STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

PETER C. VERSAGE, )

)

Petitioner, )

)

vs. ) CASE NO. 78-2074

) STATE OF FLORIDA, DEPARTMENT ) OF ADMINISTRATION, DIVISION ) OF RETIREMENT, )

)

Respondent. )

)

RECOMMENDED ORDER

This case was heard pursuant to notice on March 15, 1979, in Miami, Florida, by Stephen F. Dean, assigned Hearing Officer of the Division of Administrative Hearings.

This case was presented upon an appeal by Peter C. Versage of the determination by the Division of Retirement that his retirement benefits should be terminated effective September, 1978, by cancellation of his September benefit check.

The issue presented is whether the Petitioner has worked over 500 hours in 1977, and 1978, and received thereafter the benefits of his employment by a covered, employer and his retirement benefits contrary to Section 121.091(9), Florida Statutes, and therefore must forfeit his benefits until full restitution of the excess retirement benefits paid him is made.

APPEARANCES

For Petitioner: Peter C. Versage, pro se

6929 North West 34th Avenue Fort Lauderdale, Florida 33309

For Respondent: L. Keith Pafford, Esquire

Division of Retirement Room 530, Carlton Building

Tallahassee, Florida 32304 FINDINGS OF FACT

1. The parties stipulated that Peter C. Versage applied for the suspension of benefits on or about October 4, 1978. The application for suspension of retirement benefits was received into evidence as Exhibit Number 1.

   
   

2. The affidavit of Leon Burnett was received into evidence as Exhibit #2 upon the stipulation of the parties. Burnett's affidavit reflects that Peter C. Versage is a retiree under the Florida retirement system, having retired effective August 1, 1973.

3. Versage was re-employed by the School Board of Broward County on March 3, 1977, and had worked 500 hours in this employment on June 23, 1977. Thereafter, Versage continued to work for the Broward County School Board and continued to receive his retirement benefits in the amount of $101.75 monthly. Versage continued to work in 1978, and had worked 500 hours for the Broward County School Board by March 27, 1978, Versage continued to work for the School Board and received compensation for his employment together with his retirement benefits until his benefits were terminated by the Division.

   
   

4. The School Board of Broward County is a member and covered by the Florida retirement System, and is an "employer" as defined by Chapter 121, Florida Statutes.

   
   

5. The total retirement benefits received by Versage in 1977, and in 1978, after he had worked the 500 hours and prior to the termination of his benefits were $1,261.96.

   
   

   CONCLUSIONS OF LAW

   
   

6. Section 121.091(9)(a), Florida Statutes, provides that a person who is receiving retirement compensation from the Florida retirement system may be employed by an employer covered by the Florida retirement system for a maximum of 500 hours each year, whereupon the person must request suspension of the retirement benefits if he continues his employment and receives compensation therefore. If the individual fails to suspend his retirement benefits and retains both the retirement benefits and the compensation paid from his employment, the individual will forfeit all benefits until full restitution is made to the trust fund of all excess retirement benefits paid to him at ten percent interest per annum from the date of the first receipt of excess benefits until repayment.

   
   

7. Clearly, Peter C. Versage worked over 500 hours in 1977, and 1978, and continued to receive his retirement benefits and salary front his employer thereafter. The total overpayment of retirement benefits to Versage prior to the termination of his benefits is $1,261.96. The termination of Versage's benefits was proper, and the payment of his benefits may not be reinstated until Versage repays the excess payments to the trust fund together with interest at ten percent per annum.

   
   

8. This case points out the need for better counseling for employees covered by the Florida retirement system, particularly those who do not have access to the Division of Retirement's personnel for advice involving retirement matters. In the instant case, Versage was forced to retire when he could not continue to work because of an illness. It may well be that Versage was originally entitled to disability retirement. If so, he would have been entitled to 25 percent of his final average compensation if his disability were not in line of duty, and 42 percent of his final average compensation if it were an in-line-of-duty illness.

   
   

9. Clearly, Versage should have been counseled about the effect of his re- employment on his retirement benefits prior to returning to work. Versage stated that he had returned to work with the Broward County School Board in part to add to his retirement benefits. The accrual of additional retirement credit for work after retirement is specifically precluded by Section 121.091(9)(b), Florida Statutes.

10. It borders on shameful that representatives of the Division of Retirement, whose focus is upon ensuring that members receive the benefits for which they have worked, are not available to employees like Versage who work for state and local governmental agencies outside the immediate Tallahassee area. There is a clear absence of expertise and concern over obtaining for employees, many of whom have worked their entire adult lives for the State of Florida or a covered agency, the benefits to which they are entitled by law. Ensuring that employees obtain these benefits does not present an additional burden upon the system, because the contingencies for payment are considered in the actuarial assumptions upon which funding of the trust is based. The extension of employment counseling, particularly to those who are getting ready to retire, in the major metropolitan areas of the state by qualified and knowledgeable employees of the Division of Retirement would assist greatly in alleviating the personal suffering which termination of benefits brings to individuals.

RECOMMENDATION

Based upon the foregoing Findings of Fact and Conclusions of Law the Hearing Officer would recommend that the decision of the Division of Retirement to terminate the retirement benefits of Peter C. Versage be sustained, and that said benefits be terminated until the amount of $1,261.96 is repaid to the trust together with interest at ten percent per annum from the date of May 23, 1977.

DONE and ORDERED this 2nd day of April, 1979, in Tallahassee, Leon County, Florida.

STEPHEN F. DEAN, Hearing Officer Division of Administrative Hearings Room 530, Carlton Building Tallahassee, Florida 32304

(904) 488-9675

COPIES FURNISHED:

L. Keith Pafford, Esquire Division of Retirement Room 530, Carlton Building

Tallahassee, Florida 32304

Peter C. Versage 6929 NW 34th Avenue

Fort Lauderdale, Florida 33309

Docket for Case No: 78-002074

Orders for Case No: 78-002074