1 | A bill to be entitled |
2 | An act relating to health insurance subsidies; amending s. |
3 | 110.12312, F.S.; conforming provisions to changes made by |
4 | this act; amending s. 112.19, F.S.; revising eligibility |
5 | for certain health insurance subsidies for law |
6 | enforcement, correctional, and correctional probation |
7 | officers; amending s. 112.191, F.S.; revising eligibility |
8 | for certain health insurance subsidies for firefighters; |
9 | amending s. 112.363, F.S.; providing for the elimination |
10 | of retiree health insurance subsidies to certain new |
11 | retirees or beneficiaries; provides for the future repeal |
12 | of certain retiree health insurance subsidies; amending s. |
13 | 121.051, F.S.; conforming provisions to changes made by |
14 | this act; revising the employer contribution for employees |
15 | in the State Community College System Optional Retirement |
16 | Program; amending ss. 121.052, 121.055, and 121.071, F.S.; |
17 | revising the employer retiree health insurance subsidy |
18 | contribution for participants in the Elected Officers' |
19 | Class, Senior Management Service Class, Regular Class, |
20 | Special Risk Class, and Special Risk Administrative |
21 | Support Class; providing for future repeal of specified |
22 | required employer contributions on behalf of each member |
23 | of the Elected Officers' Class, Senior Management Service |
24 | Class, Regular Class, Special Risk Class, and Special Risk |
25 | Administrative Support Class; amending s. 121.053, F.S.; |
26 | revising requirements for the earning of additional credit |
27 | toward the maximum health insurance subsidy for certain |
28 | members of the Elected Officers' Class; providing for |
29 | future repeal of provision relating to health insurance |
30 | subsidies; amending s. 121.091, F.S.; providing that |
31 | certain employees who have terminated participation in |
32 | DROP may not receive retiree health insurance subsidy |
33 | payments; amending s. 121.091, F.S.; providing for the |
34 | future repeal of certain provisions to conform to changes |
35 | made by this act; amending s. 121.122, F.S.; revising |
36 | requirements for the earning of additional credit toward |
37 | the maximum health insurance subsidy for certain members |
38 | of the Senior Management Service Class; amending s. |
39 | 121.122, F.S.; providing for future repeal of certain |
40 | provisions to conform to changes made by this act; |
41 | amending s. 121.35, F.S.; providing for the transfer of |
42 | contributions for members in the State University Optional |
43 | Retirement Program to the Florida Retirement System Trust |
44 | Fund; revises the employer contribution for employees in |
45 | the State University Optional Retirement Program; revising |
46 | the employer contribution for participants in the optional |
47 | retirement program; providing for the future repeal of |
48 | subsection (18) of s. 121.4501, F.S., relating to the |
49 | Public Employee Optional Retirement Program retiree health |
50 | insurance subsidy; conforms cross-references; amending s. |
51 | 121.571, F.S.; conforming provisions to changes made by |
52 | this act; amending s. 121.591, F.S.; conforming cross- |
53 | references; amending s. 121.76, F.S.; revising provisions |
54 | relating to contributions for Social Security and the |
55 | retiree health insurance subsidy; amending s. 1012.875, |
56 | F.S.; revises the employer contribution for employees in |
57 | the State Community College System Optional Retirement |
58 | Program; providing effective dates. |
59 |
|
60 | WHEREAS, both the House of Representatives and the Senate |
61 | passed House Bill 5701 during the 2010 regular legislative |
62 | session, and |
63 | WHEREAS, the substance of House Bill 5701 was removed from |
64 | the budget package during budget conference negotiations because |
65 | of an agreement to budget for higher revenues than the House had |
66 | initially anticipated, and |
67 | WHEREAS, Congress has not approved the extension of Federal |
68 | Medical Assistance Percentage funding, and the future of this |
69 | funding is uncertain, and |
70 | WHEREAS, the Deepwater Horizon oil spill is projected to |
71 | have a significant negative impact on state and local revenues |
72 | due to a decrease in tourism, and |
73 | WHEREAS, in order to fulfill its constitutional duty to |
74 | balance the state budget and protect Florida's taxpayers, the |
75 | Legislature must cut spending to make up for lost revenues, and |
76 | WHEREAS, the optional health insurance subsidy will cost |
77 | Florida taxpayers approximately $335 million dollars this fiscal |
78 | year, and |
79 | WHEREAS, in order to preserve funding for core spending |
80 | areas such as education and health care, the Legislature must |
81 | first look to cutting optional programs, NOW, THEREFORE, |
82 |
|
83 | Be It Enacted by the Legislature of the State of Florida: |
84 |
|
85 | Section 1. Section 110.12312, Florida Statutes, is amended |
86 | to read: |
87 | 110.12312 Open enrollment period for retirees.-On or after |
88 | July 1, 1997, the Department of Management Services shall |
89 | provide for an open enrollment period for retired state |
90 | employees who want to obtain health insurance coverage under ss. |
91 | 110.123 and 110.12315. The options offered during the open |
92 | enrollment period must provide the same health insurance |
93 | coverage as the coverage provided to active employees under the |
94 | same premium payment conditions in effect for covered retirees, |
95 | including eligibility for health insurance subsidy payments |
96 | under s. 112.363. A person who separates from employment |
97 | subsequent to May 1, 1988, but whose date of retirement occurs |
98 | on or after August 1, 1995, is eligible as of the first open |
99 | enrollment period occurring after July 1, 1997, with an |
100 | effective date of January 1, 1998, as long as the retiree's |
101 | enrollment remains in effect. |
102 | Section 2. Paragraph (h) of subsection (2) of section |
103 | 112.19, Florida Statutes, is amended to read: |
104 | 112.19 Law enforcement, correctional, and correctional |
105 | probation officers; death benefits.- |
106 | (2) |
107 | (h)1. Any employer who employs a full-time law |
108 | enforcement, correctional, or correctional probation officer |
109 | who, on or after January 1, 1995, suffers a catastrophic injury, |
110 | as defined in s. 440.02, Florida Statutes 2002, in the line of |
111 | duty shall pay the entire premium of the employer's health |
112 | insurance plan for the injured employee, the injured employee's |
113 | spouse, and for each dependent child of the injured employee |
114 | until the child reaches the age of majority or until the end of |
115 | the calendar year in which the child reaches the age of 25 if |
116 | the child continues to be dependent for support, or the child is |
117 | a full-time or part-time student and is dependent for support. |
118 | The term "health insurance plan" does not include supplemental |
119 | benefits that are not part of the basic group health insurance |
120 | plan. If the injured employee subsequently dies, the employer |
121 | shall continue to pay the entire health insurance premium for |
