Bill Text: FL S0400 | 2024 | Regular Session | Comm Sub
Bill Title: Reemployment of Retirees in the Florida Retirement System
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Failed) 2024-03-08 - Died in Appropriations [S0400 Detail]
Download: Florida-2024-S0400-Comm_Sub.html
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.
