CS/HB 133

1
A bill to be entitled
2An act relating to retirement; providing legislative
3intent; providing a statement of important state interest;
4amending s. 121.091, F.S.; revising provisions relating to
5benefits payable for total and permanent disability for
6certain Special Risk Class members of the Florida
7Retirement System who are injured in the line of duty;
8authorizing reemployment of a person who retired with in-
9line-of-duty disability benefits by employers not
10participating in a state-administered retirement system;
11authorizing reemployment of a person who retired with in-
12line-of-duty disability benefits by an employer
13participating in a state-administered retirement system
14after 1 calendar month; providing for contribution rate
15increases to fund benefits provided in s. 121.091, F.S.,
16as amended; directing the Division of Statutory Revision
17to adjust contribution rates set forth in s. 121.71, F.S.;
18requiring the Division of Retirement to request a letter
19ruling from the Internal Revenue Service; providing for
20certain contingent effect; providing effective dates.
21
22Be It Enacted by the Legislature of the State of Florida:
23
24     Section 1.  It is declared by the Legislature that
25firefighters, emergency medical technicians, paramedics, law
26enforcement officers, correctional officers, and correctional
27probation officers, as described in this act, perform state and
28municipal functions; that it is their duty to protect life and
29property at their own risk and peril; that it is their duty to
30continuously instruct school personnel, public officials, and
31private citizens about safety; and that their activities are
32vital to the public safety. Therefore, the Legislature declares
33that it is a proper and legitimate state purpose to provide a
34uniform retirement system for the benefit of firefighters,
35emergency medical technicians, paramedics, law enforcement
36officers, correctional officers, and correctional probation
37officers, as defined in this act, and intends, in implementing
38the provisions of s. 14, Art. X of the State Constitution as
39they relate to municipal and special district pension trust fund
40systems and plans, that such retirement systems or plans be
41managed, administered, operated, and funded in such manner as to
42maximize the protection of pension trust funds. Pursuant to s.
4318, Art. VII of the State Constitution, the Legislature hereby
44determines and declares that the provisions of this act fulfill
45an important state interest.
46     Section 2.  Paragraph (b) of subsection (4) and subsection
47(9) of section 121.091, Florida Statutes, are amended to read:
48     121.091  Benefits payable under the system.--Benefits may
49not be paid under this section unless the member has terminated
50employment as provided in s. 121.021(39)(a) or begun
51participation in the Deferred Retirement Option Program as
52provided in subsection (13), and a proper application has been
53filed in the manner prescribed by the department. The department
54may cancel an application for retirement benefits when the
55member or beneficiary fails to timely provide the information
56and documents required by this chapter and the department's
57rules. The department shall adopt rules establishing procedures
58for application for retirement benefits and for the cancellation
59of such application when the required information or documents
60are not received.
61     (4)  DISABILITY RETIREMENT BENEFIT.--
62     (b)  Total and permanent disability.--
63     1.  Except as provided in subparagraph 2., a member shall
64be considered totally and permanently disabled if, in the
65opinion of the administrator, he or she is prevented, by reason
66of a medically determinable physical or mental impairment, from
67rendering useful and efficient service as an officer or
68employee.
69     2.  A member of the Special Risk Class who is a law
70enforcement officer, firefighter, correctional officer,
71emergency medical technician, or paramedic as described in s.
72121.021(15)(c) or a community-based correctional probation
73officer as described in s. 121.021(15)(d)1. shall be considered
74totally and permanently disabled in the line of duty if he or
75she is prevented, by reason of a medically determinable physical
76or mental impairment caused by a job-related injury, from
77performing useful and efficient service in the position held,
78unless the administrator can provide competent medical evidence
79to the contrary.
80     (9)  EMPLOYMENT AFTER RETIREMENT; LIMITATION.--
81     (a)1.  Except as provided in subparagraph 2., any person
82who is retired under this chapter, except under the disability
83retirement provisions of subsection (4), may be employed by an
84employer that does not participate in a state-administered
85retirement system and may receive compensation from that
86employment without limiting or restricting in any way the
87retirement benefits payable to that person.