122 | the surviving spouse until remarried, and for the dependent |
123 | children, under the conditions outlined in this paragraph. |
124 | However: |
125 | a. Health insurance benefits payable from any other source |
126 | shall reduce benefits payable under this section. |
127 | b. It is unlawful for a person to willfully and knowingly |
128 | make, or cause to be made, or to assist, conspire with, or urge |
129 | another to make, or cause to be made, any false, fraudulent, or |
130 | misleading oral or written statement to obtain health insurance |
131 | coverage as provided under this paragraph. A person who violates |
132 | this sub-subparagraph commits a misdemeanor of the first degree, |
133 | punishable as provided in s. 775.082 or s. 775.083. |
134 | c. In addition to any applicable criminal penalty, upon |
135 | conviction for a violation as described in sub-subparagraph b., |
136 | a law enforcement, correctional, or correctional probation |
137 | officer or other beneficiary who receives or seeks to receive |
138 | health insurance benefits under this paragraph shall forfeit the |
139 | right to receive such health insurance benefits, and shall |
140 | reimburse the employer for all benefits paid due to the fraud or |
141 | other prohibited activity. For purposes of this sub- |
142 | subparagraph, "conviction" means a determination of guilt that |
143 | is the result of a plea or trial, regardless of whether |
144 | adjudication is withheld. |
145 | 2. In order for the officer, spouse, and dependent |
146 | children to be eligible for such insurance coverage, the injury |
147 | must have occurred as the result of the officer's response to |
148 | fresh pursuit, the officer's response to what is reasonably |
149 | believed to be an emergency, or an unlawful act perpetrated by |
150 | another. Except as otherwise provided herein, nothing in this |
151 | paragraph shall be construed to limit health insurance coverage |
152 | for which the officer, spouse, or dependent children may |
153 | otherwise be eligible, except that a person who qualifies under |
154 | this section shall not be eligible for the health insurance |
155 | subsidy provided under chapter 121, chapter 175, or chapter 185. |
156 | Section 3. Paragraph (g) of subsection (2) of section |
157 | 112.191, Florida Statutes, is amended to read: |
158 | 112.191 Firefighters; death benefits.- |
159 | (2) |
160 | (g)1. Any employer who employs a full-time firefighter |
161 | who, on or after January 1, 1995, suffers a catastrophic injury, |
162 | as defined in s. 440.02, Florida Statutes 2002, in the line of |
163 | duty shall pay the entire premium of the employer's health |
164 | insurance plan for the injured employee, the injured employee's |
165 | spouse, and for each dependent child of the injured employee |
166 | until the child reaches the age of majority or until the end of |
167 | the calendar year in which the child reaches the age of 25 if |
168 | the child continues to be dependent for support, or the child is |
169 | a full-time or part-time student and is dependent for support. |
170 | The term "health insurance plan" does not include supplemental |
171 | benefits that are not part of the basic group health insurance |
172 | plan. If the injured employee subsequently dies, the employer |
173 | shall continue to pay the entire health insurance premium for |
174 | the surviving spouse until remarried, and for the dependent |
175 | children, under the conditions outlined in this paragraph. |
176 | However: |
177 | a. Health insurance benefits payable from any other source |
178 | shall reduce benefits payable under this section. |
179 | b. It is unlawful for a person to willfully and knowingly |
180 | make, or cause to be made, or to assist, conspire with, or urge |
181 | another to make, or cause to be made, any false, fraudulent, or |
182 | misleading oral or written statement to obtain health insurance |
183 | coverage as provided under this paragraph. A person who violates |
184 | this sub-subparagraph commits a misdemeanor of the first degree, |
185 | punishable as provided in s. 775.082 or s. 775.083. |
186 | c. In addition to any applicable criminal penalty, upon |
187 | conviction for a violation as described in sub-subparagraph b., |
188 | a firefighter or other beneficiary who receives or seeks to |
189 | receive health insurance benefits under this paragraph shall |
190 | forfeit the right to receive such health insurance benefits, and |
191 | shall reimburse the employer for all benefits paid due to the |
192 | fraud or other prohibited activity. For purposes of this sub- |
193 | subparagraph, "conviction" means a determination of guilt that |
194 | is the result of a plea or trial, regardless of whether |
195 | adjudication is withheld. |
196 | 2. In order for the firefighter, spouse, and dependent |
197 | children to be eligible for such insurance coverage, the injury |
198 | must have occurred as the result of the firefighter's response |
199 | to what is reasonably believed to be an emergency involving the |
200 | protection of life or property, or an unlawful act perpetrated |
201 | by another. Except as otherwise provided herein, nothing in this |
202 | paragraph shall be construed to limit health insurance coverage |
203 | for which the firefighter, spouse, or dependent children may |
204 | otherwise be eligible, except that a person who qualifies for |
205 | benefits under this section shall not be eligible for the health |
206 | insurance subsidy provided under chapter 121, chapter 175, or |
207 | chapter 185. |
208 |
|
209 | Notwithstanding any provision of this section to the contrary, |
210 | the death benefits provided in paragraphs (b), (c), and (f) |
211 | shall also be applicable and paid in cases where a firefighter |
212 | received bodily injury prior to July 1, 1993, and subsequently |
213 | died on or after July 1, 1993, as a result of such in-line-of- |
214 | duty injury. |
215 | Section 4. Paragraph (e) of subsection (2) and subsections |
216 | (3), (4), and (9) of section 112.363, Florida Statutes, are |
217 | amended, paragraph (g) is added to subsection (8) of that |
218 | section, and subsections (10) and (11) are added to that |
219 | section, to read: |
220 | 112.363 Retiree health insurance subsidy.- |
221 | (2) ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.- |
222 | (e) Participants in the Senior Management Service Optional |
223 | Annuity Program as provided in s. 121.055(6) and the State |
224 | University System Optional Retirement Program as provided in s. |
225 | 121.35 shall not receive the retiree health insurance subsidy |
226 | provided in this section. The employer of such participant shall |
227 | pay the contributions required in subsection (8) to the annuity |
228 | program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as |
229 | applicable, through July 31, 2010. |
230 | (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.- |
231 | (a) Beginning January 1, 1988, each eligible retiree or a |
232 | beneficiary who is a spouse or financial dependent thereof shall |
233 | receive a monthly retiree health insurance subsidy payment equal |
234 | to the number of years of creditable service, as defined in s. |
