House Bill hb1931

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    Florida House of Representatives - 2001                HB 1931

        By the Fiscal Responsibility Council and Representative
    Lacasa





  1                      A bill to be entitled

  2         An act relating to retiree health insurance

  3         subsidy; amending ss. 112.363, 121.052,

  4         121.055, and 121.071, F.S.; changing the

  5         employer contribution for the retiree health

  6         insurance subsidy; amending s. 121.571, F.S.;

  7         adding cross references; providing a finding of

  8         important state interest; providing an

  9         effective date.

10

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

12

13         Section 1.  Paragraph (f) is added to subsection (8) of

14  section 112.363, Florida Statutes, to read:

15         112.363  Retiree health insurance subsidy.--

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

17  insurance subsidy provided by this section:

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

19  member of a state-administered plan shall contribute 1.00

20  percent of gross compensation each pay period.

21

22  Such contributions shall be submitted to the Department of

23  Management Services and deposited in the Retiree Health

24  Insurance Subsidy Trust Fund.

25         Section 2.  Paragraph (c) of subsection (7) of section

26  121.052, Florida Statutes, is amended to read:

27         121.052  Membership class of elected officers.--

28         (7)  CONTRIBUTIONS.--

29         (c)  The following table states the required employer

30  contribution on behalf of each member of the Elected Officers'

31  Class in terms of a percentage of the member's gross

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    Florida House of Representatives - 2001                HB 1931

    187-934A-01






  1  compensation. Such contribution constitutes the entire health

  2  insurance subsidy contribution with respect to the member. A

  3  change in the contribution rate is effective with the first

  4  salary paid on or after the beginning date of the change. The

  5  retiree health insurance subsidy contribution rate is as

  6  follows:

  7

  8  Dates of Contribution                             Contribution

  9    Rate Changes                                        Rate

10

11  October 1, 1987, through December 31, 1988             0.24%

12  January 1, 1989, through December 31, 1993             0.48%

13  January 1, 1994, through December 31, 1994             0.56%

14  January 1, 1995, through June 30, 1998                 0.66%

15  Effective July 1, 1998, through June 30,               0.94%

16  2001

17  Effective July 1, 2001                                 1.00%

18

19  Such contributions shall be deposited by the administrator in

20  the Retiree Health Insurance Subsidy Trust Fund.

21         Section 3.  Paragraph (c) of subsection (3) of section

22  121.055, Florida Statutes, is amended to read:

23         121.055  Senior Management Service Class.--There is

24  hereby established a separate class of membership within the

25  Florida Retirement System to be known as the "Senior

26  Management Service Class," which shall become effective

27  February 1, 1987.

28         (3)

29         (c)  The following table states the required employer

30  contribution on behalf of each member of the Senior Management

31  Service Class in terms of a percentage of the member's gross

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    Florida House of Representatives - 2001                HB 1931

    187-934A-01






  1  compensation.  Such contribution constitutes the entire health

  2  insurance subsidy contribution with respect to the member. A

  3  change in the contribution rate is effective with the first

  4  salary paid on or after the beginning date of the change.  The

  5  retiree health insurance subsidy contribution rate is as

  6  follows:

  7

  8  Dates of Contribution                             Contribution

  9    Rate Changes                                        Rate

10

11  October 1, 1987, through December 31, 1988             0.24%

12  January 1, 1989, through December 31, 1993             0.48%

13  January 1, 1994, through December 31, 1994             0.56%

14  January 1, 1995, through June 30, 1998                 0.66%

15  Effective July 1, 1998, through June 30,               0.94%

16  2001

17  Effective July 1, 2001                                 1.00%

18

19  Such contributions shall be deposited by the administrator in

20  the Retiree Health Insurance Subsidy Trust Fund.

21         Section 4.  Subsection (4) of section 121.071, Florida

22  Statutes, is amended to read:

23         121.071  Contributions.--Contributions to the system

24  shall be made as follows:

25         (4)  The following table states the required employer

26  contribution on behalf of each member of the Regular Class,

27  Special Risk Class, or Special Risk Administrative Support

28  Class in terms of a percentage of the member's gross

29  compensation.  Such contribution constitutes the entire health

30  insurance subsidy contribution with respect to the member.  A

31  change in the contribution rate is effective with the first

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    Florida House of Representatives - 2001                HB 1931

    187-934A-01






  1  salary paid on or after the beginning date of the change. The

  2  retiree health insurance subsidy contribution rate is as

  3  follows:

  4

  5  Dates of Contribution                             Contribution

  6    Rate Changes                                        Rate

  7

  8  October 1, 1987, through December 31, 1988             0.24%

  9  January 1, 1989, through December 31, 1993             0.48%

10  January 1, 1994, through December 31, 1994             0.56%

11  January 1, 1995, through June 30, 1998                 0.66%

12  Effective July 1, 1998, through June 30,               0.94%

13  2001

14  Effective July 1, 2001                                 1.00%

15

16  Such contributions shall be deposited by the administrator in

17  the Retiree Health Insurance Subsidy Trust Fund.

18         Section 5.  Subsection (4) of section 121.571, Florida

19  Statutes, is amended to read:

20         121.571  Contributions.--Contributions to the Public

21  Employee Optional Retirement Program shall be made as follows:

22         (4)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR

23  RETIREE HEALTH INSURANCE SUBSIDY.--Contributions required

24  under this section shall be in addition to employer and member

25  contributions required for social security and the Retiree

26  Health Insurance Subsidy Trust Fund as provided in ss.

27  112.363, 121.052, 121.055, and s. 121.071, as appropriate.

28         Section 6.  The Legislature finds that a proper and

29  legitimate state purpose is served when employees, officers,

30  and retirees of the state and of its political subdivisions,

31  and the dependents, survivors, and beneficiaries of such

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    Florida House of Representatives - 2001                HB 1931

    187-934A-01






  1  employees, officers, and retirees, are extended the basic

  2  protections afforded governmental retirement systems that

  3  provide fair and adequate benefits, including health insurance

  4  subsidies, and that are managed, administered, and funded in a

  5  reasonable manner.  Therefore, the Legislature hereby

  6  determines and declares that the provisions of this act

  7  fulfill an important state interest.

  8         Section 7.  This act shall take effect July 1, 2001.

  9

10            *****************************************

11                          HOUSE SUMMARY

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      Revises the employer contribution for the retiree health
13    insurance subsidy.

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