Senate Bill sb1948

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007                                  SB 1948

    By Senator Posey





    24-1113-07                                              See HB

  1                      A bill to be entitled

  2         An act relating to reemployment after

  3         retirement; amending s. 121.021, F.S.;

  4         redefining the term "termination"; providing

  5         that termination has not occurred if a member

  6         was employed in violation of certain rehire

  7         provisions; amending s. 121.091, F.S.; limiting

  8         terms of reemployment for certain members;

  9         providing certain exceptions; providing for

10         joint and several liability for violation of

11         reemployment provisions; amending s. 121.591,

12         F.S.; providing that the violation of certain

13         rehire provisions shall be deemed an invalid

14         distribution; providing an effective date.

15  

16  Be It Enacted by the Legislature of the State of Florida:

17  

18         Section 1.  Subsection (39) of section 121.021, Florida

19  Statutes, is amended to read:

20         121.021  Definitions.--The following words and phrases

21  as used in this chapter have the respective meanings set forth

22  unless a different meaning is plainly required by the context:

23         (39)(a)  "Termination" occurs, except as provided in

24  paragraph (b), when a member ceases all employment

25  relationships with employers under this system, as defined in

26  subsection (10), but in the event a member should be employed

27  by any such employer within the next calendar month, or in

28  violation of the rehire provisions provided for in s.

29  121.091(9)(b)1.b., termination shall be deemed not to have

30  occurred. A leave of absence shall constitute a continuation

31  of the employment relationship, except that a leave of absence

                                  1

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  without pay due to disability may constitute termination for a

 2  member, if such member makes application for and is approved

 3  for disability retirement in accordance with s. 121.091(4).

 4  The department or board may require other evidence of

 5  termination as it deems necessary.

 6         (b)  "Termination" for a member electing to participate

 7  under the Deferred Retirement Option Program occurs when the

 8  Deferred Retirement Option Program participant ceases all

 9  employment relationships with employers under this system in

10  accordance with s. 121.091(13), but in the event the Deferred

11  Retirement Option Program participant should be employed by

12  any such employer within the next calendar month, or in

13  violation of the rehire provisions provided for in s.

14  121.091(9)(b)1.b., termination will be deemed not to have

15  occurred, except as provided in s. 121.091(13)(b)4.c. A leave

16  of absence shall constitute a continuation of the employment

17  relationship.

18         Section 2.  Paragraph (b) of subsection (9) of section

19  121.091, Florida Statutes, is amended to read:

20         121.091  Benefits payable under the system.--Benefits

21  may not be paid under this section unless the member has

22  terminated employment as provided in s. 121.021(39)(a) or

23  begun participation in the Deferred Retirement Option Program

24  as provided in subsection (13), and a proper application has

25  been filed in the manner prescribed by the department. The

26  department may cancel an application for retirement benefits

27  when the member or beneficiary fails to timely provide the

28  information and documents required by this chapter and the

29  department's rules. The department shall adopt rules

30  establishing procedures for application for retirement

31  

                                  2

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  benefits and for the cancellation of such application when the

 2  required information or documents are not received.

 3         (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--

 4         (b)1.a.  Any person who is retired under this chapter,

 5  except under the disability retirement provisions of

 6  subsection (4), may be reemployed by any private or public

 7  employer after retirement and receive retirement benefits and

 8  compensation from his or her employer without any limitations,

 9  except that a person may not receive both a salary from

10  reemployment with any agency participating in the Florida

11  Retirement System and retirement benefits under this chapter

12  for a period of 12 months immediately subsequent to the date

13  of retirement. However, a DROP participant shall continue

14  employment and receive a salary during the period of

15  participation in the Deferred Retirement Option Program, as

16  provided in subsection (13).

17         b.  Except as provided for in subparagraphs 3., 4., 5.,

18  6., and 11., and notwithstanding any other provisions in this

19  chapter to the contrary, a member may not be reemployed by the

20  same employing agency from which the member retired for a

21  period of 12 months immediately subsequent to the date of

22  retirement or, in the case of a DROP participant, for a period

23  of 12 months immediately subsequent to the date the

24  participant terminates employment in accordance with

25  subparagraph (13)(b)3. Any person who is reemployed in

26  violation of this sub-subparagraph shall void his or her

27  application for retirement benefits. Further, any person who

28  violates this sub-subparagraph and any employing agency which

29  knowingly employs or appoints such person in violation of this

30  sub-subparagraph shall be jointly and severally liable for

31  reimbursements to the retirement trust fund of any retirement

                                  3

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  benefits improperly paid during this reemployment limitation

 2  period. This provision shall not otherwise limit the

 3  employment or appointment opportunities for a person at any

 4  other employing agency. The limitations provided for in this

 5  sub-subparagraph shall not be applicable when a retiree is

 6  elected to an office or appointed by the Governor to an

 7  office.

