Florida Senate - 2015                        COMMITTEE AMENDMENT
       Bill No. CS for SB 838
       
       
       
       
       
       
                                Ì233778UÎ233778                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/31/2015           .                                
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       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