Florida Senate - 2014 (PROPOSED COMMITTEE BILL) SPB 7108
FOR CONSIDERATION By the Committee on Governmental Oversight and
Accountability
585-02532A-14 20147108__
1 A bill to be entitled
2 An act relating to the Florida Retirement System;
3 amending s. 121.053, F.S.; authorizing renewed
4 membership in the retirement system for retirees who
5 are reemployed in a position eligible for the Elected
6 Officers’ Class under certain circumstances; amending
7 s. 121.055, F.S.; authorizing renewed membership in
8 the retirement system for retirees of the Senior
9 Management Service Optional Annuity Program who are
10 reemployed on or after a specified date; amending s.
11 121.122, F.S.; requiring that certain retirees who are
12 employed on or after a specified date be renewed
13 members in the investment plan; providing exceptions;
14 providing that creditable service does not accrue for
15 a reemployed retiree during a specified period;
16 prohibiting certain funds from being paid into a
17 renewed member’s investment plan account for a
18 specified period of employment; requiring the renewed
19 member to satisfy vesting requirements; prohibiting a
20 renewed member from receiving disability benefits;
21 specifying requirements and limitations; requiring the
22 employer and the retiree to make applicable
23 contributions to the member’s investment plan account;
24 prohibiting the purchase of past service in the
25 investment plan; authorizing a renewed member to
26 receive additional credit toward the health insurance
27 subsidy under certain circumstances; providing that a
28 retiree employed on or after a specified date in a
29 regularly established position eligible for the State
30 University System Optional Retirement Program is a
31 renewed member of that program; specifying
32 requirements and limitations; requiring the employer
33 and the retiree to make applicable contributions;
34 prohibiting the purchase of past service in the
35 program; providing that a retiree employed on or after
36 a specified date in a regularly established position
37 eligible for the State Community College System
38 Optional Retirement Program is a renewed member of
39 that program; specifying requirements and limitations;
40 requiring the employer and the retiree to make
41 applicable contributions; prohibiting the purchase of
42 past service in the program; amending s. 121.4501,
43 F.S.; redefining the term “eligible employee”;
44 conforming a provision to changes made by the act;
45 providing that the act fulfills an important state
46 interest; providing an effective date.
47
48 Be It Enacted by the Legislature of the State of Florida:
49
50 Section 1. Subsections (3) and (5) of section 121.053,
51 Florida Statutes, are amended to read:
52 121.053 Participation in the Elected Officers’ Class for
53 retired members.—
54 (3) On or after July 1, 2010:
55 (a) A retiree of a state-administered retirement system who
56 is initially reemployed in elected or appointed for the first
57 time to an elective office in a regularly established position
58 with a covered employer may not reenroll in the Florida
59 Retirement System, except as provided in s. 121.122.
60 (b) An elected officer who is elected or appointed to an
61 elective office and is participating in the Deferred Retirement
62 Option Program is subject to termination as defined in s.
63 121.021 upon completion of his or her DROP participation period.
64 An elected official may defer termination as provided in
65 subsection (7).
66 (5) Any renewed member, as described in s. 121.122(1), (3),
67 (4), or (5) subsection (1) or subsection (2), who is not
68 receiving the maximum health insurance subsidy provided in s.
69 112.363 is entitled to earn additional credit toward the maximum
70 health insurance subsidy. Any additional subsidy due because of
71 such additional credit may be received only at the time of
72 payment of the second career retirement benefit. The total
73 health insurance subsidy received from initial and renewed
74 membership may not exceed the maximum allowed in s. 112.363.
75 Section 2. Paragraph (f) of subsection (1) and paragraph
76 (c) of subsection (6) of section 121.055, Florida Statutes, are
77 amended to read:
78 121.055 Senior Management Service Class.—There is hereby
79 established a separate class of membership within the Florida
80 Retirement System to be known as the “Senior Management Service
81 Class,” which shall become effective February 1, 1987.
82 (1)
83 (f) Effective July 1, 1997:
84 1. Except as provided in subparagraph 3., an elected state
85 officer eligible for membership in the Elected Officers’ Class
86 under s. 121.052(2)(a), (b), or (c) who elects membership in the
87 Senior Management Service Class under s. 121.052(3)(c) may,
88 within 6 months after assuming office or within 6 months after
89 this act becomes a law for serving elected state officers, elect
90 to participate in the Senior Management Service Optional Annuity
91 Program, as provided in subsection (6), in lieu of membership in
92 the Senior Management Service Class.
