HB 825

1	A bill to be entitled
2	An act relating to retirement; amending s. 121.091, F.S.;
3	revising provisions relating to employment after
4	retirement; providing that a retiree of a state-
5	administered retirement system who retires on or after a
6	certain date may not be reemployed by an employer that
7	participates in a state-administered retirement system and
8	receive both a salary for employment and retirement
9	benefits; requiring that a retiree who retires on or after
10	a certain date and who is reemployed within 6 calendar
11	months after retirement apply to establish a future
12	retirement date; providing that a retiree who is employed
13	by an employing entity or contractor that does not
14	participate in a state-administered retirement system, but
15	who performs services for an employer that does
16	participate, may not receive retirement benefits during
17	such employment; amending s. 121.591, F.S.; conforming a
18	cross-reference; providing an effective date.
19
20	Be It Enacted by the Legislature of the State of Florida:
21
22	Section 1.  Subsection (9) of section 121.091, Florida
23	Statutes, is amended to read:
24	121.091  Benefits payable under the system.-Benefits may
25	not be paid under this section unless the member has terminated
26	employment as provided in s. 121.021(39)(a) or begun
27	participation in the Deferred Retirement Option Program as
28	provided in subsection (13), and a proper application has been
29	filed in the manner prescribed by the department. The department
30	may cancel an application for retirement benefits when the
31	member or beneficiary fails to timely provide the information
32	and documents required by this chapter and the department's
33	rules. The department shall adopt rules establishing procedures
34	for application for retirement benefits and for the cancellation
35	of such application when the required information or documents
36	are not received.
37	(9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.-
38	(a)  Except as provided in paragraph (e), any person who is
39	retired under this chapter, except as provided under the
40	disability retirement provisions of subsection (4), may be
41	employed by an employer that does not participate in a state-
42	administered retirement system and receive compensation from
43	that employment without limiting or restricting in any way the
44	retirement benefits payable to that person.
45	(b)  Any person who retires under this chapter and whose
46	retirement is effective before July 1, 2010, or whose
47	participation in the Deferred Retirement Option Program (DROP)
48	terminates before July 1, 2010, except as provided under the
49	disability retirement provisions of subsection (4) or as
50	provided in s. 121.053, may be reemployed by an employer that
51	participates in a state-administered retirement system and
52	receive both retirement benefits and compensation from that
53	employer. However, except that the person may not be reemployed
54	by an employer participating in the Florida Retirement System
55	until such person has been terminated from employment for at
56	least 1 calendar month before meeting the definition of
57	termination in s. 121.021 and may not receive both a salary from
58	the employer and retirement benefits for 12 calendar months
59	following immediately subsequent to the date of retirement or
60	the DROP termination date. However, a DROP participant shall
61	continue employment and receive a salary during the period of
62	participation in the Deferred Retirement Option Program, as
63	provided in subsection (13).
64	1.  A retiree who is reemployed within 1 calendar month
65	after retirement or the DROP termination date voids his or her
66	retirement and must repay any retirement benefits received to
67	the retirement trust fund from which the benefits were paid.
68	2.1.  A retiree who is reemployed 1 calendar month after
69	retirement or the DROP termination date but violates such
70	reemployment limitation before completion of the 12-month
71	limitation period must give timely notice of this fact in
72	writing to the employer and to the Division of Retirement or the
73	state board and shall have his or her retirement benefits
74	suspended for the months employed, or the balance of the 12-
75	month limitation period as required in sub-subparagraphs b. and
76	c., and any amount suspended shall be forfeited to the
77	retirement plan. A retiree employed during this period is liable
78	for repayment of any retirement benefits paid during the
79	reemployment limitation period. If the employer fails to notify
80	the division or state board in writing to suspend the employee's
81	retirement benefits, the employer and retiree A retiree employed
82	in violation of this paragraph and an employer who employs or
83	appoints such person are jointly and severally liable for
84	repayment of these benefits reimbursement to the retirement
85	trust fund, including the Florida Retirement System Trust Fund
86	and the Public Employee Optional Retirement Program Trust Fund,
87	from which the benefits were paid. The employer must have a
88	written statement from the retiree that he or she is not retired
89	from a state-administered retirement system. Retirement benefits
90	shall remain suspended until repayment is has been made. Any
91	benefits suspended beyond the reemployment limitation shall
92	apply toward repayment of benefits received in violation of the
93	reemployment limitation, and shall be forfeited to the
94	retirement plan.
