HB 1265

1	A bill to be entitled
2	An act relating to the 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 paragraph (g) is
20	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, 2009, 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 in an amount 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 3 percent per year of service,
32	not to exceed a total of 60 percent of the amount of the monthly
33	payment due under individual or family coverage under the state
34	group health insurance plan, as applicable to the retiree. If
35	there are multiple beneficiaries, the total payment must not be
36	greater than the payment to which the retiree was entitled.
37	Notwithstanding any other provision in this section, the spouse
38	at the time of death shall be the participant's beneficiary
39	unless such participant has designated a different beneficiary
40	subsequent to the participant's most recent marriage. The health
41	insurance subsidy amount payable to any person receiving the
42	retiree health insurance subsidy payment on January 1, 2008, may
43	not be reduced solely by operation of this subparagraph.
44	2.  Beginning January 1, 2009, each eligible participant of
45	the Public Employee Optional Retirement Program of the Florida
46	Retirement System who has met the requirements of this section
47	or, if the participant is deceased, his or her spouse who is the
48	participant's designated beneficiary, shall receive a monthly
49	retiree health insurance subsidy in an amount equal to the
50	number of years of creditable service, as provided in this
51	subparagraph, completed at the time of retirement multiplied by
52	3 percent per year of service, not to exceed a total of 60
53	percent of the amount of the monthly payment due under
54	individual or family coverage under the state group health
55	insurance plan, as applicable to the retiree. For purposes of
56	determining a participant's creditable service used to calculate
57	the health insurance subsidy, a participant's years of service
58	credit or fraction thereof shall be based on the participant's
59	work year as defined in s. 121.021. Credit shall be awarded for
60	a full work year whenever health insurance subsidy contributions
61	have been made as required by law for each month in the
62	participant's work year. In addition, all years of creditable
63	service retained under the Florida Retirement System defined
64	benefit program shall be included as creditable service for
65	purposes of this section. Notwithstanding any other provision in
66	this section, the spouse at the time of death shall be the
67	participant's beneficiary unless such participant has designated
68	a different beneficiary subsequent to the participant's most
69	recent marriage.
70	(g)1.  Beginning January 1, 2010, each eligible retiree of
71	the defined benefit program of the Florida Retirement System or,
72	if the retiree is deceased, his or her beneficiary who is
73	receiving a monthly benefit from such retiree's account and who
74	is a spouse or a person who meets the definition of a joint
75	annuitant in s. 121.021, shall receive a monthly retiree health
76	insurance subsidy in an amount equal to the number of years of
77	creditable service, as defined in s. 121.021, completed at the
78	time of retirement multiplied by 3 percent per year of service,
79	not to exceed a total of 60 percent of the amount of the monthly
80	payment due under individual or family coverage under the state
81	group health insurance plan, as applicable to the retiree. If
82	there are multiple beneficiaries, the total payment must not be
83	greater than the payment to which the retiree was entitled.
84	Notwithstanding any other provision in this section, the spouse
85	at the time of death shall be the participant's beneficiary
86	unless such participant has designated a different beneficiary
87	subsequent to the participant's most recent marriage. The health
88	insurance subsidy amount payable to any person receiving the
89	retiree health insurance subsidy payment on January 1, 2009, may
90	not be reduced solely by operation of this subparagraph.
91	2.  Beginning January 1, 2010, 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 in an amount equal to the
97	number of years of creditable service, as provided in this
98	subparagraph, completed at the time of retirement multiplied by
99	3 percent per year of service, not to exceed a total of 60
100	percent of the amount of the monthly payment due under
101	individual or family coverage under the state group health
102	insurance plan, as applicable to the retiree. For purposes of
103	determining a participant's creditable service used to calculate
104	the health insurance subsidy, a participant's years of service
105	credit or fraction thereof shall be based on the participant's
106	work year as defined in s. 121.021. Credit shall be awarded for
107	a full work year whenever health insurance subsidy contributions
108	have been made as required by law for each month in the
109	participant's work year. In addition, all years of creditable
110	service retained under the Florida Retirement System defined
111	benefit program shall be included as creditable service for
112	purposes of this section. Notwithstanding any other provision in
113	this section, the spouse at the time of death shall be the
114	participant's beneficiary unless such participant has designated
115	a different beneficiary subsequent to the participant's most
116	recent marriage.
117	(8)  CONTRIBUTIONS.--For purposes of funding the insurance
118	subsidy provided by this section:
119	(a)  Beginning October 1, 1987, the employer of each member
120	of a state-administered retirement plan shall contribute 0.24
121	percent of gross compensation each pay period.
122	(b)  Beginning January 1, 1989, the employer of each member
123	of a state-administered retirement plan shall contribute 0.48
124	percent of gross compensation each pay period.
125	(c)  Beginning January 1, 1994, the employer of each member
126	of a state-administered retirement plan shall contribute 0.56
127	percent of gross compensation each pay period.
128	(d)  Beginning January 1, 1995, the employer of each member
129	of a state-administered retirement plan shall contribute 0.66
130	percent of gross compensation each pay period.
131	(e)  Beginning July 1, 1998, the employer of each member of
132	a state-administered retirement plan shall contribute 0.94
133	percent of gross compensation each pay period.
134	(f)  Beginning July 1, 2001, the employer of each member of
135	a state-administered plan shall contribute 1.11 percent of gross
136	compensation each pay period.
137	(g)  Beginning January 1, 2009, the employer of each member
138	of a state-administered retirement plan shall contribute 1.75
139	percent of gross compensation each pay period.
140
141	Such contributions shall be submitted to the Department of
142	Management Services and deposited in the Retiree Health
143	Insurance Subsidy Trust Fund.
144	Section 2.  The Legislature finds that a proper and
145	legitimate state purpose is served when employees and retirees
146	of the state and of its political subdivisions, and the
147	dependents, survivors, and beneficiaries of such employees and
148	retirees, are extended the basic protections afforded by
149	governmental retirement systems that provide fair and adequate
150	benefits that are managed, administered, and funded in an
151	actuarially sound manner, as required by s. 14, Art. X of the
152	State Constitution and part VII of chapter 112, Florida
153	Statutes. Therefore, the Legislature determines and declares
154	that this act fulfills an important state interest.
155	Section 3.  This act shall take effect upon becoming a law.

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