. 121.052, F.S.; revising the
16 dates a governing body of a municipality or special
17 district may elect to designate its elected positions
18 for inclusion in the Elected Officers' Class; amending
19 s. 121.071, F.S.; expanding the mechanisms for
20 employees to pay contributions to the system; amending
21 s. 121.081, F.S.; revising provisions relating to
22 receiving credit for past or prior service;
23 prohibiting a member from receiving credit for service
24 covered and reported by both a public employer and a
25 private employer; amending s. 121.091, F.S.; revising
26 provisions relating to retirement benefits; deleting a
27 restriction on the reemployment of certain personnel
28 by the Florida School for the Deaf and the Blind;
29 extending the period of time that instructional
30 personnel employed by a developmental research school
31 may participate in the Deferred Retirement Option
32 Program; clarifying that DROP participation cannot be
33 cancelled; providing for the suspension of DROP
34 benefits to a participant who is reemployed; deleting
35 obsolete provisions; authorizing the Division of
36 Retirement to issue benefits pursuant to a qualified
37 domestic relations order directly to the alternate
38 payee; amending s. 121.1115, F.S.; revising provisions
39 relating to receiving retirement credit for out-of
40 state service; providing that a member is not eligible
41 for and may not receive a benefit based on that
42 service; amending s. 121.1122, F.S.; revising
43 provisions relating to receiving retirement credit for
44 in-state service; providing that a member may not be
45 eligible for or receiving a benefit based on service;
46 amending s. 121.136, F.S.; revising provisions
47 relating to the annual statement of benefits provided
48 to certain active members of the Florida Retirement
49 System; amending s. 121.1905, F.S.; deleting
50 provisions describing the mission of the Division of
51 Retirement; amending s. 121.23, F.S.; requiring the
52 State Retirement Commission to meet the same
53 requirements used by the Secretary of Management
54 Services before approving a disability retirement
55 benefit; amending s. 121.24, F.S.; requiring a quorum
56 of three members for all appeal hearings held by the
57 State Retirement Commission; amending s. 1012.33,
58 F.S.; deleting the provision preventing persons who
59 have retired from the public school system from
60 renewing membership in the Florida Retirement System
61 upon reemployment by the school system; repealing s.
62 121.093, F.S., relating to instructional personnel
63 reemployment after retirement from a developmental
64 research school or the Florida School for the Deaf and
65 the Blind; repealing s. 121.094, F.S., relating to
66 instructional personnel reemployment after retirement
67 from a charter school; repealing s. 121.45, F.S.,
68 relating to interstate compacts relating to pension
69 portability; providing a declaration of important
70 state interest; providing an effective date.
71
72 Be It Enacted by the Legislature of the State of Florida:
73
74 Section 1. Subsections (10), (11), (18), (29), (52), and
75 (53) of section 121.021, Florida Statutes, are amended, and
76 subsections (63) and (64) are added to that section, to read:
77 121.021 Definitions.—The following words and phrases as
78 used in this chapter have the respective meanings set forth
79 unless a different meaning is plainly required by the context:
80 (10) “Employer” means any agency, branch, department,
81 institution, university, institution of higher education, or
82 board of the state, or any county agency, branch, department,
83 board, district school board, or special district of the state,
84 or any city of the state which participates in the system for
85 the benefit of certain of its employees, or a charter school or
86 charter technical career center that participates as provided in
87 s. 121.051(2)(d). Employers are not agents of the department,
88 the state board, or the Division of Retirement, and the
89 department, the state board, and the division are not
90 responsible for erroneous information provided by
91 representatives of employers.
92 (11) “Officer or employee” means any person receiving
93 salary payments for work performed in a regularly established
94 position and, if employed by a city, a metropolitan planning
95 organization, or a special district, employed in a covered
96 group. The term does not apply to state employees covered by a
97 leasing agreement under s. 110.191, other public employees
98 covered by a leasing agreement, or to a co-employer
99 relationship.
100 (18) “Past service” of any member, as provided in s.
101 121.081(1), means the number of years and complete months and
102 any fractional part of a month, recognized and credited by an
103 employer and approved by the administrator, during which the
104 member was in the active employ of a governmental an employer
105 and for which the employee is not entitled to a benefit before
106 prior to his or her date of participation.
107 (29) “Normal retirement date” means the first day of any
108 month following the date a member attains normal retirement age
109 and is vested, which is determined as follows one of the
110 following statuses:
111 (a) If a Regular Class member, the member:
112 1. The first day of the month the member completes 6 or
113 more years of creditable service and attains age 62; or
114 2. The first day of the month following the date the member
115 completes 30 years of creditable service, regardless of age,
116 which may include a maximum of 4 years of military service
117 credit as long as such credit is not claimed under any other
118 system.
119 (b) If a Special Risk Class member, the member:
120 1. The first day of the month the member completes 6 or
121 more years of creditable service in the Special Risk Class and
122 attains age 55;
123 2. The first day of the month following the date the member
124 completes 25 years of creditable service in the Special Risk
125 Class, regardless of age; or
126 3. The first day of the month following the date the member
127 completes 25 years of creditable service and attains age 52,
128 which service may include a maximum of 4 years of military
129 service credit as long as such credit is not claimed under any
130 other system and the remaining years are in the Special Risk
131 Class.
132 (c) If a Senior Management Service Class member, the
133 member:
134 1. The first day of the month the member completes 6 years
135 of creditable service in the Senior Management Service Class and
136 attains age 62; or
137 2. The first day of the month following the date the member
138 completes 30 years of any creditable service, regardless of age,
139 which may include a maximum of 4 years of military service
140 credit as long as such credit is not claimed under any other
141 system.
142 (d) If an Elected Officers' Class member, the member:
143 1. The first day of the month the member completes 6 years
144 of creditable service in the Elected Officers' Class and attains
145 age 62; or
146 2. The first day of the month following the date the member
147 completes 30 years of any creditable service, regardless of age,
148 which may include a maximum of 4 years of military service
149 credit as long as such credit is not claimed under any other
150 system.
151 “Normal retirement age” is attained on the “normal retirement
152 date.”
153 (52) “Regularly established position” is defined as
154 follows:
155 (a) With respect to employment for In a state employer
156 agency, the term means a position that which is authorized and
157 established pursuant to law and is compensated from a salaries
158 appropriation pursuant to s. 216.011(1)(dd), or an established
159 position which is authorized pursuant to s. 216.262(1)(a) and
160 (b) and is compensated from a salaries account as provided by
161 rule.
162 (b) With respect to employment for In a local employer
163 agency (district school board, county agency, community college,
164 city, metropolitan planning organization, or special district),
165 the term means a regularly established position that which will
166 be in existence for a period beyond 6 consecutive months, except
167 as provided by rule.
168 (53) “Temporary position” is defined as follows:
169 (a) With respect to employment for In a state employer
170 agency, the term means an employment position that which is
171 compensated from an other personal services (OPS) account, as
172 provided for in s. 216.011(1)(dd).
173 (b) With respect to employment for In a local employer
174 agency, the term means an employment position that which will
175 exist for less than 6 consecutive months, or other employment
176 position as determined by rule of the division, regardless of
177 whether it will exist for 6 consecutive months or longer.