93 2. Except as provided in subparagraph 3., an elected
94 officer of a local agency employer eligible for membership in
95 the Elected Officers’ Class under s. 121.052(2)(d) who elects
96 membership in the Senior Management Service Class under s.
97 121.052(3)(c) may, within 6 months after assuming office, or
98 within 6 months after this act becomes a law for serving elected
99 officers of a local agency employer, elect to withdraw from the
100 Florida Retirement System, as provided in subparagraph (b)2., in
101 lieu of membership in the Senior Management Service Class.
102 3. A retiree of a state-administered retirement system who
103 is initially reemployed in a regularly established position on
104 or after July 1, 2010, through December 31, 2014, as an elected
105 official eligible for the Elected Officers’ Class may not be
106 enrolled in renewed membership in the Senior Management Service
107 Class or in the Senior Management Service Optional Annuity
108 Program as provided in subsection (6), and may not withdraw from
109 the Florida Retirement System as a renewed member as provided in
110 subparagraph (b)2., as applicable, in lieu of membership in the
111 Senior Management Service Class. Effective January 1, 2015, a
112 retiree of the Senior Management Service Optional Annuity
113 Program who retired before July 1, 2010, and is reemployed in a
114 regularly established position with a covered employer shall be
115 enrolled as a renewed member as provided in s. 121.122.
116 (6)
117 (c) Participation.—
118 1. An eligible employee who is employed on or before
119 February 1, 1987, may elect to participate in the optional
120 annuity program in lieu of participating in the Senior
121 Management Service Class. Such election shall must be made in
122 writing and filed with the department and the personnel officer
123 of the employer on or before May 1, 1987. An eligible employee
124 who is employed on or before February 1, 1987, and who fails to
125 make an election to participate in the optional annuity program
126 by May 1, 1987, is shall be deemed to have elected membership in
127 the Senior Management Service Class.
128 2. Except as provided in subparagraph 6., an employee who
129 becomes eligible to participate in the optional annuity program
130 by reason of initial employment commencing after February 1,
131 1987, may, within 90 days after the date of commencing
132 employment, elect to participate in the optional annuity
133 program. Such election shall must be made in writing and filed
134 with the personnel officer of the employer. An eligible employee
135 who does not within 90 days after commencing employment elect to
136 participate in the optional annuity program is shall be deemed
137 to have elected membership in the Senior Management Service
138 Class.
139 3. A person who is appointed to a position in the Senior
140 Management Service Class and who is a member of an existing
141 retirement system or the Special Risk or Special Risk
142 Administrative Support Classes of the Florida Retirement System
143 may elect to remain in such system or class in lieu of
144 participating in the Senior Management Service Class or optional
145 annuity program. Such election shall must be made in writing and
146 filed with the department and the personnel officer of the
147 employer within 90 days after such appointment. An eligible
148 employee who fails to make an election to participate in the
149 existing system, the Special Risk Class of the Florida
150 Retirement System, the Special Risk Administrative Support Class
151 of the Florida Retirement System, or the optional annuity
152 program is shall be deemed to have elected membership in the
153 Senior Management Service Class.
154 4. Except as provided in subparagraph 5., an employee’s
155 election to participate in the optional annuity program is
156 irrevocable if the employee continues to be employed in an
157 eligible position and continues to meet the eligibility
158 requirements set forth in this paragraph.
159 5. Effective from July 1, 2002, through September 30, 2002,
160 an active employee in a regularly established position who has
161 elected to participate in the Senior Management Service Optional
162 Annuity Program has one opportunity to choose to move from the
163 Senior Management Service Optional Annuity Program to the
164 Florida Retirement System Pension Plan.
165 a. The election shall must be made in writing and must be
166 filed with the department and the personnel officer of the
167 employer before October 1, 2002, or, in the case of an active
168 employee who is on a leave of absence on July 1, 2002, within 90
169 days after the conclusion of the leave of absence. This election
170 is irrevocable.
171 b. The employee shall receive service credit under the
172 pension plan equal to his or her years of service under the
173 Senior Management Service Optional Annuity Program. The cost for
174 such credit is the amount representing the present value of that
175 employee’s accumulated benefit obligation for the affected
176 period of service.
