HB 0781

1	A bill to be entitled
2	An act relating to retiree health insurance subsidy;
3	amending s. 112.363, F.S.; revising provisions for
4	determination of the amount of the subsidy for retirees of
5	the defined benefit program and eligible participants of
6	the Public Employee Optional Retirement Program of the
7	Florida Retirement System or their beneficiaries;
8	providing a cost-of-living adjustment for the subsidy;
9	revising the contribution paid by employers of state-
10	administered retirement plans; providing a finding of
11	important state interest; providing an effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Paragraphs (f) and (g) are added to subsection
16	(3) of section 112.363, Florida Statutes, and paragraph (g) is
17	added to subsection (8) of said section, to read:
18	112.363  Retiree health insurance subsidy.--
19	(3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
20	(f)1.  Beginning January 1, 2006, each eligible retiree of
21	the defined benefit program of the Florida Retirement System,
22	or, if the retiree is deceased, his or her beneficiary who is
23	receiving a monthly benefit from such retiree's account and who
24	is a spouse or a person who meets the definition of a joint
25	annuitant in s. 121.021(28), shall receive a monthly retiree
26	health insurance subsidy payment equal to the number of years of
27	creditable service, as defined in s. 121.021(17), completed at
28	the time of retirement multiplied by $7; however, no eligible
29	retiree or beneficiary may receive a subsidy payment of more
30	than $210 or less than $42. If there are multiple beneficiaries,
31	the total payment must not be greater than the payment to which
32	the retiree was entitled. The health insurance subsidy amount
33	payable to any person receiving the retiree health insurance
34	subsidy payment on January 1, 2005, shall not be reduced solely
35	by operation of this subparagraph.
36	2.  Beginning January 1, 2006, each eligible participant of
37	the Public Employee Optional Retirement Program of the Florida
38	Retirement System who has met the requirements of this section,
39	or, if the participant is deceased, his or her spouse who is the
40	participant's designated beneficiary, shall receive a monthly
41	retiree health insurance subsidy equal to the number of years of
42	creditable service, as provided in this subparagraph, completed
43	at the time of retirement multiplied by $7; however, no eligible
44	retiree or beneficiary may receive a subsidy payment of more
45	than $210 or less than $42. For purposes of determining a
46	participant's creditable service used to calculate the health
47	insurance subsidy, a participant's years of service credit or
48	fraction thereof shall be based on the participant's work year
49	as defined in s. 121.021(54). Credit shall be awarded for a full
50	work year whenever health insurance subsidy contributions have
51	been made as required by law for each month in the participant's
52	work year. In addition, all years of creditable service retained
53	under the Florida Retirement System defined benefit program
54	shall be included as creditable service for purposes of this
55	section.
56	(g)  Beginning January 1, 2007, and each January 1
57	thereafter, the health insurance subsidy shall be adjusted by a
58	cost-of-living factor. The adjusted monthly health insurance
59	subsidy for retirees and annuitants will equal the health
60	insurance subsidy paid in the month prior to the adjustment plus
61	an amount equal to 3 percent of the prior month's health
62	insurance subsidy.
63	(8)  CONTRIBUTIONS.--For purposes of funding the insurance
64	subsidy provided by this section:
65	(g)  Beginning January 1, 2006, the employer of each member
66	of a state-administered retirement plan shall contribute 1.56
67	percent of gross compensation each pay period.
68
69	Such contributions shall be submitted to the Department of
70	Management Services and deposited in the Retiree Health
71	Insurance Subsidy Trust Fund.
72	Section 2.  The Legislature finds that a proper and
73	legitimate state purpose is served when employees and retirees
74	of the state and of its political subdivisions, and the
75	dependents, survivors, and beneficiaries of such employees and
76	retirees, are extended the basic protections afforded by
77	governmental retirement systems that provide fair and adequate
78	benefits that are managed, administered, and funded in an
79	actuarially sound manner, as required by s. 14, Art. X of the
80	State Constitution and part VII of chapter 112, Florida
81	Statutes. Therefore, the Legislature determines and declares
82	that this act fulfills an important state interest.
83	Section 3.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.