 8         2.  Any person to whom the limitation in subparagraph

 9  1. applies who violates such reemployment limitation and who

10  is reemployed with any agency participating in the Florida

11  Retirement System before completion of the 12-month limitation

12  period shall give timely notice of this fact in writing to the

13  employer and to the division and shall have his or her

14  retirement benefits suspended for the balance of the 12-month

15  limitation period. Any person employed in violation of this

16  paragraph and any employing agency which knowingly employs or

17  appoints such person without notifying the Division of

18  Retirement to suspend retirement benefits shall be jointly and

19  severally liable for reimbursement to the retirement trust

20  fund of any benefits paid during the reemployment limitation

21  period. To avoid liability, such employing agency shall have a

22  written statement from the retiree that he or she is not

23  retired from a state-administered retirement system. Any

24  retirement benefits received while reemployed during this

25  reemployment limitation period shall be repaid to the

26  retirement trust fund, and retirement benefits shall remain

27  suspended until such repayment has been made. Benefits

28  suspended beyond the reemployment limitation shall apply

29  toward repayment of benefits received in violation of the

30  reemployment limitation.

31  

                                  4

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1         3.  A district school board may reemploy a retired

 2  member as a substitute or hourly teacher, education

 3  paraprofessional, transportation assistant, bus driver, or

 4  food service worker on a noncontractual basis after he or she

 5  has been retired for 1 calendar month, in accordance with s.

 6  121.021(39). A district school board may reemploy a retired

 7  member as instructional personnel, as defined in s.

 8  1012.01(2)(a), on an annual contractual basis after he or she

 9  has been retired for 1 calendar month, in accordance with s.

10  121.021(39). Any other retired member who is reemployed within

11  1 calendar month after retirement shall void his or her

12  application for retirement benefits. District school boards

13  reemploying such teachers, education paraprofessionals,

14  transportation assistants, bus drivers, or food service

15  workers are subject to the retirement contribution required by

16  subparagraph 7.

17         4.  A community college board of trustees may reemploy

18  a retired member as an adjunct instructor, that is, an

19  instructor who is noncontractual and part-time, or as a

20  participant in a phased retirement program within the Florida

21  Community College System, after he or she has been retired for

22  1 calendar month, in accordance with s. 121.021(39). Any

23  retired member who is reemployed within 1 calendar month after

24  retirement shall void his or her application for retirement

25  benefits. Boards of trustees reemploying such instructors are

26  subject to the retirement contribution required in

27  subparagraph 7. A retired member may be reemployed as an

28  adjunct instructor for no more than 780 hours during the first

29  12 months of retirement. Any retired member reemployed for

30  more than 780 hours during the first 12 months of retirement

31  shall give timely notice in writing to the employer and to the

                                  5

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  division of the date he or she will exceed the limitation. The

 2  division shall suspend his or her retirement benefits for the

 3  remainder of the first 12 months of retirement. Any person

 4  employed in violation of this subparagraph and any employing

 5  agency which knowingly employs or appoints such person without

 6  notifying the Division of Retirement to suspend retirement

 7  benefits shall be jointly and severally liable for

 8  reimbursement to the retirement trust fund of any benefits

 9  paid during the reemployment limitation period. To avoid

10  liability, such employing agency shall have a written

11  statement from the retiree that he or she is not retired from

12  a state-administered retirement system. Any retirement

13  benefits received by a retired member while reemployed in

14  excess of 780 hours during the first 12 months of retirement

15  shall be repaid to the Retirement System Trust Fund, and

16  retirement benefits shall remain suspended until repayment is

17  made. Benefits suspended beyond the end of the retired

18  member's first 12 months of retirement shall apply toward

19  repayment of benefits received in violation of the 780-hour

20  reemployment limitation.

