| 1 | A bill to be entitled |
| 2 | An act relating to retirement; amending s. 112.625, F.S.; |
| 3 | revising the definition of the term "statement value"; |
| 4 | amending s. 112.64, F.S.; providing limitations for the |
| 5 | total contributions made to certain retirement systems or |
| 6 | plans; prohibiting certain retirement systems or plans |
| 7 | from amortizing their unfunded liabilities over a |
| 8 | specified period; limiting the amortization bases created |
| 9 | in specified future plan years; providing disclosure |
| 10 | requirements; amending s. 121.053, F.S.; requiring |
| 11 | employers to make specified retirement contributions on |
| 12 | behalf of certain employees in the Elected Officers' |
| 13 | Class, including those in DROP; providing exceptions; |
| 14 | amending s. 121.055, F.S.; requiring employers to make |
| 15 | specified retirement contributions on behalf of certain |
| 16 | employees who have withdrawn from the Senior Management |
| 17 | Service Class; providing an exception; amending s. |
| 18 | 121.122, F.S.; requiring employers to make specified |
| 19 | retirement contributions on behalf of certain reemployed |
| 20 | retirees; providing an exception; amending ss. 112.05, |
| 21 | 121.051, 121.091, 121.35, and 1012.875, F.S.; providing |
| 22 | exceptions to required employer contributions on behalf of |
| 23 | certain program participants in conformance with changes |
| 24 | made by this act; providing a declaration of important |
| 25 | state interest; providing an effective date. |
| 26 |
|
| 27 | Be It Enacted by the Legislature of the State of Florida: |
| 28 |
|
| 29 | Section 1. Paragraph (c) of subsection (4) of section |
| 30 | 112.05, Florida Statutes, is amended to read: |
| 31 | 112.05 Retirement; cost-of-living adjustment; employment |
| 32 | after retirement.- |
| 33 | (4) |
| 34 | (c) An employer, upon employment of any person who has |
| 35 | been retired under a state-administered retirement program, |
| 36 | shall pay retirement contributions in an amount equal to the |
| 37 | unfunded actuarial accrued liability portion of the employer |
| 38 | contribution which would be required for a regular member of the |
| 39 | Florida Retirement System, except as provided in s. |
| 40 | 112.64(2)(b). |
| 41 | Section 2. Subsection (7) of section 112.625, Florida |
| 42 | Statutes, is amended to read: |
| 43 | 112.625 Definitions.-As used in this act: |
| 44 | (7) "Statement value" means the value of assets in |
| 45 | accordance with s. 302(c)(2) of the Employee Retirement Income |
| 46 | Security Act of 1974 and as permitted under regulations |
| 47 | prescribed by the Secretary of the Treasury as amended by Pub. |
| 48 | L. No. 100-203, as such sections are in effect on August 16, |
| 49 | 2006. Assets for which a fair market value is not provided shall |
| 50 | be excluded from the assets used in the determination of annual |
| 51 | funding cost. For fiscal years ending in 2010, 2011, and 2012, |
| 52 | statement value may be determined without regard to the corridor |
| 53 | limit above and below the fair market value of assets. Any |
| 54 | retirement system or plan that makes a determination of its |
| 55 | statement value without regard to the corridor limit above and |
| 56 | below the fair market value of assets must disclose this option |
| 57 | of funding in its actuarial valuation for affected plan years. |
| 58 | Section 3. Subsections (2) and (3) of section 112.64, |
| 59 | Florida Statutes, are amended to read: |
| 60 | 112.64 Administration of funds; amortization of unfunded |
| 61 | liability.- |
| 62 | (2)(a) From and after October 1, 1980, for those plans in |
| 63 | existence on October 1, 1980, the total contributions to the |
| 64 | retirement system or plan shall be sufficient to meet the normal |
| 65 | cost of the retirement system or plan and to amortize the |
| 66 | unfunded liability, if any, within 40 years; however, nothing |
| 67 | contained in this paragraph does not permit subsection permits |
| 68 | any retirement system or plan to amortize its unfunded |
| 69 | liabilities over a period longer than that which remains under |
| 70 | its current amortization schedule. |
| 71 | (b) Notwithstanding paragraph (a), for retirement systems |
| 72 | or plans with an actuarial funded ratio of 90 percent or greater |
| 73 | in the plan year ending in calendar year 2008, calculated using |
| 74 | the Governmental Accounting Standards Board Statement 25 basis, |
| 75 | the provisions of subparagraph 1. may be applied to funding for |
