Senate Bill sb0442

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2006                                   SB 442

    By Senators Lawson and Argenziano





    6-510-06

  1                      A bill to be entitled

  2         An act relating to the retiree health insurance

  3         subsidy; amending s. 112.363, F.S.; increasing

  4         the minimum and maximum health insurance

  5         subsidies; providing for an annual

  6         cost-of-living adjustment to the subsidy;

  7         increasing the contribution paid by employers

  8         of members in state-administered retirement

  9         plans; providing legislative findings;

10         providing effective dates.

11  

12  Be It Enacted by the Legislature of the State of Florida:

13  

14         Section 1.  Subsections (3) and (8) of section 112.363,

15  Florida Statutes, are amended to read:

16         112.363  Retiree health insurance subsidy.--

17         (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--

18         (a)  Beginning January 1, 1988, each eligible retiree

19  or a beneficiary who is a spouse or financial dependent

20  thereof shall receive a monthly retiree health insurance

21  subsidy payment equal to the number of years of creditable

22  service, as defined in s. 121.021(17), completed at the time

23  of retirement multiplied by $1; however, no retiree may

24  receive a subsidy payment of more than $30 or less than $10.

25         (b)  Beginning January 1, 1989, each eligible retiree

26  or a beneficiary who is a spouse or financial dependent shall

27  receive a monthly retiree health insurance subsidy payment

28  equal to the number of years of creditable service, as defined

29  in s. 121.021(17), completed at the time of retirement

30  multiplied by $2; however, no retiree may receive a subsidy

31  payment of more than $60 or less than $20.

                                  1

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1         (c)  Beginning January 1, 1991, each eligible retiree

 2  or a beneficiary who is a spouse or financial dependent shall

 3  receive a monthly retiree health insurance subsidy payment

 4  equal to the number of years of creditable service, as defined

 5  in s. 121.021(17), completed at the time of retirement

 6  multiplied by $3; however, no retiree may receive a subsidy

 7  payment of more than $90 or less than $30.

 8         (d)  Beginning January 1, 1999, each eligible retiree

 9  or, if the retiree is deceased, his or her beneficiary who is

10  receiving a monthly benefit from such retiree's account and

11  who is a spouse, or a person who meets the definition of joint

12  annuitant in s. 121.021(28), shall receive a monthly retiree

13  health insurance subsidy payment equal to the number of years

14  of creditable service, as defined in s. 121.021(17), completed

15  at the time of retirement multiplied by $5; however, no

16  eligible retiree or such beneficiary may receive a subsidy

17  payment of more than $150 or less than $50.  If there are

18  multiple beneficiaries, the total payment must not be greater

19  than the payment to which the retiree was entitled.

20         (e)1.  Beginning July 1, 2001, 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

24  who is a spouse, or a person who meets the definition of joint

25  annuitant in s. 121.021(28), shall receive a monthly retiree

26  health insurance subsidy payment equal to the number of years

27  of creditable service, as defined in s. 121.021(17), completed

28  at the time of retirement multiplied by $5; however, no

29  eligible retiree or beneficiary may receive a subsidy payment

30  of more than $150 or less than $30.  If there are multiple

31  beneficiaries, the total payment must not be greater than the

                                  2

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1  payment to which the retiree was entitled.  The health

 2  insurance subsidy amount payable to any person receiving the

 3  retiree health insurance subsidy payment on July 1, 2001,

 4  shall not be reduced solely by operation of this subparagraph.

 5         2.  Beginning July 1, 2002, each eligible participant

 6  of the Public Employee Optional Retirement Program of the

 7  Florida Retirement System who has met the requirements of this

 8  section, or, if the participant is deceased, his or her spouse

 9  who is the participant's designated beneficiary, shall receive

10  a monthly retiree health insurance subsidy payment equal to

11  the number of years of creditable service, as provided in this

12  subparagraph, completed at the time of retirement, multiplied

13  by $5; however, no eligible retiree or beneficiary may receive

14  a subsidy payment of more than $150 or less than $30.  For

15  purposes of determining a participant's creditable service

16  used to calculate the health insurance subsidy, a

17  participant's years of service credit or fraction thereof

18  shall be based on the participant's work year as defined in s.

