Florida Senate - 2009 SB 1486
By Senator Lawson
6-00818-09 20091486__
1 A bill to be entitled
2 An act relating to the retiree health insurance
3 subsidy; amending s. 112.363, F.S.; increasing the
4 minimum and maximum health insurance subsidies;
5 providing for a cost-of-living adjustment to the
6 subsidy; increasing the contribution paid by employers
7 of members in state-administered retirement plans;
8 providing legislative findings; providing an effective
9 date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (e) of subsection (3) of section
14 112.363, Florida Statutes, is amended, paragraphs (f), (g), and
15 (h) are added to that subsection, and subsection (8) of that
16 section is amended, to read:
17 112.363 Retiree health insurance subsidy.—
18 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
19 (e)1. Beginning July 1, 2001, each eligible retiree of the
20 defined benefit program of the Florida Retirement System, or, if
21 the retiree is deceased, his or her beneficiary who is receiving
22 a monthly benefit from such retiree's account and who is a
23 spouse, or a person who meets the definition of joint annuitant
24 in s. 121.021(28), shall receive a monthly retiree health
25 insurance subsidy payment equal to the number of years of
26 creditable service, as defined in s. 121.021(17), completed at
27 the time of retirement multiplied by $5; however, no eligible
28 retiree or beneficiary may receive a subsidy payment of more
29 than $150 or less than $30. If there are multiple beneficiaries,
30 the total payment may must not be greater than the payment to
31 which the retiree was entitled. The health insurance subsidy
32 amount payable to any person receiving the retiree health
33 insurance subsidy payment on July 1, 2001, may shall not be
34 reduced solely by operation of this subparagraph.
35 (f)2. Beginning July 1, 2002, each eligible participant of
36 the Public Employee Optional Retirement Program of the Florida
37 Retirement System who has met the requirements of this section,
38 or, if the participant is deceased, his or her spouse who is the
39 participant's designated beneficiary, shall receive a monthly
40 retiree health insurance subsidy payment equal to the number of
41 years of creditable service, as provided in this subparagraph,
42 completed at the time of retirement, multiplied by $5; however,
43 no eligible retiree or beneficiary may receive a subsidy payment
44 of more than $150 or less than $30. For purposes of determining
45 a participant's creditable service used to calculate the health
46 insurance subsidy, a participant's years of service credit or
47 fraction thereof shall be based on the participant's work year
48 as defined in s. 121.021(54). Credit must shall be awarded for a
49 full work year whenever health insurance subsidy contributions
50 are have been made as required by law for each month in the
51 participant's work year. In addition, all years of creditable
52 service retained under the Florida Retirement System defined
53 benefit program must shall be included as creditable service for
54 purposes of this section. Notwithstanding any other provision in
55 this section to the contrary, the spouse at the time of death is
56 shall be the participant's beneficiary unless such participant
57 has designated a different beneficiary after subsequent to the
58 participant's most recent marriage.
59 (g) Beginning January 1, 2010:
60 1. Each eligible retiree of the defined benefit program of
61 the Florida Retirement System or, if the retiree is deceased,
62 his or her beneficiary who is receiving a monthly benefit from
63 the retiree's account and who is a spouse or a person who meets
64 the definition of a joint annuitant in s. 121.021 shall receive
65 a monthly retiree health insurance subsidy payment equal to the
66 number of years of creditable service, as defined in s. 121.021,
67 completed at the time of retirement multiplied by $6; however,
68 an eligible retiree or beneficiary may not receive a subsidy
69 payment of more than $180 or less than $36. If there are
70 multiple beneficiaries, the total payment may not be greater
71 than the payment to which the retiree was entitled.
72 Notwithstanding any other provision in this section, the spouse
73 at the time of death is the participant's beneficiary unless the
74 participant has designated a different beneficiary after the
75 participant's most recent marriage. The health insurance subsidy
76 amount payable to any person receiving the retiree health
77 insurance subsidy payment on January 1, 2009, may not be reduced
78 solely by operation of this subparagraph.
79 2. Each eligible participant of the Public Employee
80 Optional Retirement Program of the Florida Retirement System who
81 has met the requirements of this section or, if the participant
82 is deceased, his or her spouse who is the participant's
83 designated beneficiary shall receive a monthly retiree health
84 insurance subsidy equal to the number of years of creditable
85 service completed at the time of retirement multiplied by $6;
86 however, an eligible retiree or beneficiary may not receive a
87 subsidy payment of more than $180 or less than $36. For purposes
88 of determining a participant's creditable service under this
89 subparagraph, a participant's years of service credit or
90 fraction thereof shall be based on the participant's work year
91 as defined in s. 121.021. Credit shall be awarded for a full
92 work year whenever health insurance subsidy contributions are
93 made for each month in the participant's work year. In addition,
94 all years of creditable service retained under the Florida
95 Retirement System defined benefit program must be included as
96 creditable service for purposes of this section. Notwithstanding
97 any other provision in this section, the spouse at the time of
98 death is the participant's beneficiary unless the participant
99 has designated a different beneficiary after the participant's
100 most recent marriage.
