Senate Bill sb2204
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Florida Senate - 2004 SB 2204
By Senator Lawson
6-1326-04
1 A bill to be entitled
2 An act relating to the retiree health insurance
3 subsidy; amending s. 112.363, F.S.; increasing
4 the minimum and maximum health insurance
5 subsidies; increasing the contribution paid by
6 employers of members in state-administered
7 retirement plans; providing legislative
8 findings; providing effective dates.
9
10 Be It Enacted by the Legislature of the State of Florida:
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12 Section 1. Subsections (3) and (8) of section 112.363,
13 Florida Statutes, are amended to read:
14 112.363 Retiree health insurance subsidy.--
15 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
16 (a) Beginning January 1, 1988, each eligible retiree
17 or a beneficiary who is a spouse or financial dependent
18 thereof shall receive a monthly retiree health insurance
19 subsidy payment equal to the number of years of creditable
20 service, as defined in s. 121.021(17), completed at the time
21 of retirement multiplied by $1; however, no retiree may
22 receive a subsidy payment of more than $30 or less than $10.
23 (b) Beginning January 1, 1989, each eligible retiree
24 or a beneficiary who is a spouse or financial dependent shall
25 receive a monthly retiree health insurance subsidy payment
26 equal to the number of years of creditable service, as defined
27 in s. 121.021(17), completed at the time of retirement
28 multiplied by $2; however, no retiree may receive a subsidy
29 payment of more than $60 or less than $20.
30 (c) Beginning January 1, 1991, each eligible retiree
31 or a beneficiary who is a spouse or financial dependent shall
1
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Florida Senate - 2004 SB 2204
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1 receive a monthly retiree health insurance subsidy payment
2 equal to the number of years of creditable service, as defined
3 in s. 121.021(17), completed at the time of retirement
4 multiplied by $3; however, no retiree may receive a subsidy
5 payment of more than $90 or less than $30.
6 (d) Beginning January 1, 1999, each eligible retiree
7 or, if the retiree is deceased, his or her beneficiary who is
8 receiving a monthly benefit from such retiree's account and
9 who is a spouse, or a person who meets the definition of joint
10 annuitant in s. 121.021(28), shall receive a monthly retiree
11 health insurance subsidy payment equal to the number of years
12 of creditable service, as defined in s. 121.021(17), completed
13 at the time of retirement multiplied by $5; however, no
14 eligible retiree or such beneficiary may receive a subsidy
15 payment of more than $150 or less than $50. If there are
16 multiple beneficiaries, the total payment must not be greater
17 than the payment to which the retiree was entitled.
18 (e)1. Beginning July 1, 2001, each eligible retiree of
19 the defined benefit program of the Florida Retirement System,
20 or, if the retiree is deceased, his or her beneficiary who is
21 receiving a monthly benefit from such retiree's account and
22 who is a spouse, or a person who meets the definition of joint
23 annuitant in s. 121.021(28), shall receive a monthly retiree
24 health insurance subsidy payment equal to the number of years
25 of creditable service, as defined in s. 121.021(17), completed
26 at the time of retirement multiplied by $5; however, no
27 eligible retiree or beneficiary may receive a subsidy payment
28 of more than $150 or less than $30. If there are multiple
29 beneficiaries, the total payment must not be greater than the
30 payment to which the retiree was entitled. The health
31 insurance subsidy amount payable to any person receiving the
2
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Florida Senate - 2004 SB 2204
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1 retiree health insurance subsidy payment on July 1, 2001,
2 shall not be reduced solely by operation of this subparagraph.
3 2. Beginning July 1, 2002, each eligible participant
4 of the Public Employee Optional Retirement Program of the
5 Florida Retirement System who has met the requirements of this
6 section, or, if the participant is deceased, his or her spouse
7 who is the participant's designated beneficiary, shall receive
8 a monthly retiree health insurance subsidy payment equal to
9 the number of years of creditable service, as provided in this
10 subparagraph, completed at the time of retirement, multiplied
11 by $5; however, no eligible retiree or beneficiary may receive
12 a subsidy payment of more than $150 or less than $30. For
13 purposes of determining a participant's creditable service
14 used to calculate the health insurance subsidy, a
15 participant's years of service credit or fraction thereof
16 shall be based on the participant's work year as defined in s.
17 121.021(54). Credit shall be awarded for a full work year
18 whenever health insurance subsidy contributions have been made
19 as required by law for each month in the participant's work
20 year. In addition, all years of creditable service retained
21 under the Florida Retirement System defined benefit program
22 shall be included as creditable service for purposes of this
23 section.