19  121.021(54).  Credit shall be awarded for a full work year

20  whenever health insurance subsidy contributions have been made

21  as required by law for each month in the participant's work

22  year.  In addition, all years of creditable service retained

23  under the Florida Retirement System defined benefit program

24  shall be included as creditable service for purposes of this

25  section. Notwithstanding any other provision in this section

26  to the contrary, the spouse at the time of death shall be the

27  participant's beneficiary unless such participant has

28  designated a different beneficiary subsequent to the

29  participant's most recent marriage.

30         (f)1.  Beginning January 1, 2007, each eligible retiree

31  of the defined benefit program of the Florida Retirement

                                  3

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1  System or, if the retiree is deceased, his or her beneficiary

 2  who is receiving a monthly benefit from such retiree's account

 3  and who is a spouse or a person who meets the definition of a

 4  joint annuitant in s. 121.021 shall receive a monthly retiree

 5  health insurance subsidy payment equal to the number of years

 6  of creditable service, as defined in s. 121.021, completed at

 7  the time of retirement multiplied by $6; however, an eligible

 8  retiree or beneficiary may not receive a subsidy payment of

 9  more than $180 or less than $36. If there are multiple

10  beneficiaries, the total payment must not be greater than the

11  payment to which the retiree was entitled. Notwithstanding any

12  other provision in this section to the contrary, the spouse at

13  the time of death shall be the participant's beneficiary

14  unless such participant has designated a different beneficiary

15  subsequent to the participant's most recent marriage. The

16  health insurance subsidy amount payable to any person

17  receiving the retiree health insurance subsidy payment on

18  January 1, 2006, may not be reduced solely by operation of

19  this subparagraph.

20         2.  Beginning January 1, 2007, each eligible

21  participant of the Public Employee Optional Retirement Program

22  of the Florida Retirement System who has met the requirements

23  of this section or, if the participant is deceased, his or her

24  spouse who is the participant's designated beneficiary shall

25  receive a monthly retiree health insurance subsidy equal to

26  the number of years of creditable service, as provided in this

27  subparagraph, completed at the time of retirement multiplied

28  by $6; however, an eligible retiree or beneficiary may not

29  receive a subsidy payment of more than $180 or less than $36.

30  For purposes of determining a participant's creditable service

31  used to calculate the health insurance subsidy, a

                                  4

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1  participant's years of service credit or fraction thereof

 2  shall be based on the participant's work year as defined in s.

 3  121.021. Credit shall be awarded for a full work year whenever

 4  health insurance subsidy contributions have been made as

 5  required by law for each month in the participant's work year.

 6  In addition, all years of creditable service retained under

 7  the Florida Retirement System defined benefit program shall be

 8  included as creditable service for purposes of this section.

 9  Notwithstanding any other provision in this section to the

10  contrary, the spouse at the time of death shall be the

11  participant's beneficiary unless such participant has

12  designated a different beneficiary subsequent to the

13  participant's most recent marriage.

14         (g)1.  Beginning January 1, 2008, each eligible retiree

15  of the defined benefit program of the Florida Retirement

16  System or, if the retiree is deceased, his or her beneficiary

17  who is receiving a monthly benefit from such retiree's account

18  and who is a spouse or a person who meets the definition of a

19  joint annuitant in s. 121.021 shall receive a monthly retiree

20  health insurance subsidy payment equal to the number of years

21  of creditable service, as defined in s. 121.021, completed at

22  the time of retirement multiplied by $7; however, an eligible

23  retiree or beneficiary may not receive a subsidy payment of

24  more than $210 or less than $42. If there are multiple

25  beneficiaries, the total payment must not be greater than the

26  payment to which the retiree was entitled. Notwithstanding any

27  other provision in this section to the contrary, the spouse at

28  the time of death shall be the participant's beneficiary

29  unless such participant has designated a different beneficiary

30  subsequent to the participant's most recent marriage. The

31  health insurance subsidy amount payable to any person

                                  5

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1  receiving the retiree health insurance subsidy payment on

 2  January 1, 2006, may not be reduced solely by operation of

 3  this subparagraph.