235 | 121.021(17), completed at the time of retirement multiplied by |
236 | $1; however, no retiree may receive a subsidy payment of more |
237 | than $30 or less than $10. |
238 | (b) Beginning January 1, 1989, each eligible retiree or a |
239 | beneficiary who is a spouse or financial dependent shall receive |
240 | a monthly retiree health insurance subsidy payment equal to the |
241 | number of years of creditable service, as defined in s. |
242 | 121.021(17), completed at the time of retirement multiplied by |
243 | $2; however, no retiree may receive a subsidy payment of more |
244 | than $60 or less than $20. |
245 | (c) Beginning January 1, 1991, each eligible retiree or a |
246 | beneficiary who is a spouse or financial dependent shall receive |
247 | a monthly retiree health insurance subsidy payment equal to the |
248 | number of years of creditable service, as defined in s. |
249 | 121.021(17), completed at the time of retirement multiplied by |
250 | $3; however, no retiree may receive a subsidy payment of more |
251 | than $90 or less than $30. |
252 | (d) Beginning January 1, 1999, each eligible retiree or, |
253 | if the retiree is deceased, his or her beneficiary who is |
254 | receiving a monthly benefit from such retiree's account and who |
255 | is a spouse, or a person who meets the definition of joint |
256 | annuitant in s. 121.021(28), shall receive a monthly retiree |
257 | health insurance subsidy payment equal to the number of years of |
258 | creditable service, as defined in s. 121.021(17), completed at |
259 | the time of retirement multiplied by $5; however, no eligible |
260 | retiree or such beneficiary may receive a subsidy payment of |
261 | more than $150 or less than $50. If there are multiple |
262 | beneficiaries, the total payment must not be greater than the |
263 | payment to which the retiree was entitled. |
264 | (e)1. Beginning July 1, 2001, each eligible retiree of the |
265 | defined benefit program of the Florida Retirement System, or, if |
266 | the retiree is deceased, his or her beneficiary who is receiving |
267 | a monthly benefit from such retiree's account and who is a |
268 | spouse, or a person who meets the definition of joint annuitant |
269 | in s. 121.021(28), shall receive a monthly retiree health |
270 | insurance subsidy payment equal to the number of years of |
271 | creditable service, as defined in s. 121.021(17), completed at |
272 | the time of retirement multiplied by $5; however, no eligible |
273 | retiree or beneficiary may receive a subsidy payment of more |
274 | than $150 or less than $30. If there are multiple beneficiaries, |
275 | the total payment must not be greater than the payment to which |
276 | the retiree was entitled. The health insurance subsidy amount |
277 | payable to any person receiving the retiree health insurance |
278 | subsidy payment on July 1, 2001, shall not be reduced solely by |
279 | operation of this subparagraph. |
280 | 2. Beginning July 1, 2002, each eligible participant of |
281 | the Public Employee Optional Retirement Program of the Florida |
282 | Retirement System who has met the requirements of this section, |
283 | or, if the participant is deceased, his or her spouse who is the |
284 | participant's designated beneficiary, shall receive a monthly |
285 | retiree health insurance subsidy payment equal to the number of |
286 | years of creditable service, as provided in this subparagraph, |
287 | completed at the time of retirement, multiplied by $5; however, |
288 | no eligible retiree or beneficiary may receive a subsidy payment |
289 | of more than $150 or less than $30. For purposes of determining |
290 | a participant's creditable service used to calculate the health |
291 | insurance subsidy, a participant's years of service credit or |
292 | fraction thereof shall be based on the participant's work year |
293 | as defined in s. 121.021(54). Credit shall be awarded for a full |
294 | work year whenever health insurance subsidy contributions have |
295 | been made as required by law for each month in the participant's |
296 | work year. In addition, all years of creditable service retained |
297 | under the Florida Retirement System defined benefit program |
298 | shall be included as creditable service for purposes of this |
299 | section. Notwithstanding any other provision in this section to |
300 | the contrary, the spouse at the time of death shall be the |
301 | participant's beneficiary unless such participant has designated |
302 | a different beneficiary subsequent to the participant's most |
303 | recent marriage. |
304 |
|
305 | Notwithstanding any provision of this subsection, payments may |
306 | not be made to retirees who do not establish eligibility under |
307 | this section prior to August 1, 2010. |
308 | (4) PAYMENT OF RETIREE HEALTH INSURANCE SUBSIDY.-Beginning |
309 | January 1, 1988, through December 31, 2010, any monthly retiree |
310 | health insurance subsidy amount due and payable under this |
311 | section shall be paid to retired members by the Department of |
312 | Management Services or under the direction and control of the |
313 | department. |
314 | (8) CONTRIBUTIONS.-For purposes of funding the insurance |
315 | subsidy provided by this section: |
316 | (g) Beginning August 1, 2010, the employer of each member |
317 | of a state-administered plan shall contribute 0 percent of gross |
318 | compensation for each pay period. |
319 |
|
320 | Such contributions shall be submitted to the Department of |
321 | Management Services and deposited in the Retiree Health |
322 | Insurance Subsidy Trust Fund. |
323 | (9) BENEFITS.-Except as provided in subsection (10), |
324 | subsidy payments shall be payable under the retiree health |
325 | insurance subsidy program only to participants in the program or |
326 | their beneficiaries, beginning with the month the division |
327 | receives certification of coverage for health insurance for the |
328 | eligible retiree or beneficiary. If the division receives such |
329 | certification at any time during the 6 months after retirement |
330 | benefits commence, the retiree health insurance subsidy shall be |
331 | paid retroactive to the effective retirement date. If, however, |
332 | the division receives such certification 7 or more months after |
333 | commencement of benefits, the retroactive retiree health |
334 | insurance subsidy payment will cover a maximum of 6 months. Such |
335 | subsidy payments shall not be subject to assignment, execution, |
336 | or attachment or to any legal process whatsoever. |
337 | (10) ELIMINATION OF RETIREE HEALTH INSURANCE SUBSIDY.- |
338 | Effective August 1, 2010, eligibility for subsidy payments shall |
339 | be closed to new retirees or beneficiaries and employer |
340 | contributions to fund the subsidy shall terminate, all monthly |
341 | subsidy payments shall terminate effective December 31, 2010, |
342 | and any remaining assets shall be transferred to the Florida |
343 | Retirement System Trust Fund, as follows: |
344 | (a) Eligibility for subsidy payments through December 31, |
345 | 2010, shall be restricted to those retirees and beneficiaries |
346 | who have established eligibility pursuant to subsection (2) |