21         5.  The State University System may reemploy a retired

22  member as an adjunct faculty member or as a participant in a

23  phased retirement program within the State University System

24  after the retired member has been retired for 1 calendar

25  month, in accordance with s. 121.021(39). Any retired member

26  who is reemployed within 1 calendar month after retirement

27  shall void his or her application for retirement benefits. The

28  State University System is subject to the retired contribution

29  required in subparagraph 7., as appropriate. A retired member

30  may be reemployed as an adjunct faculty member or a

31  participant in a phased retirement program for no more than

                                  6

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  780 hours during the first 12 months of his or her retirement.

 2  Any retired member reemployed for more than 780 hours during

 3  the first 12 months of retirement shall give timely notice in

 4  writing to the employer and to the division of the date he or

 5  she will exceed the limitation. The division shall suspend his

 6  or her retirement benefits for the remainder of the first 12

 7  months of retirement. Any person employed in violation of this

 8  subparagraph and any employing agency which knowingly employs

 9  or appoints such person without notifying the Division of

10  Retirement to suspend retirement benefits shall be jointly and

11  severally liable for reimbursement to the retirement trust

12  fund of any benefits paid during the reemployment limitation

13  period. To avoid liability, such employing agency shall have a

14  written statement from the retiree that he or she is not

15  retired from a state-administered retirement system. Any

16  retirement benefits received by a retired member while

17  reemployed in excess of 780 hours during the first 12 months

18  of retirement shall be repaid to the Retirement System Trust

19  Fund, and retirement benefits shall remain suspended until

20  repayment is made. Benefits suspended beyond the end of the

21  retired member's first 12 months of retirement shall apply

22  toward repayment of benefits received in violation of the

23  780-hour reemployment limitation.

24         6.  The Board of Trustees of the Florida School for the

25  Deaf and the Blind may reemploy a retired member as a

26  substitute teacher, substitute residential instructor, or

27  substitute nurse on a noncontractual basis after he or she has

28  been retired for 1 calendar month, in accordance with s.

29  121.021(39). Any retired member who is reemployed within 1

30  calendar month after retirement shall void his or her

31  application for retirement benefits. The Board of Trustees of

                                  7

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  the Florida School for the Deaf and the Blind reemploying such

 2  teachers, residential instructors, or nurses is subject to the

 3  retirement contribution required by subparagraph 7.

 4  Reemployment of a retired member as a substitute teacher,

 5  substitute residential instructor, or substitute nurse is

 6  limited to 780 hours during the first 12 months of his or her

 7  retirement. Any retired member reemployed for more than 780

 8  hours during the first 12 months of retirement shall give

 9  timely notice in writing to the employer and to the division

10  of the date he or she will exceed the limitation. The division

11  shall suspend his or her retirement benefits for the remainder

12  of the first 12 months of retirement. Any person employed in

13  violation of this subparagraph and any employing agency which

14  knowingly employs or appoints such person without notifying

15  the Division of Retirement to suspend retirement benefits

16  shall be jointly and severally liable for reimbursement to the

17  retirement trust fund of any benefits paid during the

18  reemployment limitation period. To avoid liability, such

19  employing agency shall have a written statement from the

20  retiree that he or she is not retired from a

21  state-administered retirement system. Any retirement benefits

22  received by a retired member while reemployed in excess of 780

23  hours during the first 12 months of retirement shall be repaid

24  to the Retirement System Trust Fund, and his or her retirement

25  benefits shall remain suspended until payment is made.

26  Benefits suspended beyond the end of the retired member's

27  first 12 months of retirement shall apply toward repayment of

28  benefits received in violation of the 780-hour reemployment

29  limitation.

30         7.  The employment by an employer of any retiree or

31  DROP participant of any state-administered retirement system

                                  8

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  shall have no effect on the average final compensation or

 2  years of creditable service of the retiree or DROP

 3  participant. Prior to July 1, 1991, upon employment of any

 4  person, other than an elected officer as provided in s.

 5  121.053, who has been retired under any state-administered

 6  retirement program, the employer shall pay retirement

 7  contributions in an amount equal to the unfunded actuarial

 8  liability portion of the employer contribution which would be

 9  required for regular members of the Florida Retirement System.

10  Effective July 1, 1991, contributions shall be made as

11  provided in s. 121.122 for retirees with renewed membership or

12  subsection (13) with respect to DROP participants.

