HB 7B

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