347 | prior to August 1, 2010. The division must receive certification |
348 | of coverage for such retiree or beneficiary no later than |
349 | October 29, 2010. |
350 | (b) Beginning August 1, 2010, the employer of each member |
351 | of a state-administered plan shall not pay contributions on |
352 | gross compensation to the Retiree Health Insurance Subsidy Trust |
353 | Fund for subsequent pay periods. |
354 | (c) Monthly subsidy payments shall be paid to all eligible |
355 | retirees and beneficiaries through December 31, 2010, at which |
356 | time no further subsidy payments shall be made. |
357 | (d) Any cash, securities, and other assets remaining in |
358 | the Retiree Health Insurance Subsidy Trust Fund on July 31, |
359 | 2011, less any deductions specified in subsections (6) and (7), |
360 | shall be transferred by the State Board of Administration to the |
361 | Florida Retirement System Trust Fund. The amount so transferred |
362 | shall be applied toward payment of any unfunded actuarial |
363 | accrued liability in the Florida Retirement System Trust Fund. |
364 | The State Board of Administration shall have the sole |
365 | discretion, subject to its fiduciary duties under s. 215.47, to |
366 | make cash or in-kind transfers from the Retiree Health Insurance |
367 | Subsidy Trust Fund to the Florida Retirement System Trust Fund |
368 | on or after July 1, 2011. |
369 | (e) Employer adjustments for pay periods prior to August |
370 | 1, 2010, shall be processed through December 31, 2010. |
371 | (11) EXPIRATION.-This section expires June 30, 2011. |
372 | Section 5. Paragraph (c) of subsection (2) of section |
373 | 121.051, Florida Statutes, is amended to read: |
374 | 121.051 Participation in the system.- |
375 | (2) OPTIONAL PARTICIPATION.- |
376 | (c) Employees of public community colleges or charter |
377 | technical career centers sponsored by public community colleges, |
378 | designated in s. 1000.21(3), who are members of the Regular |
379 | Class of the Florida Retirement System and who comply with the |
380 | criteria set forth in this paragraph and s. 1012.875 may, in |
381 | lieu of participating in the Florida Retirement System, elect to |
382 | withdraw from the system altogether and participate in the State |
383 | Community College System Optional Retirement Program provided by |
384 | the employing agency under s. 1012.875. |
385 | 1. Through June 30, 2001, the cost to the employer for |
386 | such annuity equals the normal cost portion of the employer |
387 | retirement contribution which would be required if the employee |
388 | were a member of the Regular Class defined benefit program, plus |
389 | the portion of the contribution rate required by s. 112.363(8) |
390 | which would otherwise be assigned to the Retiree Health |
391 | Insurance Subsidy Trust Fund. Effective July 1, 2001, through |
392 | July 31, 2010, each employer shall contribute on behalf of each |
393 | participant in the optional retirement program an amount equal |
394 | to 10.43 percent of the participant's gross monthly |
395 | compensation. Effective August 1, 2010, each employer shall |
396 | contribute on behalf of each participant in the optional |
397 | retirement program an amount equal to 9.49 percent of the |
398 | participant's gross monthly compensation. The employer shall |
399 | deduct an amount for the administration of the program. The |
400 | employer shall contribute an additional amount to the Florida |
401 | Retirement System Trust Fund equal to the unfunded actuarial |
402 | accrued liability portion of the Regular Class contribution |
403 | rate. |
404 | 2. The decision to participate in an optional retirement |
405 | program is irrevocable as long as the employee holds a position |
406 | eligible for participation, except as provided in subparagraph |
407 | 3. Any service creditable under the Florida Retirement System is |
408 | retained after the member withdraws from the system; however, |
409 | additional service credit in the system may not be earned while |
410 | a member of the optional retirement program. |
411 | 3. An employee who has elected to participate in the |
412 | optional retirement program shall have one opportunity, at the |
413 | employee's discretion, to transfer from the optional retirement |
414 | program to the defined benefit program of the Florida Retirement |
415 | System or to the Public Employee Optional Retirement Program, |
416 | subject to the terms of the applicable optional retirement |
417 | program contracts. |
418 | a. If the employee chooses to move to the Public Employee |
419 | Optional Retirement Program, any contributions, interest, and |
420 | earnings creditable to the employee under the State Community |
421 | College System Optional Retirement Program are retained by the |
422 | employee in the State Community College System Optional |
423 | Retirement Program, and the applicable provisions of s. |
424 | 121.4501(4) govern the election. |
425 | b. If the employee chooses to move to the defined benefit |
426 | program of the Florida Retirement System, the employee shall |
427 | receive service credit equal to his or her years of service |
428 | under the State Community College System Optional Retirement |
429 | Program. |
430 | (I) The cost for such credit is the amount representing |
431 | the present value of the employee's accumulated benefit |
432 | obligation for the affected period of service. The cost shall be |
433 | calculated as if the benefit commencement occurs on the first |
434 | date the employee becomes eligible for unreduced benefits, using |
435 | the discount rate and other relevant actuarial assumptions that |
436 | were used to value the Florida Retirement System defined benefit |
437 | plan liabilities in the most recent actuarial valuation. The |
438 | calculation must include any service already maintained under |
439 | the defined benefit plan in addition to the years under the |
440 | State Community College System Optional Retirement Program. The |
441 | present value of any service already maintained must be applied |
442 | as a credit to total cost resulting from the calculation. The |
443 | division shall ensure that the transfer sum is prepared using a |
444 | formula and methodology certified by an enrolled actuary. |
445 | (II) The employee must transfer from his or her State |
446 | Community College System Optional Retirement Program account and |
447 | from other employee moneys as necessary, a sum representing the |
448 | present value of the employee's accumulated benefit obligation |
449 | immediately following the time of such movement, determined |
450 | assuming that attained service equals the sum of service in the |
451 | defined benefit program and service in the State Community |
452 | College System Optional Retirement Program. |
453 | 4. Participation in the optional retirement program is |
454 | limited to employees who satisfy the following eligibility |
455 | criteria: |
456 | a. The employee must be otherwise eligible for membership |
457 | or renewed membership in the Regular Class of the Florida |
458 | Retirement System, as provided in s. 121.021(11) and (12) or s. |
459 | 121.122. |
460 | b. The employee must be employed in a full-time position |
