Bill Text: FL S1160 | 2011 | Regular Session | Introduced
Bill Title: Retirement
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [S1160 Detail]
Download: Florida-2011-S1160-Introduced.html
Florida Senate - 2011 SB 1160
By Senator Gaetz
4-00410C-11 20111160__
1 A bill to be entitled
2 An act relating to retirement; amending s. 121.091,
3 F.S.; revising provisions relating to employment after
4 retirement; providing that a retiree of a state
5 administered retirement system who retires on or after
6 a certain date may not be reemployed by an employer
7 that participates in a state-administered retirement
8 system and receive both a salary for employment and
9 retirement benefits; requiring that a retiree who
10 retires on or after a certain date and who is
11 reemployed within 6 calendar months after retirement
12 apply to establish a future retirement date; providing
13 that a retiree who is employed by an employing entity
14 or contractor that does not participate in a state
15 administered retirement system, but who performs
16 services for an employer that does participate, may
17 not receive retirement benefits during such
18 employment; amending s. 121.591, F.S.; conforming a
19 cross-reference; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (9) of section 121.091, Florida
24 Statutes, is amended to read:
25 121.091 Benefits payable under the system.—Benefits may not
26 be paid under this section unless the member has terminated
27 employment as provided in s. 121.021(39)(a) or begun
28 participation in the Deferred Retirement Option Program as
29 provided in subsection (13), and a proper application has been
30 filed in the manner prescribed by the department. The department
31 may cancel an application for retirement benefits when the
32 member or beneficiary fails to timely provide the information
33 and documents required by this chapter and the department’s
34 rules. The department shall adopt rules establishing procedures
35 for application for retirement benefits and for the cancellation
36 of such application when the required information or documents
37 are not received.
38 (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
39 (a) Except as provided in paragraph (e), any person who is
40 retired under this chapter, except as provided under the
41 disability retirement provisions of subsection (4), may be
42 employed by an employer that does not participate in a state
43 administered retirement system and receive compensation from
44 that employment without limiting or restricting in any way the
45 retirement benefits payable to that person.
46 (b) Any person who retires under this chapter and whose
47 retirement is effective before July 1, 2010, or whose
48 participation in the Deferred Retirement Option Program (DROP)
49 terminates before July 1, 2010, except as provided under the
50 disability retirement provisions of subsection (4) or as
51 provided in s. 121.053, may be reemployed by an employer that
52 participates in a state-administered retirement system and
53 receive both retirement benefits and compensation from that
54 employer. However, except that the person may not be reemployed
55 by an employer participating in the Florida Retirement System
56 until such person has been terminated from employment for at
57 least 1 calendar month before meeting the definition of
58 termination in s. 121.021 and may not receive both a salary from
59 the employer and retirement benefits for 12 calendar months
60 following immediately subsequent to the date of retirement or
61 the DROP termination date. However, a DROP participant shall
62 continue employment and receive a salary during the period of
63 participation in the Deferred Retirement Option Program, as
64 provided in subsection (13).
65 1. A retiree who is reemployed within 1 calendar month
66 after retirement or the DROP termination date voids his or her
67 retirement and must repay any retirement benefits received to
68 the retirement trust fund from which the benefits were paid.
69 2.1. A retiree who is reemployed 1 calendar month after
70 retirement or the DROP termination date but violates such
71 reemployment limitation before completion of the 12-month
72 limitation period must give timely notice of this fact in
73 writing to the employer and to the Division of Retirement or the
74 state board and shall have his or her retirement benefits
75 suspended for the months employed, or the balance of the 12
76 month limitation period as required in sub-subparagraphs b. and
77 c., and any amount suspended shall be forfeited to the
78 retirement plan. A retiree employed during this period is liable
79 for repayment of any retirement benefits paid during the
80 reemployment limitation period. If the employer fails to notify
81 the division or state board in writing to suspend the employee’s
82 retirement benefits, the employer and retiree A retiree employed
83 in violation of this paragraph and an employer who employs or
84 appoints such person are jointly and severally liable for
85 repayment of these benefits reimbursement to the retirement
86 trust fund, including the Florida Retirement System Trust Fund
87 and the Public Employee Optional Retirement Program Trust Fund,
88 from which the benefits were paid. The employer must have a
89 written statement from the retiree that he or she is not retired
90 from a state-administered retirement system. Retirement benefits
91 shall remain suspended until repayment is has been made. Any
92 benefits suspended beyond the reemployment limitation shall
93 apply toward repayment of benefits received in violation of the
94 reemployment limitation, and shall be forfeited to the
95 retirement plan.
