Florida Senate - 2011                                    SB 1160
       
       
       
       By Senator Gaetz
       
       
       
       
       4-00410C-11                                           20111160__
    1                        A bill to be entitled                      
    2         An act relating to retirement; amending s. 121.091,
    3         F.S.; revising provisions relating to employment after
    4         retirement; providing that a retiree of a state
    5         administered retirement system who retires on or after
    6         a certain date may not be reemployed by an employer
    7         that participates in a state-administered retirement
    8         system and receive both a salary for employment and
    9         retirement benefits; requiring that a retiree who
   10         retires on or after a certain date and who is
   11         reemployed within 6 calendar months after retirement
   12         apply to establish a future retirement date; providing
   13         that a retiree who is employed by an employing entity
   14         or contractor that does not participate in a state
   15         administered retirement system, but who performs
   16         services for an employer that does participate, may
   17         not receive retirement benefits during such
   18         employment; amending s. 121.591, F.S.; conforming a
   19         cross-reference; providing an effective date.
   20  
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Subsection (9) of section 121.091, Florida
   24  Statutes, is amended to read:
   25         121.091 Benefits payable under the system.—Benefits may not
   26  be paid under this section unless the member has terminated
   27  employment as provided in s. 121.021(39)(a) or begun
   28  participation in the Deferred Retirement Option Program as
   29  provided in subsection (13), and a proper application has been
   30  filed in the manner prescribed by the department. The department
   31  may cancel an application for retirement benefits when the
   32  member or beneficiary fails to timely provide the information
   33  and documents required by this chapter and the department’s
   34  rules. The department shall adopt rules establishing procedures
   35  for application for retirement benefits and for the cancellation
   36  of such application when the required information or documents
   37  are not received.
   38         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
   39         (a) Except as provided in paragraph (e), any person who is
   40  retired under this chapter, except as provided under the
   41  disability retirement provisions of subsection (4), may be
   42  employed by an employer that does not participate in a state
   43  administered retirement system and receive compensation from
   44  that employment without limiting or restricting in any way the
   45  retirement benefits payable to that person.
   46         (b) Any person who retires under this chapter and whose
   47  retirement is effective before July 1, 2010, or whose
   48  participation in the Deferred Retirement Option Program (DROP)
   49  terminates before July 1, 2010, except as provided under the
   50  disability retirement provisions of subsection (4) or as
   51  provided in s. 121.053, may be reemployed by an employer that
   52  participates in a state-administered retirement system and
   53  receive both retirement benefits and compensation from that
   54  employer. However, except that the person may not be reemployed
   55  by an employer participating in the Florida Retirement System
   56  until such person has been terminated from employment for at
   57  least 1 calendar month before meeting the definition of
   58  termination in s. 121.021 and may not receive both a salary from
   59  the employer and retirement benefits for 12 calendar months
   60  following immediately subsequent to the date of retirement or
   61  the DROP termination date. However, a DROP participant shall
   62  continue employment and receive a salary during the period of
   63  participation in the Deferred Retirement Option Program, as
   64  provided in subsection (13).
   65         1. A retiree who is reemployed within 1 calendar month
   66  after retirement or the DROP termination date voids his or her
   67  retirement and must repay any retirement benefits received to
   68  the retirement trust fund from which the benefits were paid.
   69         2.1. A retiree who is reemployed 1 calendar month after
   70  retirement or the DROP termination date but violates such
   71  reemployment limitation before completion of the 12-month
   72  limitation period must give timely notice of this fact in
   73  writing to the employer and to the Division of Retirement or the
   74  state board and shall have his or her retirement benefits
   75  suspended for the months employed, or the balance of the 12
   76  month limitation period as required in sub-subparagraphs b. and
   77  c., and any amount suspended shall be forfeited to the
   78  retirement plan. A retiree employed during this period is liable
   79  for repayment of any retirement benefits paid during the
   80  reemployment limitation period. If the employer fails to notify
   81  the division or state board in writing to suspend the employee’s
   82  retirement benefits, the employer and retiree A retiree employed
   83  in violation of this paragraph and an employer who employs or
   84  appoints such person are jointly and severally liable for
   85  repayment of these benefits reimbursement to the retirement
   86  trust fund, including the Florida Retirement System Trust Fund
   87  and the Public Employee Optional Retirement Program Trust Fund,
   88  from which the benefits were paid. The employer must have a
   89  written statement from the retiree that he or she is not retired
   90  from a state-administered retirement system. Retirement benefits
   91  shall remain suspended until repayment is has been made. Any
   92  benefits suspended beyond the reemployment limitation shall
   93  apply toward repayment of benefits received in violation of the
   94  reemployment limitation, and shall be forfeited to the
   95  retirement plan.