| 76 | plan years beginning in calendar years 2010, 2011, and 2012: |
| 77 | 1. Total contributions to the retirement system or plan |
| 78 | may be limited to the greater of: |
| 79 | a. The contribution rate in effect for the previous plan |
| 80 | year; or |
| 81 | b. The normal cost of the retirement system or plan in the |
| 82 | current plan year. |
| 83 | 2. This paragraph does not permit any retirement system or |
| 84 | plan to amortize its unfunded liabilities over a period longer |
| 85 | than that which remains under its existing amortization |
| 86 | schedules. New amortization bases created in plan years |
| 87 | beginning in calendar years 2010, 2011, and 2012 may not exceed |
| 88 | the maximum duration allowed in this section, notwithstanding |
| 89 | any postponed amortization payments resulting from the |
| 90 | application of this paragraph. |
| 91 | 3. Any retirement system or plan that uses the provisions |
| 92 | of subparagraph 1. must disclose this option of funding in its |
| 93 | actuarial valuation for affected plan years beginning in |
| 94 | calendar years 2010, 2011, and 2012. |
| 95 | (3)(a) For a retirement system or plan which comes into |
| 96 | existence after October 1, 1980, the unfunded liability, if any, |
| 97 | shall be amortized within 40 years of the first plan year. |
| 98 | (b) Notwithstanding paragraph (a), for retirement systems |
| 99 | or plans with an actuarial funded ratio of 90 percent or greater |
| 100 | in the plan year ending in calendar year 2008, calculated using |
| 101 | the Governmental Accounting Standards Board Statement 25 basis, |
| 102 | the provisions of subparagraph 1. may be applied to funding for |
| 103 | plan years beginning in calendar years 2010, 2011, and 2012: |
| 104 | 1. Total contributions to the retirement system or plan |
| 105 | may be limited to the greater of: |
| 106 | a. The contribution rate in effect for the previous plan |
| 107 | year; or |
| 108 | b. The normal cost of the retirement system or plan in the |
| 109 | current plan year. |
| 110 | 2. This paragraph does not permit any retirement system or |
| 111 | plan to amortize its unfunded liabilities over a period longer |
| 112 | than that which remains under its existing amortization |
| 113 | schedules. New amortization bases created in plan years |
| 114 | beginning in calendar years 2010, 2011, and 2012 may not exceed |
| 115 | the maximum duration allowed in this section, notwithstanding |
| 116 | any postponed amortization payments resulting from the |
| 117 | application of this paragraph. |
| 118 | 3. Any retirement system or plan that uses the provisions |
| 119 | of subparagraph 1. must disclose this option of funding in its |
| 120 | actuarial valuation for affected plan years beginning in |
| 121 | calendar years 2010, 2011, and 2012. |
| 122 | Section 4. Paragraph (c) of subsection (2) of section |
| 123 | 121.051, Florida Statutes, is amended to read: |
| 124 | 121.051 Participation in the system.- |
| 125 | (2) OPTIONAL PARTICIPATION.- |
| 126 | (c) Employees of public community colleges or charter |
| 127 | technical career centers sponsored by public community colleges, |
| 128 | designated in s. 1000.21(3), who are members of the Regular |
| 129 | Class of the Florida Retirement System and who comply with the |
| 130 | criteria set forth in this paragraph and s. 1012.875 may, in |
| 131 | lieu of participating in the Florida Retirement System, elect to |
| 132 | withdraw from the system altogether and participate in the State |
| 133 | Community College System Optional Retirement Program provided by |
| 134 | the employing agency under s. 1012.875. |
| 135 | 1. Through June 30, 2001, the cost to the employer for |
| 136 | such annuity equals the normal cost portion of the employer |
| 137 | retirement contribution which would be required if the employee |
| 138 | were a member of the Regular Class defined benefit program, plus |
| 139 | the portion of the contribution rate required by s. 112.363(8) |
| 140 | which would otherwise be assigned to the Retiree Health |
| 141 | Insurance Subsidy Trust Fund. Effective July 1, 2001, each |
| 142 | employer shall contribute on behalf of each participant in the |
| 143 | optional program an amount equal to 10.43 percent of the |
| 144 | participant's gross monthly compensation. The employer shall |
| 145 | deduct an amount for the administration of the program. The |
| 146 | employer shall contribute an additional amount to the Florida |
| 147 | Retirement System Trust Fund equal to the unfunded actuarial |