96 a. A district school board may reemploy a retiree as a
97 substitute or hourly teacher, education paraprofessional,
98 transportation assistant, bus driver, or food service worker on
99 a noncontractual basis after he or she has been retired for 1
100 calendar month. A district school board may reemploy a retiree
101 as instructional personnel, as defined in s. 1012.01(2)(a), on
102 an annual contractual basis after he or she has been retired for
103 1 calendar month. Any member who is reemployed within 1 calendar
104 month after retirement shall void his or her application for
105 retirement benefits. District school boards reemploying such
106 teachers, education paraprofessionals, transportation
107 assistants, bus drivers, or food service workers are subject to
108 the retirement contribution required by subparagraph 2.
109 b. A community college board of trustees may reemploy a
110 retiree as an adjunct instructor or as a participant in a phased
111 retirement program within the Florida Community College System,
112 after he or she has been retired for 1 calendar month. A member
113 who is reemployed within 1 calendar month after retirement shall
114 void his or her application for retirement benefits. Boards of
115 trustees reemploying such instructors are subject to the
116 retirement contribution required in subparagraph 2. A retiree
117 may be reemployed as an adjunct instructor for no more than 780
118 hours during the first 12 months of retirement. A retiree
119 reemployed for more than 780 hours during the first 12 months of
120 retirement must give timely notice in writing to the employer
121 and to the Division of Retirement or the state board of the date
122 he or she will exceed the limitation. The division or state
123 board shall suspend his or her retirement benefits for the
124 remainder of the 12 months of retirement. Any retiree employed
125 in violation of this sub-subparagraph and any employer who
126 employs or appoints such person without notifying the division
127 to suspend retirement benefits are jointly and severally liable
128 for any benefits paid during the reemployment limitation period.
129 The employer must have a written statement from the retiree that
130 he or she is not retired from a state-administered retirement
131 system. Any retirement benefits received by the retiree while
132 reemployed in excess of 780 hours during the first 12 months of
133 retirement must be repaid to the retirement trust fund from
134 which the benefits were paid Florida Retirement System Trust
135 Fund, and retirement benefits shall remain suspended until
136 repayment is made. Benefits suspended beyond the end of the
137 retiree’s first 12 months of retirement shall apply toward
138 repayment of benefits received in violation of the 780-hour
139 reemployment limitation.
140 c. A state university board of trustees The State
141 University System may reemploy a retiree as an adjunct faculty
142 member or as a participant in a phased retirement program within
143 the State University System after the retiree has been retired
144 for 1 calendar month. A member who is reemployed within 1
145 calendar month after retirement shall void his or her
146 application for retirement benefits. The State University System
147 is subject to the retired contribution required in subparagraph
148 2., as appropriate. A retiree may be reemployed as an adjunct
149 faculty member or a participant in a phased retirement program
150 for no more than 780 hours during the first 12 months of his or
151 her retirement. A retiree reemployed for more than 780 hours
152 during the first 12 months of retirement must give timely notice
153 in writing to the employer and to the Division of Retirement or
154 the state board of the date he or she will exceed the
155 limitation. The division or state board shall suspend his or her
156 retirement benefits for the remainder of the 12 months. Any
157 retiree employed in violation of this sub-subparagraph and any
158 employer who employs or appoints such person without notifying
159 the division to suspend retirement benefits are jointly and
160 severally liable for any benefits paid during the reemployment
161 limitation period. The employer must have a written statement
162 from the retiree that he or she is not retired from a state
163 administered retirement system. Any retirement benefits received
164 by the retiree while reemployed in excess of 780 hours during
165 the first 12 months of retirement must be repaid to the
166 retirement trust fund from which the benefits were paid Florida
167 Retirement System Trust Fund, and retirement benefits shall
168 remain suspended until repayment is made. Benefits suspended
169 beyond the end of the retiree’s first 12 months of retirement
170 shall apply toward repayment of benefits received in violation
171 of the 780-hour reemployment limitation.