95	a.  A district school board may reemploy a retiree as a
96	substitute or hourly teacher, education paraprofessional,
97	transportation assistant, bus driver, or food service worker on
98	a noncontractual basis after he or she has been retired for 1
99	calendar month. A district school board may reemploy a retiree
100	as instructional personnel, as defined in s. 1012.01(2)(a), on
101	an annual contractual basis after he or she has been retired for
102	1 calendar month. Any member who is reemployed within 1 calendar
103	month after retirement shall void his or her application for
104	retirement benefits. District school boards reemploying such
105	teachers, education paraprofessionals, transportation
106	assistants, bus drivers, or food service workers are subject to
107	the retirement contribution required by subparagraph 2.
108	b.  A community college board of trustees may reemploy a
109	retiree as an adjunct instructor or as a participant in a phased
110	retirement program within the Florida Community College System,
111	after he or she has been retired for 1 calendar month. A member
112	who is reemployed within 1 calendar month after retirement shall
113	void his or her application for retirement benefits. Boards of
114	trustees reemploying such instructors are subject to the
115	retirement contribution required in subparagraph 2. A retiree
116	may be reemployed as an adjunct instructor for no more than 780
117	hours during the first 12 months of retirement. A retiree
118	reemployed for more than 780 hours during the first 12 months of
119	retirement must give timely notice in writing to the employer
120	and to the Division of Retirement or the state board of the date
121	he or she will exceed the limitation. The division or state
122	board shall suspend his or her retirement benefits for the
123	remainder of the 12 months of retirement. Any retiree employed
124	in violation of this sub-subparagraph and any employer who
125	employs or appoints such person without notifying the division
126	to suspend retirement benefits are jointly and severally liable
127	for any benefits paid during the reemployment limitation period.
128	The employer must have a written statement from the retiree that
129	he or she is not retired from a state-administered retirement
130	system. Any retirement benefits received by the retiree while
131	reemployed in excess of 780 hours during the first 12 months of
132	retirement must be repaid to the retirement trust fund from
133	which the benefits were paid Florida Retirement System Trust
134	Fund, and retirement benefits shall remain suspended until
135	repayment is made. Benefits suspended beyond the end of the
136	retiree's first 12 months of retirement shall apply toward
137	repayment of benefits received in violation of the 780-hour
138	reemployment limitation.
139	c.  A state university board of trustees The State
140	University System may reemploy a retiree as an adjunct faculty
141	member or as a participant in a phased retirement program within
142	the State University System after the retiree has been retired
143	for 1 calendar month. A member who is reemployed within 1
144	calendar month after retirement shall void his or her
145	application for retirement benefits. The State University System
146	is subject to the retired contribution required in subparagraph
147	2., as appropriate. A retiree may be reemployed as an adjunct
148	faculty member or a participant in a phased retirement program
149	for no more than 780 hours during the first 12 months of his or
150	her retirement. A retiree reemployed for more than 780 hours
151	during the first 12 months of retirement must give timely notice
152	in writing to the employer and to the Division of Retirement or
153	the state board of the date he or she will exceed the
154	limitation. The division or state board shall suspend his or her
155	retirement benefits for the remainder of the 12 months. Any
156	retiree employed in violation of this sub-subparagraph and any
157	employer who employs or appoints such person without notifying
158	the division to suspend retirement benefits are jointly and
159	severally liable for any benefits paid during the reemployment
160	limitation period. The employer must have a written statement
161	from the retiree that he or she is not retired from a state-
162	administered retirement system. Any retirement benefits received
163	by the retiree while reemployed in excess of 780 hours during
164	the first 12 months of retirement must be repaid to the
165	retirement trust fund from which the benefits were paid Florida
166	Retirement System Trust Fund, and retirement benefits shall
167	remain suspended until repayment is made. Benefits suspended
168	beyond the end of the retiree's first 12 months of retirement
169	shall apply toward repayment of benefits received in violation
170	of the 780-hour reemployment limitation.
171	d.  The Board of Trustees of the Florida School for the
172	Deaf and the Blind may reemploy a retiree as a substitute
173	teacher, substitute residential instructor, or substitute nurse
174	on a noncontractual basis after he or she has been retired for 1
175	calendar month. Any member who is reemployed within 1 calendar
176	month after retirement shall void his or her application for
177	retirement benefits. The Board of Trustees of the Florida School
178	for the Deaf and the Blind reemploying such teachers,
179	residential instructors, or nurses is subject to the retirement
180	contribution required by subparagraph 2.