178 (63) “State board” or “board” means the State Board of
179 Administration.
180 (64) “Trustees” means the Board of Trustees of the State
181 Board of Administration.
182 Section 2. Subsection (6) is added to section 121.031,
183 Florida Statutes, to read:
184 121.031 Administration of system; appropriation; oaths;
185 actuarial studies; public records.—
186 (6) Unless prior written approval is obtained from the
187 department or state board, any promotional materials or
188 advertisements that, directly or indirectly, refer to the
189 Florida Retirement System or the FRS, must contain a disclaimer
190 that the information is not approved or endorsed by the Florida
191 Retirement System.
192 Section 3. Paragraph (a) of subsection (1) and paragraph
193 (f) of subsection (2) of section 121.051, Florida Statutes, are
194 amended to read:
195 121.051 Participation in the system.—
196 (1) COMPULSORY PARTICIPATION.—
197 (a) The provisions of this law are shall be compulsory as
198 to all officers and employees, except elected officers who meet
199 the requirements of s. 121.052(3), who are employed on or after
200 December 1, 1970, by of an employer other than those referred to
201 in paragraph (2)(b), and each officer or employee, as a
202 condition of employment, becomes shall become a member of the
203 system as of his or her date of employment, except that a person
204 who is retired from any state retirement system and is
205 reemployed on or after December 1, 1970, may not renew his or
206 her membership in any state retirement system except as provided
207 in s. 121.091(4)(h) for a person who recovers from disability,
208 and as provided in s. 121.091(9)(b)10. s. 121.091(9)(b)8. for a
209 person who is elected to public office, and, effective July 1,
210 1991, as provided in s. 121.122 for all other retirees. Officers
211 and employees of the University Athletic Association, Inc., a
212 nonprofit association connected with the University of Florida,
213 employed on and after July 1, 1979, may shall not participate in
214 any state-supported retirement system.
215 1. Any person appointed on or after July 1, 1989, to a
216 faculty position in a college at the J. Hillis Miller Health
217 Center at the University of Florida or the Medical Center at the
218 University of South Florida which has a faculty practice plan
219 adopted provided by rule adopted by the Board of Regents may not
220 participate in the Florida Retirement System. Effective July 1,
221 2008, any person appointed thereafter to a faculty position,
222 including clinical faculty, in a college at a state university
223 that has a faculty practice plan authorized by the Board of
224 Governors may not participate in the Florida Retirement System.
225 A faculty member so appointed shall participate in the optional
226 retirement program for the State University System
227 notwithstanding the provisions of s. 121.35(2)(a).
228 2. For purposes of this paragraph, the term “faculty
229 position” is defined as a position assigned the principal
230 responsibility of teaching, research, or public service
231 activities or administrative responsibility directly related to
232 the academic mission of the college. The term “clinical faculty”
233 is defined as a faculty position appointment in conjunction with
234 a professional position in a hospital or other clinical
235 environment at a college. The term “faculty practice plan”
236 includes professional services to patients, institutions, or
237 other parties which are rendered by the clinical faculty
238 employed by a college that has a faculty practice plan at a
239 state university authorized by the Board of Governors.
240 (2) OPTIONAL PARTICIPATION.—
241 (f)1. If Whenever an employer that participates in the
242 Florida Retirement System undertakes the transfer, merger, or
243 consolidation of governmental services or assumes the functions
244 or activities of an employing governmental entity that was not
245 an employer under the system, the employer must notify the
246 department at least 60 days before prior to such action and
247 shall provide documentation as required by the department. The
248 transfer, merger, or consolidation of governmental services or
249 assumption of governmental functions and activities must occur
250 between public employers. The current or former employer may pay
251 the employees' past service cost unless prohibited under this
252 chapter. This paragraph does not apply to the transfer, merger,
253 or consolidation of governmental services or assumption of
254 functions and activities of a public entity under a leasing
255 agreement having a co-employer relationship. Employers and
256 employees of a public governmental employer whose service is
257 covered by a leasing agreement under s. 110.191, other leasing
258 agreement, or a co-employer relationship are not eligible to
259 participate in the Florida Retirement System.
260 2. If When the agency to which a member's employing unit is
261 transferred, merged, or consolidated does not participate in the
262 Florida Retirement System, a member may shall elect in writing
263 to remain in the Florida Retirement System or to transfer to the
264 local retirement system operated by the such agency. If such
265 agency does not participate in a local retirement system, the
266 member shall continue membership in the Florida Retirement
267 System. In either case, the membership continues shall continue
268 for as long as the member is employed by the agency to which his
269 or her unit was transferred, merged, or consolidated.
270 Section 4. Paragraph (e) of subsection (3) of section
271 121.052, Florida Statutes, is amended to read:
272 121.052 Membership class of elected officers.—
273 (3) PARTICIPATION AND WITHDRAWAL, GENERALLY.—Effective July
274 1, 1990, participation in the Elected Officers' Class shall be
275 compulsory for elected officers listed in paragraphs (2)(a)-(d)
276 and (f) assuming office on or after said date, unless the
277 elected officer elects membership in another class or withdraws
278 from the Florida Retirement System as provided in paragraphs
279 (3)(a)-(d):
280 (e) Effective July 1, 2009 July 1, 2001, the governing body
281 of a municipality or special district may, by majority vote,
282 elect to designate all its elected positions for inclusion in
283 the Elected Officers' Class. Such election shall be made between
284 July 1, 2009, and December 31, 2009 July 1, 2001, and December
285 31, 2001, and is shall be irrevocable. The designation of such
286 positions is shall be effective on the first day of the month
287 following receipt by the department of the ordinance or
288 resolution passed by the governing body.
289 Section 5. Paragraph (a) of subsection (6) of section
290 121.071, Florida Statutes, is amended to read:
291 121.071 Contributions.—Contributions to the system shall be
292 made as follows:
293 (6)(a) Required employee contributions for all service
294 other than current service, including, but not limited to, prior
295 service, past service, military service, leave-of-absence
296 service, out-of-state service, and certain non-Florida
297 Retirement System in-state service, shall be paid by cash,
298 personal check, cashier's check, or money order, or a direct
299 rollover or transfer from a qualified plan as provided under the
300 Internal Revenue Code. The payment must only; shall be
301 accompanied by a statement identifying the service for which
302 payment is made,; and shall be made in a lump sum for the total
303 amount due or in annual payments of not less than $100, except
304 for the final payment if less than $100, unless another method
305 of payment is authorized by law or rule.
306 Section 6. Paragraphs (f) and (h) of subsection (1) of
307 section 121.081, Florida Statutes, are amended to read:
308 121.081 Past service; prior service; contributions.
309 Conditions under which past service or prior service may be
310 claimed and credited are:
311 (1)
312 (f) If When any person, either prior to this act or
313 hereafter, becomes entitled to and participates does participate
314 in one of the retirement systems under consolidated within or
315 created by this chapter through the consolidation or merger of
316 governments or the transfer of functions between units of
317 government, either at the state or local level or between state
318 and local units, or through the assumption of functions or
319 activities by a state or local unit from an employing
320 governmental entity that which was not an employer under the
321 system, and such person becomes a member of the Florida
322 Retirement System, such person is shall be entitled to receive
323 past-service credit as defined in s. 121.021(18) for the time
324 the such person performed services for, and was an employee of,
325 such state or local unit or other governmental employing entity
326 before prior to the transfer, merger, consolidation, or
327 assumption of functions and activities. Past-service credit
328 allowed by this paragraph is shall also be available to any
329 person who becomes a member of an existing system before, as
330 defined in s. 121.021(2), prior to December 1, 1970, through the
331 transfer, merger, consolidation, or assumption of functions and
332 activities set forth in this paragraph and who subsequently
333 becomes a member of the Florida Retirement System. However,
334 credit for the past service may not be granted until
335 contributions are made as in the manner provided in this
336 subsection. If a person rejected Florida Retirement System
337 membership at the time of the transfer, merger, or
338 consolidation, or assumption, the required contributions shall
339 be at total actuarial cost as specified in paragraph (e). Such
340 contributions or accrued interest may not be paid from public
341 any state funds.
342 (h) The following provisions apply to the purchase of past
343 service:
344 1. Notwithstanding any of the provisions of this
345 subsection, past-service credit may not be purchased under this
346 chapter for any service that is used to obtain a pension or
347 benefit from a any local retirement system. Eligibility to
348 receive or the receipt of contributions to a retirement plan
349 made by the employer on behalf of the employee is considered a
350 benefit.