101 (h) Beginning January 1, 2011:
102 1. Each eligible retiree of the defined benefit program of
103 the Florida Retirement System or, if the retiree is deceased,
104 his or her beneficiary who is receiving a monthly benefit from
105 the retiree's account and who is a spouse or a person who meets
106 the definition of a joint annuitant in s. 121.021 shall receive
107 a monthly retiree health insurance subsidy payment equal to the
108 number of years of creditable service, as defined in s. 121.021,
109 completed at the time of retirement multiplied by $7; however,
110 an eligible retiree or beneficiary may not receive a subsidy
111 payment of more than $210 or less than $42. If there are
112 multiple beneficiaries, the total payment may not be greater
113 than the payment to which the retiree was entitled.
114 Notwithstanding any other provision in this section, the spouse
115 at the time of death is the participant's beneficiary unless the
116 participant has designated a different beneficiary after the
117 participant's most recent marriage. The health insurance subsidy
118 amount payable to any person receiving the retiree health
119 insurance subsidy payment on January 1, 2009, may not be reduced
120 solely by operation of this subparagraph.
121 2. Each eligible participant of the Public Employee
122 Optional Retirement Program of the Florida Retirement System who
123 has met the requirements of this section or, if the participant
124 is deceased, his or her spouse who is the participant's
125 designated beneficiary shall receive a monthly retiree health
126 insurance subsidy equal to the number of years of creditable
127 service completed at the time of retirement multiplied by $7;
128 however, an eligible retiree or beneficiary may not receive a
129 subsidy payment of more than $210 or less than $42. For purposes
130 of determining a participant's creditable service, a
131 participant's years of service credit or fraction thereof shall
132 be based on the participant's work year as defined in s.
133 121.021. Credit shall be awarded for a full work year whenever
134 health insurance subsidy contributions are made for each month
135 in the participant's work year. In addition, all years of
136 creditable service retained under the Florida Retirement System
137 defined benefit program must be included as creditable service
138 for purposes of this section. Notwithstanding any other
139 provision in this section, the spouse at the time of death is
140 the participant's beneficiary unless the participant has
141 designated a different beneficiary after the participant's most
142 recent marriage.
143 (8) CONTRIBUTIONS.—For purposes of funding the insurance
144 subsidy provided by this section:
145 (a) Beginning October 1, 1987, the employer of each member
146 of a state-administered retirement plan shall contribute 0.24
147 percent of gross compensation each pay period.
148 (b) Beginning January 1, 1989, the employer of each member
149 of a state-administered retirement plan shall contribute 0.48
150 percent of gross compensation each pay period.
151 (c) Beginning January 1, 1994, the employer of each member
152 of a state-administered retirement plan shall contribute 0.56
153 percent of gross compensation each pay period.
154 (d) Beginning January 1, 1995, the employer of each member
155 of a state-administered retirement plan shall contribute 0.66
156 percent of gross compensation each pay period.
157 (e) Beginning July 1, 1998, the employer of each member of
158 a state-administered retirement plan shall contribute 0.94
159 percent of gross compensation each pay period.
160 (f) Beginning July 1, 2001, the employer of each member of
161 a state-administered plan shall contribute 1.11 percent of gross
162 compensation each pay period.
163 (g) Beginning January 1, 2010, the employer of each member
164 of a state-administered retirement plan shall contribute 1.75
165 percent of gross compensation each pay period.
166 Such contributions shall be submitted to the Department of
167 Management Services and deposited in the Retiree Health
168 Insurance Subsidy Trust Fund.
169 Section 2. The Legislature finds that a proper and
170 legitimate state purpose is served when employees and retirees
171 of the state and the dependents, survivors, and beneficiaries of
172 such employees and retirees are extended the basic protections
173 afforded by governmental retirement systems. These persons must
174 be provided benefits that are fair and adequate and that are
175 managed, administered, and funded in a sound actuarial manner,
176 as required by Section 14, Article X of the State Constitution
177 and part VII of chapter 112, Florida Statutes. Therefore, the
178 Legislature determines and declares that this act fulfills an
179 important state interest.
180 Section 3. This act shall take effect July 1, 2009.