88     2.  Any member of the Special Risk Class who retired under
89the disability retirement provisions of subparagraph (4)(b)2.
90may be reemployed by any employer not participating in a state-
91administered retirement system in any position other than the
92position in which he or she was employed at the time of the
93disabling illness or injury and may receive compensation from
94that employment without limiting or restricting in any way the
95disability benefits payable to that person under the Florida
96Retirement System.
97     (b)1.a.  Except as provided in sub-subparagraph b., any
98person who is retired under this chapter, except under the
99disability retirement provisions of subsection (4), may be
100reemployed by any private or public employer after retirement
101and receive retirement benefits and compensation from his or her
102employer without any limitations, except that a person may not
103receive both a salary from reemployment with any agency
104participating in the Florida Retirement System and retirement
105benefits under this chapter for a period of 12 months
106immediately subsequent to the date of retirement. However, a
107DROP participant shall continue employment and receive a salary
108during the period of participation in the Deferred Retirement
109Option Program, as provided in subsection (13).
110     b.  Any member of the Special Risk Class who retired under
111the disability retirement provisions of subparagraph (4)(b)2.
112may be reemployed by any employer participating in a state-
113administered retirement system after having been retired for 1
114calendar month, in accordance with s. 121.021(39). After 1
115calendar month of retirement, any such retired member may be
116reemployed in any position other than the one in which he or she
117was employed at the time of disability retirement, may be
118reemployed in any position other than a position that is
119included in the Special Risk Class, and may receive compensation
120from that employment without limiting or restricting in any way
121the retirement benefits payable to that person under this
122chapter. Any retired member who is reemployed within 1 calendar
123month after retirement shall void his or her application for
124retirement benefits. Any retired member who is reemployed in a
125Special Risk Class position must terminate his or her disability
126retirement benefit effective the first day of the first month of
127reemployment in that position.
128     2.  Any person to whom the limitation in subparagraph 1.
129applies who violates such reemployment limitation and who is
130reemployed with any agency participating in the Florida
131Retirement System before completion of the 12-month limitation
132period shall give timely notice of this fact in writing to the
133employer and to the division and shall have his or her
134retirement benefits suspended for the balance of the 12-month
135limitation period. Any person employed in violation of this
136paragraph and any employing agency which knowingly employs or
137appoints such person without notifying the Division of
138Retirement to suspend retirement benefits shall be jointly and
139severally liable for reimbursement to the retirement trust fund
140of any benefits paid during the reemployment limitation period.
141To avoid liability, such employing agency shall have a written
142statement from the retiree that he or she is not retired from a
143state-administered retirement system. Any retirement benefits
144received while reemployed during this reemployment limitation
145period shall be repaid to the retirement trust fund, and
146retirement benefits shall remain suspended until such repayment
147has been made. Benefits suspended beyond the reemployment
148limitation shall apply toward repayment of benefits received in
149violation of the reemployment limitation.
150     3.  A district school board may reemploy a retired member
151as a substitute or hourly teacher, education paraprofessional,
152transportation assistant, bus driver, or food service worker on
153a noncontractual basis after he or she has been retired for 1
154calendar month, in accordance with s. 121.021(39). A district
155school board may reemploy a retired member as instructional
156personnel, as defined in s. 1012.01(2)(a), on an annual
157contractual basis after he or she has been retired for 1
158calendar month, in accordance with s. 121.021(39). Any other
159retired member who is reemployed within 1 calendar month after
160retirement shall void his or her application for retirement
161benefits. District school boards reemploying such teachers,
162education paraprofessionals, transportation assistants, bus
163drivers, or food service workers are subject to the retirement
164contribution required by subparagraph 7.