   96         a. A district school board may reemploy a retiree as a
   97  substitute or hourly teacher, education paraprofessional,
   98  transportation assistant, bus driver, or food service worker on
   99  a noncontractual basis after he or she has been retired for 1
  100  calendar month. A district school board may reemploy a retiree
  101  as instructional personnel, as defined in s. 1012.01(2)(a), on
  102  an annual contractual basis after he or she has been retired for
  103  1 calendar month. Any member who is reemployed within 1 calendar
  104  month after retirement shall void his or her application for
  105  retirement benefits. District school boards reemploying such
  106  teachers, education paraprofessionals, transportation
  107  assistants, bus drivers, or food service workers are subject to
  108  the retirement contribution required by subparagraph 2.
  109         b. A community college board of trustees may reemploy a
  110  retiree as an adjunct instructor or as a participant in a phased
  111  retirement program within the Florida Community College System,
  112  after he or she has been retired for 1 calendar month. A member
  113  who is reemployed within 1 calendar month after retirement shall
  114  void his or her application for retirement benefits. Boards of
  115  trustees reemploying such instructors are subject to the
  116  retirement contribution required in subparagraph 2. A retiree
  117  may be reemployed as an adjunct instructor for no more than 780
  118  hours during the first 12 months of retirement. A retiree
  119  reemployed for more than 780 hours during the first 12 months of
  120  retirement must give timely notice in writing to the employer
  121  and to the Division of Retirement or the state board of the date
  122  he or she will exceed the limitation. The division or state
  123  board shall suspend his or her retirement benefits for the
  124  remainder of the 12 months of retirement. Any retiree employed
  125  in violation of this sub-subparagraph and any employer who
  126  employs or appoints such person without notifying the division
  127  to suspend retirement benefits are jointly and severally liable
  128  for any benefits paid during the reemployment limitation period.
  129  The employer must have a written statement from the retiree that
  130  he or she is not retired from a state-administered retirement
  131  system. Any retirement benefits received by the retiree while
  132  reemployed in excess of 780 hours during the first 12 months of
  133  retirement must be repaid to the retirement trust fund from
  134  which the benefits were paid Florida Retirement System Trust
  135  Fund, and retirement benefits shall remain suspended until
  136  repayment is made. Benefits suspended beyond the end of the
  137  retiree’s first 12 months of retirement shall apply toward
  138  repayment of benefits received in violation of the 780-hour
  139  reemployment limitation.
  140         c. A state university board of trustees The State
  141  University System may reemploy a retiree as an adjunct faculty
  142  member or as a participant in a phased retirement program within
  143  the State University System after the retiree has been retired
  144  for 1 calendar month. A member who is reemployed within 1
  145  calendar month after retirement shall void his or her
  146  application for retirement benefits. The State University System
  147  is subject to the retired contribution required in subparagraph
  148  2., as appropriate. A retiree may be reemployed as an adjunct
  149  faculty member or a participant in a phased retirement program
  150  for no more than 780 hours during the first 12 months of his or
  151  her retirement. A retiree reemployed for more than 780 hours
  152  during the first 12 months of retirement must give timely notice
  153  in writing to the employer and to the Division of Retirement or
  154  the state board of the date he or she will exceed the
  155  limitation. The division or state board shall suspend his or her
  156  retirement benefits for the remainder of the 12 months. Any
  157  retiree employed in violation of this sub-subparagraph and any
  158  employer who employs or appoints such person without notifying
  159  the division to suspend retirement benefits are jointly and
  160  severally liable for any benefits paid during the reemployment
  161  limitation period. The employer must have a written statement
  162  from the retiree that he or she is not retired from a state
  163  administered retirement system. Any retirement benefits received
  164  by the retiree while reemployed in excess of 780 hours during
  165  the first 12 months of retirement must be repaid to the
  166  retirement trust fund from which the benefits were paid Florida
  167  Retirement System Trust Fund, and retirement benefits shall
  168  remain suspended until repayment is made. Benefits suspended
  169  beyond the end of the retiree’s first 12 months of retirement
  170  shall apply toward repayment of benefits received in violation
  171  of the 780-hour reemployment limitation.