351 2. A member may not receive past service credit under
352 paragraphs (a), (b), (e), or (f) for any leaves of absence
353 without pay, except that credit for active military service
354 leaves of absence may be claimed under paragraphs (a), (b), and
355 (f), in accordance with s. 121.111(1).
356 3. A member may not receive past service credit for co
357 employer service. Co-employer service or a co-employer
358 relationship is employment in a single position simultaneously
359 covered and reported by both a public employer and a private
360 employer.
361 4.3. If a member does not want desire to receive credit for
362 all of his or her past service, the period the member claims
363 must be the most recent past service before prior to his or her
364 participation in the Florida Retirement System.
365 5.4. The cost of past service purchased by an employing
366 agency for its employees may be amortized over the such period
367 of time as is provided in the agreement, but not to exceed 15
368 years, calculated in accordance with rule 60S-1.007(5)(f),
369 Florida Administrative Code.
370 6.5. The retirement account of each member for whom past
371 service is being provided by his or her employer shall be
372 credited with all past service the employer agrees to purchase
373 as soon as the agreement between the employer and the department
374 is executed. Pursuant thereto:
375 a. Each such member's account shall also be posted with the
376 total contribution his or her employer agrees to make on in the
377 member's behalf for past service earned before prior to October
378 1, 1975, excluding those contributions representing the
379 employer's matching share and the compound interest calculation
380 on the total contribution. However, a portion of any
381 contributions paid by an employer for past service credit earned
382 on and after October 1, 1975, may not be posted to the a
383 member's account.
384 b. A refund of contributions payable after an employer has
385 made a written agreement to purchase past service for employees
386 of the covered group includes shall include contributions for
387 past service which are posted to a member's account. However,
388 contributions for past service earned on and after October 1,
389 1975, are not refundable.
390 Section 7. Paragraph (b) of subsection (9), paragraphs (a),
391 (b), and (c) of subsection (13), and paragraphs (b), (c), (d),
392 (e), and (f) of subsection (14) of section 121.091, Florida
393 Statutes, are amended to read:
394 121.091 Benefits payable under the system.—Benefits may not
395 be paid under this section unless the member has terminated
396 employment as provided in s. 121.021(39)(a) or begun
397 participation in the Deferred Retirement Option Program as
398 provided in subsection (13), and a proper application has been
399 filed in the manner prescribed by the department. The department
400 may cancel an application for retirement benefits when the
401 member or beneficiary fails to timely provide the information
402 and documents required by this chapter and the department's
403 rules. The department shall adopt rules establishing procedures
404 for application for retirement benefits and for the cancellation
405 of such application when the required information or documents
406 are not received.
407 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
408 (b)1. Any person who is retired under this chapter, except
409 under the disability retirement provisions of subsection (4),
410 may be reemployed by any private or public employer after
411 retirement and receive retirement benefits and compensation from
412 the his or her employer without limitation any limitations,
413 except that the a person may not receive both a salary from
414 reemployment with any agency participating in the Florida
415 Retirement System and retirement benefits under this chapter for
416 a period of 12 months immediately after subsequent to the date
417 of retirement. However, a DROP participant may shall continue
418 employment and receive a salary during the period of
419 participation in DROP the Deferred Retirement Option Program, as
420 provided in subsection (13).
421 2. Any person to whom the limitation in subparagraph 1.
422 applies who violates such reemployment limitation and who is
423 reemployed with any agency participating in the Florida
424 Retirement System after he or she has been retired for 1
425 calendar month but before completion of the 12-month limitation
426 period must shall give timely notice of this fact in writing to
427 the employer and to the Division of Retirement and shall have
428 his or her retirement benefits suspended while employed during
429 for the balance of the 12-month limitation period unless the
430 person exceeds the 780-hour limitation in subparagraph 4.,
431 subparagraph 5., or subparagraph 11. Any person employed in
432 violation of this paragraph and any employing agency that which
433 knowingly employs or appoints such person without notifying the
434 division of Retirement to suspend retirement benefits are shall
435 be jointly and severally liable for reimbursement to the
436 retirement trust fund of any benefits paid during the
437 reemployment limitation period. To avoid liability, the such
438 employing agency must shall have a written statement from the
439 retiree that he or she is not retired from a state-administered
440 retirement system. Any retirement benefits received while
441 reemployed during this reemployment limitation period must shall
442 be repaid to the Florida Retirement System Trust Fund, and
443 retirement benefits shall remain suspended until such repayment
444 has been made. Benefits suspended beyond the reemployment
445 limitation shall apply toward repayment of benefits received in
446 violation of the reemployment limitation.
447 3. A district school board may reemploy a retired member as
448 a substitute or hourly teacher, education paraprofessional,
449 transportation assistant, bus driver, or food service worker on
450 a noncontractual basis after he or she has been retired for 1
451 calendar month, in accordance with s. 121.021(39). A district
452 school board may reemploy a retired member as instructional
453 personnel, as defined in s. 1012.01(2)(a), on an annual
454 contractual basis after he or she has been retired for 1
455 calendar month, in accordance with s. 121.021(39). Any other
456 retired member who is reemployed within 1 calendar month after
457 retirement voids shall void his or her application for
458 retirement benefits. District school boards reemploying such
459 teachers, education paraprofessionals, transportation
460 assistants, bus drivers, or food service workers are subject to
461 the retirement contribution required by subparagraph 9. 7.
462 4. A community college board of trustees may reemploy a
463 retired member as an adjunct instructor, that is, an instructor
464 who is noncontractual and part-time, or as a participant in a
465 phased retirement program within the Florida Community College
466 System, after he or she has been retired for 1 calendar month,
467 in accordance with s. 121.021(39). Any retired member who is
468 reemployed within 1 calendar month after retirement voids shall
469 void his or her application for retirement benefits. Boards of
470 trustees reemploying such instructors are subject to the
471 retirement contribution required in subparagraph 7. A retired
472 member may be reemployed as an adjunct instructor for no more
473 than 780 hours during the first 12 months of retirement. Any
474 retired member reemployed for more than 780 hours during the
475 first 12 months of retirement must shall give timely notice in
476 writing to the employer and to the Division of Retirement of the
477 date he or she will exceed the limitation. The division shall
478 suspend his or her retirement benefits for the remainder of the
479 first 12 months of retirement. Any person employed in violation
480 of this subparagraph and any employing agency that which
481 knowingly employs or appoints such person without notifying the
482 division of Retirement to suspend retirement benefits are shall
483 be jointly and severally liable for reimbursement to the
484 retirement trust fund of any benefits paid during the
485 reemployment limitation period. To avoid liability, the such
486 employing agency must shall have a written statement from the
487 retiree that he or she is not retired from a state-administered
488 retirement system. Any retirement benefits received by a retired
489 member while reemployed in excess of 780 hours during the first
490 12 months of retirement must shall be repaid to the Florida
491 Retirement System Trust Fund, and retirement benefits shall
492 remain suspended until repayment is made. Benefits suspended
493 beyond the end of the retired member's first 12 months of
494 retirement shall apply toward repayment of benefits received in
495 violation of the 780-hour reemployment limitation.
496 5. The State University System may reemploy a retired
497 member as an adjunct faculty member or as a participant in a
498 phased retirement program within the State University System
499 after the retired member has been retired for 1 calendar month,
500 in accordance with s. 121.021(39). A Any retired member who is
501 reemployed within 1 calendar month after retirement voids shall
502 void his or her application for retirement benefits. The State
503 University System is subject to the retired contribution
504 required in subparagraph 9. 7., as appropriate. A retired member
505 may be reemployed as an adjunct faculty member or a participant
506 in a phased retirement program for no more than 780 hours during
507 the first 12 months of his or her retirement. Any retired member
508 reemployed for more than 780 hours during the first 12 months of
509 retirement must shall give timely notice in writing to the
510 employer and to the Division of Retirement of the date he or she
511 will exceed the limitation. The division shall suspend his or
512 her retirement benefits for the remainder of the first 12 months
513 of retirement. Any person employed in violation of this
514 subparagraph and any employing agency that which knowingly
515 employs or appoints such person without notifying the division
516 of Retirement to suspend retirement benefits are shall be
517 jointly and severally liable for reimbursement to the retirement
518 trust fund of any benefits paid during the reemployment
519 limitation period. To avoid liability, such employing agency
520 must shall have a written statement from the retiree that he or
521 she is not retired from a state-administered retirement system.