| 148 | accrued liability portion of the Regular Class contribution |
| 149 | rate, except as provided in s. 112.64(2)(b). |
| 150 | 2. The decision to participate in an optional retirement |
| 151 | program is irrevocable as long as the employee holds a position |
| 152 | eligible for participation, except as provided in subparagraph |
| 153 | 3. Any service creditable under the Florida Retirement System is |
| 154 | retained after the member withdraws from the system; however, |
| 155 | additional service credit in the system may not be earned while |
| 156 | a member of the optional retirement program. |
| 157 | 3. An employee who has elected to participate in the |
| 158 | optional retirement program shall have one opportunity, at the |
| 159 | employee's discretion, to transfer from the optional retirement |
| 160 | program to the defined benefit program of the Florida Retirement |
| 161 | System or to the Public Employee Optional Retirement Program, |
| 162 | subject to the terms of the applicable optional retirement |
| 163 | program contracts. |
| 164 | a. If the employee chooses to move to the Public Employee |
| 165 | Optional Retirement Program, any contributions, interest, and |
| 166 | earnings creditable to the employee under the State Community |
| 167 | College System Optional Retirement Program are retained by the |
| 168 | employee in the State Community College System Optional |
| 169 | Retirement Program, and the applicable provisions of s. |
| 170 | 121.4501(4) govern the election. |
| 171 | b. If the employee chooses to move to the defined benefit |
| 172 | program of the Florida Retirement System, the employee shall |
| 173 | receive service credit equal to his or her years of service |
| 174 | under the State Community College System Optional Retirement |
| 175 | Program. |
| 176 | (I) The cost for such credit is the amount representing |
| 177 | the present value of the employee's accumulated benefit |
| 178 | obligation for the affected period of service. The cost shall be |
| 179 | calculated as if the benefit commencement occurs on the first |
| 180 | date the employee becomes eligible for unreduced benefits, using |
| 181 | the discount rate and other relevant actuarial assumptions that |
| 182 | were used to value the Florida Retirement System defined benefit |
| 183 | plan liabilities in the most recent actuarial valuation. The |
| 184 | calculation must include any service already maintained under |
| 185 | the defined benefit plan in addition to the years under the |
| 186 | State Community College System Optional Retirement Program. The |
| 187 | present value of any service already maintained must be applied |
| 188 | as a credit to total cost resulting from the calculation. The |
| 189 | division shall ensure that the transfer sum is prepared using a |
| 190 | formula and methodology certified by an enrolled actuary. |
| 191 | (II) The employee must transfer from his or her State |
| 192 | Community College System Optional Retirement Program account and |
| 193 | from other employee moneys as necessary, a sum representing the |
| 194 | present value of the employee's accumulated benefit obligation |
| 195 | immediately following the time of such movement, determined |
| 196 | assuming that attained service equals the sum of service in the |
| 197 | defined benefit program and service in the State Community |
| 198 | College System Optional Retirement Program. |
| 199 | 4. Participation in the optional retirement program is |
| 200 | limited to employees who satisfy the following eligibility |
| 201 | criteria: |
| 202 | a. The employee must be otherwise eligible for membership |
| 203 | or renewed membership in the Regular Class of the Florida |
| 204 | Retirement System, as provided in s. 121.021(11) and (12) or s. |
| 205 | 121.122. |
| 206 | b. The employee must be employed in a full-time position |
| 207 | classified in the Accounting Manual for Florida's Public |
| 208 | Community Colleges as: |
| 209 | (I) Instructional; or |
| 210 | (II) Executive Management, Instructional Management, or |
| 211 | Institutional Management, if a community college determines that |
| 212 | recruiting to fill a vacancy in the position is to be conducted |
| 213 | in the national or regional market, and the duties and |
| 214 | responsibilities of the position include the formulation, |
| 215 | interpretation, or implementation of policies, or the |
| 216 | performance of functions that are unique or specialized within |
| 217 | higher education and that frequently support the mission of the |
| 218 | community college. |