  172         d. The Board of Trustees of the Florida School for the Deaf
  173  and the Blind may reemploy a retiree as a substitute teacher,
  174  substitute residential instructor, or substitute nurse on a
  175  noncontractual basis after he or she has been retired for 1
  176  calendar month. Any member who is reemployed within 1 calendar
  177  month after retirement shall void his or her application for
  178  retirement benefits. The Board of Trustees of the Florida School
  179  for the Deaf and the Blind reemploying such teachers,
  180  residential instructors, or nurses is subject to the retirement
  181  contribution required by subparagraph 2.
  182         e. A developmental research school may reemploy a retiree
  183  as a substitute or hourly teacher or an education
  184  paraprofessional as defined in s. 1012.01(2) on a noncontractual
  185  basis after he or she has been retired for 1 calendar month. A
  186  developmental research school may reemploy a retiree as
  187  instructional personnel, as defined in s. 1012.01(2)(a), on an
  188  annual contractual basis after he or she has been retired for 1
  189  calendar month after retirement. Any member who is reemployed
  190  within 1 calendar month voids his or her application for
  191  retirement benefits. A developmental research school that
  192  reemploys retired teachers and education paraprofessionals is
  193  subject to the retirement contribution required by subparagraph
  194  2.
  195         f. A charter school may reemploy a retiree as a substitute
  196  or hourly teacher on a noncontractual basis after he or she has
  197  been retired for 1 calendar month. A charter school may reemploy
  198  a retired member as instructional personnel, as defined in s.
  199  1012.01(2)(a), on an annual contractual basis after he or she
  200  has been retired for 1 calendar month after retirement. Any
  201  member who is reemployed within 1 calendar month voids his or
  202  her application for retirement benefits. A charter school that
  203  reemploys such teachers is subject to the retirement
  204  contribution required by subparagraph 2.
  205         3.2. The employment of a retiree or DROP participant of a
  206  state-administered retirement system does not affect the average
  207  final compensation or years of creditable service of the retiree
  208  or DROP participant. Before July 1, 1991, upon employment of any
  209  person, other than an elected officer as provided in s. 121.053,
  210  who is retired under a state-administered retirement program,
  211  the employer shall pay retirement contributions in an amount
  212  equal to the unfunded actuarial liability portion of the
  213  employer contribution which would be required for regular
  214  members of the Florida Retirement System. Effective July 1,
  215  1991, contributions shall be made as provided in s. 121.122 for
  216  retirees who have renewed membership or, as provided in
  217  subsection (13), for DROP participants.
  218         4.3. Any person who is holding an elective public office
  219  which is covered by the Florida Retirement System and who is
  220  concurrently employed in nonelected covered employment may elect
  221  to retire while continuing employment in the elective public
  222  office if he or she terminates his or her nonelected covered
  223  employment. Such person shall receive his or her retirement
  224  benefits in addition to the compensation of the elective office
  225  without regard to the time limitations otherwise provided in
  226  this subsection. A person who seeks to exercise the provisions
  227  of this subparagraph as they existed before May 3, 1984, may not
  228  be deemed to be retired under those provisions, unless such
  229  person is eligible to retire under this subparagraph, as amended
  230  by chapter 84-11, Laws of Florida.
