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: 19 121.091Benefits 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 departments 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 retirees 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 ClassLegislators, Governor, Lt. Governor, Cabinet Officers, 106 State Attorneys, Public Defenders. 107 (e)By 0.06 percentage point for the Elected Officers 108 ClassJustices, Judges. 109 (f)By 0.03 percentage point for the Elected Officers 110 ClassCounty 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 ClassLegislators, Governor, Lt. Governor, Cabinet Officers, 124 State Attorneys, Public Defenders. 125 (e)By 0.10 percentage point for the Elected Officers 126 ClassJustices, Judges. 127 (f)By 0.07 percentage point for the Elected Officers 128 ClassCounty 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.