165     4.  A community college board of trustees may reemploy a
166retired member as an adjunct instructor, that is, an instructor
167who is noncontractual and part-time, or as a participant in a
168phased retirement program within the Florida Community College
169System, after he or she has been retired for 1 calendar month,
170in accordance with s. 121.021(39). Any retired member who is
171reemployed within 1 calendar month after retirement shall void
172his or her application for retirement benefits. Boards of
173trustees reemploying such instructors are subject to the
174retirement contribution required in subparagraph 7. A retired
175member may be reemployed as an adjunct instructor for no more
176than 780 hours during the first 12 months of retirement. Any
177retired member reemployed for more than 780 hours during the
178first 12 months of retirement shall give timely notice in
179writing to the employer and to the division of the date he or
180she will exceed the limitation. The division shall suspend his
181or her retirement benefits for the remainder of the first 12
182months of retirement. Any person employed in violation of this
183subparagraph and any employing agency which knowingly employs or
184appoints such person without notifying the Division of
185Retirement to suspend retirement benefits shall be jointly and
186severally liable for reimbursement to the retirement trust fund
187of any benefits paid during the reemployment limitation period.
188To avoid liability, such employing agency shall have a written
189statement from the retiree that he or she is not retired from a
190state-administered retirement system. Any retirement benefits
191received by a retired member while reemployed in excess of 780
192hours during the first 12 months of retirement shall be repaid
193to the Retirement System Trust Fund, and retirement benefits
194shall remain suspended until repayment is made. Benefits
195suspended beyond the end of the retired member's first 12 months
196of retirement shall apply toward repayment of benefits received
197in violation of the 780-hour reemployment limitation.
198     5.  The State University System may reemploy a retired
199member as an adjunct faculty member or as a participant in a
200phased retirement program within the State University System
201after the retired member has been retired for 1 calendar month,
202in accordance with s. 121.021(39). Any retired member who is
203reemployed within 1 calendar month after retirement shall void
204his or her application for retirement benefits. The State
205University System is subject to the retirement retired
206contribution required in subparagraph 7., as appropriate. A
207retired member may be reemployed as an adjunct faculty member or
208a participant in a phased retirement program for no more than
209780 hours during the first 12 months of his or her retirement.
210Any retired member reemployed for more than 780 hours during the
211first 12 months of retirement shall give timely notice in
212writing to the employer and to the division of the date he or
213she will exceed the limitation. The division shall suspend his
214or her retirement benefits for the remainder of the first 12
215months of retirement. Any person employed in violation of this
216subparagraph and any employing agency which knowingly employs or
217appoints such person without notifying the Division of
218Retirement to suspend retirement benefits shall be jointly and
219severally liable for reimbursement to the retirement trust fund
220of any benefits paid during the reemployment limitation period.
221To avoid liability, such employing agency shall have a written
222statement from the retiree that he or she is not retired from a
223state-administered retirement system. Any retirement benefits
224received by a retired member while reemployed in excess of 780
225hours during the first 12 months of retirement shall be repaid
226to the Retirement System Trust Fund, and retirement benefits
227shall remain suspended until repayment is made. Benefits
228suspended beyond the end of the retired member's first 12 months
229of retirement shall apply toward repayment of benefits received
230in violation of the 780-hour reemployment limitation.