522 Any retirement benefits received by a retired member while
523 reemployed in excess of 780 hours during the first 12 months of
524 retirement must shall be repaid to the Florida Retirement System
525 Trust Fund, and retirement benefits shall remain suspended until
526 repayment is made. Benefits suspended beyond the end of the
527 retired member's first 12 months of retirement shall apply
528 toward repayment of benefits received in violation of the 780
529 hour reemployment limitation.
530 6. The Board of Trustees of the Florida School for the Deaf
531 and the Blind may reemploy a retired member as a substitute
532 teacher, substitute residential instructor, or substitute nurse
533 on a noncontractual basis after he or she has been retired for 1
534 calendar month, in accordance with s. 121.021(39). The Board of
535 Trustees of the Florida School for the Deaf and the Blind may
536 reemploy a retired member as instructional personnel, as defined
537 in s. 1012.01(2), on an annual contractual basis after he or she
538 has been retired for 1 calendar month, in accordance with s.
539 121.021(39). Any retired member who is reemployed within 1
540 calendar month after retirement voids shall void his or her
541 application for retirement benefits. The Board of Trustees of
542 the Florida School for the Deaf and the Blind reemploying such
543 teachers, residential instructors, or nurses is subject to the
544 retirement contribution required by subparagraph 9. 7.
545 Reemployment of a retired member as a substitute teacher,
546 substitute residential instructor, or substitute nurse is
547 limited to 780 hours during the first 12 months of his or her
548 retirement. Any retired member reemployed for more than 780
549 hours during the first 12 months of retirement shall give timely
550 notice in writing to the employer and to the division of the
551 date he or she will exceed the limitation. The division shall
552 suspend his or her retirement benefits for the remainder of the
553 first 12 months of retirement. Any person employed in violation
554 of this subparagraph and any employing agency which knowingly
555 employs or appoints such person without notifying the Division
556 of Retirement to suspend retirement benefits shall be jointly
557 and severally liable for reimbursement to the retirement trust
558 fund of any benefits paid during the reemployment limitation
559 period. To avoid liability, such employing agency shall have a
560 written statement from the retiree that he or she is not retired
561 from a state-administered retirement system. Any retirement
562 benefits received by a retired member while reemployed in excess
563 of 780 hours during the first 12 months of retirement shall be
564 repaid to the Retirement System Trust Fund, and his or her
565 retirement benefits shall remain suspended until payment is
566 made. Benefits suspended beyond the end of the retired member's
567 first 12 months of retirement shall apply toward repayment of
568 benefits received in violation of the 780-hour reemployment
569 limitation.
570 7. A developmental research school may reemploy a retired
571 member as a substitute or hourly teacher or an education
572 paraprofessional as defined in s. 1012.01(2) on a noncontractual
573 basis after he or she has been retired for 1 calendar month, in
574 accordance with s. 121.021(39). A developmental research school
575 may reemploy a retired member as instructional personnel, as
576 defined in s. 1012.01(2)(a), on an annual contractual basis
577 after he or she has been retired for 1 calendar month, in
578 accordance with s. 121.021(39). Any other retired member who is
579 reemployed within 1 calendar month after retirement voids his or
580 her application for retirement benefits. A developmental
581 research school that reemploys retired teachers and education
582 paraprofessionals is subject to the retirement contribution
583 required by subparagraph 9.
584 8. A charter school may reemploy a retired member as a
585 substitute or hourly teacher on a noncontractual basis after he
586 or she has been retired for 1 calendar month, in accordance with
587 s. 121.021(39). A charter school may reemploy a retired member
588 as instructional personnel, as defined in s. 1012.01(2)(a), on
589 an annual contractual basis after he or she has been retired for
590 1 calendar month, in accordance with s. 121.021(39). Any other
591 retired member who is reemployed within 1 calendar month after
592 retirement voids his or her application for retirement benefits.
593 A charter school that reemploys such teachers is subject to the
594 retirement contribution required by subparagraph 9.
595 9.7. The employment by an employer of a any retiree or DROP
596 participant of a any state-administered retirement system does
597 not affect shall have no effect on the average final
598 compensation or years of creditable service of the retiree or
599 DROP participant. Before Prior to July 1, 1991, upon employment
600 of any person, other than an elected officer as provided in s.
601 121.053, who is has been retired under a any state-administered
602 retirement program, the employer shall pay retirement
603 contributions in an amount equal to the unfunded actuarial
604 liability portion of the employer contribution which would be
605 required for regular members of the Florida Retirement System.
606 Effective July 1, 1991, contributions shall be made as provided
607 in s. 121.122 for retirees who have with renewed membership or,
608 as provided in subsection (13), for with respect to DROP
609 participants.
610 10.8. Any person who has previously retired and who is
611 holding an elective public office or an appointment to an
612 elective public office eligible for the Elected Officers' Class
613 on or after July 1, 1990, shall be enrolled in the Florida
614 Retirement System as provided in s. 121.053(1)(b) or, if holding
615 an elective public office that does not qualify for the Elected
616 Officers' Class on or after July 1, 1991, shall be enrolled in
617 the Florida Retirement System as provided in s. 121.122, and
618 shall continue to receive retirement benefits as well as
619 compensation for the elected officer's service for as long as he
620 or she remains in elective office. However, any retired member
621 who served in an elective office before prior to July 1, 1990,
622 suspended his or her retirement benefit, and had his or her
623 Florida Retirement System membership reinstated shall, upon
624 retirement from such office, have his or her retirement benefit
625 recalculated to include the additional service and compensation
626 earned.
627 11.9. Any person who is holding an elective public office
628 which is covered by the Florida Retirement System and who is
629 concurrently employed in nonelected covered employment may elect
630 to retire while continuing employment in the elective public
631 office, if provided that he or she terminates shall be required
632 to terminate his or her nonelected covered employment. Any
633 person who exercises this election shall receive his or her
634 retirement benefits in addition to the compensation of the
635 elective office without regard to the time limitations otherwise
636 provided in this subsection. A No person who seeks to exercise
637 the provisions of this subparagraph, as they the same existed
638 before prior to May 3, 1984, may not shall be deemed to be
639 retired under those provisions, unless such person is eligible
640 to retire under the provisions of this subparagraph, as amended
641 by chapter 84-11, Laws of Florida.
642 10. The limitations of this paragraph apply to reemployment
643 in any capacity with an “employer” as defined in s. 121.021(10),
644 irrespective of the category of funds from which the person is
645 compensated.
646 12.11. An employing agency may reemploy a retired member as
647 a firefighter or paramedic after the retired member has been
648 retired for 1 calendar month, in accordance with s. 121.021(39).
649 Any retired member who is reemployed within 1 calendar month
650 after retirement voids shall void his or her application for
651 retirement benefits. The employing agency reemploying such
652 firefighter or paramedic is subject to the retired contribution
653 required in subparagraph 9. 8. Reemployment of a retired
654 firefighter or paramedic is limited to no more than 780 hours
655 during the first 12 months of his or her retirement. Any retired
656 member reemployed for more than 780 hours during the first 12
657 months of retirement must shall give timely notice in writing to
658 the employer and to the Division of Retirement of the date he or
659 she will exceed the limitation. The division shall suspend his
660 or her retirement benefits for the remainder of the first 12
661 months of retirement. Any person employed in violation of this
662 subparagraph and any employing agency that which knowingly
663 employs or appoints such person without notifying the division
664 of Retirement to suspend retirement benefits shall be jointly
665 and severally liable for reimbursement to the Retirement System
666 Trust Fund of any benefits paid during the reemployment
667 limitation period. To avoid liability, such employing agency
668 must shall have a written statement from the retiree that he or
669 she is not retired from a state-administered retirement system.
