HB 7B

1
A bill to be entitled
2An act relating to retiree health insurance subsidy;
3amending s. 112.363, F.S.; revising provisions for
4determination of the amount of the subsidy for retirees of
5the defined benefit program and eligible participants of
6the Public Employee Optional Retirement Program of the
7Florida Retirement System or their beneficiaries;
8providing that the spouse at the time of a Florida
9Retirement System participant's death is considered the
10beneficiary for purposes of the retiree health insurance
11subsidy unless a different beneficiary has been
12designated; revising the contribution paid by employers of
13state-administered retirement plans; providing a finding
14of important state interest; providing an effective date.
15
16Be It Enacted by the Legislature of the State of Florida:
17
18     Section 1.  Paragraphs (f) and (g) are added to subsection
19(3) of section 112.363, Florida Statutes, and paragraphs (g) and
20(h) are added to subsection (8) of that section, to read:
21     112.363  Retiree health insurance subsidy.--
22     (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
23     (f)1.  Beginning January 1, 2007, each eligible retiree of
24the defined benefit program of the Florida Retirement System or,
25if the retiree is deceased, his or her beneficiary who is
26receiving a monthly benefit from such retiree's account and who
27is a spouse or a person who meets the definition of a joint
28annuitant in s. 121.021 shall receive a monthly retiree health
29insurance subsidy payment equal to the number of years of
30creditable service, as defined in s. 121.021, completed at the
31time of retirement multiplied by $6; however, an eligible
32retiree or beneficiary may not receive a subsidy payment of more
33than $180 or less than $36. If there are multiple beneficiaries,
34the total payment must not be greater than the payment to which
35the retiree was entitled. Notwithstanding any other provision in
36this section, the spouse at the time of death shall be the
37participant's beneficiary unless such participant has designated
38a different beneficiary subsequent to the participant's most
39recent marriage. The health insurance subsidy amount payable to
40any person receiving the retiree health insurance subsidy
41payment on January 1, 2006, may not be reduced solely by
42operation of this subparagraph.
43     2.  Beginning January 1, 2007, each eligible participant of
44the Public Employee Optional Retirement Program of the Florida
45Retirement System who has met the requirements of this section
46or, if the participant is deceased, his or her spouse who is the
47participant's designated beneficiary shall receive a monthly
48retiree health insurance subsidy equal to the number of years of
49creditable service, as provided in this subparagraph, completed
50at the time of retirement multiplied by $6; however, an eligible
51retiree or beneficiary may not receive a subsidy payment of more
52than $180 or less than $36. For purposes of determining a
53participant's creditable service used to calculate the health
54insurance subsidy, a participant's years of service credit or
55fraction thereof shall be based on the participant's work year
56as defined in s. 121.021. Credit shall be awarded for a full
57work year whenever health insurance subsidy contributions have
58been made as required by law for each month in the participant's
59work year. In addition, all years of creditable service retained
60under the Florida Retirement System defined benefit program
61shall be included as creditable service for purposes of this
62section. Notwithstanding any other provision in this section,
63the spouse at the time of death shall be the participant's
64beneficiary unless such participant has designated a different
65beneficiary subsequent to the participant's most recent
66marriage.
67     (g)1.  Beginning January 1, 2008, each eligible retiree of
68the defined benefit program of the Florida Retirement System or,
69if the retiree is deceased, his or her beneficiary who is
70receiving a monthly benefit from such retiree's account and who
71is a spouse or a person who meets the definition of a joint
72annuitant in s. 121.021 shall receive a monthly retiree health
73insurance subsidy payment equal to the number of years of
74creditable service, as defined in s. 121.021, completed at the
75time of retirement multiplied by $7; however, an eligible
76retiree or beneficiary may not receive a subsidy payment of more
77than $210 or less than $42. If there are multiple beneficiaries,
78the total payment must not be greater than the payment to which
79the retiree was entitled. Notwithstanding any other provision in
80this section, the spouse at the time of death shall be the
81participant's beneficiary unless such participant has designated
82a different beneficiary subsequent to the participant's most
83recent marriage. The health insurance subsidy amount payable to
84any person receiving the retiree health insurance subsidy
85payment on January 1, 2006, may not be reduced solely by
86operation of this subparagraph.
87     2.  Beginning January 1, 2008, each eligible participant of
88the Public Employee Optional Retirement Program of the Florida
89Retirement System who has met the requirements of this section
90or, if the participant is deceased, his or her spouse who is the
91participant's designated beneficiary shall receive a monthly
92retiree health insurance subsidy equal to the number of years of
93creditable service, as provided in this subparagraph, completed
94at the time of retirement multiplied by $7; however, an eligible
95retiree or beneficiary may not receive a subsidy payment of more
96than $210 or less than $42. For purposes of determining a
97participant's creditable service used to calculate the health
98insurance subsidy, a participant's years of service credit or
99fraction thereof shall be based on the participant's work year
100as defined in s. 121.021. Credit shall be awarded for a full
101work year whenever health insurance subsidy contributions have
102been made as required by law for each month in the participant's
103work year. In addition, all years of creditable service retained
104under the Florida Retirement System defined benefit program
105shall be included as creditable service for purposes of this
106section. Notwithstanding any other provision in this section,
107the spouse at the time of death shall be the participant's
108beneficiary unless such participant has designated a different
109beneficiary subsequent to the participant's most recent
110marriage.
111     (8)  CONTRIBUTIONS.--For purposes of funding the insurance
112subsidy provided by this section:
113     (g)  Beginning July 1, 2006, the employer of each member of
114a state-administered retirement plan shall contribute 1.22
115percent of gross compensation each pay period.
116     (h)  Beginning July 1, 2007, the employer of each member of
117a state-administered retirement plan shall contribute 1.66
118percent of gross compensation each pay period.
119
120Such contributions shall be submitted to the Department of
121Management Services and deposited in the Retiree Health
122Insurance Subsidy Trust Fund.
123     Section 2.  The Legislature finds that a proper and
124legitimate state purpose is served when employees and retirees
125of the state and of its political subdivisions, and the
126dependents, survivors, and beneficiaries of such employees and
127retirees, are extended the basic protections afforded by
128governmental retirement systems that provide fair and adequate
129benefits that are managed, administered, and funded in an
130actuarially sound manner, as required by s. 14, Art. X of the
131State Constitution and part VII of chapter 112, Florida
132Statutes. Therefore, the Legislature determines and declares
133that this act fulfills an important state interest.
134     Section 3.  This act shall take effect upon becoming a law.


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