461 | classified in the Accounting Manual for Florida's Public |
462 | Community Colleges as: |
463 | (I) Instructional; or |
464 | (II) Executive Management, Instructional Management, or |
465 | Institutional Management, if a community college determines that |
466 | recruiting to fill a vacancy in the position is to be conducted |
467 | in the national or regional market, and the duties and |
468 | responsibilities of the position include the formulation, |
469 | interpretation, or implementation of policies, or the |
470 | performance of functions that are unique or specialized within |
471 | higher education and that frequently support the mission of the |
472 | community college. |
473 | c. The employee must be employed in a position not |
474 | included in the Senior Management Service Class of the Florida |
475 | Retirement System, as described in s. 121.055. |
476 | 5. Participants in the program are subject to the same |
477 | reemployment limitations, renewed membership provisions, and |
478 | forfeiture provisions as are applicable to regular members of |
479 | the Florida Retirement System under ss. 121.091(9), 121.122, and |
480 | 121.091(5), respectively. A participant who receives a program |
481 | distribution funded by employer contributions shall be deemed to |
482 | be retired from a state-administered retirement system if the |
483 | participant is subsequently employed with an employer that |
484 | participates in the Florida Retirement System. |
485 | 6. Eligible community college employees are compulsory |
486 | members of the Florida Retirement System until, pursuant to s. |
487 | 1012.875, a written election to withdraw from the system and |
488 | participate in the State Community College System Optional |
489 | Retirement Program is filed with the program administrator and |
490 | received by the division. |
491 | a. A community college employee whose program eligibility |
492 | results from initial employment must be enrolled in the State |
493 | Community College System Optional Retirement Program retroactive |
494 | to the first day of eligible employment. The employer retirement |
495 | contributions paid through the month of the employee plan change |
496 | shall be transferred to the community college to the employee's |
497 | optional program account, and, effective the first day of the |
498 | next month, the employer shall pay the applicable contributions |
499 | based upon subparagraph 1. |
500 | b. A community college employee whose program eligibility |
501 | is due to the subsequent designation of the employee's position |
502 | as one of those specified in subparagraph 4., or due to the |
503 | employee's appointment, promotion, transfer, or reclassification |
504 | to a position specified in subparagraph 4., must be enrolled in |
505 | the program on the first day of the first full calendar month |
506 | that such change in status becomes effective. The employer |
507 | retirement contributions paid from the effective date through |
508 | the month of the employee plan change must be transferred to the |
509 | community college to the employee's optional program account, |
510 | and, effective the first day of the next month, the employer |
511 | shall pay the applicable contributions based upon subparagraph |
512 | 1. |
513 | 7. Effective July 1, 2003, through December 31, 2008, any |
514 | participant of the State Community College System Optional |
515 | Retirement Program who has service credit in the defined benefit |
516 | plan of the Florida Retirement System for the period between his |
517 | or her first eligibility to transfer from the defined benefit |
518 | plan to the optional retirement program and the actual date of |
519 | transfer may, during employment, transfer to the optional |
520 | retirement program a sum representing the present value of the |
521 | accumulated benefit obligation under the defined benefit |
522 | retirement program for the period of service credit. Upon |
523 | transfer, all service credit previously earned under the defined |
524 | benefit program of the Florida Retirement System during this |
525 | period is nullified for purposes of entitlement to a future |
526 | benefit under the defined benefit program of the Florida |
527 | Retirement System. |
528 | Section 6. Paragraph (c) of subsection (7) of section |
529 | 121.052, Florida Statutes, is amended to read: |
530 | 121.052 Membership class of elected officers.- |
531 | (7) CONTRIBUTIONS.- |
532 | (c) The following table states the required employer |
533 | contribution on behalf of each member of the Elected Officers' |
534 | Class in terms of a percentage of the member's gross |
535 | compensation. Such contribution constitutes the entire health |
536 | insurance subsidy contribution with respect to each such member. |
537 | A change in the contribution rate is effective with the first |
538 | salary paid on or after the beginning date of the change. The |
539 | retiree health insurance subsidy contribution rate is as |
540 | follows: |
541 |
|
| Dates of Contribution Rate Changes | ContributionRate |
|
542 |
|
| October 1, 1987, through December 31, 1988 | 0.24% |
|
543 |
|
| January 1, 1989, through December 31, 1993 | 0.48% |
|
544 |
|
| January 1, 1994, through December 31, 1994 | 0.56% |
|
545 |
|
| January 1, 1995, through June 30, 1998 | 0.66% |
|
546 |
|
| July 1, 1998, through June 30, 2001 | 0.94% |
|
547 |
|
| Effective July 1, 2001, through July 31, 2010 | 1.11% |
|
548 |
|
| Effective August 1, 2010 | 0.00% |
|
549 |
|
550 |
|
551 | Such contributions and accompanying payroll data are due and |
552 | payable no later than the 5th working day of the month |
553 | immediately following the month during which the payroll period |
554 | ended and shall be deposited by the administrator in the Retiree |
555 | Health Insurance Subsidy Trust Fund. |
556 | Section 7. Effective June 30, 2011, paragraph (c) of |
557 | subsection (7) of section 121.052, Florida Statutes, as amended |
558 | by this act, is repealed. |
559 | Section 8. Subsection (5) of section 121.053, Florida |
560 | Statutes, is amended to read: |
561 | 121.053 Participation in the Elected Officers' Class for |
562 | retired members.- |
563 | (5) Any renewed member, as described in subsection (1) or |
564 | subsection (2), who is not receiving the maximum health |
565 | insurance subsidy provided in s. 112.363 and meets the |
566 | requirements of s. 112.363 is entitled to earn additional credit |
567 | toward the maximum health insurance subsidy. Any additional |
568 | subsidy due because of such additional credit may be received |
569 | only at the time of payment of the second career retirement |
570 | benefit. The total health insurance subsidy received from |
571 | initial and renewed membership may not exceed the maximum |
572 | allowed in s. 112.363. |
573 | Section 9. Effective June 30, 2011, subsection (5) of |
574 | section 121.053, Florida Statutes, as amended by this act, is |
575 | repealed. |
576 | Section 10. Paragraph (c) of subsection (3) and paragraph |
577 | (d) of subsection (6) of section 121.055, Florida Statutes, are |
578 | amended to read: |
579 | 121.055 Senior Management Service Class.-There is hereby |
580 | established a separate class of membership within the Florida |