177 c. The employee shall must transfer the total accumulated
178 employer contributions and earnings on deposit in his or her
179 Senior Management Service Optional Annuity Program account. If
180 the transferred amount is not sufficient to pay the amount due,
181 the employee shall must pay a sum representing the remainder of
182 the amount due. The employee may not retain any employer
183 contributions or earnings from the Senior Management Service
184 Optional Annuity Program account.
185 6. A retiree of a state-administered retirement system who
186 is initially reemployed on or after July 1, 2010, through
187 December 31, 2014, may not renew membership in the Senior
188 Management Service Optional Annuity Program. Effective January
189 1, 2015, a retiree of the Senior Management Service Optional
190 Annuity Program who retired before July 1, 2010, and is
191 reemployed in a regularly established position with a covered
192 employer shall be enrolled as a renewed member as provided in s.
193 121.122.
194 Section 3. Subsection (2) of section 121.122, Florida
195 Statutes, is amended, and subsections (3), (4), and (5) are
196 added to that section, to read:
197 121.122 Renewed membership in system.—
198 (2) Except as otherwise provided in subsections (3)-(5), a
199 retiree of a state-administered retirement system who is
200 initially reemployed in a regularly established position on or
201 after July 1, 2010, may not be enrolled as a renewed member.
202 (3) A retiree of the investment plan, the State University
203 System Optional Retirement Program, the Senior Management
204 Service Optional Annuity Program, or the State Community College
205 System Optional Retirement Program who retired before July 1,
206 2010, and is employed in a regularly established position with a
207 covered employer on or after January 1, 2015, shall be a renewed
208 member of the investment plan, unless employed in a position
209 eligible for participation in the State University System
210 Optional Retirement Program or the State Community College
211 System Optional Retirement Program as provided in subsections
212 (4) and (5), respectively. The renewed member must satisfy the
213 vesting requirements and other provisions of this chapter.
214 (a) Creditable service, including credit toward the retiree
215 health insurance subsidy provided in s. 112.363, does not accrue
216 for a retiree’s employment in a regularly established position
217 with a covered employer from July 1, 2010, through December 31,
218 2014.
219 (b) Employer and employee contributions, interest,
220 earnings, or any other funds may not be paid into a renewed
221 member’s investment plan account for any employment in a
222 regularly established position with a covered employer from July
223 1, 2010, through December 31, 2014, by the renewed member or the
224 employer on behalf of the member.
225 (c) To be eligible to receive a retirement benefit, the
226 renewed member must satisfy the vesting requirements in s.
227 121.4501(6).
228 (d) The member is ineligible to receive disability benefits
229 as provided in s. 121.091(4) or s. 121.591(2).
230 (e) The member is subject to the reemployment after
231 retirement limitations provided in s. 121.091(9), as applicable.
232 (f) The member must satisfy the requirements for
233 termination from employment provided in s. 121.021(39).
234 (g) Upon the renewed membership or reemployment of a
235 retiree, the employer and the retiree shall pay the applicable
236 employer and employee contributions required under ss. 112.363,
237 121.71, 121.74, and 121.76. The contributions are payable only
238 for employment and salary earned in a regularly established
239 position with a covered employer on or after January 1, 2015.
240 (h) The member may not purchase any past service in the
241 investment plan, including employment in a regularly established
242 position with a covered employer from July 1, 2010, through
243 December 31, 2014.
244 (i) A renewed member who is a retiree of the investment
245 plan and who is not receiving the maximum health insurance
246 subsidy provided in s. 112.363 is entitled to earn additional
247 credit toward the subsidy. Such credit may be earned only for
248 employment in a regularly established position with a covered
249 employer on or after January 1, 2015. Any additional subsidy due
250 because of additional credit may be received only at the time of
251 paying the second career retirement benefit. The total health
252 insurance subsidy received by a retiree receiving benefits from
253 initial and renewed membership may not exceed the maximum
254 allowed under s. 112.363.
255 (4) A retiree of the investment plan, the State University
256 System Optional Retirement Program, the Senior Management
257 Service Optional Annuity Program, or the State Community College
258 System Optional Retirement Program who retired before July 1,
259 2010, and is employed in a regularly established position
260 eligible for participation in the State University System
261 Optional Retirement Program on or after January 1, 2015, shall
262 become a renewed member of the optional retirement program. The
263 renewed member must satisfy the vesting requirements and other
264 provisions of this chapter. Once enrolled, a renewed member
265 remains enrolled in the optional retirement program while
266 employed in an eligible position for the optional retirement
267 program. If employment in a different covered position results
268 in the retiree’s enrollment in the investment plan, the retiree
269 is no longer eligible to participate in the optional retirement
270 program unless employed in a mandatory position under s. 121.35.