172 d. The Board of Trustees of the Florida School for the Deaf
173 and the Blind may reemploy a retiree as a substitute teacher,
174 substitute residential instructor, or substitute nurse on a
175 noncontractual basis after he or she has been retired for 1
176 calendar month. Any member who is reemployed within 1 calendar
177 month after retirement shall void his or her application for
178 retirement benefits. The Board of Trustees of the Florida School
179 for the Deaf and the Blind reemploying such teachers,
180 residential instructors, or nurses is subject to the retirement
181 contribution required by subparagraph 2.
182 e. A developmental research school may reemploy a retiree
183 as a substitute or hourly teacher or an education
184 paraprofessional as defined in s. 1012.01(2) on a noncontractual
185 basis after he or she has been retired for 1 calendar month. A
186 developmental research school may reemploy a retiree as
187 instructional personnel, as defined in s. 1012.01(2)(a), on an
188 annual contractual basis after he or she has been retired for 1
189 calendar month after retirement. Any member who is reemployed
190 within 1 calendar month voids his or her application for
191 retirement benefits. A developmental research school that
192 reemploys retired teachers and education paraprofessionals is
193 subject to the retirement contribution required by subparagraph
194 2.
195 f. A charter school may reemploy a retiree as a substitute
196 or hourly teacher on a noncontractual basis after he or she has
197 been retired for 1 calendar month. A charter school may reemploy
198 a retired member as instructional personnel, as defined in s.
199 1012.01(2)(a), on an annual contractual basis after he or she
200 has been retired for 1 calendar month after retirement. Any
201 member who is reemployed within 1 calendar month voids his or
202 her application for retirement benefits. A charter school that
203 reemploys such teachers is subject to the retirement
204 contribution required by subparagraph 2.
205 3.2. The employment of a retiree or DROP participant of a
206 state-administered retirement system does not affect the average
207 final compensation or years of creditable service of the retiree
208 or DROP participant. Before July 1, 1991, upon employment of any
209 person, other than an elected officer as provided in s. 121.053,
210 who is retired under a state-administered retirement program,
211 the employer shall pay retirement contributions in an amount
212 equal to the unfunded actuarial liability portion of the
213 employer contribution which would be required for regular
214 members of the Florida Retirement System. Effective July 1,
215 1991, contributions shall be made as provided in s. 121.122 for
216 retirees who have renewed membership or, as provided in
217 subsection (13), for DROP participants.
218 4.3. Any person who is holding an elective public office
219 which is covered by the Florida Retirement System and who is
220 concurrently employed in nonelected covered employment may elect
221 to retire while continuing employment in the elective public
222 office if he or she terminates his or her nonelected covered
223 employment. Such person shall receive his or her retirement
224 benefits in addition to the compensation of the elective office
225 without regard to the time limitations otherwise provided in
226 this subsection. A person who seeks to exercise the provisions
227 of this subparagraph as they existed before May 3, 1984, may not
228 be deemed to be retired under those provisions, unless such
229 person is eligible to retire under this subparagraph, as amended
230 by chapter 84-11, Laws of Florida.