670 Any retirement benefits received by a retired member while
671 reemployed in excess of 780 hours during the first 12 months of
672 retirement must shall be repaid to the Florida Retirement System
673 Trust Fund, and retirement benefits shall remain suspended until
674 repayment is made. Benefits suspended beyond the end of the
675 retired member's first 12 months of retirement shall apply
676 toward repayment of benefits received in violation of the 780
677 hour reemployment limitation.
678 13. The limitations of this paragraph apply to reemployment
679 in any capacity with an employer, as defined in s. 121.021,
680 irrespective of the category of funds from which the person is
681 compensated.
682 14. The reemployment after retirement provisions of this
683 paragraph apply to DROP participants effective upon termination
684 from employment and the end of DROP participation.
685 (13) DEFERRED RETIREMENT OPTION PROGRAM.—In general, and
686 subject to the provisions of this section, the Deferred
687 Retirement Option Program, hereinafter referred to as the DROP,
688 is a program under which an eligible member of the Florida
689 Retirement System may elect to participate, deferring receipt of
690 retirement benefits while continuing employment with his or her
691 Florida Retirement System employer. The deferred monthly
692 benefits shall accrue in the System Trust Fund on behalf of the
693 participant, plus interest compounded monthly, for the specified
694 period of the DROP participation, as provided in paragraph (c).
695 Upon termination of employment, the participant shall receive
696 the total DROP benefits and begin to receive the previously
697 determined normal retirement benefits. Participation in the DROP
698 does not guarantee employment for the specified period of DROP.
699 Participation in the DROP by an eligible member beyond the
700 initial 60-month period as authorized in this subsection shall
701 be on an annual contractual basis for all participants.
702 (a) Eligibility of member to participate in the DROP.—All
703 active Florida Retirement System members in a regularly
704 established position, and all active members of either the
705 Teachers' Retirement System established in chapter 238 or the
706 State and County Officers' and Employees' Retirement System
707 established in chapter 122, which systems are consolidated
708 within the Florida Retirement System under s. 121.011, are
709 eligible to elect participation in the DROP if provided that:
710 1. The member is not a renewed member of the Florida
711 Retirement System under s. 121.122, or a member of the State
712 Community College System Optional Retirement Program under s.
713 121.051, the Senior Management Service Optional Annuity Program
714 under s. 121.055, or the optional retirement program for the
715 State University System under s. 121.35.
716 2. Except as provided in subparagraph 6., election to
717 participate is made within 12 months immediately following the
718 date on which the member first reaches normal retirement date,
719 or, for a member who reaches normal retirement date based on
720 service before he or she reaches age 62, or age 55 for Special
721 Risk Class members, election to participate may be deferred to
722 the 12 months immediately following the date the member attains
723 57, or age 52 for Special Risk Class members. For a member who
724 first reached normal retirement date or the deferred eligibility
725 date described above prior to the effective date of this
726 section, election to participate shall be made within 12 months
727 after the effective date of this section. A member who fails to
728 make an election within the such 12-month limitation period
729 forfeits shall forfeit all rights to participate in the DROP.
730 The member shall advise his or her employer and the division in
731 writing of the date on which the DROP begins shall begin. The
732 Such beginning date may be subsequent to the 12-month election
733 period, but must be within the original 60-month participation
734 or, with respect to members who are instructional personnel
735 employed by the Florida School for the Deaf and the Blind and
736 who have received authorization by the Board of Trustees of the
737 Florida School for the Deaf and the Blind to participate in the
738 DROP beyond 60 months, or who are instructional personnel as
739 defined in s. 1012.01(2)(a)-(d) in grades K-12 and who have
740 received authorization by the district school superintendent to
741 participate in the DROP beyond 60 months, the 96-month
742 limitation period as provided in subparagraph (b)1. When
743 establishing eligibility of the member to participate in the
744 DROP for the 60-month or, with respect to members who are
745 instructional personnel employed by the Florida School for the
746 Deaf and the Blind and who have received authorization by the
747 Board of Trustees of the Florida School for the Deaf and the
748 Blind to participate in the DROP beyond 60 months, or who are
749 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
750 grades K-12 and who have received authorization by the district
751 school superintendent to participate in the DROP beyond 60
752 months, the 96-month maximum participation period, the member
753 may elect to include or exclude any optional service credit
754 purchased by the member from the total service used to establish
755 the normal retirement date. A member who has with dual normal
756 retirement dates is shall be eligible to elect to participate in
757 DROP within 12 months after attaining normal retirement date in
758 either class.
759 3. The employer of a member electing to participate in the
760 DROP, or employers if dually employed, shall acknowledge in
761 writing to the division the date the member's participation in
762 the DROP begins and the date the member's employment and DROP
763 participation will terminate.
764 4. Simultaneous employment of a participant by additional
765 Florida Retirement System employers subsequent to the
766 commencement of participation in the DROP is shall be
767 permissible if provided such employers acknowledge in writing a
768 DROP termination date no later than the participant's existing
769 termination date or the maximum participation 60-month
770 limitation period as provided in subparagraph (b)1.
771 5. A DROP participant may change employers while
772 participating in the DROP, subject to the following:
773 a. A change of employment must take place without a break
774 in service so that the member receives salary for each month of
775 continuous DROP participation. If a member receives no salary
776 during a month, DROP participation shall cease unless the
777 employer verifies a continuation of the employment relationship
778 for such participant pursuant to s. 121.021(39)(b).
779 b. Such participant and new employer shall notify the
780 division of the identity of the new employer on forms required
781 by the division as to the identity of the new employer.
782 c. The new employer shall acknowledge, in writing, the
783 participant's DROP termination date, which may be extended but
784 not beyond the original 60-month participation or, with respect
785 to members who are instructional personnel employed by the
786 Florida School for the Deaf and the Blind and who have received
787 authorization by the Board of Trustees of the Florida School for
788 the Deaf and the Blind to participate in the DROP beyond 60
789 months, or who are instructional personnel as defined in s.
790 1012.01(2)(a)-(d) in grades K-12 and who have received
791 authorization by the district school superintendent to
792 participate in the DROP beyond 60 months, the 96-month period
793 provided in subparagraph (b)1., shall acknowledge liability for
794 any additional retirement contributions and interest required if
795 the participant fails to timely terminate employment, and is
796 shall be subject to the adjustment required in sub-subparagraph
797 (c)5.d.
798 6. Effective July 1, 2001, for instructional personnel as
799 defined in s. 1012.01(2), election to participate in the DROP
800 may shall be made at any time following the date on which the
801 member first reaches normal retirement date. The member shall
802 advise his or her employer and the division in writing of the
803 date on which DROP begins the Deferred Retirement Option Program
804 shall begin. When establishing eligibility of the member to
805 participate in the DROP for the 60-month or, with respect to
806 members who are instructional personnel employed by the Florida
807 School for the Deaf and the Blind and who have received
808 authorization by the Board of Trustees of the Florida School for
809 the Deaf and the Blind to participate in the DROP beyond 60
810 months, or who are instructional personnel as defined in s.
811 1012.01(2)(a)-(d) in grades K-12 and who have received
812 authorization by the district school superintendent to
813 participate in the DROP beyond 60 months, the 96-month maximum
814 participation period, as provided in sub-subparagraph (b)(1)a.
815 subparagraph (b)1., the member may elect to include or exclude
816 any optional service credit purchased by the member from the
817 total service used to establish the normal retirement date. A
818 member who has with dual normal retirement dates is shall be
819 eligible to elect to participate in either class.
820 (b) Participation in the DROP.—
821 1.An eligible member may elect to participate in the DROP
822 for a period not to exceed a maximum of 60 calendar months.