| 219 | c. The employee must be employed in a position not |
| 220 | included in the Senior Management Service Class of the Florida |
| 221 | Retirement System, as described in s. 121.055. |
| 222 | 5. Participants in the program are subject to the same |
| 223 | reemployment limitations, renewed membership provisions, and |
| 224 | forfeiture provisions as are applicable to regular members of |
| 225 | the Florida Retirement System under ss. 121.091(9), 121.122, and |
| 226 | 121.091(5), respectively. A participant who receives a program |
| 227 | distribution funded by employer contributions shall be deemed to |
| 228 | be retired from a state-administered retirement system if the |
| 229 | participant is subsequently employed with an employer that |
| 230 | participates in the Florida Retirement System. |
| 231 | 6. Eligible community college employees are compulsory |
| 232 | members of the Florida Retirement System until, pursuant to s. |
| 233 | 1012.875, a written election to withdraw from the system and |
| 234 | participate in the State Community College System Optional |
| 235 | Retirement Program is filed with the program administrator and |
| 236 | received by the division. |
| 237 | a. A community college employee whose program eligibility |
| 238 | results from initial employment must be enrolled in the State |
| 239 | Community College System Optional Retirement Program retroactive |
| 240 | to the first day of eligible employment. The employer retirement |
| 241 | contributions paid through the month of the employee plan change |
| 242 | shall be transferred to the community college to the employee's |
| 243 | optional program account, and, effective the first day of the |
| 244 | next month, the employer shall pay the applicable contributions |
| 245 | based upon subparagraph 1. |
| 246 | b. A community college employee whose program eligibility |
| 247 | is due to the subsequent designation of the employee's position |
| 248 | as one of those specified in subparagraph 4., or due to the |
| 249 | employee's appointment, promotion, transfer, or reclassification |
| 250 | to a position specified in subparagraph 4., must be enrolled in |
| 251 | the program on the first day of the first full calendar month |
| 252 | that such change in status becomes effective. The employer |
| 253 | retirement contributions paid from the effective date through |
| 254 | the month of the employee plan change must be transferred to the |
| 255 | community college to the employee's optional program account, |
| 256 | and, effective the first day of the next month, the employer |
| 257 | shall pay the applicable contributions based upon subparagraph |
| 258 | 1. |
| 259 | 7. Effective July 1, 2003, through December 31, 2008, any |
| 260 | participant of the State Community College System Optional |
| 261 | Retirement Program who has service credit in the defined benefit |
| 262 | plan of the Florida Retirement System for the period between his |
| 263 | or her first eligibility to transfer from the defined benefit |
| 264 | plan to the optional retirement program and the actual date of |
| 265 | transfer may, during employment, transfer to the optional |
| 266 | retirement program a sum representing the present value of the |
| 267 | accumulated benefit obligation under the defined benefit |
| 268 | retirement program for the period of service credit. Upon |
| 269 | transfer, all service credit previously earned under the defined |
| 270 | benefit program of the Florida Retirement System during this |
| 271 | period is nullified for purposes of entitlement to a future |
| 272 | benefit under the defined benefit program of the Florida |
| 273 | Retirement System. |
| 274 | Section 5. Paragraph (a) of subsection (3) and paragraph |
| 275 | (a) of subsection (7) of section 121.053, Florida Statutes, are |
| 276 | amended to read: |
| 277 | 121.053 Participation in the Elected Officers' Class for |
| 278 | retired members.- |
| 279 | (3) On or after July 1, 2010: |
| 280 | (a) A retiree of a state-administered retirement system |
| 281 | who is elected or appointed for the first time to an elective |
| 282 | office in a regularly established position with a covered |
| 283 | employer may not reenroll in the Florida Retirement System. Each |
| 284 | employer shall contribute on behalf of each employed retiree |
| 285 | ineligible for renewed membership under this paragraph an amount |
| 286 | equal to the unfunded actuarial liability portion of the |
| 287 | employer contribution which would be required for members of the |