  231         (c) Any person who retires under this chapter and whose
  232  retirement is effective on or after July 1, 2010, but before
  233  July 1, 2011, or whose participation in the Deferred Retirement
  234  Option Program (DROP) terminates on or after July 1, 2010, but
  235  before July 1, 2011, who is retired under this chapter, except
  236  as provided under the disability retirement provisions of
  237  subsection (4) or as provided in s. 121.053, may be reemployed
  238  by an employer that participates in a state-administered
  239  retirement system and receive both retirement benefits and
  240  compensation from that employer. However, a person may not be
  241  reemployed by an employer participating in the Florida
  242  Retirement System until such person has been terminated from
  243  employment for at least 6 calendar months before meeting the
  244  definition of termination in s. 121.021 and may not receive both
  245  a salary from the employer and retirement benefits for 6
  246  calendar months 7 through 12 following the date of retirement or
  247  the DROP termination date after meeting the definition of
  248  termination. However, a DROP participant shall continue
  249  employment and receive a salary during the period of
  250  participation in the Deferred Retirement Option Program, as
  251  provided in subsection (13).
  252         1. The reemployed retiree in a regularly established
  253  position may not renew membership in the Florida Retirement
  254  System.
  255         2. The employer shall pay retirement contributions for
  256  retirees reemployed in a regularly established position in an
  257  amount equal to the unfunded actuarial liability portion of the
  258  employer contribution that would be required for active members
  259  of the Florida Retirement System in addition to the
  260  contributions required by s. 121.76.
  261         3. A retiree who is reemployed within 6 calendar months
  262  after retirement or the DROP termination date voids his or her
  263  retirement and must repay any retirement benefits received to
  264  the retirement trust fund from which the benefits were paid.
  265         4.3. A retiree who is initially reemployed during months 7
  266  through 12 after retirement or the DROP termination date must
  267  give timely notice of this fact in writing to the employer and
  268  the Division of Retirement or the state board and shall have his
  269  or her retirement benefits suspended for the months employed,
  270  and any amount suspended shall be forfeited to the retirement
  271  plan. A retiree employed during this period is liable for
  272  repayment of any retirement benefits paid during the
  273  reemployment limitation period. If the employer fails to notify
  274  the division or state board in writing to suspend retirement
  275  benefits, the employer and retiree are jointly and severally
  276  liable for repayment of these benefits to the retirement trust
  277  fund from which the benefits were paid, unless the employer has
  278  a written statement from the retiree indicating that he or she
  279  is not retired from a state-administered retirement system. in
  280  violation of this paragraph and an employer that employs or
  281  appoints such person are jointly and severally liable for
  282  reimbursement of any retirement benefits paid to the retirement
  283  trust fund from which the benefits were paid, including the
  284  Florida Retirement System Trust Fund and the Public Employee
  285  Optional Retirement Program Trust Fund, as appropriate. The
  286  employer must have a written statement from the employee that he
  287  or she is not retired from a state-administered retirement
  288  system. Retirement benefits shall remain suspended until
  289  repayment is made. Any benefits suspended beyond the end of the
  290  retiree’s 6-month reemployment limitation period shall apply
  291  toward the repayment of benefits received in violation of this
  292  paragraph, and shall be forfeited to the retirement plan.
  293         (d) Any person who retires under this chapter whose
  294  retirement is effective on or after July 1, 2011, or whose
  295  participation in the Defined Retirement Option Program (DROP)
  296  terminates on or after July 1, 2011, except as provided under
  297  the disability retirement provisions of subsection (4) or as
  298  provided in s. 121.053, may not be reemployed by an employer
  299  that participates in a state-administered retirement system and
  300  receive both retirement benefits and salary from that employer
  301  in the same month. If reemployed, such person must have been
  302  terminated from employment for at least 6 calendar months.
  303         1. A retiree who is reemployed within 6 calendar months
  304  after retirement or the DROP termination date voids his or her
  305  retirement and must repay any retirement benefits received,
  306  including a DROP payout, to the retirement trust fund from which
  307  the benefits were paid, and apply to establish a future
  308  retirement date.
  309         2. A retiree who is reemployed more than 6 calendar months
  310  after retirement or the DROP termination date must give timely
  311  notice of this fact in writing to the employer and the Division
  312  of Retirement or the state board and shall have his or her
  313  retirement benefits suspended during reemployment. The retiree
  314  is liable for repayment of any retirement benefits paid during
  315  the reemployment period. If the employer fails to notify the
  316  division or state board in writing to suspend the employee’s
  317  retirement benefits, the employer and retiree are jointly and
  318  severally liable for repayment of these benefits to the
  319  retirement trust fund from which the retirement benefits were
  320  paid unless the employer has a written statement from the
  321  retiree indicating that he or she is not retired from a state
  322  administered retirement system. Retirement benefits remain
  323  suspended until repayment is made. Any benefits suspended after
  324  the retiree ceases employment apply toward repayment of benefits
  325  received in violation of this paragraph, and shall be forfeited
  326  to the retirement plan.
