Gov. Ron DeSantis signed House Bill 151, modifying the Florida Retirement System to reduce retirees’ reemployment waiting period to six months and adjust employer contribution rates for financial stability.
Gov. Ron DeSantis has approved changes to the Florida Retirement System (FRS).
The modifications, part of House Bill 151 (HB 151), signed into law on Monday, revise the reemployment stipulations for retirees and adjust employer contribution rates to enhance the system’s fiscal health.
The legislation reduces the waiting period for FRS retirees who wish to return to work. Previously required to wait 12 months before they could be reemployed by an FRS-participating employer without suspending their retirement benefits, retirees will now only need to observe a six-month hiatus. The measure specifically targets public workforce sectors experiencing shortages like education and public safety.
After the six-month period, retirees can simultaneously receive compensation from their employer and draw from their retirement benefits.
HB 151 concurrently updates the employer contribution rates to the retirement system, based on annual actuarial evaluations in order to align the rates more closely with the financial needs of the system.
The Department of Management Services is required to perform an annual actuarial assessment of the FRS and submit the findings to the Legislature by the end of each year, on December 31. Following this, the Legislature utilizes the data from the actuarial evaluation to set consistent employer contribution rates in the subsequent legislative session.
The FRS operates as a contributory system offering retirement income benefits to personnel from state and county government bodies, educational institutions like district school boards and state colleges, as well as state universities. The system extends to employees of various cities, special districts, and independent hospitals that opt to participate. Participants in the FRS can choose between two types of plans: a defined benefit plan known as the pension plan, and a defined contribution plan referred to as the investment plan.