24 (f)1. Beginning January 1, 2005, each eligible retiree
25 of the defined benefit program of the Florida Retirement
26 System or, if the retiree is deceased, his or her beneficiary
27 who is receiving a monthly benefit from such retiree's account
28 and who is a spouse or a person who meets the definition of a
29 joint annuitant in s. 121.021(28) shall receive a monthly
30 retiree health insurance subsidy payment equal to the number
31 of years of creditable service, as defined in s. 121.021(17),
3
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Florida Senate - 2004 SB 2204
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1 completed at the time of retirement multiplied by $7; however,
2 an eligible retiree or beneficiary may not receive a subsidy
3 payment of more than $210 or less than $42. If there are
4 multiple beneficiaries, the total payment must not be greater
5 than the payment to which the retiree was entitled. The health
6 insurance subsidy amount payable to any person receiving the
7 retiree health insurance subsidy payment on January 1, 2005,
8 may not be reduced solely by operation of this subparagraph.
9 2. Beginning January 1, 2005, each eligible
10 participant of the Public Employee Optional Retirement Program
11 of the Florida Retirement System who has met the requirements
12 of this section or, if the participant is deceased, his or her
13 spouse who is the participant's designated beneficiary shall
14 receive a monthly retiree health insurance subsidy equal to
15 the number of years of creditable service, as provided in this
16 subparagraph, completed at the time of retirement multiplied
17 by $7; however, an eligible retiree or beneficiary may not
18 receive a subsidy payment of more than $210 or less than $42.
19 For purposes of determining a participant's creditable service
20 used to calculate the health insurance subsidy, a
21 participant's years of service credit or fraction thereof
22 shall be based on the participant's work year as defined in s.
23 121.021(54). Credit shall be awarded for a full work year
24 whenever health insurance subsidy contributions have been made
25 as required by law for each month in the participant's work
26 year. In addition, all years of creditable service retained
27 under the Florida Retirement System defined benefit program
28 shall be included as creditable service for purposes of this
29 section.
30 (8) CONTRIBUTIONS.--For purposes of funding the
31 insurance subsidy provided by this section:
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Florida Senate - 2004 SB 2204
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1 (a) Beginning October 1, 1987, the employer of each
2 member of a state-administered retirement plan shall
3 contribute 0.24 percent of gross compensation each pay period.
4 (b) Beginning January 1, 1989, the employer of each
5 member of a state-administered retirement plan shall
6 contribute 0.48 percent of gross compensation each pay period.
7 (c) Beginning January 1, 1994, the employer of each
8 member of a state-administered retirement plan shall
9 contribute 0.56 percent of gross compensation each pay period.
10 (d) Beginning January 1, 1995, the employer of each
11 member of a state-administered retirement plan shall
12 contribute 0.66 percent of gross compensation each pay period.
13 (e) Beginning July 1, 1998, the employer of each
14 member of a state-administered retirement plan shall
15 contribute 0.94 percent of gross compensation each pay period.
16 (f) Beginning July 1, 2001, the employer of each
17 member of a state-administered plan shall contribute 1.11
18 percent of gross compensation each pay period.
19 (g) Beginning January 1, 2005, the employer of each
20 member of a state-administered retirement plan shall
21 contribute 1.55 percent of gross compensation each pay period.
22
23 Such contributions shall be submitted to the Department of
24 Management Services and deposited in the Retiree Health
25 Insurance Subsidy Trust Fund.
26 Section 2. The Legislature finds that a proper and
27 legitimate state purpose is served when employees and retirees
28 of the state and of its political subdivisions, and the
29 dependents, survivors, and beneficiaries of such employees and
30 retirees, are extended the basic protections afforded by
31 governmental retirement systems that provide fair and adequate
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Florida Senate - 2004 SB 2204
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1 benefits that are managed, administered, and funded in an
2 actuarially sound manner, as required by section 14, Article X
3 of the State Constitution and part VII of chapter 112, Florida
4 Statutes. Therefore, the Legislature determines and declares
5 that this act fulfills an important state interest.
6 Section 3. This act shall take effect upon becoming a
7 law.
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9 *****************************************
10 SENATE SUMMARY
11 Increases the health insurance subsidy for members of
state-administered retirement systems to $7 per year of
12 creditable service, with a minimum benefit of $42 a month
and a maximum of $210 a month.
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