581 | Retirement System to be known as the "Senior Management Service |
582 | Class," which shall become effective February 1, 1987. |
583 | (3) |
584 | (c) The following table states the required employer |
585 | contribution on behalf of each member of the Senior Management |
586 | Service Class in terms of a percentage of the member's gross |
587 | compensation. Such contribution constitutes the entire health |
588 | insurance subsidy contribution with respect to each such member. |
589 | A change in the contribution rate is effective with the first |
590 | salary paid on or after the beginning date of the change. The |
591 | retiree health insurance subsidy contribution rate is as |
592 | follows: |
593 |
|
| Dates of Contribution Rate Changes | ContributionRate |
|
594 |
|
| |
595 |
|
| October 1, 1987, through December 31, 1988 | 0.24% |
|
596 |
|
| January 1, 1989, through December 31, 1993 | 0.48% |
|
597 |
|
| January 1, 1994, through December 31, 1994 | 0.56% |
|
598 |
|
| January 1, 1995, through June 30, 1998 | 0.66% |
|
599 |
|
| July 1, 1998, through June 30, 2001 | 0.94% |
|
600 |
|
| Effective July 1, 2001, through July 31, 2010 | 1.11% |
|
601 |
|
| Effective August 1, 2010 | 0.00% |
|
602 |
|
603 |
|
604 | Such contributions and accompanying payroll data are due and |
605 | payable no later than the 5th working day of the month |
606 | immediately following the month during which the payroll period |
607 | ended and shall be deposited by the administrator in the Retiree |
608 | Health Insurance Subsidy Trust Fund. |
609 | (6) |
610 | (d) Contributions.- |
611 | 1. Through June 30, 2001, each employer shall contribute |
612 | on behalf of each participant in the Senior Management Service |
613 | Optional Annuity Program an amount equal to the normal cost |
614 | portion of the employer retirement contribution which would be |
615 | required if the participant were a Senior Management Service |
616 | Class member of the Florida Retirement System defined benefit |
617 | program, plus the portion of the contribution rate required in |
618 | s. 112.363(8) that would otherwise be assigned to the Retiree |
619 | Health Insurance Subsidy Trust Fund. Effective July 1, 2001, |
620 | through July 31, 2010, each employer shall contribute on behalf |
621 | of each participant in the optional program an amount equal to |
622 | 12.49 percent of the participant's gross monthly compensation. |
623 | Effective August 1, 2010, each employer shall contribute on |
624 | behalf of each participant in the optional program an amount |
625 | equal to 11.55 percent of the participant's gross monthly |
626 | compensation. The department shall deduct an amount approved by |
627 | the Legislature to provide for the administration of this |
628 | program. The payment of the contributions to the optional |
629 | program which is required by this subparagraph for each |
630 | participant shall be made by the employer to the department, |
631 | which shall forward the contributions to the designated company |
632 | or companies contracting for payment of benefits for the |
633 | participant under the program. |
634 | 2. Each employer shall contribute on behalf of each |
635 | participant in the Senior Management Service Optional Annuity |
636 | Program an amount equal to the unfunded actuarial accrued |
637 | liability portion of the employer contribution which would be |
638 | required for members of the Senior Management Service Class in |
639 | the Florida Retirement System. This contribution shall be paid |
640 | to the department for transfer to the Florida Retirement System |
641 | Trust Fund. |
642 | 3. An Optional Annuity Program Trust Fund shall be |
643 | established in the State Treasury and administered by the |
644 | department to make payments to provider companies on behalf of |
645 | the optional annuity program participants, and to transfer the |
646 | unfunded liability portion of the state optional annuity program |
647 | contributions to the Florida Retirement System Trust Fund. |
648 | 4. Contributions required for social security by each |
649 | employer and each participant, in the amount required for social |
650 | security coverage as now or hereafter may be provided by the |
651 | federal Social Security Act shall be maintained for each |
652 | participant in the Senior Management Service retirement program |
653 | and shall be in addition to the retirement contributions |
654 | specified in this paragraph. |
655 | 5. Each participant in the Senior Management Service |
656 | Optional Annuity Program may contribute by way of salary |
657 | reduction or deduction a percentage amount of the participant's |
658 | gross compensation not to exceed the percentage amount |
659 | contributed by the employer to the optional annuity program. |
660 | Payment of the participant's contributions shall be made by the |
661 | employer to the department, which shall forward the |
662 | contributions to the designated company or companies contracting |
663 | for payment of benefits for the participant under the program. |
664 | Section 11. Effective June 30, 2011, paragraph (c) of |
665 | subsection (3) of section 121.055, Florida Statutes, as amended |
666 | by this act, is repealed. |
667 | Section 12. Subsection (4) of section 121.071, Florida |
668 | Statutes, is amended to read: |
669 | 121.071 Contributions.-Contributions to the system shall |
670 | be made as follows: |
671 | (4) The following table states the required employer |
672 | contribution on behalf of each member of the Regular Class, |
673 | Special Risk Class, or Special Risk Administrative Support Class |
674 | in terms of a percentage of the member's gross compensation. |
675 | Such contribution constitutes the entire health insurance |
676 | subsidy contribution with respect to each such member. A change |
677 | in the contribution rate is effective with the first salary paid |
678 | on or after the beginning date of the change. The retiree health |
679 | insurance subsidy contribution rate is as follows: |
680 |
|
| Dates of Contribution Rate Changes | ContributionRate |
|
681 |
|
| October 1, 1987, through December 31, 1988 | 0.24% |
|
682 |
|
| January 1, 1989, through December 31, 1993 | 0.48% |
|
683 |
|
| January 1, 1994, through December 31, 1994 | 0.56% |
|
684 |
|
| January 1, 1995, through June 30, 1998 | 0.66% |
|
685 |
|
| July 1, 1998, through June 30, 2001 | 0.94% |
|
686 |
|
| Effective July 1, 2001, through July 31, 2010 | 1.11% |
|
687 |
|
| Effective August 1, 2010 | 0.00% |
|
688 |
|
689 |
|
690 | Such contributions shall be deposited by the administrator in |
691 | the Retiree Health Insurance Subsidy Trust Fund. |
692 | Section 13. Effective June 30, 2011, subsection (4) of |
693 | section 121.071, Florida Statutes, as amended by this act, is |
694 | repealed, subsections (5) and (6) of that section are renumbered |
695 | as subsections (4) and (5), respectively, and present subsection |
696 | (5) is amended to read: |
697 | 121.071 Contributions.-Contributions to the system shall |
698 | be made as follows: |
699 | (4)(5) Contributions made in accordance with subsections |
700 | (1), (2), and (3), and (4), and s. 121.71 shall be paid by the |