13         8.  Any person who has previously retired and who is

14  holding an elective public office or an appointment to an

15  elective public office eligible for the Elected Officers'

16  Class on or after July 1, 1990, shall be enrolled in the

17  Florida Retirement System as provided in s. 121.053(1)(b) or,

18  if holding an elective public office that does not qualify for

19  the Elected Officers' Class on or after July 1, 1991, shall be

20  enrolled in the Florida Retirement System as provided in s.

21  121.122, and shall continue to receive retirement benefits as

22  well as compensation for the elected officer's service for as

23  long as he or she remains in elective office. However, any

24  retired member who served in an elective office prior to July

25  1, 1990, suspended his or her retirement benefit, and had his

26  or her Florida Retirement System membership reinstated shall,

27  upon retirement from such office, have his or her retirement

28  benefit recalculated to include the additional service and

29  compensation earned.

30         9.  Any person who is holding an elective public office

31  which is covered by the Florida Retirement System and who is

                                  9

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  concurrently employed in nonelected covered employment may

 2  elect to retire while continuing employment in the elective

 3  public office, provided that he or she shall be required to

 4  terminate his or her nonelected covered employment. Any person

 5  who exercises this election shall receive his or her

 6  retirement benefits in addition to the compensation of the

 7  elective office without regard to the time limitations

 8  otherwise provided in this subsection. No person who seeks to

 9  exercise the provisions of this subparagraph, as the same

10  existed prior to May 3, 1984, shall be deemed to be retired

11  under those provisions, unless such person is eligible to

12  retire under the provisions of this subparagraph, as amended

13  by chapter 84-11, Laws of Florida.

14         10.  The limitations of this paragraph apply to

15  reemployment in any capacity with an "employer" as defined in

16  s. 121.021(10), irrespective of the category of funds from

17  which the person is compensated.

18         11.  An employing agency may reemploy a retired member

19  as a firefighter or paramedic after the retired member has

20  been retired for 1 calendar month, in accordance with s.

21  121.021(39). Any retired member who is reemployed within 1

22  calendar month after retirement shall void his or her

23  application for retirement benefits. The employing agency

24  reemploying such firefighter or paramedic is subject to the

25  retired contribution required in subparagraph 8. Reemployment

26  of a retired firefighter or paramedic is limited to no more

27  than 780 hours during the first 12 months of his or her

28  retirement. Any retired member reemployed for more than 780

29  hours during the first 12 months of retirement shall give

30  timely notice in writing to the employer and to the division

31  of the date he or she will exceed the limitation. The division

                                  10

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  shall suspend his or her retirement benefits for the remainder

 2  of the first 12 months of retirement. Any person employed in

 3  violation of this subparagraph and any employing agency which

 4  knowingly employs or appoints such person without notifying

 5  the Division of Retirement to suspend retirement benefits

 6  shall be jointly and severally liable for reimbursement to the

 7  Retirement System Trust Fund of any benefits paid during the

 8  reemployment limitation period. To avoid liability, such

 9  employing agency shall have a written statement from the

10  retiree that he or she is not retired from a

11  state-administered retirement system. Any retirement benefits

12  received by a retired member while reemployed in excess of 780

13  hours during the first 12 months of retirement shall be repaid

14  to the Retirement System Trust Fund, and retirement benefits

15  shall remain suspended until repayment is made. Benefits

16  suspended beyond the end of the retired member's first 12

17  months of retirement shall apply toward repayment of benefits

18  received in violation of the 780-hour reemployment limitation.

19         Section 3.  Paragraph (a) of subsection (1) of section

20  121.591, Florida Statutes, is amended to read:

21         121.591  Benefits payable under the Public Employee

22  Optional Retirement Program of the Florida Retirement

23  System.--Benefits may not be paid under this section unless

24  the member has terminated employment as provided in s.