| 288 | Elected Officers' Class or the Regular Class, as appropriate, in |
| 289 | the Florida Retirement System, except as provided in s. |
| 290 | 112.64(2)(b). |
| 291 | (7) A member who is elected or appointed to an elective |
| 292 | office and who is participating in the Deferred Retirement |
| 293 | Option Program is not subject to termination as defined in s. |
| 294 | 121.021, or reemployment limitations as provided in s. |
| 295 | 121.091(9), until the end of his or her current term of office |
| 296 | or, if the officer is consecutively elected or reelected to an |
| 297 | elective office eligible for coverage under the Florida |
| 298 | Retirement System, until he or she no longer holds an elective |
| 299 | office, as follows: |
| 300 | (a) At the end of the 60-month DROP period: |
| 301 | 1. The officer's DROP account may not accrue additional |
| 302 | monthly benefits, but does continue to earn interest as provided |
| 303 | in s. 121.091(13). However, an officer whose DROP participation |
| 304 | begins on or after July 1, 2010, may not continue to earn such |
| 305 | interest. |
| 306 | 2. Except for the payment of the unfunded actuarial |
| 307 | liability funding, retirement contributions are not required of |
| 308 | the employer of the elected officer and additional retirement |
| 309 | credit may not be earned under the Florida Retirement System. |
| 310 | Each employer shall contribute on behalf of each nonenrolled |
| 311 | employee under this subsection an amount equal to the unfunded |
| 312 | actuarial liability portion of the employer contribution which |
| 313 | would be required for members of the Elected Officers' Class or |
| 314 | the Regular Class, as appropriate, in the Florida Retirement |
| 315 | System, except as provided in s. 112.64(2)(b). |
| 316 | Section 6. Paragraph (b) of subsection (1) and paragraph |
| 317 | (d) of subsection (6) of section 121.055, Florida Statutes, are |
| 318 | amended to read: |
| 319 | 121.055 Senior Management Service Class.-There is hereby |
| 320 | established a separate class of membership within the Florida |
| 321 | Retirement System to be known as the "Senior Management Service |
| 322 | Class," which shall become effective February 1, 1987. |
| 323 | (1) |
| 324 | (b)1. Except as provided in subparagraph 2., effective |
| 325 | January 1, 1990, participation in the Senior Management Service |
| 326 | Class shall be compulsory for the president of each community |
| 327 | college, the manager of each participating city or county, and |
| 328 | all appointed district school superintendents. Effective January |
| 329 | 1, 1994, additional positions may be designated for inclusion in |
| 330 | the Senior Management Service Class of the Florida Retirement |
| 331 | System, provided that: |
| 332 | a. Positions to be included in the class shall be |
| 333 | designated by the local agency employer. Notice of intent to |
| 334 | designate positions for inclusion in the class shall be |
| 335 | published once a week for 2 consecutive weeks in a newspaper of |
| 336 | general circulation published in the county or counties |
| 337 | affected, as provided in chapter 50. |
| 338 | b. Up to 10 nonelective full-time positions may be |
| 339 | designated for each local agency employer reporting to the |
| 340 | Department of Management Services; for local agencies with 100 |
| 341 | or more regularly established positions, additional nonelective |
| 342 | full-time positions may be designated, not to exceed 1 percent |
| 343 | of the regularly established positions within the agency. |
| 344 | c. Each position added to the class must be a managerial |
| 345 | or policymaking position filled by an employee who is not |
| 346 | subject to continuing contract and serves at the pleasure of the |
| 347 | local agency employer without civil service protection, and who: |
| 348 | (I) Heads an organizational unit; or |
| 349 | (II) Has responsibility to effect or recommend personnel, |
| 350 | budget, expenditure, or policy decisions in his or her areas of |
| 351 | responsibility. |
| 352 | 2. In lieu of participation in the Senior Management |
| 353 | Service Class, members of the Senior Management Service Class |
| 354 | pursuant to the provisions of subparagraph 1. may withdraw from |
| 355 | the Florida Retirement System altogether. The decision to |
| 356 | withdraw from the Florida Retirement System shall be irrevocable |
| 357 | for as long as the employee holds such a position. Any service |
| 358 | creditable under the Senior Management Service Class shall be |