231     6.  The Board of Trustees of the Florida School for the
232Deaf and the Blind may reemploy a retired member as a substitute
233teacher, substitute residential instructor, or substitute nurse
234on a noncontractual basis after he or she has been retired for 1
235calendar month, in accordance with s. 121.021(39). Any retired
236member who is reemployed within 1 calendar month after
237retirement shall void his or her application for retirement
238benefits. The Board of Trustees of the Florida School for the
239Deaf and the Blind reemploying such teachers, residential
240instructors, or nurses is subject to the retirement contribution
241required by subparagraph 7. Reemployment of a retired member as
242a substitute teacher, substitute residential instructor, or
243substitute nurse is limited to 780 hours during the first 12
244months of his or her retirement. Any retired member reemployed
245for more than 780 hours during the first 12 months of retirement
246shall give timely notice in writing to the employer and to the
247division of the date he or she will exceed the limitation. The
248division shall suspend his or her retirement benefits for the
249remainder of the first 12 months of retirement. Any person
250employed in violation of this subparagraph and any employing
251agency which knowingly employs or appoints such person without
252notifying the Division of Retirement to suspend retirement
253benefits shall be jointly and severally liable for reimbursement
254to the retirement trust fund of any benefits paid during the
255reemployment limitation period. To avoid liability, such
256employing agency shall have a written statement from the retiree
257that he or she is not retired from a state-administered
258retirement system. Any retirement benefits received by a retired
259member while reemployed in excess of 780 hours during the first
26012 months of retirement shall be repaid to the Retirement System
261Trust Fund, and his or her retirement benefits shall remain
262suspended until payment is made. Benefits suspended beyond the
263end of the retired member's first 12 months of retirement shall
264apply toward repayment of benefits received in violation of the
265780-hour reemployment limitation.
266     7.  The employment by an employer of any retiree or DROP
267participant of any state-administered retirement system shall
268have no effect on the average final compensation or years of
269creditable service of the retiree or DROP participant. Prior to
270July 1, 1991, upon employment of any person, other than an
271elected officer as provided in s. 121.053, who has been retired
272under any state-administered retirement program, the employer
273shall pay retirement contributions in an amount equal to the
274unfunded actuarial liability portion of the employer
275contribution which would be required for regular members of the
276Florida Retirement System. Effective July 1, 1991, contributions
277shall be made as provided in s. 121.122 for retirees with
278renewed membership or subsection (13) with respect to DROP
279participants.
280     8.  Any person who has previously retired and who is
281holding an elective public office or an appointment to an
282elective public office eligible for the Elected Officers' Class
283on or after July 1, 1990, shall be enrolled in the Florida
284Retirement System as provided in s. 121.053(1)(b) or, if holding
285an elective public office that does not qualify for the Elected
286Officers' Class on or after July 1, 1991, shall be enrolled in
287the Florida Retirement System as provided in s. 121.122, and
288shall continue to receive retirement benefits as well as
289compensation for the elected officer's service for as long as he
290or she remains in elective office. However, any retired member
291who served in an elective office prior to July 1, 1990,
292suspended his or her retirement benefit, and had his or her
293Florida Retirement System membership reinstated shall, upon
294retirement from such office, have his or her retirement benefit
295recalculated to include the additional service and compensation
296earned.
297     9.  Any person who is holding an elective public office
298which is covered by the Florida Retirement System and who is
299concurrently employed in nonelected covered employment may elect
300to retire while continuing employment in the elective public
301office, provided that he or she shall be required to terminate
302his or her nonelected covered employment. Any person who
303exercises this election shall receive his or her retirement
304benefits in addition to the compensation of the elective office
305without regard to the time limitations otherwise provided in
306this subsection. No person who seeks to exercise the provisions
307of this subparagraph, as the same existed prior to May 3, 1984,
308shall be deemed to be retired under those provisions, unless
309such person is eligible to retire under the provisions of this
310subparagraph, as amended by chapter 84-11, Laws of Florida.
311     10.  The limitations of this paragraph apply to
312reemployment in any capacity with an "employer" as defined in s.
313121.021(10), irrespective of the category of funds from which
314the person is compensated.
315     11.  Except as provided in subparagraph 12., an employing
316agency may reemploy a retired member as a firefighter or
317paramedic after the retired member has been retired for 1
318calendar month, in accordance with s. 121.021(39). Any retired
319member who is reemployed within 1 calendar month after
320retirement shall void his or her application for retirement
321benefits. The employing agency reemploying such firefighter or
322paramedic is subject to the retirement retired contribution
323required in subparagraph 7. 8. Reemployment of a retired
324firefighter or paramedic is limited to no more than 780 hours
325during the first 12 months of his or her retirement. Any retired
326member reemployed for more than 780 hours during the first 12
327months of retirement shall give timely notice in writing to the
328employer and to the division of the date he or she will exceed
329the limitation. The division shall suspend his or her retirement
330benefits for the remainder of the first 12 months of retirement.