25  121.021(39)(a) or is deceased and a proper application has

26  been filed in the manner prescribed by the state board or the

27  department. The state board or department, as appropriate, may

28  cancel an application for retirement benefits when the member

29  or beneficiary fails to timely provide the information and

30  documents required by this chapter and the rules of the state

31  board and department. In accordance with their respective

                                  11

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  responsibilities as provided herein, the State Board of

 2  Administration and the Department of Management Services shall

 3  adopt rules establishing procedures for application for

 4  retirement benefits and for the cancellation of such

 5  application when the required information or documents are not

 6  received. The State Board of Administration and the Department

 7  of Management Services, as appropriate, are authorized to cash

 8  out a de minimis account of a participant who has been

 9  terminated from Florida Retirement System covered employment

10  for a minimum of 6 calendar months. A de minimis account is an

11  account containing employer contributions and accumulated

12  earnings of not more than $5,000 made under the provisions of

13  this chapter. Such cash-out must either be a complete lump-sum

14  liquidation of the account balance, subject to the provisions

15  of the Internal Revenue Code, or a lump-sum direct rollover

16  distribution paid directly to the custodian of an eligible

17  retirement plan, as defined by the Internal Revenue Code, on

18  behalf of the participant. If any financial instrument issued

19  for the payment of retirement benefits under this section is

20  not presented for payment within 180 days after the last day

21  of the month in which it was originally issued, the

22  third-party administrator or other duly authorized agent of

23  the State Board of Administration shall cancel the instrument

24  and credit the amount of the instrument to the suspense

25  account of the Public Employee Optional Retirement Program

26  Trust Fund authorized under s. 121.4501(6). Any such amounts

27  transferred to the suspense account are payable upon a proper

28  application, not to include earnings thereon, as provided in

29  this section, within 10 years after the last day of the month

30  in which the instrument was originally issued, after which

31  time such amounts and any earnings thereon shall be forfeited.

                                  12

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  Any such forfeited amounts are assets of the Public Employee

 2  Optional Retirement Program Trust Fund and are not subject to

 3  the provisions of chapter 717.

 4         (1)  NORMAL BENEFITS.--Under the Public Employee

 5  Optional Retirement Program:

 6         (a)  Benefits in the form of vested accumulations as

 7  described in s. 121.4501(6) shall be payable under this

 8  subsection in accordance with the following terms and

 9  conditions:

10         1.  To the extent vested, benefits shall be payable

11  only to a participant.

12         2.  Benefits shall be paid by the third-party

13  administrator or designated approved providers in accordance

14  with the law, the contracts, and any applicable board rule or

15  policy.

16         3.  To receive benefits under this subsection, the

17  participant must be terminated from all employment with all

18  Florida Retirement System employers, as provided in s.

19  121.021(39).

20         4.  Benefit payments may not be made until the

21  participant has been terminated for 3 calendar months, except

22  that the board may authorize by rule for the distribution of

23  up to 10 percent of the participant's account after being

24  terminated for 1 calendar month if a participant has reached

25  the normal retirement requirements of the defined benefit

26  plan, as provided in s. 121.021(29).

27         5.  If a member or former member of the Florida

28  Retirement System receives an invalid distribution from the

29  Public Employee Optional Retirement Program Trust Fund, such

30  person shall repay the full invalid distribution to the trust

31  fund within 90 days after receipt of final notification by the

                                  13

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






    Florida Senate - 2007                                  SB 1948
    24-1113-07                                              See HB




 1  State Board of Administration or the third-party administrator

 2  that the distribution was invalid. If such person fails to

 3  repay the full invalid distribution within 90 days after

 4  receipt of final notification, the person may be deemed

 5  retired from the Public Employee Optional Retirement Program

 6  by the state board, as provided pursuant to s. 121.4501(2)(j),

 7  and shall be subject to the provisions of s. 121.122. If such

 8  person is deemed retired by the state board, any joint and

 9  several liability set out in s. 121.091(9)(c)2. becomes null

10  and void, and the state board, the Department of Management

11  Services, or the employing agency is not liable for gains on

12  payroll contributions that have not been deposited to the

13  person's account in the Public Employee Optional Retirement

14  Program, pending resolution of the invalid distribution. The

15  member or former member who has been deemed retired or who has

16  been determined by the board to have taken an invalid

17  distribution may appeal the agency decision through the

18  complaint process as provided under s. 121.4501(9)(f)3. As

19  used in this subparagraph, the term "invalid distribution"

20  means any distribution from an account in the Public Employee

21  Optional Retirement Program which is taken in violation of the

22  provisions of this section, s. 121.091(9), or s. 121.4501.

23  Further, violation of the rehire provisions provided for in s.

24  121.091(9)(b)1.b. shall be deemed an invalid distribution and

25  the penalties provided for in this section shall apply.

26         Section 4.  This act shall take effect July 1, 2007.

27  

28  

29  

30  

31  

                                  14

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