| 359 | retained after the member withdraws from the Florida Retirement |
| 360 | System; however, additional service credit in the Senior |
| 361 | Management Service Class shall not be earned after such |
| 362 | withdrawal. Such members shall not be eligible to participate in |
| 363 | the Senior Management Service Optional Annuity Program. Each |
| 364 | employer shall contribute on behalf of each withdrawn employee |
| 365 | under this subparagraph an amount equal to the unfunded |
| 366 | actuarial accrued liability portion of the employer contribution |
| 367 | which would be required for members of the Senior Management |
| 368 | Service Class in the Florida Retirement System, except as |
| 369 | provided in s. 112.64(2)(b). |
| 370 | 3. Effective January 1, 2006, through June 30, 2006, an |
| 371 | employee who has withdrawn from the Florida Retirement System |
| 372 | under subparagraph 2. has one opportunity to elect to |
| 373 | participate in either the defined benefit program or the Public |
| 374 | Employee Optional Retirement Program of the Florida Retirement |
| 375 | System. |
| 376 | a. If the employee elects to participate in the Public |
| 377 | Employee Optional Retirement Program, membership shall be |
| 378 | prospective, and the applicable provisions of s. 121.4501(4) |
| 379 | shall govern the election. |
| 380 | b. If the employee elects to participate in the defined |
| 381 | benefit program of the Florida Retirement System, the employee |
| 382 | shall, upon payment to the system trust fund of the amount |
| 383 | calculated under sub-sub-subparagraph (I), receive service |
| 384 | credit for prior service based upon the time during which the |
| 385 | employee had withdrawn from the system. |
| 386 | (I) The cost for such credit shall be an amount |
| 387 | representing the actuarial accrued liability for the affected |
| 388 | period of service. The cost shall be calculated using the |
| 389 | discount rate and other relevant actuarial assumptions that were |
| 390 | used to value the Florida Retirement System defined benefit plan |
| 391 | liabilities in the most recent actuarial valuation. The |
| 392 | calculation shall include any service already maintained under |
| 393 | the defined benefit plan in addition to the period of |
| 394 | withdrawal. The actuarial accrued liability attributable to any |
| 395 | service already maintained under the defined benefit plan shall |
| 396 | be applied as a credit to the total cost resulting from the |
| 397 | calculation. The division shall ensure that the transfer sum is |
| 398 | prepared using a formula and methodology certified by an |
| 399 | actuary. |
| 400 | (II) The employee must transfer a sum representing the net |
| 401 | cost owed for the actuarial accrued liability in sub-sub- |
| 402 | subparagraph (I) immediately following the time of such |
| 403 | movement, determined assuming that attained service equals the |
| 404 | sum of service in the defined benefit program and the period of |
| 405 | withdrawal. |
| 406 | (6) |
| 407 | (d) Contributions.- |
| 408 | 1. Through June 30, 2001, each employer shall contribute |
| 409 | on behalf of each participant in the Senior Management Service |
| 410 | Optional Annuity Program an amount equal to the normal cost |
| 411 | portion of the employer retirement contribution which would be |
| 412 | required if the participant were a Senior Management Service |
| 413 | Class member of the Florida Retirement System defined benefit |
| 414 | program, plus the portion of the contribution rate required in |
| 415 | s. 112.363(8) that would otherwise be assigned to the Retiree |
| 416 | Health Insurance Subsidy Trust Fund. Effective July 1, 2001, |
| 417 | each employer shall contribute on behalf of each participant in |
| 418 | the optional program an amount equal to 12.49 percent of the |
| 419 | participant's gross monthly compensation. The department shall |
| 420 | deduct an amount approved by the Legislature to provide for the |
| 421 | administration of this program. The payment of the contributions |
| 422 | to the optional program which is required by this subparagraph |
| 423 | for each participant shall be made by the employer to the |
| 424 | department, which shall forward the contributions to the |
| 425 | designated company or companies contracting for payment of |
| 426 | benefits for the participant under the program. |
| 427 | 2. Each employer shall contribute on behalf of each |
| 428 | participant in the Senior Management Service Optional Annuity |
| 429 | Program an amount equal to the unfunded actuarial accrued |
