M. SHIRLEY BEAN, APPELLANT,
v.
STATE OF FLORIDA, DIVISION OF RETIREMENT, APPELLEE

Fla. 2d DCA | 1999-03-17
No. 97-03498
NORTHCUTT, J., and SCHEB, JOHN M., (Senior) Judge, Concur.
732 So. 2d 391 Florida District Court of Appeal, Second District (1999) Positive Treatment
Cited by 2 cases

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Synopsis

M. Shirley Bean appeals the Division of Retirement's denial of her designation as a joint annuitant for her former husband's retirement benefits. The court held that an employee who reached normal retirement age before a 1995 statutory amendment and had already indicated intent to designate a former spouse as joint annuitant possessed a vested right to that designation despite the amendment's removal of the financial dependency option.


Holding

The court held that an employee who had reached normal retirement date prior to the statutory amendment and had already indicated intention to designate a former spouse as joint annuitant under option 3 possesses a vested right to that designation. The statutory amendment does not eliminate rights that vested upon attainment of normal retirement age.


Headnotes

[1] A vested right to designate a former spouse as a joint annuitant exists when an employee reached normal retirement date prior to a statutory amendment and had already ind…

[2] A member of a state retirement system may elect a retirement option, including the designation of joint annuitants, prior to receiving the first monthly retirement paymen…

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Key Quotes

“an employee who had reached his or her normal retirement date prior to this statutory amendment and who had already indicated to the Division an intention to designate a former spouse as a joint annuitant under option 3 has a vested right to that designation”

Statement of the court's holding on the central legal issue regarding vested rights and statutory amendments

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Facts & Procedural History

George Bean was employed by the Hillsborough County Aviation Authority for 34.76 years and had reached normal retirement age prior to 1995. He and Shi…

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Opinion of the Court
ALTENBERND, Acting Chief Judge.

ALTENBERND, Acting Chief Judge.

M. Shirley Bean appeals the final order of the Division of Retirement denying her designation as a joint annuitant for retirement benefits payable following the retirement of her former husband, George Bean. This controversy arises because of a change in the statutory definition of “joint annuitant” in 1995. See ch. 95-338, Laws of Fla. Compare § 121.021(28), Fla. Stat. (1993), with § 121.021(28), Fla. Stat. (1995). We hold that an employee who had reached his or her normal retirement date prior to this statutory amendment and who had already indicated to the Division an intention to designate a former spouse as a joint annuitant under option 3 has a vested right to that designation. See § 121.091(6)(a)3, Fla. Stat. (1993).

George Bean was employed by the Hills-borough County Aviation Authority for many years. When he retired on July 1, 1996, he had 34.76 years of creditable service with the state. There is no question that he had reached “normal retirement age” prior to 1995. See § 120.021(29), Fla. Stat. (1993).

George and Shirley Bean divorced in 1983. At that time, Mr. Bean obtained confirmation from the state that he could list both a former wife and a current wife as joint annuitants. The couple agreed that Mr. Bean would pay alimony in an amount equal to 40% of his gross income, and that he would designate Shirley Bean as a joint annuitant. In 1991, the Division of Retirement clarified its position in a letter explaining that Shirley Bean could be designated as a joint annuitant under option 3 so long as she was financially dependent upon George Bean. Apparently, there is no dispute that she was and is financially dependent.

Until the amendment in 1995, the relevant definition of “joint annuitant” included a person who was financially dependent for at least one-half of his or her support from the retiring member at the time of that member’s retirement. See § 121.091(6)(d), Fla. Stat. (1993) (providing joint annuitant must be either spouse or “other dependant”); § 121.021(28)(c), Fla. Stat. (1993) (defining who may be considered an “other dependent” as that term is used in section 121.091(6)(d)). This option was removed by the amendment. All parties agree that Shirley Bean could have been designated as a joint annuitant prior to this amendment.

There is no question that George Bean was eligible to retire with a fully vested retirement when this amendment went into effect. The Division maintains that he needed to resign prior to the effective date of this amendment if he wished to fulfill his obligations to his former spouse. We disagree. Section 121.091(1) provides “upon attaining his or her normal retirement date, a member, upon application to the administrator, shall receive a monthly benefit which shall begin to accrue on the first day of the month of retirement....” Section 121.091(6)(a) requires a member to elect a retirement option “prior to the receipt of [the] first monthly retirement payment.” As we read these statutes, there was nothing to prevent Mr. Bean from making an election of joint annuitants after he attained his normal retirement date, even if he was not planning to retire and receive monthly benefits until a later date. Cf. O’Connell v. State, Dept. of Admin., 557 So. 2d 609 (Fla. 3d DCA 1990) (benefits vested upon attainment of normal retirement date, even though retirement delayed). We interpret Mr. Bean’s requests and the Division’s responses prior to 1995 as an election that provided rights not eliminated by the statutory change.

Accordingly, we reverse the Division’s order and remand for further proceedings.

NORTHCUTT, J., and SCHEB, JOHN M., (Senior) Judge, Concur.


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Citator

Cited By

  • Persis v. Dep't OF Mgmt. Servs., 161 So. 3d 556 (Fla. 5th DCA 2014)
    …clear conclusion that, because Appellant had attained his normal retirement date and applied to enter DROP prior to the statutory amendment, his rights had vested prior to the effective date of the amendment. See Bean v. State of Fla., Div. of Ret., 732 So. 2d 391 (Fla. 2d DCA 1999) (holding statutory amendment that took effect after employee reached normal retirement date and designated joint annuitant was not applicable to alter employee’s vested right to designation); O’Connell v. State of Fla., Dep’t of A…

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