Florida Senate - 2023 CS for SB 1156 By the Committee on Governmental Oversight and Accountability; and Senator Burton 585-02903-23 20231156c1 1 A bill to be entitled 2 An act relating to the Florida Retirement System; 3 amending s. 121.021, F.S.; revising the definition of 4 the term termination; defining the term volunteer 5 services; amending s. 121.091, F.S.; authorizing 6 employers to establish post-employment volunteer 7 programs to allow retirees to provide certain services 8 during a specified timeframe; requiring such programs 9 to meet specified criteria; providing an effective 10 date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1.Subsection (39) of section 121.021, Florida 15 Statutes, is amended, and subsection (65) is added to that 16 section, to read: 17 121.021Definitions.The following words and phrases as 18 used in this chapter have the respective meanings set forth 19 unless a different meaning is plainly required by the context: 20 (39)(a)Termination occurs, except as provided in 21 paragraphs paragraph (b) and (c), when a member ceases all 22 employment, including the provision of services, relationships 23 with all participating employers, however: 24 1.For retirements effective before July 1, 2010, if a 25 member is employed by any such employer within the next calendar 26 month, termination shall be deemed not to have occurred. A leave 27 of absence constitutes a continuation of the employment 28 relationship, except that a leave of absence without pay due to 29 disability may constitute termination if such member makes 30 application for and is approved for disability retirement in 31 accordance with s. 121.091(4). The department or state board may 32 require other evidence of termination as it deems necessary. 33 2.For retirements effective on or after July 1, 2010, if a 34 member is employed by any such employer within the next 6 35 calendar months, termination shall be deemed not to have 36 occurred. A leave of absence constitutes a continuation of the 37 employment relationship, except that a leave of absence without 38 pay due to disability may constitute termination if such member 39 makes application for and is approved for disability retirement 40 in accordance with s. 121.091(4). The department or state board 41 may require other evidence of termination as it deems necessary. 42 (b)Termination for a member ending participation 43 electing to participate in the Deferred Retirement Option 44 Program occurs when the program participant ceases all 45 employment, including the provision of services, relationships 46 with all participating employers in accordance with s. 47 121.091(13), however: 48 1.For termination dates occurring before July 1, 2010, if 49 a the member is employed by any such employer within the next 50 calendar month, termination shall will be deemed not to have 51 occurred, except as provided in s. 121.091(13)(b)4.c. A leave of 52 absence constitutes shall constitute a continuation of the 53 employment relationship. 54 2.For termination dates occurring on or after July 1, 55 2010, if a the member becomes employed by any such employer 56 within the next 6 calendar months, termination shall will be 57 deemed not to have occurred, except as provided in s. 58 121.091(13)(b)4.c. A leave of absence constitutes a continuation 59 of the employment relationship. 60 (c)Effective July 1, 2011, termination for a member 61 receiving a refund of employee contributions occurs when a 62 member ceases all employment, including the provision of 63 services, relationships with all participating employers for 3 64 calendar months. A leave of absence constitutes a continuation 65 of the employment relationship. 66 67 All terminations must be a termination of employment as defined 68 in 26 C.F.R. s. 1.409A-1(h)(1)(ii). Volunteer services do not 69 constitute employment by, or provision of services to, an 70 employer. The department or state board may require any evidence 71 of termination necessary to determine compliance with this 72 chapter or the rules adopted thereunder. 73 (65)Volunteer services means services provided in 74 accordance with s. 121.091(15). 75 Section 2.Subsection (15) is added to section 121.091, 76 Florida Statutes, to read: 77 121.091Benefits payable under the system.Benefits may not 78 be paid under this section unless the member has terminated 79 employment as provided in s. 121.021(39)(a) or begun 80 participation in the Deferred Retirement Option Program as 81 provided in subsection (13), and a proper application has been 82 filed in the manner prescribed by the department. The department 83 may cancel an application for retirement benefits when the 84 member or beneficiary fails to timely provide the information 85 and documents required by this chapter and the departments 86 rules. The department shall adopt rules establishing procedures 87 for application for retirement benefits and for the cancellation 88 of such application when the required information or documents 89 are not received. 90 (15)VOLUNTEER SERVICES.Employers may establish post 91 employment volunteer programs that allow retirees to provide 92 civic, charitable, and humanitarian services during the first 12 93 calendar months following retirement without causing the retiree 94 to violate the requirement that the retiree have a termination 95 of employment as defined in 26 C.F.R. s. 1.409A-1(h)(1)(ii), 96 provided that the program meets all of the following criteria: 97 (a)Before the date of retirement, there was no agreement 98 or understanding between the employer and the retiree that the 99 retiree would provide any service to the employer. 100 (b)The employer or any third party may not provide a form 101 of compensation, including cash equivalents, to a volunteer for 102 the volunteer services. 103 (c)Except as otherwise provided in this chapter, employee 104 benefits, including health or life insurance benefits, may not 105 be provided to a volunteer. However, certain perquisites that 106 are necessary to complete tasks associated with the volunteer 107 program, such as an assigned uniform or the provision of 108 equipment, are permissible. 109 (d)The number of volunteer hours per week, including 110 training, is limited to no more than 20 percent of the amount of 111 time that was expected of the retiree per week before his or her 112 date of retirement. 113 (e)A clear distinction between the duties of a volunteer 114 and the duties of an employee is required. 115 (f)Volunteers must maintain control of their volunteer 116 schedule, including the number of hours volunteered and 117 assignments for which they agree to volunteer. 118 (g)Adequate volunteer program record keeping must be 119 maintained by both the employer and the volunteer to document 120 adherence to the criteria listed in this subsection. The records 121 must be made available to the department upon request. 122 Section 3.This act shall take effect July 1, 2023.