HB 0471 2003
1	A bill to be entitled
2	An act relating to health insurance; amending s. 112.08,
3	F.S.; redefining the term “local governmental unit” with
4	respect to certain group insurance for public officers,
5	employees, and certain volunteers; amending s. 112.363,
6	F.S.; revising the minimum and maximum health insurance
7	subsidies; revising the contribution paid by employers of
8	state-administered retirement plans; authorizing the
9	Department of Management Services to contract for an
10	actuarial study on providing for a statewide retiree
11	health insurance program; providing a statement of
12	significant state interest; providing effective dates.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1. Subsection (1) of section 112.08, Florida
17	Statutes, is amended to read:
18	112.08 Group insurance for public officers, employees, and
19	certain volunteers; physical examinations.--
20	(1) As used in this section, the term "local governmental
21	unit" means any county, municipality, community college
22	district, school board, or special district or any county
23	officer listed in s. 1(d), Art. VIII of the State Constitution.
24	The term “local governmental unit” also means regional benefit
25	cooperatives of two or more counties, municipalities, community
26	college districts, school boards, or special districts.
27	Section 2. Effective January 1, 2004, subsections (3) and
28	(8) of section 112.363, Florida Statutes, are amended to read:
29	112.363 Retiree health insurance subsidy.--
30	(3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
31	(a) Beginning January 1, 1988, each eligible retiree or a
32	beneficiary who is a spouse or financial dependent thereof shall
33	receive a monthly retiree health insurance subsidy payment equal
34	to the number of years of creditable service, as defined in s.
35	121.021(17), completed at the time of retirement multiplied by
36	$1; however, no retiree may receive a subsidy payment of more
37	than $30 or less than $10.
38	(b) Beginning January 1, 1989, each eligible retiree or a
39	beneficiary who is a spouse or financial dependent shall receive
40	a monthly retiree health insurance subsidy payment equal to the
41	number of years of creditable service, as defined in s.
42	121.021(17), completed at the time of retirement multiplied by
43	$2; however, no retiree may receive a subsidy payment of more
44	than $60 or less than $20.
45	(c) Beginning January 1, 1991, each eligible retiree or a
46	beneficiary who is a spouse or financial dependent shall receive
47	a monthly retiree health insurance subsidy payment equal to the
48	number of years of creditable service, as defined in s.
49	121.021(17), completed at the time of retirement multiplied by
50	$3; however, no retiree may receive a subsidy payment of more
51	than $90 or less than $30.
52	(d) Beginning January 1, 1999, each eligible retiree or,
53	if the retiree is deceased, his or her beneficiary who is
54	receiving a monthly benefit from such retiree's account and who
55	is a spouse, or a person who meets the definition of joint
56	annuitant in s. 121.021(28), shall receive a monthly retiree
57	health insurance subsidy payment equal to the number of years of
58	creditable service, as defined in s. 121.021(17), completed at
59	the time of retirement multiplied by $5; however, no eligible
60	retiree or such beneficiary may receive a subsidy payment of
61	more than $150 or less than $50. If there are multiple
62	beneficiaries, the total payment must not be greater than the
63	payment to which the retiree was entitled.
64	(e)1. Beginning July 1, 2001, each eligible retiree of the
65	defined benefit program of the Florida Retirement System, or, if
66	the retiree is deceased, his or her beneficiary who is receiving
67	a monthly benefit from such retiree's account and who is a
68	spouse, or a person who meets the definition of joint annuitant
69	in s. 121.021(28), shall receive a monthly retiree health
70	insurance subsidy payment equal to the number of years of
71	creditable service, as defined in s. 121.021(17), completed at
72	the time of retirement multiplied by $5; however, no eligible
73	retiree or beneficiary may receive a subsidy payment of more
74	than $150 or less than $30. If there are multiple beneficiaries,
75	the total payment must not be greater than the payment to which
76	the retiree was entitled. The health insurance subsidy amount
77	payable to any person receiving the retiree health insurance
78	subsidy payment on July 1, 2001, shall not be reduced solely by
79	operation of this subparagraph.
80	2. Beginning July 1, 2002, each eligible participant of
81	the Public Employee Optional Retirement Program of the Florida
82	Retirement System who has met the requirements of this section,
83	or, if the participant is deceased, his or her spouse who is the
84	participant's designated beneficiary, shall receive a monthly
85	retiree health insurance subsidy payment equal to the number of
86	years of creditable service, as provided in this subparagraph,
87	completed at the time of retirement, multiplied by $5; however,
88	no eligible retiree or beneficiary may receive a subsidy payment
89	of more than $150 or less than $30. For purposes of determining
90	a participant's creditable service used to calculate the health
91	insurance subsidy, a participant's years of service credit or
92	fraction thereof shall be based on the participant's work year
93	as defined in s. 121.021(54). Credit shall be awarded for a full
94	work year whenever health insurance subsidy contributions have
95	been made as required by law for each month in the participant's
96	work year. In addition, all years of creditable service retained
97	under the Florida Retirement System defined benefit program
98	shall be included as creditable service for purposes of this
99	section.