 4         2.  Beginning January 1, 2008, each eligible

 5  participant of the Public Employee Optional Retirement Program

 6  of the Florida Retirement System who has met the requirements

 7  of this section or, if the participant is deceased, his or her

 8  spouse who is the participant's designated beneficiary shall

 9  receive a monthly retiree health insurance subsidy equal to

10  the number of years of creditable service, as provided in this

11  subparagraph, completed at the time of retirement multiplied

12  by $7; however, an eligible retiree or beneficiary may not

13  receive a subsidy payment of more than $210 or less than $42.

14  For purposes of determining a participant's creditable service

15  used to calculate the health insurance subsidy, a

16  participant's years of service credit or fraction thereof

17  shall be based on the participant's work year as defined in s.

18  121.021. Credit shall be awarded for a full work year whenever

19  health insurance subsidy contributions have been made as

20  required by law for each month in the participant's work year.

21  In addition, all years of creditable service retained under

22  the Florida Retirement System defined benefit program shall be

23  included as creditable service for purposes of this section.

24  Notwithstanding any other provision in this section to the

25  contrary, the spouse at the time of death shall be the

26  participant's beneficiary unless such participant has

27  designated a different beneficiary subsequent to the

28  participant's most recent marriage.

29         (8)  CONTRIBUTIONS.--For purposes of funding the

30  insurance subsidy provided by this section:

31  

                                  6

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1         (a)  Beginning October 1, 1987, the employer of each

 2  member of a state-administered retirement plan shall

 3  contribute 0.24 percent of gross compensation each pay period.

 4         (b)  Beginning January 1, 1989, the employer of each

 5  member of a state-administered retirement plan shall

 6  contribute 0.48 percent of gross compensation each pay period.

 7         (c)  Beginning January 1, 1994, the employer of each

 8  member of a state-administered retirement plan shall

 9  contribute 0.56 percent of gross compensation each pay period.

10         (d)  Beginning January 1, 1995, the employer of each

11  member of a state-administered retirement plan shall

12  contribute 0.66 percent of gross compensation each pay period.

13         (e)  Beginning July 1, 1998, the employer of each

14  member of a state-administered retirement plan shall

15  contribute 0.94 percent of gross compensation each pay period.

16         (f)  Beginning July 1, 2001, the employer of each

17  member of a state-administered plan shall contribute 1.11

18  percent of gross compensation each pay period.

19         (g)  Beginning January 1, 2007, the employer of each

20  member of a state-administered retirement plan shall

21  contribute 1.75 percent of gross compensation each pay period.

22  

23  Such contributions shall be submitted to the Department of

24  Management Services and deposited in the Retiree Health

25  Insurance Subsidy Trust Fund.

26         Section 2.  The Legislature finds that a proper and

27  legitimate state purpose is served when employees and retirees

28  of the state and of its political subdivisions, and the

29  dependents, survivors, and beneficiaries of such employees and

30  retirees, are extended the basic protections afforded by

31  governmental retirement systems that provide fair and adequate

                                  7

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






    Florida Senate - 2006                                   SB 442
    6-510-06




 1  benefits that are managed, administered, and funded in an

 2  actuarially sound manner, as required by Section 14, Article X

 3  of the State Constitution and part VII of chapter 112, Florida

 4  Statutes. Therefore, the Legislature determines and declares

 5  that this act fulfills an important state interest.

 6         Section 3.  This act shall take effect upon becoming a

 7  law.

 8  

 9            *****************************************

10                          SENATE SUMMARY

11    Increases the retiree health insurance subsidies
      beginning January 1, 2007. Provides for an annual
12    cost-of-living adjustment. Increases the contribution
      paid by employers of members in state-administered
13    retirement plans.

14  

15  

16  

17  

18  

19  

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  8

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