HB 0663 2004
1	A bill to be entitled
2	An act relating to retiree health insurance subsidies;
3	amending s. 112.363, F.S.; revising the formula for
4	determining the monthly benefit amount of a health
5	insurance subsidy payment for retirees under the defined
6	benefit program and the Public Employee Optional
7	Retirement Program of the Florida Retirement System to
8	increase the monthly benefit; providing limitations;
9	increasing the required employer contribution for the
10	retiree health insurance subsidy; deleting obsolete
11	provisions; providing a statement of important state
12	interest; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1. Subsections (3) and (8) of section 112.363,
17	Florida Statutes, are amended to read:
18	112.363 Retiree health insurance subsidy.--
19	(3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
20	(a) Beginning January 1, 1988, each eligible retiree or a
21	beneficiary who is a spouse or financial dependent thereof shall
22	receive a monthly retiree health insurance subsidy payment equal
23	to the number of years of creditable service, as defined in s.
24	121.021(17), completed at the time of retirement multiplied by
25	$1; however, no retiree may receive a subsidy payment of more
26	than $30 or less than $10.
27	(b) Beginning January 1, 1989, each eligible retiree or a
28	beneficiary who is a spouse or financial dependent shall receive
29	a monthly retiree health insurance subsidy payment equal to the
30	number of years of creditable service, as defined in s.
31	121.021(17), completed at the time of retirement multiplied by
32	$2; however, no retiree may receive a subsidy payment of more
33	than $60 or less than $20.
34	(c) Beginning January 1, 1991, each eligible retiree or a
35	beneficiary who is a spouse or financial dependent shall receive
36	a monthly retiree health insurance subsidy payment equal to the
37	number of years of creditable service, as defined in s.
38	121.021(17), completed at the time of retirement multiplied by
39	$3; however, no retiree may receive a subsidy payment of more
40	than $90 or less than $30.
41	(d) Beginning January 1, 1999, each eligible retiree or,
42	if the retiree is deceased, his or her beneficiary who is
43	receiving a monthly benefit from such retiree's account and who
44	is a spouse, or a person who meets the definition of joint
45	annuitant in s. 121.021(28), shall receive a monthly retiree
46	health insurance subsidy payment equal to the number of years of
47	creditable service, as defined in s. 121.021(17), completed at
48	the time of retirement multiplied by $5; however, no eligible
49	retiree or such beneficiary may receive a subsidy payment of
50	more than $150 or less than $50. If there are multiple
51	beneficiaries, the total payment must not be greater than the
52	payment to which the retiree was entitled.
53	(a)(e)1. Beginning July 1, 2001,Each eligible retiree of
54	the defined benefit program of the Florida Retirement System,
55	or, if the retiree is deceased, his or her beneficiary who is
56	receiving a monthly benefit from such retiree's account and who
57	is a spouse, or a person who meets the definition of joint
58	annuitant in s. 121.021(28), shall receive a monthly retiree
59	health insurance subsidy payment equal to the number of years of
60	creditable service, as defined in s. 121.021(17), completed at
61	the time of retirement multiplied by $7 $5; however, no eligible
62	retiree or beneficiary may receive a subsidy payment of more
63	than $210 $150 or less than $42 $30. If there are multiple
64	beneficiaries, the total payment must not be greater than the
65	payment to which the retiree was entitled. The health insurance
66	subsidy amount payable to any person receiving the retiree
67	health insurance subsidy payment on January 1, 2005 July 1,
68	2001, shall not be reduced solely by operation of this
69	subparagraph.
70	(b)2. Beginning July 1, 2002,Each eligible participant of
71	the Public Employee Optional Retirement Program of the Florida
72	Retirement System who has met the requirements of this section,
73	or, if the participant is deceased, his or her spouse who is the
74	participant's designated beneficiary, shall receive a monthly
75	retiree health insurance subsidy payment equal to the number of
76	years of creditable service, as provided in this subparagraph,
77	completed at the time of retirement, multiplied by $7 $5;
78	however, no eligible retiree or beneficiary may receive a
79	subsidy payment of more than $210 $150 or less than $42 $30. For
80	purposes of determining a participant's creditable service used
81	to calculate the health insurance subsidy, a participant's years
82	of service credit or fraction thereof shall be based on the
83	participant's work year as defined in s. 121.021(54). Credit
84	shall be awarded for a full work year whenever health insurance
85	subsidy contributions have been made as required by law for each
86	month in the participant's work year. In addition, all years of
87	creditable service retained under the Florida Retirement System
88	defined benefit program shall be included as creditable service
89	for purposes of this section.
90	(8) CONTRIBUTIONS.--For purposes of funding the insurance
91	subsidy provided by this section,:
92	(a) Beginning October 1, 1987, the employer of each member
93	of a state-administered retirement plan shall contribute 0.24
94	percent of gross compensation each pay period.
95	(b) Beginning January 1, 1989, the employer of each member
96	of a state-administered retirement plan shall contribute 0.48
97	percent of gross compensation each pay period.
98	(c) Beginning January 1, 1994, the employer of each member
99	of a state-administered retirement plan shall contribute 0.56
100	percent of gross compensation each pay period.
101	(d) Beginning January 1, 1995, the employer of each member
102	of a state-administered retirement plan shall contribute 0.66
103	percent of gross compensation each pay period.
104	(e) Beginning July 1, 1998, the employer of each member of
105	a state-administered retirement plan shall contribute 0.94
106	percent of gross compensation each pay period.
107	(f) Beginning July 1, 2001,the employer of each member of
108	a state-administered plan shall contribute 1.55 1.11percent of
109	gross compensation each pay period. Such contributions shall be
110	submitted to the Department of Management Services and deposited
111	in the Retiree Health Insurance Subsidy Trust Fund.
112	Section 2. The Legislature finds that a proper and
113	legitimate state purpose is served when employees and retirees
114	of the state and of its political subdivisions, and the
115	dependents, survivors, and beneficiaries of such employees and
116	retirees, are extended the basic protections afforded by
117	governmental retirement systems that provide fair and adequate
118	benefits that are managed, administered, and funded in an
119	actuarially sound manner, as required by s. 14, Art. X of the
120	State Constitution and part VII of chapter 112, Florida
121	Statutes. Therefore, the Legislature determines and declares
122	that this act fulfills an important state interest.
123	Section 3. This act shall take effect January 1, 2005.