823 However, or, with respect to members who are instructional
824 personnel employed by the Florida School for the Deaf and the
825 Blind and authorized who have received authorization by the
826 Board of Trustees of the Florida School for the Deaf and the
827 Blind to participate in the DROP beyond 60 months, or who are
828 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
829 grades K-12 and authorized who have received authorization by
830 the district school superintendent to participate in the DROP
831 beyond 60 calendar months, or who are instructional personnel,
832 as defined in s. 1012.01(2), employed by a developmental
833 research school and authorized by the school's director, or if
834 the school has no director, by the school's principal, may
835 participate in DROP for up to 36 calendar months beyond the 60
836 month period. 96 calendar months immediately following the date
837 on which the member first reaches his or her normal retirement
838 date or the date to which he or she is eligible to defer his or
839 her election to participate as provided in subparagraph (a)2.
840 However, a member who has reached normal retirement date prior
841 to the effective date of the DROP shall be eligible to
842 participate in the DROP for a period of time not to exceed 60
843 calendar months or, with respect to members who are
844 instructional personnel employed by the Florida School for the
845 Deaf and the Blind and who have received authorization by the
846 Board of Trustees of the Florida School for the Deaf and the
847 Blind to participate in the DROP beyond 60 months, or who are
848 instructional personnel as defined in s. 1012.01(2)(a)-(d) in
849 grades K-12 and who have received authorization by the district
850 school superintendent to participate in the DROP beyond 60
851 calendar months, 96 calendar months immediately following the
852 effective date of the DROP, except a member of the Special Risk
853 Class who has reached normal retirement date prior to the
854 effective date of the DROP and whose total accrued value exceeds
855 75 percent of average final compensation as of his or her
856 effective date of retirement shall be eligible to participate in
857 the DROP for no more than 36 calendar months immediately
858 following the effective date of the DROP.
859 2. Upon deciding to participate in the DROP, the member
860 shall submit, on forms required by the division:
861 a. A written election to participate in the DROP;
862 b. Selection of the DROP participation and termination
863 dates, which satisfy the limitations stated in paragraph (a) and
864 subparagraph 1. The Such termination date must shall be in a
865 binding letter of resignation to with the employer, establishing
866 a deferred termination date. The member may change the
867 termination date within the limitations of subparagraph 1., but
868 only with the written approval of the his or her employer;
869 c. A properly completed DROP application for service
870 retirement as provided in this section; and
871 d. Any other information required by the division.
872 3. The DROP participant is shall be a retiree under the
873 Florida Retirement System for all purposes, except for paragraph
874 (5)(f) and subsection (9) and ss. 112.3173, 112.363, 121.053,
875 and 121.122. DROP participation is final and cannot be cancelled
876 by the participant after the first payment is credited during
877 the DROP participation period. However, participation in the
878 DROP does not alter the participant's employment status and the
879 member is such employee shall not be deemed retired from
880 employment until his or her deferred resignation is effective
881 and termination occurs as provided in s. 121.021(39).
882 4. Elected officers are shall be eligible to participate in
883 the DROP subject to the following:
884 a. An elected officer who reaches normal retirement date
885 during a term of office may defer the election to participate in
886 the DROP until the next succeeding term in that office. An Such
887 elected officer who exercises this option may participate in the
888 DROP for up to 60 calendar months or a period of no longer than
889 the such succeeding term of office, whichever is less.
890 b. An elected or a nonelected participant may run for a
891 term of office while participating in DROP and, if elected,
892 extend the DROP termination date accordingly, except that,
893 however, if such additional term of office exceeds the 60-month
894 limitation established in subparagraph 1., and the officer does
895 not resign from office within the such 60-month limitation, the
896 retirement and the participant's DROP is shall be null and void
897 as provided in sub-subparagraph (c)5.d.
898 c. An elected officer who is dually employed and elects to
899 participate in DROP must shall be required to satisfy the
900 definition of termination within the 60-month participation or,
901 with respect to members who are instructional personnel employed
902 by the Florida School for the Deaf and the Blind and who have
903 received authorization by the Board of Trustees of the Florida
904 School for the Deaf and the Blind to participate in the DROP
905 beyond 60 months, or who are instructional personnel as defined
906 in s. 1012.01(2)(a)-(d) in grades K-12 and who have received
907 authorization by the district school superintendent to
908 participate in the DROP beyond 60 months, the 96-month
909 limitation period as provided in subparagraph 1. for the
910 nonelected position and may continue employment as an elected
911 officer as provided in s. 121.053. The elected officer shall
912 will be enrolled as a renewed member in the Elected Officers'
913 Class or the Regular Class, as provided in ss. 121.053 and
914 121.122, on the first day of the month after termination of
915 employment in the nonelected position and termination of DROP.
916 Distribution of the DROP benefits shall be made as provided in
917 paragraph (c).
918 (c) Benefits payable under the DROP.—
919 1. Effective on with the date of DROP participation, the
920 member's initial normal monthly benefit, including creditable
921 service, optional form of payment, and average final
922 compensation, and the effective date of retirement are shall be
923 fixed. The beneficiary established under the Florida Retirement
924 System shall be the beneficiary eligible to receive any DROP
925 benefits payable if the DROP participant dies before prior to
926 the completion of the period of DROP participation. If In the
927 event a joint annuitant predeceases the member, the member may
928 name a beneficiary to receive accumulated DROP benefits payable.
929 The Such retirement benefit, the annual cost of living
930 adjustments provided in s. 121.101, and interest shall accrue
931 monthly in the Florida Retirement System Trust Fund. The Such
932 interest shall accrue at an effective annual rate of 6.5 percent
933 compounded monthly, on the prior month's accumulated ending
934 balance, up to the month of termination or death.
935 2. Each employee who elects to participate in the DROP may
936 shall be allowed to elect to receive a lump-sum payment for
937 accrued annual leave earned in accordance with agency policy
938 upon beginning participation in the DROP. The Such accumulated
939 leave payment certified to the division upon commencement of
940 DROP shall be included in the calculation of the member's
941 average final compensation. The employee electing the such lump
942 sum payment is upon beginning participation in DROP will not be
943 eligible to receive a second lump-sum payment upon termination,
944 except to the extent the employee has earned additional annual
945 leave which, combined with the original payment, does not exceed
946 the maximum lump-sum payment allowed by the employing agency's
947 policy or rules. An Such early lump-sum payment shall be based
948 on the hourly wage of the employee at the time he or she begins
949 participation in the DROP. If the member elects to wait and
950 receive a such lump-sum payment upon termination of DROP and
951 termination of employment with the employer, any accumulated
952 leave payment made at that time may not cannot be included in
953 the member's retirement benefit, which was determined and fixed
954 by law when the employee elected to participate in the DROP.
955 3. The effective date of DROP participation and the
956 effective date of retirement of a DROP participant shall be the
957 first day of the month selected by the member to begin
958 participation in the DROP, provided such date is properly
959 established, with the written confirmation of the employer, and
960 the approval of the division, on forms required by the division.
961 4. Normal retirement benefits and any interest thereon
962 shall continue to accrue in the DROP until the established
963 termination date of the DROP, or until the participant
964 terminates employment or dies prior to such date. Although
965 individual DROP accounts shall not be established, a separate
966 accounting of each participant's accrued benefits under the DROP
967 shall be calculated and provided to participants.
968 5. At the conclusion of the participant's DROP, the
969 division shall distribute the participant's total accumulated
970 DROP benefits, subject to the following provisions:
971 a. The division shall receive verification by the
972 participant's employer or employers that the such participant
973 has terminated employment as provided in s. 121.021(39)(b).
974 b. The terminated DROP participant or, if deceased, the
975 such participant's named beneficiary, shall elect on forms
976 provided by the division to receive payment of the DROP benefits
977 in accordance with one of the options listed below. If For a
978 participant or beneficiary who fails to elect a method of
979 payment within 60 days of termination of the DROP, the division
980 shall will pay a lump sum as provided in sub-sub-subparagraph
981 (I).
