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A bill to be entitled

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An act relating to the retiree health insurance subsidy;

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amending s. 112.363, F.S.; increasing the minimum and

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maximum health insurance subsidies; providing for a cost-

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of-living adjustment to the subsidy; increasing the

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contribution paid by employers of members in state-

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administered retirement plans; providing legislative

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findings; providing effective dates.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsections (3) and (8) of section 112.363,

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Florida Statutes, are amended to read:

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     112.363  Retiree health insurance subsidy.--

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     (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--

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     (a)  Beginning January 1, 1988, each eligible retiree or a

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beneficiary who is a spouse or financial dependent thereof shall

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receive a monthly retiree health insurance subsidy payment equal

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to the number of years of creditable service, as defined in s.

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121.021(17), completed at the time of retirement multiplied by

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$1; however, no retiree may receive a subsidy payment of more

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than $30 or less than $10.

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     (b)  Beginning January 1, 1989, each eligible retiree or a

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beneficiary who is a spouse or financial dependent shall receive

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a monthly retiree health insurance subsidy payment equal to the

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number of years of creditable service, as defined in s.

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121.021(17), completed at the time of retirement multiplied by

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$2; however, no retiree may receive a subsidy payment of more

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than $60 or less than $20.

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     (c)  Beginning January 1, 1991, each eligible retiree or a

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beneficiary who is a spouse or financial dependent shall receive

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a monthly retiree health insurance subsidy payment equal to the

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number of years of creditable service, as defined in s.

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121.021(17), completed at the time of retirement multiplied by

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$3; however, no retiree may receive a subsidy payment of more

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than $90 or less than $30.

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     (d)  Beginning January 1, 1999, each eligible retiree or, if

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the retiree is deceased, his or her beneficiary who is receiving

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a monthly benefit from such retiree's account and who is a

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spouse, or a person who meets the definition of joint annuitant

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in s. 121.021(28), shall receive a monthly retiree health

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insurance subsidy payment equal to the number of years of

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creditable service, as defined in s. 121.021(17), completed at

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the time of retirement multiplied by $5; however, no eligible

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retiree or such beneficiary may receive a subsidy payment of more

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than $150 or less than $50.  If there are multiple beneficiaries,

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the total payment must not be greater than the payment to which

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the retiree was entitled.

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     (e)1.  Beginning July 1, 2001, each eligible retiree of the

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defined benefit program of the Florida Retirement System, or, if

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the retiree is deceased, his or her beneficiary who is receiving

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a monthly benefit from such retiree's account and who is a

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spouse, or a person who meets the definition of joint annuitant

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in s. 121.021(28), shall receive a monthly retiree health

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insurance subsidy payment equal to the number of years of

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creditable service, as defined in s. 121.021(17), completed at

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the time of retirement multiplied by $5; however, no eligible

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retiree or beneficiary may receive a subsidy payment of more than

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$150 or less than $30.  If there are multiple beneficiaries, the

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total payment must not be greater than the payment to which the

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retiree was entitled.  The health insurance subsidy amount

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payable to any person receiving the retiree health insurance

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subsidy payment on July 1, 2001, shall not be reduced solely by

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operation of this subparagraph.

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     2.  Beginning July 1, 2002, each eligible participant of the

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Public Employee Optional Retirement Program of the Florida

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Retirement System who has met the requirements of this section,

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or, if the participant is deceased, his or her spouse who is the

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participant's designated beneficiary, shall receive a monthly

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retiree health insurance subsidy payment equal to the number of

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years of creditable service, as provided in this subparagraph,

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completed at the time of retirement, multiplied by $5; however,

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no eligible retiree or beneficiary may receive a subsidy payment

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of more than $150 or less than $30.  For purposes of determining

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a participant's creditable service used to calculate the health

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insurance subsidy, a participant's years of service credit or

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fraction thereof shall be based on the participant's work year as

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defined in s. 121.021(54).  Credit shall be awarded for a full

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work year whenever health insurance subsidy contributions have

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been made as required by law for each month in the participant's

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work year.  In addition, all years of creditable service retained

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under the Florida Retirement System defined benefit program shall

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be included as creditable service for purposes of this section.

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Notwithstanding any other provision in this section to the

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contrary, the spouse at the time of death shall be the

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participant's beneficiary unless such participant has designated

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a different beneficiary subsequent to the participant's most

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recent marriage.

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     (f)1. Beginning January 1, 2009, each eligible retiree of

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the defined benefit program of the Florida Retirement System or,

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if the retiree is deceased, his or her beneficiary who is

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receiving a monthly benefit from such retiree's account and who

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is a spouse or a person who meets the definition of a joint

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annuitant in s. 121.021 shall receive a monthly retiree health

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insurance subsidy payment equal to the number of years of

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creditable service, as defined in s. 121.021, completed at the

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time of retirement multiplied by $6; however, an eligible retiree

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or beneficiary may not receive a subsidy payment of more than

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$180 or less than $36. If there are multiple beneficiaries, the

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total payment must not be greater than the payment to which the

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retiree was entitled. Notwithstanding any other provision in this

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section to the contrary, the spouse at the time of death shall be

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the participant's beneficiary unless such participant has

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designated a different beneficiary subsequent to the

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participant's most recent marriage. The health insurance subsidy

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amount payable to any person receiving the retiree health

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insurance subsidy payment on January 1, 2008, may not be reduced

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solely by operation of this subparagraph.