231 (c) Any person who retires under this chapter and whose
232 retirement is effective on or after July 1, 2010, but before
233 July 1, 2011, or whose participation in the Deferred Retirement
234 Option Program (DROP) terminates on or after July 1, 2010, but
235 before July 1, 2011, who is retired under this chapter, except
236 as provided under the disability retirement provisions of
237 subsection (4) or as provided in s. 121.053, may be reemployed
238 by an employer that participates in a state-administered
239 retirement system and receive both retirement benefits and
240 compensation from that employer. However, a person may not be
241 reemployed by an employer participating in the Florida
242 Retirement System until such person has been terminated from
243 employment for at least 6 calendar months before meeting the
244 definition of termination in s. 121.021 and may not receive both
245 a salary from the employer and retirement benefits for 6
246 calendar months 7 through 12 following the date of retirement or
247 the DROP termination date after meeting the definition of
248 termination. However, a DROP participant shall continue
249 employment and receive a salary during the period of
250 participation in the Deferred Retirement Option Program, as
251 provided in subsection (13).
252 1. The reemployed retiree in a regularly established
253 position may not renew membership in the Florida Retirement
254 System.
255 2. The employer shall pay retirement contributions for
256 retirees reemployed in a regularly established position in an
257 amount equal to the unfunded actuarial liability portion of the
258 employer contribution that would be required for active members
259 of the Florida Retirement System in addition to the
260 contributions required by s. 121.76.
261 3. A retiree who is reemployed within 6 calendar months
262 after retirement or the DROP termination date voids his or her
263 retirement and must repay any retirement benefits received to
264 the retirement trust fund from which the benefits were paid.
265 4.3. A retiree who is initially reemployed during months 7
266 through 12 after retirement or the DROP termination date must
267 give timely notice of this fact in writing to the employer and
268 the Division of Retirement or the state board and shall have his
269 or her retirement benefits suspended for the months employed,
270 and any amount suspended shall be forfeited to the retirement
271 plan. A retiree employed during this period is liable for
272 repayment of any retirement benefits paid during the
273 reemployment limitation period. If the employer fails to notify
274 the division or state board in writing to suspend retirement
275 benefits, the employer and retiree are jointly and severally
276 liable for repayment of these benefits to the retirement trust
277 fund from which the benefits were paid, unless the employer has
278 a written statement from the retiree indicating that he or she
279 is not retired from a state-administered retirement system. in
280 violation of this paragraph and an employer that employs or
281 appoints such person are jointly and severally liable for
282 reimbursement of any retirement benefits paid to the retirement
283 trust fund from which the benefits were paid, including the
284 Florida Retirement System Trust Fund and the Public Employee
285 Optional Retirement Program Trust Fund, as appropriate. The
286 employer must have a written statement from the employee that he
287 or she is not retired from a state-administered retirement
288 system. Retirement benefits shall remain suspended until
289 repayment is made. Any benefits suspended beyond the end of the
290 retiree’s 6-month reemployment limitation period shall apply
291 toward the repayment of benefits received in violation of this
292 paragraph, and shall be forfeited to the retirement plan.
293 (d) Any person who retires under this chapter whose
294 retirement is effective on or after July 1, 2011, or whose
295 participation in the Defined Retirement Option Program (DROP)
296 terminates on or after July 1, 2011, except as provided under
297 the disability retirement provisions of subsection (4) or as
298 provided in s. 121.053, may not be reemployed by an employer
299 that participates in a state-administered retirement system and
300 receive both retirement benefits and salary from that employer
301 in the same month. If reemployed, such person must have been
302 terminated from employment for at least 6 calendar months.
303 1. A retiree who is reemployed within 6 calendar months
304 after retirement or the DROP termination date voids his or her
305 retirement and must repay any retirement benefits received,
306 including a DROP payout, to the retirement trust fund from which
307 the benefits were paid, and apply to establish a future
308 retirement date.
309 2. A retiree who is reemployed more than 6 calendar months
310 after retirement or the DROP termination date must give timely
311 notice of this fact in writing to the employer and the Division
312 of Retirement or the state board and shall have his or her
313 retirement benefits suspended during reemployment. The retiree
314 is liable for repayment of any retirement benefits paid during
315 the reemployment period. If the employer fails to notify the
316 division or state board in writing to suspend the employee’s
317 retirement benefits, the employer and retiree are jointly and
318 severally liable for repayment of these benefits to the
319 retirement trust fund from which the retirement benefits were
320 paid unless the employer has a written statement from the
321 retiree indicating that he or she is not retired from a state
322 administered retirement system. Retirement benefits remain
323 suspended until repayment is made. Any benefits suspended after
324 the retiree ceases employment apply toward repayment of benefits
325 received in violation of this paragraph, and shall be forfeited
326 to the retirement plan.
