Florida Senate - 2015 COMMITTEE AMENDMENT Bill No. CS for SB 838 Ì233778UÎ233778 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/31/2015 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Governmental Oversight and Accountability (Latvala) recommended the following: 1 Senate Substitute for Amendment (851236) (with title 2 amendment) 3 4 Delete lines 68 - 304 5 and insert: 6 (d) Effective July 1, 2015, and notwithstanding paragraphs 7 (a) and (b), which void a termination if a member does not cease 8 all employment relationships with participating employers for at 9 least 6 calendar months, the termination of a retired justice or 10 retired judge is not void if he or she: 11 1. Has reached the later of his or her normal retirement 12 age or the age at which he or she is vested; 13 2. Has terminated all employment relationships with 14 employers under the Florida Retirement System for at least 3 15 calendar months after retirement; and 16 3. Returns to temporary employment only as a senior judge 17 in any court, as assigned by the Chief Justice of the Supreme 18 Court in accordance with s. 2, Art. V of the State Constitution, 19 no earlier than 4 calendar months after retirement. 20 21 This paragraph does not apply if a retired justice or retired 22 judge is employed for any other purpose by an employer 23 participating in the Florida Retirement System within 6 calendar 24 months of termination. 25 Section 2. Paragraphs (c), (d), and (e) of subsection (9) 26 of section 121.091, Florida Statutes, are amended, and paragraph 27 (f) is added to that subsection, to read: 28 121.091 Benefits payable under the system.—Benefits may not 29 be paid under this section unless the member has terminated 30 employment as provided in s. 121.021(39)(a) or begun 31 participation in the Deferred Retirement Option Program as 32 provided in subsection (13), and a proper application has been 33 filed in the manner prescribed by the department. The department 34 may cancel an application for retirement benefits when the 35 member or beneficiary fails to timely provide the information 36 and documents required by this chapter and the department’s 37 rules. The department shall adopt rules establishing procedures 38 for application for retirement benefits and for the cancellation 39 of such application when the required information or documents 40 are not received. 41 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.— 42 (c) Any person whose retirement is effective on or after 43 July 1, 2010, or whose participation in the Deferred Retirement 44 Option Program terminates on or after July 1, 2010, who is 45 retired under this chapter, except under the disability 46 retirement provisions of subsection (4) or as provided in s. 47 121.053, may be reemployed by an employer that participates in a 48 state-administered retirement system and receive retirement 49 benefits and compensation from that employer. However, a person 50 may not be reemployed by an employer participating in the 51 Florida Retirement System before meeting the definition of 52 termination in s. 121.021 and may not receive both a salary from 53 the employer and retirement benefits for 6 calendar months after 54 meeting the definition of termination, except as provided in 55 paragraph (f). However, a DROP participant shall continue 56 employment and receive a salary during the period of 57 participation in the Deferred Retirement Option Program, as 58 provided in subsection (13). 59 1. The reemployed retiree may not renew membership in the 60 Florida Retirement System. 61 2. The employer shall pay retirement contributions in an 62 amount equal to the unfunded actuarial liability portion of the 63 employer contribution that would be required for active members 64 of the Florida Retirement System in addition to the 65 contributions required by s. 121.76. 66 3. A retiree initially reemployed in violation of this 67 paragraph and an employer that employs or appoints such person 68 are jointly and severally liable for reimbursement of any 69 retirement benefits paid to the retirement trust fund from which 70 the benefits were paid, including the Florida Retirement System 71 Trust Fund and the Public Employee Optional Retirement Program 72 Trust Fund, as appropriate. The employer must have a written 73 statement from the employee that he or she is not retired from a 74 state-administered retirement system. Retirement benefits shall 75 remain suspended until repayment is made. Benefits suspended 76 beyond the end of the retiree’s 6-month reemployment limitation 77 period shall apply toward the repayment of benefits received in 78 violation of this paragraph. 79 (d) Except as provided in paragraph (f), this subsection 80 applies to retirees, as defined in s. 121.4501(2), of the 81 Florida Retirement System Investment Plan, subject to the 82 following conditions: 83 1. A retiree may not be reemployed with an employer 84 participating in the Florida Retirement System until such person 85 has been retired for 6 calendar months. 