271 (a) The member is subject to the reemployment after
272 retirement limitations provided in s. 121.091(9), as applicable.
273 (b) The member must satisfy the requirements for
274 termination of employment provided in s. 121.021(39).
275 (c) Upon renewed membership or reemployment of a retiree,
276 the employer and the retiree shall pay the applicable employer
277 and employee contributions required under s. 121.35.
278 (d) The member, or the employer on behalf of the member,
279 may not purchase any prior service in the optional retirement
280 program or employment from July 1, 2010, to December 31, 2014,
281 when renewed membership is not available.
282 (5) A retiree of the investment plan, the State University
283 System Optional Retirement Program, the Senior Management System
284 Optional Annuity Program, or the State Community College System
285 Optional Retirement Program who retired before July 1, 2010, and
286 is employed in a regularly established position eligible for
287 participation in the State Community College System Optional
288 Retirement Program as provided in s. 121.051(2)(c)4. on or after
289 January 1, 2015, shall become a renewed member of the optional
290 retirement program. The renewed member must satisfy the
291 eligibility requirements of this chapter and s. 1012.875 for the
292 optional retirement program. Once enrolled, a renewed member
293 remains enrolled in the optional retirement program while
294 employed in an eligible position for the optional retirement
295 program. If employment in a different covered position results
296 in the retiree’s enrollment in the investment plan, the retiree
297 is no longer eligible to participate in the optional retirement
298 program.
299 (a) The member is subject to the reemployment after
300 retirement limitations provided in s. 121.091(9), as applicable.
301 (b) The member must satisfy the requirements for
302 termination of employment provided in s. 121.021(39).
303 (c) Upon renewed membership or reemployment of a retiree,
304 the employer and the retiree shall pay the applicable employer
305 and employee contributions required under ss. 121.051(2)(c) and
306 1012.875.
307 (d) The member, or the employer on behalf of the member,
308 may not purchase any past service in the optional retirement
309 program or employment accrued from July 1, 2010, to December 31,
310 2014.
311 Section 4. Paragraph (e) of subsection (2) and paragraph
312 (f) of subsection (4) of section 121.4501, Florida Statutes, are
313 amended to read:
314 121.4501 Florida Retirement System Investment Plan.—
315 (2) DEFINITIONS.—As used in this part, the term:
316 (e) “Eligible employee” means an officer or employee, as
317 defined in s. 121.021, who:
318 1. Is a member of, or is eligible for membership in, the
319 Florida Retirement System, including any renewed member of the
320 Florida Retirement System initially enrolled before July 1,
321 2010; or
322 2. Participates in, or is eligible to participate in, the
323 Senior Management Service Optional Annuity Program as
324 established under s. 121.055(6), the State Community College
325 System Optional Retirement Program as established under s.
326 121.051(2)(c), or the State University System Optional
327 Retirement Program established under s. 121.35; or
328 3. Is a retired member of a state-administered retirement
329 system who is reemployed in a regularly established position on
330 or after January 1, 2015, as provided in s. 121.122.
331
332 The term does not include any member participating in the
333 Deferred Retirement Option Program established under s.
334 121.091(13), a retiree of a state-administered retirement system
335 initially reemployed in a regularly established position on or
336 after July 1, 2010, through December 31, 2014, or a mandatory
337 participant of the State University System Optional Retirement
338 Program established under s. 121.35.
339 (4) PARTICIPATION; ENROLLMENT.—
340 (f) A member of the investment plan who takes a
341 distribution of any contributions from his or her investment
342 plan account is considered a retiree. A retiree who is initially
343 reemployed in a regularly established position on or after July
344 1, 2010, through December 31, 2014, is not eligible to be
345 enrolled in renewed membership, except as provided in s.
346 121.122. An investment plan retiree who is reemployed on or
347 after January 1, 2015, in a regularly established position shall
348 be a renewed member of the investment plan as provided in s.
349 121.122.
350 Section 5. The Legislature finds that a proper and
351 legitimate state purpose is served when employees and retirees
352 of the state and its political subdivisions, and the dependents,
353 survivors, and beneficiaries of such employees and retirees, are
354 extended the basic protections afforded by governmental
355 retirement systems. These persons must be provided benefits that
356 are fair and adequate and that are managed, administered, and
357 funded in an actuarially sound manner, as required by s. 14,
358 Article X of the State Constitution and part VII of chapter 112,
359 Florida Statutes. Therefore, the Legislature determines and
360 declares that this act fulfills an important state interest.
361 Section 6. This act shall take effect July 1, 2014.