327 3. Upon ceasing reemployment, the retiree shall resume
328 retirement benefits under the state-administered retirement
329 system without recalculation of the retirement benefits to
330 include additional service credit.
331 4. The reemployed retiree in a regularly established
332 position may not renew membership in the Florida Retirement
333 System.
334 5. The employer shall pay retirement contributions for
335 retirees reemployed in a regularly established position in an
336 amount equal to the unfunded actuarial liability portion of the
337 employer contribution that would be required for active members
338 of the Florida Retirement System in that position in addition to
339 the contributions required by s. 121.76.
340 (e) Any person who retires under this chapter whose
341 retirement is effective on or after July 1, 2011, or whose
342 participation in the Deferred Retirement Option Program (DROP)
343 terminates on or after July 1, 2011, who performs services for
344 an employer that participates in a state-administered retirement
345 system, but who is employed by an employing entity or contractor
346 that does not participate in a state-administered retirement
347 system, shall have his or her retirement benefits from the
348 state-administered retirement system suspended for each month
349 the person performs services for the employer that participates
350 in the state-administered retirement system. This restriction
351 applies beginning the first effective month of retirement or the
352 month after the DROP termination date and throughout retirement.
353 When the retiree is no longer providing services to the employer
354 who participates in the state-administered retirement system,
355 the retiree shall resume retirement benefits from the state
356 administered retirement system. Any amount suspended shall be
357 forfeited to the retirement plan.
358 (f)(d) The provisions of this subsection apply to retirees,
359 as defined in s. 121.4501(2), of the Public Employee Optional
360 Retirement Program, subject to the following conditions:
361 1. The retirees may not be reemployed with an employer
362 participating in the Florida Retirement System until such person
363 has been retired for 6 calendar months.
364 2. Any retiree who is reemployed within 6 calendar months
365 after retirement is liable for the repayment of any benefits
366 paid during the reemployment limitation period. If the retiree’s
367 employer fails to notify the division or state board in writing
368 to suspend the employee’s retirement benefits, the employer and
369 retiree are jointly and severally liable for the repayment of
370 these benefits to the retirement trust fund from which the
371 benefits were paid, unless the employer has a written statement
372 from the retiree that he or she is not retired from a state
373 administered retirement system. A retiree employed in violation
374 of this subsection and an employer that employs or appoints such
375 person are jointly and severally liable for reimbursement of any
376 benefits paid to the retirement trust fund from which the
377 benefits were paid, including the Retirement System Trust Fund
378 and the Public Employee Optional Retirement Program Trust Fund,
379 as appropriate. The employer must have a written statement from
380 the retiree that he or she is not retired from a state
381 administered retirement system.
382 (g) The reemployment limitations in this subsection apply
383 to retirees of all state-administered retirement systems,
384 including the Senior Management Service Optional Annuity
385 Program, the State University System Optional Retirement
386 Program, and the State Community College Optional Retirement
387 Program.
388 (h)(e) The limitations of this subsection apply to
389 reemployment in any capacity irrespective of the category of
390 funds from which the person is compensated.