86 2. A retiree employed in violation of this subsection and 87 an employer that employs or appoints such person are jointly and 88 severally liable for reimbursement of any benefits paid to the 89 retirement trust fund from which the benefits were paid. The 90 employer must have a written statement from the retiree that he 91 or she is not retired from a state-administered retirement 92 system. 93 (e) The limitations of this subsection apply to 94 reemployment in any capacity irrespective of the category of 95 funds from which the person is compensated, except as provided 96 in paragraph (f). 97 (f) Effective July 1, 2015, a retired justice or retired 98 judge who has reached the later of his or her normal retirement 99 age or the age at which he or she is vested, who has terminated 100 all employment with employers participating under the Florida 101 Retirement System for at least 3 calendar months, and who 102 subsequently returns to temporary employment only as a senior 103 judge in any court, as assigned by the Chief Justice of the 104 Supreme Court in accordance with s. 2, Art. V of the State 105 Constitution, is not subject to paragraph (c), paragraph (d), or 106 paragraph (e) while reemployed solely as a senior judge. This 107 paragraph does not apply if the retired justice or retired judge 108 is employed for any other purpose by an employer participating 109 in the Florida Retirement System within 12 calendar months of 110 termination. 111 Section 3. (1) The State Board of Administration and the 112 Department of Management Services shall request, as soon as 113 practicable, a determination letter and private letter ruling 114 from the Internal Revenue Service. If the Internal Revenue 115 Service refuses to act upon a request for a private letter 116 ruling, a legal opinion from a qualified tax attorney or firm 117 may be substituted for such private letter ruling. 118 (2) If the state board or the department receives 119 notification from the Internal Revenue Service that this act or 120 any portion of this act will cause the Florida Retirement 121 System, or a portion thereof, to be disqualified for tax 122 purposes under the Internal Revenue Code, the portion that will 123 cause the disqualification does not apply. Upon receipt of such 124 notice, the state board and the department shall notify the 125 presiding officers of the Legislature. 126 Section 4. (1) In order to fund the benefit changes 127 provided in this act, the required employer contribution rates 128 for members of the Florida Retirement System established in s. 129 121.71(4), Florida Statutes, must be adjusted as follows: 130 (a) The Elected Officers’ Class for Justices and Judges 131 must be increased by 0.45 percentage point; and 132 (b) The Deferred Retirement Option Program must be 133 increased by 0.01 percentage point. 134 (2) In order to fund the benefit changes provided in this 135 act, the required employer contribution rate for the unfunded 136 actuarial liability of the Florida Retirement System established 137 in s. 121.71(5), Florida Statutes, for the Elected Officers’ 138 Class for Justices and Judges is increased by 0.91 percentage 139 point. 140 (3) The adjustments provided in subsections (1) and (2) 141 shall be in addition to all other changes to such contribution 142 rates which may be enacted into law to take effect on July 1, 143 2015, and July 1, 2016. The Division of Law Revision and 144 Information is directed to adjust accordingly the contribution 145 rates provided in s. 121.71, Florida Statutes. 146 Section 5. (1) The Legislature finds that a proper and 147 legitimate state purpose is served if employees and retirees of 148 the state and its political subdivisions, and the dependents, 149 survivors, and beneficiaries of such employees and retirees, are 150 extended the basic protections afforded by governmental 151 retirement systems which provide fair and adequate benefits and 152 which are managed, administered, and funded in an actuarially 153 sound manner as required by s. 14, Article X of the State 154 Constitution and part VII of chapter 112, Florida Statutes. 155 Therefore, the Legislature determines and declares that this act 156 fulfills an important state interest. 157 (2) The Legislature further finds that the assignments of 158 former justices and judges to temporary employment as senior 159 judges in any court by the Chief Justice of the Supreme Court in 160 accordance with s. 2, Article V of the State Constitution assist 161 the state courts system in managing caseloads and providing 162 individuals and businesses with access to courts. Therefore, the 163 Legislature further determines and declares that this act 164 fulfills an important state interest by facilitating the ability 165 of justices and judges who retire under the Florida Retirement 166 System in a bona fide termination to return to temporary 167 employment as senior judges in a timely manner. 168 169 ================= T I T L E A M E N D M E N T ================ 170 And the title is amended as follows: 171 Delete lines 7 - 13 172 and insert: 173 otherwise applicable to retired employees; requiring 174 the State Board of Administration and the Department 175 of Management Services to request a determination 176 letter and private letter ruling from the Internal 177 Revenue Service; adjusting employer