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     2. Beginning January 1, 2009, each eligible participant of

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the Public Employee Optional Retirement Program of the Florida

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Retirement System who has met the requirements of this section

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or, if the participant is deceased, his or her spouse who is the

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participant's designated beneficiary shall receive a monthly

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retiree health insurance subsidy equal to the number of years of

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creditable service, as provided in this subparagraph, completed

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at the time of retirement multiplied by $6; however, an eligible

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retiree or beneficiary may not receive a subsidy payment of more

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than $180 or less than $36. For purposes of determining a

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participant's creditable service used to calculate the health

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insurance subsidy, a participant's years of service credit or

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fraction thereof shall be based on the participant's work year as

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defined in s. 121.021. Credit shall be awarded for a full work

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year whenever health insurance subsidy contributions have been

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made as required by law for each month in the participant's work

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year. In addition, all years of creditable service retained under

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the Florida Retirement System defined benefit program shall be

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included as creditable service for purposes of this section.

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Notwithstanding any other provision in this section to the

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contrary, the spouse at the time of death shall be the

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participant's beneficiary unless such participant has designated

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a different beneficiary subsequent to the participant's most

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recent marriage.

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     (g)1. Beginning January 1, 2010, each eligible retiree of

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the defined benefit program of the Florida Retirement System or,

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if the retiree is deceased, his or her beneficiary who is

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receiving a monthly benefit from such retiree's account and who

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is a spouse or a person who meets the definition of a joint

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annuitant in s. 121.021 shall receive a monthly retiree health

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insurance subsidy payment equal to the number of years of

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creditable service, as defined in s. 121.021, completed at the

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time of retirement multiplied by $7; however, an eligible retiree

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or beneficiary may not receive a subsidy payment of more than

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$210 or less than $42. If there are multiple beneficiaries, the

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total payment must not be greater than the payment to which the

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retiree was entitled. Notwithstanding any other provision in this

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section to the contrary, the spouse at the time of death shall be

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the participant's beneficiary unless such participant has

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designated a different beneficiary subsequent to the

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participant's most recent marriage. The health insurance subsidy

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amount payable to any person receiving the retiree health

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insurance subsidy payment on January 1, 2008, may not be reduced

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solely by operation of this subparagraph.

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     2. Beginning January 1, 2010, each eligible participant of

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the Public Employee Optional Retirement Program of the Florida

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Retirement System who has met the requirements of this section

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or, if the participant is deceased, his or her spouse who is the

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participant's designated beneficiary shall receive a monthly

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retiree health insurance subsidy equal to the number of years of

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creditable service, as provided in this subparagraph, completed

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at the time of retirement multiplied by $7; however, an eligible

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retiree or beneficiary may not receive a subsidy payment of more

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than $210 or less than $42. For purposes of determining a

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participant's creditable service used to calculate the health

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insurance subsidy, a participant's years of service credit or

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fraction thereof shall be based on the participant's work year as

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defined in s. 121.021. Credit shall be awarded for a full work

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year whenever health insurance subsidy contributions have been

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made as required by law for each month in the participant's work

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year. In addition, all years of creditable service retained under

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the Florida Retirement System defined benefit program shall be

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included as creditable service for purposes of this section.

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Notwithstanding any other provision in this section to the

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contrary, the spouse at the time of death shall be the

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participant's beneficiary unless such participant has designated

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a different beneficiary subsequent to the participant's most

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recent marriage.

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     (8)  CONTRIBUTIONS.--For purposes of funding the insurance

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subsidy provided by this section:

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     (a)  Beginning October 1, 1987, the employer of each member

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of a state-administered retirement plan shall contribute 0.24

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percent of gross compensation each pay period.

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     (b)  Beginning January 1, 1989, the employer of each member

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of a state-administered retirement plan shall contribute 0.48

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percent of gross compensation each pay period.

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     (c)  Beginning January 1, 1994, the employer of each member

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of a state-administered retirement plan shall contribute 0.56

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percent of gross compensation each pay period.

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     (d)  Beginning January 1, 1995, the employer of each member

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of a state-administered retirement plan shall contribute 0.66

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percent of gross compensation each pay period.

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     (e)  Beginning July 1, 1998, the employer of each member of

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a state-administered retirement plan shall contribute 0.94

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percent of gross compensation each pay period.

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     (f)  Beginning July 1, 2001, the employer of each member of

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a state-administered plan shall contribute 1.11 percent of gross

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compensation each pay period.

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     (g) Beginning January 1, 2009, the employer of each member

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of a state-administered retirement plan shall contribute 1.75

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percent of gross compensation each pay period.

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Such contributions shall be submitted to the Department of

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Management Services and deposited in the Retiree Health Insurance

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Subsidy Trust Fund.

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     Section 2. The Legislature finds that a proper and

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legitimate state purpose is served when employees and retirees of

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the state and of its political subdivisions, and the dependents,

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survivors, and beneficiaries of such employees and retirees, are

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extended the basic protections afforded by governmental

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retirement systems that provide fair and adequate benefits that

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are managed, administered, and funded in an actuarially sound

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manner, as required by Section 14, Article X of the State

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Constitution and part VII of chapter 112, Florida Statutes.

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Therefore, the Legislature determines and declares that this act

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fulfills an important state interest.

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     Section 3.  This act shall take effect upon becoming a law.