HB 0781

CS

CHAMBER ACTION

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