701 | employer into the system trust funds in accordance with rules |
702 | adopted by the administrator pursuant to chapter 120, except as |
703 | may be otherwise specified herein. Effective July 1, 2002, |
704 | contributions paid under subsection subsections (1) and (4) and |
705 | accompanying payroll data are due and payable no later than the |
706 | 5th working day of the month immediately following the month |
707 | during which the payroll period ended. |
708 | Section 14. Paragraph (f) of subsection (13) of section |
709 | 121.091, Florida Statutes, is amended to read: |
710 | 121.091 Benefits payable under the system.-Benefits may |
711 | not be paid under this section unless the member has terminated |
712 | employment as provided in s. 121.021(39)(a) or begun |
713 | participation in the Deferred Retirement Option Program as |
714 | provided in subsection (13), and a proper application has been |
715 | filed in the manner prescribed by the department. The department |
716 | may cancel an application for retirement benefits when the |
717 | member or beneficiary fails to timely provide the information |
718 | and documents required by this chapter and the department's |
719 | rules. The department shall adopt rules establishing procedures |
720 | for application for retirement benefits and for the cancellation |
721 | of such application when the required information or documents |
722 | are not received. |
723 | (13) DEFERRED RETIREMENT OPTION PROGRAM.-In general, and |
724 | subject to this section, the Deferred Retirement Option Program, |
725 | hereinafter referred to as DROP, is a program under which an |
726 | eligible member of the Florida Retirement System may elect to |
727 | participate, deferring receipt of retirement benefits while |
728 | continuing employment with his or her Florida Retirement System |
729 | employer. The deferred monthly benefits shall accrue in the |
730 | Florida Retirement System on behalf of the participant, plus |
731 | interest compounded monthly, for the specified period of the |
732 | DROP participation, as provided in paragraph (c). Upon |
733 | termination of employment, the participant shall receive the |
734 | total DROP benefits and begin to receive the previously |
735 | determined normal retirement benefits. Participation in the DROP |
736 | does not guarantee employment for the specified period of DROP. |
737 | Participation in DROP by an eligible member beyond the initial |
738 | 60-month period as authorized in this subsection shall be on an |
739 | annual contractual basis for all participants. |
740 | (f) Employees who have terminated participation in DROP on |
741 | or after August 1, 2010, may not receive retiree health |
742 | insurance subsidy payments. Retiree health insurance subsidy.- |
743 | DROP participants are not eligible to apply for the retiree |
744 | health insurance subsidy payments as provided in s. 112.363 |
745 | until such participants have terminated employment and |
746 | participation in DROP. |
747 | Section 15. Effective June 30, 2011, paragraphs (c) and |
748 | (i) of subsection (13) of section 121.091, Florida Statutes, are |
749 | amended to read: |
750 | 121.091 Benefits payable under the system.-Benefits may |
751 | not be paid under this section unless the member has terminated |
752 | employment as provided in s. 121.021(39)(a) or begun |
753 | participation in the Deferred Retirement Option Program as |
754 | provided in subsection (13), and a proper application has been |
755 | filed in the manner prescribed by the department. The department |
756 | may cancel an application for retirement benefits when the |
757 | member or beneficiary fails to timely provide the information |
758 | and documents required by this chapter and the department's |
759 | rules. The department shall adopt rules establishing procedures |
760 | for application for retirement benefits and for the cancellation |
761 | of such application when the required information or documents |
762 | are not received. |
763 | (13) DEFERRED RETIREMENT OPTION PROGRAM.-In general, and |
764 | subject to this section, the Deferred Retirement Option Program, |
765 | hereinafter referred to as DROP, is a program under which an |
766 | eligible member of the Florida Retirement System may elect to |
767 | participate, deferring receipt of retirement benefits while |
768 | continuing employment with his or her Florida Retirement System |
769 | employer. The deferred monthly benefits shall accrue in the |
770 | Florida Retirement System on behalf of the participant, plus |
771 | interest compounded monthly, for the specified period of the |
772 | DROP participation, as provided in paragraph (c). Upon |
773 | termination of employment, the participant shall receive the |
774 | total DROP benefits and begin to receive the previously |
775 | determined normal retirement benefits. Participation in the DROP |
776 | does not guarantee employment for the specified period of DROP. |
777 | Participation in DROP by an eligible member beyond the initial |
778 | 60-month period as authorized in this subsection shall be on an |
779 | annual contractual basis for all participants. |
780 | (c) Benefits payable under DROP.- |
781 | 1. Effective on the date of DROP participation, the |
782 | member's initial normal monthly benefit, including creditable |
783 | service, optional form of payment, and average final |
784 | compensation, and the effective date of retirement are fixed. |
785 | The beneficiary established under the Florida Retirement System |
786 | is the beneficiary eligible to receive any DROP benefits payable |
787 | if the DROP participant dies before completing the period of |
788 | DROP participation. If a joint annuitant predeceases the member, |
789 | the member may name a beneficiary to receive accumulated DROP |
790 | benefits payable. The retirement benefit, the annual cost of |
791 | living adjustments provided in s. 121.101, and interest accrue |
792 | monthly in the Florida Retirement System Trust Fund. The |
793 | interest accrues at an effective annual rate of 6.5 percent |
794 | compounded monthly, on the prior month's accumulated ending |
795 | balance, up to the month of termination or death, except as |
796 | provided in s. 121.053(6)(7). |
797 | 2. Each employee who elects to participate in DROP may |
798 | elect to receive a lump-sum payment for accrued annual leave |
799 | earned in accordance with agency policy upon beginning |
800 | participation in DROP. The accumulated leave payment certified |
801 | to the division upon commencement of DROP shall be included in |
802 | the calculation of the member's average final compensation. The |
803 | employee electing the lump-sum payment is not eligible to |
804 | receive a second lump-sum payment upon termination, except to |
805 | the extent the employee has earned additional annual leave |
806 | which, combined with the original payment, does not exceed the |
807 | maximum lump-sum payment allowed by the employing agency's |
808 | policy or rules. An early lump-sum payment shall be based on the |
809 | hourly wage of the employee at the time he or she begins |
810 | participation in DROP. If the member elects to wait and receive |
811 | a lump-sum payment upon termination of DROP and termination of |
