Florida Senate - 2024                              CS for SB 400
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senators Burgess, Hooper, and Collins
       
       
       
       
       585-02592-24                                           2024400c1
    1                        A bill to be entitled                      
    2         An act relating to reemployment of retirees in the
    3         Florida Retirement System; amending s. 121.091, F.S.;
    4         allowing a retiree to be reemployed by an employer
    5         participating in the Florida Retirement System and to
    6         receive compensation from that employer and retirement
    7         benefits after meeting the definition of termination;
    8         establishing contributions rates necessary to fund a
    9         new retirement benefit; directing the Division of Law
   10         Revision to adjust accordingly the contribution rates
   11         otherwise in effect; providing a declaration of
   12         important state interest; providing an effective date.
   13          
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Paragraphs (c) and (f) of subsection (9) of
   17  section 121.091, Florida Statutes, are amended, and paragraph
   18  (d) of that subsection is republished, to read:
   19         121.091 Benefits payable under the system.—Benefits may not
   20  be paid under this section unless the member has terminated
   21  employment as provided in s. 121.021(39)(a) or begun
   22  participation in the Deferred Retirement Option Program as
   23  provided in subsection (13), and a proper application has been
   24  filed in the manner prescribed by the department. The department
   25  may cancel an application for retirement benefits when the
   26  member or beneficiary fails to timely provide the information
   27  and documents required by this chapter and the department’s
   28  rules. The department shall adopt rules establishing procedures
   29  for application for retirement benefits and for the cancellation
   30  of such application when the required information or documents
   31  are not received.
   32         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
   33         (c) Any person whose retirement is effective on or after
   34  July 1, 2010, or whose participation in the Deferred Retirement
   35  Option Program terminates on or after July 1, 2010, who is
   36  retired under this chapter, except under the disability
   37  retirement provisions of subsection (4) or as provided in s.
   38  121.053, may be reemployed by an employer that participates in a
   39  state-administered retirement system and receive retirement
   40  benefits and compensation from that employer. However, a person
   41  may not be reemployed by an employer participating in the
   42  Florida Retirement System before meeting the definition of
   43  termination in s. 121.021 and may not receive both a salary from
   44  the employer and retirement benefits for 6 calendar months after
   45  meeting the definition of termination, except as provided in
   46  paragraph (f). Effective July 1, 2024, a retiree may be
   47  reemployed by an employer participating in the Florida
   48  Retirement System and receive compensation from that employer
   49  and retirement benefits after meeting the definition of
   50  termination in s. 121.021. However, a DROP participant shall
   51  continue employment and receive a salary during the period of
   52  participation in the Deferred Retirement Option Program, as
   53  provided in subsection (13).
   54         1. The reemployed retiree may not renew membership in the
   55  Florida Retirement System, except as provided in s. 121.122.
   56         2. The employer shall pay retirement contributions in an
   57  amount equal to the unfunded actuarial liability portion of the
   58  employer contribution that would be required for active members
   59  of the Florida Retirement System in addition to the
   60  contributions required by s. 121.76.
   61         3. A retiree initially reemployed in violation of this
   62  paragraph and an employer that employs or appoints such person
   63  are jointly and severally liable for reimbursement of any
   64  retirement benefits paid to the retirement trust fund from which
   65  the benefits were paid, including the Florida Retirement System
   66  Trust Fund and the Florida Retirement System Investment Plan
   67  Trust Fund, as appropriate. The employer must have a written
   68  statement from the employee that he or she is not retired from a
   69  state-administered retirement system. Retirement benefits shall
   70  remain suspended until repayment is made. Benefits suspended
   71  beyond the end of the retiree’s 6-month reemployment limitation
   72  period shall apply toward the repayment of benefits received in
   73  violation of this paragraph.
   74         (d) This subsection applies to retirees, as defined in s.
   75  121.4501(2), of the Florida Retirement System Investment Plan,
   76  subject to the following conditions:
   77         1. A retiree may not be reemployed with an employer
   78  participating in the Florida Retirement System until such person
   79  has been retired for 6 calendar months.