181	e.  A developmental research school may reemploy a retiree
182	as a substitute or hourly teacher or an education
183	paraprofessional as defined in s. 1012.01(2) on a noncontractual
184	basis after he or she has been retired for 1 calendar month. A
185	developmental research school may reemploy a retiree as
186	instructional personnel, as defined in s. 1012.01(2)(a), on an
187	annual contractual basis after he or she has been retired for 1
188	calendar month after retirement. Any member who is reemployed
189	within 1 calendar month voids his or her application for
190	retirement benefits. A developmental research school that
191	reemploys retired teachers and education paraprofessionals is
192	subject to the retirement contribution required by subparagraph
193	2.
194	f.  A charter school may reemploy a retiree as a substitute
195	or hourly teacher on a noncontractual basis after he or she has
196	been retired for 1 calendar month. A charter school may reemploy
197	a retired member as instructional personnel, as defined in s.
198	1012.01(2)(a), on an annual contractual basis after he or she
199	has been retired for 1 calendar month after retirement. Any
200	member who is reemployed within 1 calendar month voids his or
201	her application for retirement benefits. A charter school that
202	reemploys such teachers is subject to the retirement
203	contribution required by subparagraph 2.
204	3.2.  The employment of a retiree or DROP participant of a
205	state-administered retirement system does not affect the average
206	final compensation or years of creditable service of the retiree
207	or DROP participant. Before July 1, 1991, upon employment of any
208	person, other than an elected officer as provided in s. 121.053,
209	who is retired under a state-administered retirement program,
210	the employer shall pay retirement contributions in an amount
211	equal to the unfunded actuarial liability portion of the
212	employer contribution which would be required for regular
213	members of the Florida Retirement System. Effective July 1,
214	1991, contributions shall be made as provided in s. 121.122 for
215	retirees who have renewed membership or, as provided in
216	subsection (13), for DROP participants.
217	4.3.  Any person who is holding an elective public office
218	which is covered by the Florida Retirement System and who is
219	concurrently employed in nonelected covered employment may elect
220	to retire while continuing employment in the elective public
221	office if he or she terminates his or her nonelected covered
222	employment. Such person shall receive his or her retirement
223	benefits in addition to the compensation of the elective office
224	without regard to the time limitations otherwise provided in
225	this subsection. A person who seeks to exercise the provisions
226	of this subparagraph as they existed before May 3, 1984, may not
227	be deemed to be retired under those provisions, unless such
228	person is eligible to retire under this subparagraph, as amended
229	by chapter 84-11, Laws of Florida.
230	(c)  Any person who retires under this chapter and whose
231	retirement is effective on or after July 1, 2010, but before
232	July 1, 2011, or whose participation in the Deferred Retirement
233	Option Program (DROP) terminates on or after July 1, 2010, but
234	before July 1, 2011, who is retired under this chapter, except
235	as provided under the disability retirement provisions of
236	subsection (4) or as provided in s. 121.053, may be reemployed
237	by an employer that participates in a state-administered
238	retirement system and receive both retirement benefits and
239	compensation from that employer. However, a person may not be
240	reemployed by an employer participating in the Florida
241	Retirement System until such person has been terminated from
242	employment for at least 6 calendar months before meeting the
243	definition of termination in s. 121.021 and may not receive both
244	a salary from the employer and retirement benefits for 6
245	calendar months 7 through 12 following the date of retirement or
246	the DROP termination date after meeting the definition of
247	termination. However, a DROP participant shall continue
248	employment and receive a salary during the period of
249	participation in the Deferred Retirement Option Program, as
250	provided in subsection (13).
251	1.  The reemployed retiree in a regularly established
252	position may not renew membership in the Florida Retirement
253	System.
254	2.  The employer shall pay retirement contributions for
255	retirees reemployed in a regularly established position in an
256	amount equal to the unfunded actuarial liability portion of the
257	employer contribution that would be required for active members
258	of the Florida Retirement System in addition to the
259	contributions required by s. 121.76.
260	3.  A retiree who is reemployed within 6 calendar months
261	after retirement or the DROP termination date voids his or her
262	retirement and must repay any retirement benefits received to
263	the retirement trust fund from which the benefits were paid.