391 Section 2. Paragraph (a) of subsection (1) of section
392 121.591, Florida Statutes, is amended to read:
393 121.591 Benefits payable under the Public Employee Optional
394 Retirement Program of the Florida Retirement System.—Benefits
395 may not be paid under this section unless the member has
396 terminated employment as provided in s. 121.021(39)(a) or is
397 deceased and a proper application has been filed in the manner
398 prescribed by the state board or the department. The state board
399 or department, as appropriate, may cancel an application for
400 retirement benefits when the member or beneficiary fails to
401 timely provide the information and documents required by this
402 chapter and the rules of the state board and department. In
403 accordance with their respective responsibilities as provided
404 herein, the State Board of Administration and the Department of
405 Management Services shall adopt rules establishing procedures
406 for application for retirement benefits and for the cancellation
407 of such application when the required information or documents
408 are not received. The State Board of Administration and the
409 Department of Management Services, as appropriate, are
410 authorized to cash out a de minimis account of a participant who
411 has been terminated from Florida Retirement System covered
412 employment for a minimum of 6 calendar months. A de minimis
413 account is an account containing employer contributions and
414 accumulated earnings of not more than $5,000 made under the
415 provisions of this chapter. Such cash-out must either be a
416 complete lump-sum liquidation of the account balance, subject to
417 the provisions of the Internal Revenue Code, or a lump-sum
418 direct rollover distribution paid directly to the custodian of
419 an eligible retirement plan, as defined by the Internal Revenue
420 Code, on behalf of the participant. If any financial instrument
421 issued for the payment of retirement benefits under this section
422 is not presented for payment within 180 days after the last day
423 of the month in which it was originally issued, the third-party
424 administrator or other duly authorized agent of the State Board
425 of Administration shall cancel the instrument and credit the
426 amount of the instrument to the suspense account of the Public
427 Employee Optional Retirement Program Trust Fund authorized under
428 s. 121.4501(6). Any such amounts transferred to the suspense
429 account are payable upon a proper application, not to include
430 earnings thereon, as provided in this section, within 10 years
431 after the last day of the month in which the instrument was
432 originally issued, after which time such amounts and any
433 earnings thereon shall be forfeited. Any such forfeited amounts
434 are assets of the Public Employee Optional Retirement Program
435 Trust Fund and are not subject to the provisions of chapter 717.
436 (1) NORMAL BENEFITS.—Under the Public Employee Optional
437 Retirement Program:
438 (a) Benefits in the form of vested accumulations as
439 described in s. 121.4501(6) are payable under this subsection in
440 accordance with the following terms and conditions:
441 1. To the extent vested, benefits are payable only to a
442 participant.
443 2. Benefits shall be paid by the third-party administrator
444 or designated approved providers in accordance with the law, the
445 contracts, and any applicable board rule or policy.
446 3. To receive benefits, the participant must be terminated
447 from all employment with all Florida Retirement System
448 employers, as provided in s. 121.021(39).
449 4. Benefit payments may not be made until the participant
450 has been terminated for 3 calendar months, except that the board
451 may authorize by rule for the distribution of up to 10 percent
452 of the participant’s account after being terminated for 1
453 calendar month if the participant has reached the normal
454 retirement date as defined in s. 121.021 of the defined benefit
455 plan.
456 5. If a member or former member of the Florida Retirement
457 System receives an invalid distribution from the Public Employee
458 Optional Retirement Program Trust Fund, such person must repay
459 the full invalid distribution to the trust fund within 90 days
460 after receipt of final notification by the state board or the
461 third-party administrator that the distribution was invalid. If
462 such person fails to repay the full invalid distribution within
463 90 days after receipt of final notification, the person may be
464 deemed retired from the optional retirement program by the state
465 board, as provided pursuant to s. 121.4501(2)(k), and is subject
466 to s. 121.122. If such person is deemed retired by the state
467 board, any joint and several liability set out in s.
468 121.091(9)(f)2. 121.091(9)(d)2. becomes null and void, and the
469 state board, the department, or the employing agency is not
470 liable for gains on payroll contributions that have not been
471 deposited to the person’s account in the retirement program,
472 pending resolution of the invalid distribution. The member or
473 former member who has been deemed retired or who has been
474 determined by the board to have taken an invalid distribution
475 may appeal the agency decision through the complaint process as
476 provided under s. 121.4501(9)(g)3. As used in this subparagraph,
477 the term “invalid distribution” means any distribution from an
478 account in the optional retirement program which is taken in
479 violation of this section, s. 121.091(9), or s. 121.4501.
480 Section 3. This act shall take effect July 1, 2011.