  327         3. Upon ceasing reemployment, the retiree shall resume
  328  retirement benefits under the state-administered retirement
  329  system without recalculation of the retirement benefits to
  330  include additional service credit.
  331         4. The reemployed retiree in a regularly established
  332  position may not renew membership in the Florida Retirement
  333  System.
  334         5. The employer shall pay retirement contributions for
  335  retirees reemployed in a regularly established position in an
  336  amount equal to the unfunded actuarial liability portion of the
  337  employer contribution that would be required for active members
  338  of the Florida Retirement System in that position in addition to
  339  the contributions required by s. 121.76.
  340         (e) Any person who retires under this chapter whose
  341  retirement is effective on or after July 1, 2011, or whose
  342  participation in the Deferred Retirement Option Program (DROP)
  343  terminates on or after July 1, 2011, who performs services for
  344  an employer that participates in a state-administered retirement
  345  system, but who is employed by an employing entity or contractor
  346  that does not participate in a state-administered retirement
  347  system, shall have his or her retirement benefits from the
  348  state-administered retirement system suspended for each month
  349  the person performs services for the employer that participates
  350  in the state-administered retirement system. This restriction
  351  applies beginning the first effective month of retirement or the
  352  month after the DROP termination date and throughout retirement.
  353  When the retiree is no longer providing services to the employer
  354  who participates in the state-administered retirement system,
  355  the retiree shall resume retirement benefits from the state
  356  administered retirement system. Any amount suspended shall be
  357  forfeited to the retirement plan.
  358         (f)(d) The provisions of this subsection apply to retirees,
  359  as defined in s. 121.4501(2), of the Public Employee Optional
  360  Retirement Program, subject to the following conditions:
  361         1. The retirees may not be reemployed with an employer
  362  participating in the Florida Retirement System until such person
  363  has been retired for 6 calendar months.
  364         2. Any retiree who is reemployed within 6 calendar months
  365  after retirement is liable for the repayment of any benefits
  366  paid during the reemployment limitation period. If the retiree’s
  367  employer fails to notify the division or state board in writing
  368  to suspend the employee’s retirement benefits, the employer and
  369  retiree are jointly and severally liable for the repayment of
  370  these benefits to the retirement trust fund from which the
  371  benefits were paid, unless the employer has a written statement
  372  from the retiree that he or she is not retired from a state
  373  administered retirement system. A retiree employed in violation
  374  of this subsection and an employer that employs or appoints such
  375  person are jointly and severally liable for reimbursement of any
  376  benefits paid to the retirement trust fund from which the
  377  benefits were paid, including the Retirement System Trust Fund
  378  and the Public Employee Optional Retirement Program Trust Fund,
  379  as appropriate. The employer must have a written statement from
  380  the retiree that he or she is not retired from a state
  381  administered retirement system.
  382         (g) The reemployment limitations in this subsection apply
  383  to retirees of all state-administered retirement systems,
  384  including the Senior Management Service Optional Annuity
  385  Program, the State University System Optional Retirement
  386  Program, and the State Community College Optional Retirement
  387  Program.
  388         (h)(e) The limitations of this subsection apply to
  389  reemployment in any capacity irrespective of the category of
  390  funds from which the person is compensated.