   80         2. A retiree employed in violation of this subsection and
   81  an employer that employs or appoints such person are jointly and
   82  severally liable for reimbursement of any benefits paid to the
   83  retirement trust fund from which the benefits were paid. The
   84  employer must have a written statement from the retiree that he
   85  or she is not retired from a state-administered retirement
   86  system.
   87         (f) A retired law enforcement officer may be reemployed as
   88  a school resource officer by an employer that participates in
   89  the Florida Retirement System and receive compensation from that
   90  employer and retirement benefits after meeting the definition of
   91  termination in s. 121.021, but may not receive both a salary
   92  from the employer and retirement benefits for 6 calendar months
   93  immediately subsequent to the date of retirement. The reemployed
   94  retired law enforcement officer may not renew membership in the
   95  Florida Retirement System, except as provided in s. 121.122.
   96         Section 2. (1) In order to fund the benefit changes
   97  provided by this act, the required employer contribution rates
   98  for the members of the Florida Retirement System established in
   99  s. 121.71(4), Florida Statutes, are increased as follows:
  100         (a) By 0.02 percentage point for the Regular Class.
  101         (b) By 0.05 percentage point for the Special Risk Class.
  102         (c) By 0.02 percentage point for the Special Risk
  103  Administrative Support Class.
  104         (d) By 0.02 percentage point for the Elected Officers’
  105  Class—Legislators, Governor, Lt. Governor, Cabinet Officers,
  106  State Attorneys, Public Defenders.
  107         (e) By 0.06 percentage point for the Elected Officers’
  108  Class—Justices, Judges.
  109         (f) By 0.03 percentage point for the Elected Officers’
  110  Class—County Elected Officers.
  111         (g) By 0.02 percentage point for the Senior Management
  112  Service Class.
  113         (h)By 0.03 percentage point for the DROP.
  114         (2) In order to fund the benefit changes provided by this
  115  act, the required employer contribution rates for the unfunded
  116  actuarial liability of the Florida Retirement System established
  117  in s. 121.71(5), Florida Statutes, are increased as follows:
  118         (a) By 0.03 percentage point for the Regular Class.
  119         (b) By 0.07 percentage point for the Special Risk Class.
  120         (c) By 0.07 percentage point for the Special Risk
  121  Administrative Support Class.
  122         (d) By 0.06 percentage point for the Elected Officers’
  123  Class—Legislators, Governor, Lt. Governor, Cabinet Officers,
  124  State Attorneys, Public Defenders.
  125         (e) By 0.10 percentage point for the Elected Officers’
  126  Class—Justices, Judges.
  127         (f) By 0.07 percentage point for the Elected Officers’
  128  Class—County Elected Officers.
  129         (g) By 0.05 percentage point for the Senior Management
  130  Service Class.
  131         (h)By 0.00 percentage point for DROP.
  132         (3) The adjustments provided in subsections (1) and (2) are
  133  in addition to any other changes to such contribution rates
  134  which may be enacted into law to take effect on July 1, 2024.
  135  The Division of Law Revision is directed to adjust accordingly
  136  the contribution rates provided in s. 121.71, Florida Statutes.
  137         Section 3. The Legislature finds that a proper and
  138  legitimate state purpose is served when employees, officers, and
  139  retirees of the state and its political subdivisions, and the
  140  dependents, survivors, and beneficiaries of such employees,
  141  officers, and retirees, are extended the basic protections
  142  afforded by governmental retirement systems. These persons must
  143  be provided benefits that are fair and adequate and that are
  144  managed, administered, and funded in an actuarially sound manner
  145  as required by s. 14, Article X of the State Constitution and
  146  part VII of chapter 112, Florida Statutes. Therefore, the
  147  Legislature determines and declares that this act fulfills an
  148  important state interest.
  149         Section 4. This act shall take effect July 1, 2024.