100	(f)1. Beginning January 1, 2004, each eligible retiree of
101	the defined benefit program of the Florida Retirement System,
102	or, if the retiree is deceased, his or her beneficiary who is
103	receiving a monthly benefit from such retiree’s account and who
104	is a spouse or a person who meets the definition of a joint
105	annuitant in s. 121.021(28), shall receive a monthly retiree
106	health insurance subsidy payment equal to the number of years of
107	creditable service, as defined in s. 121.021(17), completed at
108	the time of retirement multiplied by $7; however, no eligible
109	retiree or beneficiary may receive a subsidy payment of more
110	than $210 or less than $42. If there are multiple
111	beneficiaries, the total payment must not be greater than the
112	payment to which the retiree was entitled. The health insurance
113	subsidy amount payable to any person receiving the retiree
114	health insurance subsidy payment on January 1, 2004, shall not
115	be reduced solely by operation of this subparagraph.
116	2. Beginning January 1, 2004, each eligible participant of
117	the Public Employee Optional Retirement Program of the Florida
118	Retirement System who has met the requirements of this section,
119	or, if the participant is deceased, his or her spouse who is the
120	participant’s designated beneficiary, shall receive a monthly
121	retiree health insurance subsidy equal to the number of years of
122	creditable service, as provided in this subparagraph, completed
123	at the time of retirement, multiplied by $7; however, no
124	eligible retiree or beneficiary may receive a subsidy payment of
125	more than $210 or less than $42. For purposes of determining a
126	participant’s creditable service used to calculate the health
127	insurance subsidy, a participant’s years of service credit or
128	fraction thereof shall be based on the participant’s work year
129	as defined in s. 121.021(54). Credit shall be awarded for a
130	full work year whenever health insurance subsidy contributions
131	have been made as required by law for each month in the
132	participant’s work year. In addition, all years of creditable
133	service retained under the Florida Retirement System defined
134	benefit program shall be included as creditable service for
135	purposes of this section.
136	(8) CONTRIBUTIONS.--For purposes of funding the insurance
137	subsidy provided by this section:
138	(a) Beginning October 1, 1987, the employer of each member
139	of a state-administered retirement plan shall contribute 0.24
140	percent of gross compensation each pay period.
141	(b) Beginning January 1, 1989, the employer of each member
142	of a state-administered retirement plan shall contribute 0.48
143	percent of gross compensation each pay period.
144	(c) Beginning January 1, 1994, the employer of each member
145	of a state-administered retirement plan shall contribute 0.56
146	percent of gross compensation each pay period.
147	(d) Beginning January 1, 1995, the employer of each member
148	of a state-administered retirement plan shall contribute 0.66
149	percent of gross compensation each pay period.
150	(e) Beginning July 1, 1998, the employer of each member of
151	a state-administered retirement plan shall contribute 0.94
152	percent of gross compensation each pay period.
153	(f) Beginning July 1, 2001, the employer of each member of
154	a state-administered plan shall contribute 1.11 percent of gross
155	compensation each pay period.
156	(g) Beginning January 1, 2004, the employer of each member
157	of a state-administered retirement plan shall contribute
158	….percent of gross compensation each pay period.
159
160	Such contributions shall be submitted to the Department of
161	Management Services and deposited in the Retiree Health
162	Insurance Subsidy Trust Fund.
163	Section 3. The Department of Management Services is
164	authorized to contract for an actuarial study to determine the
165	feasibility of implementing a statewide health insurance program
166	for retirees from the Florida Retirement System.
167	Section 4. The Legislature finds that a proper and
168	legitimate state purpose is served when employees and retirees
169	of the state and of its political subdivisions, and the
170	dependents, survivors, and beneficiaries of such employees and
171	retirees, are extended the basic protections afforded by
172	governmental retirement systems that provide fair and adequate
173	benefits that are managed, administered, and funded in an
174	actuarially sound manner, as required by s. 14, Art. X of the
175	State Constitution and part VII of chapter 112, Florida
176	Statutes. Therefore, the Legislature determines and declares
177	that this act fulfills an important state interest.
178	Section 5. Except as otherwise provided herein, this act
179	shall take effect July 1, 2003.