264	4.3.  A retiree who is initially reemployed during months 7
265	through 12 after retirement or the DROP termination date must
266	give timely notice of this fact in writing to the employer and
267	the Division of Retirement or the state board and shall have his
268	or her retirement benefits suspended for the months employed,
269	and any amount suspended shall be forfeited to the retirement
270	plan. A retiree employed during this period is liable for
271	repayment of any retirement benefits paid during the
272	reemployment limitation period. If the employer fails to notify
273	the division or state board in writing to suspend retirement
274	benefits, the employer and retiree are jointly and severally
275	liable for repayment of these benefits to the retirement trust
276	fund from which the benefits were paid, unless the employer has
277	a written statement from the retiree indicating that he or she
278	is not retired from a state-administered retirement system. in
279	violation of this paragraph and an employer that employs or
280	appoints such person are jointly and severally liable for
281	reimbursement of any retirement benefits paid to the retirement
282	trust fund from which the benefits were paid, including the
283	Florida Retirement System Trust Fund and the Public Employee
284	Optional Retirement Program Trust Fund, as appropriate. The
285	employer must have a written statement from the employee that he
286	or she is not retired from a state-administered retirement
287	system. Retirement benefits shall remain suspended until
288	repayment is made. Any benefits suspended beyond the end of the
289	retiree's 6-month reemployment limitation period shall apply
290	toward the repayment of benefits received in violation of this
291	paragraph, and shall be forfeited to the retirement plan.
292	(d)  Any person who retires under this chapter whose
293	retirement is effective on or after July 1, 2011, or whose
294	participation in the Defined Retirement Option Program (DROP)
295	terminates on or after July 1, 2011, except as provided under
296	the disability retirement provisions of subsection (4) or as
297	provided in s. 121.053, may not be reemployed by an employer
298	that participates in a state-administered retirement system and
299	receive both retirement benefits and salary from that employer
300	in the same month. If reemployed, such person must have been
301	terminated from employment for at least 6 calendar months.
302	1.  A retiree who is reemployed within 6 calendar months
303	after retirement or the DROP termination date voids his or her
304	retirement and must repay any retirement benefits received,
305	including a DROP payout, to the retirement trust fund from which
306	the benefits were paid, and apply to establish a future
307	retirement date.
308	2.  A retiree who is reemployed more than 6 calendar months
309	after retirement or the DROP termination date must give timely
310	notice of this fact in writing to the employer and the Division
311	of Retirement or the state board and shall have his or her
312	retirement benefits suspended during reemployment. The retiree
313	is liable for repayment of any retirement benefits paid during
314	the reemployment period. If the employer fails to notify the
315	division or state board in writing to suspend the employee's
316	retirement benefits, the employer and retiree are jointly and
317	severally liable for repayment of these benefits to the
318	retirement trust fund from which the retirement benefits were
319	paid unless the employer has a written statement from the
320	retiree indicating that he or she is not retired from a state-
321	administered retirement system. Retirement benefits remain
322	suspended until repayment is made. Any benefits suspended after
323	the retiree ceases employment apply toward repayment of benefits
324	received in violation of this paragraph, and shall be forfeited
325	to the retirement plan.
326	3.  Upon ceasing reemployment, the retiree shall resume
327	retirement benefits under the state-administered retirement
328	system without recalculation of the retirement benefits to
329	include additional service credit.
330	4.  The reemployed retiree in a regularly established
331	position may not renew membership in the Florida Retirement
332	System.
333	5.  The employer shall pay retirement contributions for
334	retirees reemployed in a regularly established position in an
335	amount equal to the unfunded actuarial liability portion of the
336	employer contribution that would be required for active members
337	of the Florida Retirement System in that position in addition to
338	the contributions required by s. 121.76.
339	(e)  Any person who retires under this chapter whose
340	retirement is effective on or after July 1, 2011, or whose
341	participation in the Deferred Retirement Option Program (DROP)
342	terminates on or after July 1, 2011, who performs services for
343	an employer that participates in a state-administered retirement
344	system, but who is employed by an employing entity or contractor
345	that does not participate in a state-administered retirement
346	system, shall have his or her retirement benefits from the
347	state-administered retirement system suspended for each month
348	the person performs services for the employer that participates
349	in the state-administered retirement system. This restriction
350	applies beginning the first effective month of retirement or the
351	month after the DROP termination date and throughout retirement.
352	When the retiree is no longer providing services to the employer
353	who participates in the state-administered retirement system,
354	the retiree shall resume retirement benefits from the state-
355	administered retirement system. Any amount suspended shall be
356	forfeited to the retirement plan.
357	(f)(d)  The provisions of this subsection apply to
358	retirees, as defined in s. 121.4501(2), of the Public Employee
359	Optional Retirement Program, subject to the following
360	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
394	Optional Retirement Program of the Florida Retirement System.-
395	Benefits may not be paid under this section unless the member
396	has 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.

CODING: Words stricken are deletions; words underlined are additions.