| 430 | liability portion of the employer contribution which would be |
| 431 | required for members of the Senior Management Service Class in |
| 432 | the Florida Retirement System, except as provided in s. |
| 433 | 112.64(2)(b). This contribution shall be paid to the department |
| 434 | for transfer to the Florida Retirement System Trust Fund. |
| 435 | 3. An Optional Annuity Program Trust Fund shall be |
| 436 | established in the State Treasury and administered by the |
| 437 | department to make payments to provider companies on behalf of |
| 438 | the optional annuity program participants, and to transfer the |
| 439 | unfunded liability portion of the state optional annuity program |
| 440 | contributions to the Florida Retirement System Trust Fund. |
| 441 | 4. Contributions required for social security by each |
| 442 | employer and each participant, in the amount required for social |
| 443 | security coverage as now or hereafter may be provided by the |
| 444 | federal Social Security Act shall be maintained for each |
| 445 | participant in the Senior Management Service retirement program |
| 446 | and shall be in addition to the retirement contributions |
| 447 | specified in this paragraph. |
| 448 | 5. Each participant in the Senior Management Service |
| 449 | Optional Annuity Program may contribute by way of salary |
| 450 | reduction or deduction a percentage amount of the participant's |
| 451 | gross compensation not to exceed the percentage amount |
| 452 | contributed by the employer to the optional annuity program. |
| 453 | Payment of the participant's contributions shall be made by the |
| 454 | employer to the department, which shall forward the |
| 455 | contributions to the designated company or companies contracting |
| 456 | for payment of benefits for the participant under the program. |
| 457 | Section 7. Paragraph (c) of subsection (9) of section |
| 458 | 121.091, Florida Statutes, is amended to read: |
| 459 | 121.091 Benefits payable under the system.-Benefits may |
| 460 | not be paid under this section unless the member has terminated |
| 461 | employment as provided in s. 121.021(39)(a) or begun |
| 462 | participation in the Deferred Retirement Option Program as |
| 463 | provided in subsection (13), and a proper application has been |
| 464 | filed in the manner prescribed by the department. The department |
| 465 | may cancel an application for retirement benefits when the |
| 466 | member or beneficiary fails to timely provide the information |
| 467 | and documents required by this chapter and the department's |
| 468 | rules. The department shall adopt rules establishing procedures |
| 469 | for application for retirement benefits and for the cancellation |
| 470 | of such application when the required information or documents |
| 471 | are not received. |
| 472 | (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.- |
| 473 | (c) Any person whose retirement is effective on or after |
| 474 | July 1, 2010, or whose participation in the Deferred Retirement |
| 475 | Option Program terminates on or after July 1, 2010, who is |
| 476 | retired under this chapter, except under the disability |
| 477 | retirement provisions of subsection (4) or as provided in s. |
| 478 | 121.053, may be reemployed by an employer that participates in a |
| 479 | state-administered retirement system and receive retirement |
| 480 | benefits and compensation from that employer. However, a person |
| 481 | may not be reemployed by an employer participating in the |
| 482 | Florida Retirement System before meeting the definition of |
| 483 | termination in s. 121.021 and may not receive both a salary from |
| 484 | the employer and retirement benefits for 6 calendar months after |
| 485 | meeting the definition of termination. However, a DROP |
| 486 | participant shall continue employment and receive a salary |
| 487 | during the period of participation in the Deferred Retirement |
| 488 | Option Program, as provided in subsection (13). |
| 489 | 1. The reemployed retiree may not renew membership in the |
| 490 | Florida Retirement System. |
| 491 | 2. The employer shall pay retirement contributions in an |
| 492 | amount equal to the unfunded actuarial liability portion of the |
| 493 | employer contribution that would be required for active members |
| 494 | of the Florida Retirement System in addition to the |
| 495 | contributions required by s. 121.76, except as provided in s. |
| 496 | 112.64(2)(b). |
| 497 | 3. A retiree initially reemployed in violation of this |
