HB 0781CS

CHAMBER ACTION




1The Local Government Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to retiree health insurance subsidy;
7amending s. 112.363, F.S.; revising provisions for
8determination of the amount of the subsidy for retirees of
9the defined benefit program and eligible participants of
10the Public Employee Optional Retirement Program of the
11Florida Retirement System or their beneficiaries;
12providing that the spouse at the time of a Florida
13Retirement System participant's death is considered the
14beneficiary for purposes of the retiree health insurance
15subsidy unless a different beneficiary has been
16designated; revising the contribution paid by employers of
17state-administered retirement plans; providing a finding
18of important state interest; providing an effective date.
19
20Be It Enacted by the Legislature of the State of Florida:
21
22     Section 1.  Paragraphs (f) and (g) are added to subsection
23(3) of section 112.363, Florida Statutes, and paragraphs (g) and
24(h) are added to subsection (8) of said section, to read:
25     112.363  Retiree health insurance subsidy.--
26     (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
27     (f)1.  Beginning January 1, 2006, each eligible retiree of
28the defined benefit program of the Florida Retirement System or,
29if the retiree is deceased, his or her beneficiary who is
30receiving a monthly benefit from such retiree's account and who
31is a spouse or a person who meets the definition of a joint
32annuitant in s. 121.021 shall receive a monthly retiree health
33insurance subsidy payment equal to the number of years of
34creditable service, as defined in s. 121.021, completed at the
35time of retirement multiplied by $6; however, an eligible
36retiree or beneficiary may not receive a subsidy payment of more
37than $180 or less than $36. If there are multiple beneficiaries,
38the total payment must not be greater than the payment to which
39the retiree was entitled. Notwithstanding any other provision in
40this section, the spouse at the time of death shall be the
41participant's beneficiary unless such participant has designated
42a different beneficiary subsequent to the participant's most
43recent marriage. The health insurance subsidy amount payable to
44any person receiving the retiree health insurance subsidy
45payment on January 1, 2005, may not be reduced solely by
46operation of this subparagraph.
47     2.  Beginning January 1, 2006, each eligible participant of
48the Public Employee Optional Retirement Program of the Florida
49Retirement System who has met the requirements of this section
50or, if the participant is deceased, his or her spouse who is the
51participant's designated beneficiary shall receive a monthly
52retiree health insurance subsidy equal to the number of years of
53creditable service, as provided in this subparagraph, completed
54at the time of retirement multiplied by $6; however, an eligible
55retiree or beneficiary may not receive a subsidy payment of more
56than $180 or less than $36. For purposes of determining a
57participant's creditable service used to calculate the health
58insurance subsidy, a participant's years of service credit or
59fraction thereof shall be based on the participant's work year
60as defined in s. 121.021. Credit shall be awarded for a full
61work year whenever health insurance subsidy contributions have
62been made as required by law for each month in the participant's
63work year. In addition, all years of creditable service retained
64under the Florida Retirement System defined benefit program
65shall be included as creditable service for purposes of this
66section. Notwithstanding any other provision in this section,
67the spouse at the time of death shall be the participant's
68beneficiary unless such participant has designated a different
69beneficiary subsequent to the participant's most recent
70marriage.
71     (g)1.  Beginning January 1, 2007, each eligible retiree of
72the defined benefit program of the Florida Retirement System or,
73if the retiree is deceased, his or her beneficiary who is
74receiving a monthly benefit from such retiree's account and who
75is a spouse or a person who meets the definition of a joint
76annuitant in s. 121.021 shall receive a monthly retiree health
77insurance subsidy payment equal to the number of years of
78creditable service, as defined in s. 121.021, completed at the
79time of retirement multiplied by $7; however, an eligible
80retiree or beneficiary may not receive a subsidy payment of more
81than $210 or less than $42. If there are multiple beneficiaries,
82the total payment must not be greater than the payment to which
83the retiree was entitled. Notwithstanding any other provision in
84this section, the spouse at the time of death shall be the
85participant's beneficiary unless such participant has designated
86a different beneficiary subsequent to the participant's most
87recent marriage. The health insurance subsidy amount payable to
88any person receiving the retiree health insurance subsidy
89payment on January 1, 2005, may not be reduced solely by
90operation of this subparagraph.
91     2.  Beginning January 1, 2007, each eligible participant of
92the Public Employee Optional Retirement Program of the Florida
93Retirement System who has met the requirements of this section
94or, if the participant is deceased, his or her spouse who is the
95participant's designated beneficiary shall receive a monthly
96retiree health insurance subsidy equal to the number of years of
97creditable service, as provided in this subparagraph, completed
98at the time of retirement multiplied by $7; however, an eligible
99retiree or beneficiary may not receive a subsidy payment of more
100than $210 or less than $42. For purposes of determining a
101participant's creditable service used to calculate the health
102insurance subsidy, a participant's years of service credit or
103fraction thereof shall be based on the participant's work year
104as defined in s. 121.021. Credit shall be awarded for a full
105work year whenever health insurance subsidy contributions have
106been made as required by law for each month in the participant's
107work year. In addition, all years of creditable service retained
108under the Florida Retirement System defined benefit program
109shall be included as creditable service for purposes of this
110section. Notwithstanding any other provision in this section,
111the spouse at the time of death shall be the participant's
112beneficiary unless such participant has designated a different
113beneficiary subsequent to the participant's most recent
114marriage.
115     (8)  CONTRIBUTIONS.--For purposes of funding the insurance
116subsidy provided by this section:
117     (g)  Beginning July 1, 2005, the employer of each member of
118a state-administered retirement plan shall contribute 1.22
119percent of gross compensation each pay period.
120     (h)  Beginning July 1, 2006, the employer of each member of
121a state-administered retirement plan shall contribute 1.66
122percent of gross compensation each pay period.
123
124Such contributions shall be submitted to the Department of
125Management Services and deposited in the Retiree Health
126Insurance Subsidy Trust Fund.
127     Section 2.  The Legislature finds that a proper and
128legitimate state purpose is served when employees and retirees
129of the state and of its political subdivisions, and the
130dependents, survivors, and beneficiaries of such employees and
131retirees, are extended the basic protections afforded by
132governmental retirement systems that provide fair and adequate
133benefits that are managed, administered, and funded in an
134actuarially sound manner, as required by s. 14, Art. X of the
135State Constitution and part VII of chapter 112, Florida
136Statutes. Therefore, the Legislature determines and declares
137that this act fulfills an important state interest.
138     Section 3.  This act shall take effect upon becoming a law.


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