331Any person employed in violation of this subparagraph and any
332employing agency which knowingly employs or appoints such person
333without notifying the Division of Retirement to suspend
334retirement benefits shall be jointly and severally liable for
335reimbursement to the Retirement System Trust Fund of any
336benefits paid during the reemployment limitation period. To
337avoid liability, such employing agency shall have a written
338statement from the retiree that he or she is not retired from a
339state-administered retirement system. Any retirement benefits
340received by a retired member while reemployed in excess of 780
341hours during the first 12 months of retirement shall be repaid
342to the Retirement System Trust Fund, and retirement benefits
343shall remain suspended until repayment is made. Benefits
344suspended beyond the end of the retired member's first 12 months
345of retirement shall apply toward repayment of benefits received
346in violation of the 780-hour reemployment limitation.
347     12.a.  An employing agency may reemploy a retired member
348who retired under the disability provisions of subparagraph
349(4)(b)2. as a law enforcement officer, firefighter, correctional
350officer, emergency medical technician, paramedic, or community-
351based correctional probation officer after the retired member
352has been retired for 1 calendar month, in accordance with s.
353121.021(39).
354     b.  Such retired member may not be reemployed with any
355employer in the position he or she held at the time of the
356disabling illness or injury and may not be reemployed in a
357position that is included in the Special Risk Class.
358     c.  Any retired member who is reemployed within 1 calendar
359month after retirement shall void his or her application for
360retirement benefits. Any retired member who is reemployed in a
361Special Risk Class position must terminate his or her disability
362retirement benefit effective the first day of the first month of
363reemployment in that position.
364     d.  The employing agency reemploying such a member is
365subject to the retirement contribution required in subparagraph
3667.
367     (c)  The provisions of this subsection apply to retirees,
368as defined in s. 121.4501(2)(j), of the Public Employee Optional
369Retirement Program created in part II, subject to the following
370conditions:
371     1.  Such retirees may not be reemployed with an employer
372participating in the Florida Retirement System as provided in
373paragraph (b) until such person has been retired for 3 calendar
374months, unless the participant has reached the normal retirement
375requirements of the defined benefit plan as provided in s.
376121.021(29).
377     2.  Such retiree employed in violation of this subsection
378and any employing agency that knowingly employs or appoints such
379person shall be jointly and severally liable for reimbursement
380of any benefits paid to the retirement trust fund from which the
381benefits were paid, including the Retirement System Trust Fund
382and the Public Employee Optional Retirement Program Trust Fund,
383as appropriate. To avoid liability, such employing agency must
384have a written statement from the retiree that he or she is not
385retired from a state-administered retirement system.
386     Section 3.  Effective July 1, 2007, in order to fund the
387benefit improvements provided in s. 121.091, Florida Statutes,
388as amended by this act, the contribution rate that applies to
389the Special Risk Class of the defined benefit program of the
390Florida Retirement System shall be increased by 0.31 percentage
391points. This increase shall be in addition to all other changes
392to such contribution rates which may be enacted into law to take
393effect on that date. The Division of Statutory Revision is
394directed to adjust accordingly the contribution rates set forth
395in s. 121.71, Florida Statutes.
396     Section 4.  The Division of Retirement within the
397Department of Management Services shall request from the
398Internal Revenue Service, by October 1, 2007, a letter ruling
399regarding the provisions of section 2 of this act.
400     Section 5.  This act shall take effect July 1, 2007, except
401that section 2 shall take effect upon the receipt of a favorable
402letter ruling from the Internal Revenue Service.


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