  391         Section 2. Paragraph (a) of subsection (1) of section
  392  121.591, Florida Statutes, is amended to read:
  393         121.591 Benefits payable under the Public Employee Optional
  394  Retirement Program of the Florida Retirement System.—Benefits
  395  may not be paid under this section unless the member has
  396  terminated employment as provided in s. 121.021(39)(a) or is
  397  deceased and a proper application has been filed in the manner
  398  prescribed by the state board or the department. The state board
  399  or department, as appropriate, may cancel an application for
  400  retirement benefits when the member or beneficiary fails to
  401  timely provide the information and documents required by this
  402  chapter and the rules of the state board and department. In
  403  accordance with their respective responsibilities as provided
  404  herein, the State Board of Administration and the Department of
  405  Management Services shall adopt rules establishing procedures
  406  for application for retirement benefits and for the cancellation
  407  of such application when the required information or documents
  408  are not received. The State Board of Administration and the
  409  Department of Management Services, as appropriate, are
  410  authorized to cash out a de minimis account of a participant who
  411  has been terminated from Florida Retirement System covered
  412  employment for a minimum of 6 calendar months. A de minimis
  413  account is an account containing employer contributions and
  414  accumulated earnings of not more than $5,000 made under the
  415  provisions of this chapter. Such cash-out must either be a
  416  complete lump-sum liquidation of the account balance, subject to
  417  the provisions of the Internal Revenue Code, or a lump-sum
  418  direct rollover distribution paid directly to the custodian of
  419  an eligible retirement plan, as defined by the Internal Revenue
  420  Code, on behalf of the participant. If any financial instrument
  421  issued for the payment of retirement benefits under this section
  422  is not presented for payment within 180 days after the last day
  423  of the month in which it was originally issued, the third-party
  424  administrator or other duly authorized agent of the State Board
  425  of Administration shall cancel the instrument and credit the
  426  amount of the instrument to the suspense account of the Public
  427  Employee Optional Retirement Program Trust Fund authorized under
  428  s. 121.4501(6). Any such amounts transferred to the suspense
  429  account are payable upon a proper application, not to include
  430  earnings thereon, as provided in this section, within 10 years
  431  after the last day of the month in which the instrument was
  432  originally issued, after which time such amounts and any
  433  earnings thereon shall be forfeited. Any such forfeited amounts
  434  are assets of the Public Employee Optional Retirement Program
  435  Trust Fund and are not subject to the provisions of chapter 717.
  436         (1) NORMAL BENEFITS.—Under the Public Employee Optional
  437  Retirement Program:
  438         (a) Benefits in the form of vested accumulations as
  439  described in s. 121.4501(6) are payable under this subsection in
  440  accordance with the following terms and conditions:
  441         1. To the extent vested, benefits are payable only to a
  442  participant.
  443         2. Benefits shall be paid by the third-party administrator
  444  or designated approved providers in accordance with the law, the
  445  contracts, and any applicable board rule or policy.
  446         3. To receive benefits, the participant must be terminated
  447  from all employment with all Florida Retirement System
  448  employers, as provided in s. 121.021(39).
  449         4. Benefit payments may not be made until the participant
  450  has been terminated for 3 calendar months, except that the board
  451  may authorize by rule for the distribution of up to 10 percent
  452  of the participant’s account after being terminated for 1
  453  calendar month if the participant has reached the normal
  454  retirement date as defined in s. 121.021 of the defined benefit
  455  plan.
  456         5. If a member or former member of the Florida Retirement
  457  System receives an invalid distribution from the Public Employee
  458  Optional Retirement Program Trust Fund, such person must repay
  459  the full invalid distribution to the trust fund within 90 days
  460  after receipt of final notification by the state board or the
  461  third-party administrator that the distribution was invalid. If
  462  such person fails to repay the full invalid distribution within
  463  90 days after receipt of final notification, the person may be
  464  deemed retired from the optional retirement program by the state
  465  board, as provided pursuant to s. 121.4501(2)(k), and is subject
  466  to s. 121.122. If such person is deemed retired by the state
  467  board, any joint and several liability set out in s.
  468  121.091(9)(f)2. 121.091(9)(d)2. becomes null and void, and the
  469  state board, the department, or the employing agency is not
  470  liable for gains on payroll contributions that have not been
  471  deposited to the person’s account in the retirement program,
  472  pending resolution of the invalid distribution. The member or
  473  former member who has been deemed retired or who has been
  474  determined by the board to have taken an invalid distribution
  475  may appeal the agency decision through the complaint process as
  476  provided under s. 121.4501(9)(g)3. As used in this subparagraph,
  477  the term “invalid distribution” means any distribution from an
  478  account in the optional retirement program which is taken in
  479  violation of this section, s. 121.091(9), or s. 121.4501.
  480         Section 3. This act shall take effect July 1, 2011.