| 498 | paragraph and an employer that employs or appoints such person |
| 499 | are jointly and severally liable for reimbursement of any |
| 500 | retirement benefits paid to the retirement trust fund from which |
| 501 | the benefits were paid, including the Florida Retirement System |
| 502 | Trust Fund and the Public Employee Optional Retirement Program |
| 503 | Trust Fund, as appropriate. The employer must have a written |
| 504 | statement from the employee that he or she is not retired from a |
| 505 | state-administered retirement system. Retirement benefits shall |
| 506 | remain suspended until repayment is made. Benefits suspended |
| 507 | beyond the end of the retiree's 6-month reemployment limitation |
| 508 | period shall apply toward the repayment of benefits received in |
| 509 | violation of this paragraph. |
| 510 | Section 8. Subsection (2) of section 121.122, Florida |
| 511 | Statutes, is amended to read: |
| 512 | 121.122 Renewed membership in system.- |
| 513 | (2) A retiree of a state-administered retirement system |
| 514 | who is initially reemployed on or after July 1, 2010, is not |
| 515 | eligible for renewed membership. Each employer shall contribute |
| 516 | on behalf of each reemployed retiree ineligible for membership |
| 517 | under this subsection an amount equal to the unfunded actuarial |
| 518 | liability portion of the employer contribution which would be |
| 519 | required for the membership class covering the position held, |
| 520 | except as provided in s. 112.64(2)(b). |
| 521 | Section 9. Paragraph (b) of subsection (4) of section |
| 522 | 121.35, Florida Statutes, is amended to read: |
| 523 | 121.35 Optional retirement program for the State |
| 524 | University System.- |
| 525 | (4) CONTRIBUTIONS.- |
| 526 | (b) Each employer shall contribute on behalf of each |
| 527 | participant in the optional retirement program an amount equal |
| 528 | to the unfunded actuarial accrued liability portion of the |
| 529 | employer contribution which would be required for members of the |
| 530 | Florida Retirement System, except as provided in s. |
| 531 | 112.64(2)(b). This contribution shall be paid to the department |
| 532 | for transfer to the Florida Retirement System Trust Fund. |
| 533 | Section 10. Paragraph (b) of subsection (4) of section |
| 534 | 1012.875, Florida Statutes, is amended to read: |
| 535 | 1012.875 State Community College System Optional |
| 536 | Retirement Program.-Each community college may implement an |
| 537 | optional retirement program, if such program is established |
| 538 | therefor pursuant to s. 1001.64(20), under which annuity or |
| 539 | other contracts providing retirement and death benefits may be |
| 540 | purchased by, and on behalf of, eligible employees who |
| 541 | participate in the program, in accordance with s. 403(b) of the |
| 542 | Internal Revenue Code. Except as otherwise provided herein, this |
| 543 | retirement program, which shall be known as the State Community |
| 544 | College System Optional Retirement Program, may be implemented |
| 545 | and administered only by an individual community college or by a |
| 546 | consortium of community colleges. |
| 547 | (4) |
| 548 | (b) Each college must contribute on behalf of each program |
| 549 | participant an amount equal to the unfunded actuarial accrued |
| 550 | liability portion of the employer contribution which would be |
| 551 | required if the program participant were a member of the Regular |
| 552 | Class of the Florida Retirement System, except as provided in s. |
| 553 | 112.64(2)(b). Payment of this contribution must be made directly |
| 554 | by the college to the department for deposit in the Florida |
| 555 | Retirement System Trust Fund. |
| 556 | Section 11. The Legislature finds that a proper and |
| 557 | legitimate state purpose is served when employees and retirees |
| 558 | of the state and its political subdivisions, and the dependents, |
| 559 | survivors, and beneficiaries of such employees and retirees, are |
| 560 | extended the basic protections afforded by governmental |
| 561 | retirement systems. These persons must be provided benefits that |
| 562 | are fair and adequate and that are managed, administered, and |
| 563 | funded in an actuarially sound manner, as required by s. 14, |
| 564 | Article X of the State Constitution and part VII of chapter 112, |
| 565 | Florida Statutes. Therefore, the Legislature determines and |
| 566 | declares that this act fulfills an important state interest. |
| 567 | Section 12. This act shall take effect July 1, 2010. |