982 (I) Lump sum.—All accrued DROP benefits, plus interest,
983 less withholding taxes remitted to the Internal Revenue Service,
984 shall be paid to the DROP participant or surviving beneficiary.
985 (II) Direct rollover.—All accrued DROP benefits, plus
986 interest, shall be paid from the DROP directly to the custodian
987 of an eligible retirement plan as defined in s. 402(c)(8)(B) of
988 the Internal Revenue Code. However, in the case of an eligible
989 rollover distribution to the surviving spouse of a deceased
990 participant, an eligible retirement plan is an individual
991 retirement account or an individual retirement annuity as
992 described in s. 402(c)(9) of the Internal Revenue Code.
993 (III) Partial lump sum.—A portion of the accrued DROP
994 benefits shall be paid to the DROP participant or surviving
995 spouse, less withholding taxes remitted to the Internal Revenue
996 Service, and the remaining DROP benefits shall be transferred
997 directly to the custodian of an eligible retirement plan as
998 defined in s. 402(c)(8)(B) of the Internal Revenue Code.
999 However, in the case of an eligible rollover distribution to the
1000 surviving spouse of a deceased participant, an eligible
1001 retirement plan is an individual retirement account or an
1002 individual retirement annuity as described in s. 402(c)(9) of
1003 the Internal Revenue Code. The proportions shall be specified by
1004 the DROP participant or surviving beneficiary.
1005 c. The form of payment selected by the DROP participant or
1006 surviving beneficiary must comply complies with the minimum
1007 distribution requirements of the Internal Revenue Code.
1008 d. A DROP participant who fails to terminate employment as
1009 defined in s. 121.021(39)(b) shall be deemed as not to be
1010 retired, and the DROP election is shall be null and void.
1011 Florida Retirement System membership shall be reestablished
1012 retroactively to the date of the commencement of the DROP, and
1013 each employer with whom the participant continues employment
1014 must shall be required to pay to the Florida Retirement System
1015 Trust Fund the difference between the DROP contributions paid in
1016 paragraph (i) and the contributions required for the applicable
1017 Florida Retirement System class of membership during the period
1018 the member participated in the DROP, plus 6.5 percent interest
1019 compounded annually.
1020 6. The retirement benefits of any DROP participant who
1021 meets the definition of termination, as provided in s.
1022 121.021(39)(b), but is in violation of the reemployment
1023 provisions provided in subsection (9), shall be suspended during
1024 those months in which the member is in violation. Any member
1025 employed in violation of this subparagraph and any employing
1026 agency that knowingly employs or appoints such member without
1027 notifying the Division of Retirement to suspend retirement
1028 benefits are jointly and severally liable for any benefits paid
1029 during the reemployment limitation period. To avoid liability,
1030 the employing agency must have a written statement from the
1031 retiree that he or she is not retired from a state-administered
1032 retirement system. Any retirement benefits received by a retired
1033 member while employed in violation of the reemployment
1034 limitations during the first 12 months of retirement must be
1035 repaid to the Florida Retirement System Trust Fund, and his or
1036 her retirement benefits remain suspended until payment is made.
1037 Benefits suspended beyond the end of the retired member's first
1038 12 months of retirement apply toward repayment of benefits
1039 received in violation of the reemployment limitations.
1040 7.6. The accrued benefits of any DROP participant, and any
1041 contributions accumulated under the such program, are shall not
1042 be subject to assignment, execution, attachment, or to any legal
1043 process whatsoever, except for qualified domestic relations
1044 orders by a court of competent jurisdiction, income deduction
1045 orders as provided in s. 61.1301, and federal income tax levies.
1046 8.7. DROP participants are shall not be eligible for
1047 disability retirement benefits as provided in subsection (4).
1048 (14) PAYMENT OF BENEFITS.—This subsection applies to the
1049 payment of benefits to a payee (retiree or beneficiary) under
1050 the Florida Retirement System:
1051 (b) Subject to approval by the division in accordance with
1052 rule 60S-4.015, Florida Administrative Code, a payee receiving
1053 retirement benefits under the Florida Retirement system may also
1054 have the following payments deducted from his or her monthly
1055 benefit:
1056 1. Premiums for life and health-related insurance policies
1057 from approved companies.
1058 2. Life insurance premiums for the State Group Life
1059 Insurance Plan, if authorized in writing by the payee and by the
1060 department of Management Services.
1061 3. Repayment of overpayments from the Florida Retirement
1062 System Trust Fund, the State Employees' Health Insurance Trust
1063 Fund, or the State Employees' Life Insurance Trust Fund, upon
1064 notification of the payee.
1065 4. Payments to an alternate payee for alimony or, child
1066 support pursuant to an income deduction order under s. 61.1301,
1067 or division of marital assets pursuant to a qualified domestic
1068 relations order under s. 222.21 or an income deduction order
1069 under s. 61.1301.
1070 5. Payments to the Internal Revenue Service for federal
1071 income tax levies, upon notification of the division by the
1072 Internal Revenue Service.
1073 (c) A payee must shall notify the division of any change in
1074 his or her address. The division may suspend benefit payments to
1075 a payee if correspondence sent to the payee's mailing address is
1076 returned due to an incorrect address. Benefit payments shall be
1077 resumed upon notification to the division of the payee's new
1078 address.
1079 (d) A payee whose retirement benefits are reduced by the
1080 application of maximum benefit limits under s. 415(b) of the
1081 Internal Revenue Code, as specified in s. 121.30(5), shall have
1082 the portion of his or her calculated benefit in the Florida
1083 Retirement System defined benefit plan which exceeds such
1084 federal limitation paid through the Florida Retirement System
1085 Preservation of Benefits Plan, as provided in s. 121.1001.
1086 (e) The Division of Retirement may issue retirement
1087 benefits payable for division of marital assets pursuant to a
1088 qualified domestic relations order directly to the alternate
1089 payee, any court order to the contrary notwithstanding, in order
1090 to meet Internal Revenue Code requirements.
1091 (f)(e) A No benefit may not be reduced for the purpose of
1092 preserving the member's eligibility for a federal program.
1093 (g)(f) The division shall adopt rules establishing
1094 procedures for determining that the persons to whom benefits are
1095 being paid are still living. The division shall suspend the
1096 benefits being paid to any payee if when it is unable to contact
1097 such payee and to confirm that he or she is still living.
1098 Section 8. Section 121.1115, Florida Statutes, is amended
1099 to read:
1100 121.1115 Purchase of retirement credit for out-of-state and
1101 federal service.—Effective January 1, 1995, a member of the
1102 Florida Retirement System may purchase creditable service for
1103 periods of public employment in another state and receive
1104 creditable service for such periods of employment. Service with
1105 the Federal Government, including any active military service,
1106 may be claimed. Upon completion of each year of service earned
1107 under the Florida Retirement System, a member may purchase up to
1108 1 year of retirement credit for his or her out-of-state service,
1109 subject to the following provisions:
1110 (1) LIMITATIONS AND CONDITIONS.—To receive credit for the
1111 out-of-state service:
1112 (a) The out-of-state service being claimed must have been:
1113 1. Performed in a position of employment with the state or
1114 a political subdivision thereof or with the Federal Government;
1115 2. Covered by a retirement or pension plan provided by the
1116 state or political subdivision, or by the Federal Government, as
1117 appropriate; and
1118 3. Performed prior to a period of membership in the Florida
1119 Retirement System.
1120 (b) The member must have completed a minimum of 6 years of
1121 creditable service under the Florida Retirement System,
1122 excluding out-of-state service and in-state service claimed and
1123 purchased under s. 121.1122.
1124 (c) Not more than 5 years of creditable service may be
1125 claimed for creditable service aggregated under the provisions
1126 of this section and s. 121.1122.
1127 (d) The out-of-state service credit claimed under this
1128 section shall be credited only as service in the Regular Class
1129 of membership, and any benefit or pension based thereon is shall
1130 be subject to the limitations and restrictions of s. 112.65.
1131 (e) The member is not eligible for and may not receive a
1132 pension or benefit from a retirement or pension plan based on or
1133 including the out-of-state service. Eligibility for or the
1134 receipt of contributions to a retirement plan made by the
1135 employer on behalf of the employee is considered a benefit.
1136 (f)(e) A member shall be eligible To receive service credit
1137 for out-of-state service performed after leaving the Florida
1138 Retirement System, the member must complete only upon return to
1139 membership and completion of at least 1 year of creditable
1140 service in the Florida Retirement System following the out-of
1141 state service.
1142 (2) COST.—For each year claimed, the member must pay into
1143 the Florida Retirement System Trust Fund an amount equal to 20
1144 percent of the member's annual compensation for the first full
1145 work year of creditable service earned under the Florida
1146 Retirement System, but not less than $12,000, plus interest at
1147 6.5 percent compounded annually from the date of first annual
1148 salary earned until full payment is made. The employer may pay
1149 all or a portion of the cost of this service credit.
1150 Section 9. Subsection (2) of section 121.1122, Florida
1151 Statutes, is amended to read:
1152 121.1122 Purchase of retirement credit for in-state public
1153 service and in-state service in accredited nonpublic schools and
1154 colleges, including charter schools and charter technical career
1155 centers.—Effective January 1, 1998, a member of the Florida
1156 Retirement System may purchase creditable service for periods of
1157 certain public or nonpublic employment performed in this state,
1158 as provided in this section.
1159 (2) LIMITATIONS AND CONDITIONS.—
1160 (a) A member is not eligible to receive credit for in-state
1161 service under this section until he or she has completed 6 years
1162 of creditable service under the Florida Retirement System,
1163 excluding service purchased under this section and out-of-state
1164 service claimed and purchased under s. 121.1115.
1165 (b) A member may not purchase and receive credit for more
1166 than 5 years of creditable service aggregated under the
1167 provisions of this section and s. 121.1115.
1168 (c) Service credit claimed under this section shall be
1169 credited only as service in the Regular Class of membership and
1170 is shall be subject to the provisions of s. 112.65.
1171 (d) Service credit may not be purchased under this section
1172 if the member is eligible to receive or is receiving a pension
1173 or benefit from a retirement or pension plan based on or
1174 including the service. Eligibility for or the receipt of
1175 contributions to a retirement plan made by the employer on
1176 behalf of the employee is considered a benefit.
1177 (e)(d) A member is shall be eligible to receive service
1178 credit for in-state service performed after leaving the Florida
1179 Retirement System only after upon returning to membership and
1180 completing at least 1 year of creditable service in the Florida
1181 Retirement System following the in-state service.
1182 (f)(e) The service claimed must have been service covered
1183 by a retirement or pension plan provided by the employer.
1184 Section 10. Section 121.136, Florida Statutes, is amended
1185 to read:
1186 121.136 Annual benefit statement to members.—Beginning
1187 January 1, 1993, and Each January thereafter, the department
1188 shall provide each active member of the Florida Retirement
1189 System with 5 or more years of creditable service an annual
1190 statement of benefits which provides. Such statement should
1191 provide the member with basic data about the member's retirement
1192 account. At a minimum Minimally, it must shall include the
1193 member's retirement plan, accrued service credit the amount of
1194 funds on deposit in the retirement account, and an estimate of
1195 retirement benefits.
1196 Section 11. Section 121.1905, Florida Statutes, is amended
1197 to read:
1198 121.1905 Division of Retirement; creation.—
1199 (1) There is created the Division of Retirement within the
1200 Department of Management Services.
1201 (2) The mission of the Division of Retirement is to provide
1202 quality and cost-effective retirement services as measured by
1203 member satisfaction and by comparison with administrative costs
1204 of comparable retirement systems.
1205 Section 12. Paragraph (a) of subsection (2) of section
1206 121.23, Florida Statutes, is amended to read:
1207 121.23 Disability retirement and special risk membership
1208 applications; Retirement Commission; powers and duties; judicial
1209 review.—The provisions of this section apply to all proceedings
1210 in which the administrator has made a written final decision on
1211 the merits respecting applications for disability retirement,
1212 reexamination of retired members receiving disability benefits,
1213 applications for special risk membership, and reexamination of
1214 special risk members in the Florida Retirement System. The
1215 jurisdiction of the State Retirement Commission under this
1216 section shall be limited to written final decisions of the
1217 administrator on the merits.
1218 (2) A member shall be entitled to a hearing before the
1219 State Retirement Commission pursuant to ss. 120.569 and
1220 120.57(1) on the merits of any written adverse decision of the
1221 administrator, if he or she files with the commission a written
1222 request for such hearing within 21 days after receipt of such
1223 written decision from the administrator. For the purpose of such
1224 hearings, the commission shall be an “agency head” as defined by
1225 s. 120.52.
1226 (a) The commission may shall have the authority to issue
1227 orders as a result of the a hearing that are shall be binding on
1228 all parties to the dispute and. The commission may order any
1229 action that it deems appropriate. Any disability retirement
1230 order of the commission issued pursuant to this subsection which
1231 sustains the application of the member may include an amount, to
1232 be determined by the commission, for reasonable attorney's fees
1233 and taxable costs, which shall be calculated in accordance with
1234 the statewide uniform guidelines for taxation of costs in civil
1235 actions. The amount of the attorney's fee may not exceed 50
1236 percent of the initial yearly benefit awarded under s.
1237 121.091(4). In cases involving disability retirement, the State
1238 Retirement commission shall require the member to present
1239 competent substantial medical evidence and meet the requirements
1240 of s. 121.091(4)(c)2. and 3., and may require vocational
1241 evidence, before awarding disability retirement benefits.
1242 Section 13. Paragraph (a) of subsection (1) of section
1243 121.24, Florida Statutes, is amended to read:
1244 121.24 Conduct of commission business; legal and other
1245 assistance; compensation.—
1246 (1) The commission shall conduct its business within the
1247 following guidelines:
1248 (a) For purposes of hearing appeals under s. 121.23, the
1249 commission may meet in panels consisting of no not fewer than
1250 three members. For the purpose of meeting in these panels, a
1251 quorum shall be not fewer than two members. For all other
1252 purposes, A quorum shall consist of three members. The
1253 concurring vote of a majority of the members present is shall be
1254 required to reach a decision, issue orders, and conduct the
1255 business of the commission.
1256 Section 14. Subsection (8) of section 1012.33, Florida
1257 Statutes, is amended to read:
1258 1012.33 Contracts with instructional staff, supervisors,
1259 and school principals.—
1260 (8) Notwithstanding any other provision of law, a retired
1261 any member who has retired may interrupt retirement and be
1262 reemployed in any public school. A Any member so reemployed by
1263 the same district from which he or she retired may be employed
1264 on a probationary contractual basis as provided in subsection
1265 (1); however, no regular retirement employee shall be eligible
1266 to renew membership under a retirement system created by chapter
1267 121 or chapter 238.
1268 Section 15. Sections 121.093, 121.094, and 121.45, Florida
1269 Statutes, are repealed.
1270 Section 16. The Legislature finds that a proper and
1271 legitimate state purpose is served when employees and retirees
1272 of the state and its political subdivisions, as well as the
1273 dependents, survivors, and beneficiaries of such employees and
1274 retirees, are extended the basic protections afforded by
1275 governmental retirement systems. These persons must be provided
1276 benefits that are fair and adequate and that are managed,
1277 administered, and funded in an actuarially sound manner as
1278 required by s. 14, Article X of the State Constitution, and part
1279 VII of chapter 112, Florida Statutes. Therefore, the Legislature
1280 determines and declares that the amendment of s. 121.091,
1281 Florida Statutes, by this act fulfills an important state
1282 interest.
1283 Section 17. This act shall take effect July 1, 2009.