812 | employment with the employer, any accumulated leave payment made |
813 | at that time may not be included in the member's retirement |
814 | benefit, which was determined and fixed by law when the employee |
815 | elected to participate in DROP. |
816 | 3. The effective date of DROP participation and the |
817 | effective date of retirement of a DROP participant shall be the |
818 | first day of the month selected by the member to begin |
819 | participation in DROP, provided such date is properly |
820 | established, with the written confirmation of the employer, and |
821 | the approval of the division, on forms required by the division. |
822 | 4. Normal retirement benefits and any interest shall |
823 | continue to accrue in DROP until the established termination |
824 | date of DROP or until the participant terminates employment or |
825 | dies prior to such date, except as provided in s. 121.053(6)(7). |
826 | Although individual DROP accounts shall not be established, a |
827 | separate accounting of each participant's accrued benefits under |
828 | DROP shall be calculated and provided to participants. |
829 | 5. At the conclusion of the participant's DROP, the |
830 | division shall distribute the participant's total accumulated |
831 | DROP benefits, subject to the following: |
832 | a. The division shall receive verification by the |
833 | participant's employer or employers that the participant has |
834 | terminated all employment relationships as provided in s. |
835 | 121.021(39). |
836 | b. The terminated DROP participant or, if deceased, the |
837 | participant's named beneficiary, shall elect on forms provided |
838 | by the division to receive payment of the DROP benefits in |
839 | accordance with one of the options listed below. If a |
840 | participant or beneficiary fails to elect a method of payment |
841 | within 60 days after termination of DROP, the division shall pay |
842 | a lump sum as provided in sub-sub-subparagraph (I). |
843 | (I) Lump sum.-All accrued DROP benefits, plus interest, |
844 | less withholding taxes remitted to the Internal Revenue Service, |
845 | shall be paid to the DROP participant or surviving beneficiary. |
846 | (II) Direct rollover.-All accrued DROP benefits, plus |
847 | interest, shall be paid from DROP directly to the custodian of |
848 | an eligible retirement plan as defined in s. 402(c)(8)(B) of the |
849 | Internal Revenue Code. However, in the case of an eligible |
850 | rollover distribution to the surviving spouse of a deceased |
851 | participant, an eligible retirement plan is an individual |
852 | retirement account or an individual retirement annuity as |
853 | described in s. 402(c)(9) of the Internal Revenue Code. |
854 | (III) Partial lump sum.-A portion of the accrued DROP |
855 | benefits shall be paid to DROP participant or surviving spouse, |
856 | less withholding taxes remitted to the Internal Revenue Service, |
857 | and the remaining DROP benefits must be transferred directly to |
858 | the custodian of an eligible retirement plan as defined in s. |
859 | 402(c)(8)(B) of the Internal Revenue Code. However, in the case |
860 | of an eligible rollover distribution to the surviving spouse of |
861 | a deceased participant, an eligible retirement plan is an |
862 | individual retirement account or an individual retirement |
863 | annuity as described in s. 402(c)(9) of the Internal Revenue |
864 | Code. The proportions must be specified by the DROP participant |
865 | or surviving beneficiary. |
866 | c. The form of payment selected by the DROP participant or |
867 | surviving beneficiary must comply with the minimum distribution |
868 | requirements of the Internal Revenue Code. |
869 | d. A DROP participant who fails to terminate all |
870 | employment relationships as provided in s. 121.021(39) shall be |
871 | deemed as not retired, and the DROP election is null and void. |
872 | Florida Retirement System membership shall be reestablished |
873 | retroactively to the date of the commencement of DROP, and each |
874 | employer with whom the participant continues employment must pay |
875 | to the Florida Retirement System Trust Fund the difference |
876 | between the DROP contributions paid in paragraph (i) and the |
877 | contributions required for the applicable Florida Retirement |
878 | System class of membership during the period the member |
879 | participated in DROP, plus 6.5 percent interest compounded |
880 | annually. |
881 | 6. The retirement benefits of any DROP participant who |
882 | terminates all employment relationships as provided in s. |
883 | 121.021(39) but is reemployed in violation of the reemployment |
884 | provisions of subsection (9) shall be suspended during those |
885 | months in which the retiree is in violation. Any retiree in |
886 | violation of this subparagraph and any employer that employs or |
887 | appoints such person without notifying the Division of |
888 | Retirement to suspend retirement benefits are jointly and |
889 | severally liable for any benefits paid during the reemployment |
890 | limitation period. The employer must have a written statement |
891 | from the retiree that he or she is not retired from a state- |
892 | administered retirement system. Any retirement benefits received |
893 | by a retiree while employed in violation of the reemployment |
894 | limitations must be repaid to the Florida Retirement System |
895 | Trust Fund, and his or her retirement benefits shall remain |
896 | suspended until payment is made. Benefits suspended beyond the |
897 | end of the reemployment limitation period apply toward repayment |
898 | of benefits received in violation of the reemployment |
899 | limitation. |
900 | 7. The accrued benefits of any DROP participant, and any |
901 | contributions accumulated under the program, are not subject to |
902 | assignment, execution, attachment, or any legal process |
903 | whatsoever, except for qualified domestic relations orders by a |
904 | court of competent jurisdiction, income deduction orders as |
905 | provided in s. 61.1301, and federal income tax levies. |
906 | 8. DROP participants are not eligible for disability |
907 | retirement benefits as provided in subsection (4). |
908 | (i) Contributions.- |
909 | 1. All employers paying the salary of a DROP participant |
910 | filling a regularly established position shall contribute 8.0 |
911 | percent of such participant's gross compensation for the period |
912 | of July 1, 2002, through June 30, 2003, and the percentage of |
913 | such compensation required by s. 121.71 thereafter, which shall |
914 | constitute the entire employer DROP contribution with respect to |
915 | such participant. Such contributions, payable to the Florida |
916 | Retirement System Trust Fund in the same manner as required in |
917 | s. 121.071, must be made as appropriate for each pay period and |
918 | are in addition to contributions required for social security |
919 | and the Retiree Health Insurance Subsidy Trust Fund. Such |
920 | employer and, social security, and health insurance subsidy |
921 | contributions are not included in DROP. |
922 | 2. The employer shall, in addition to subparagraph 1., |
923 | also withhold one-half of the entire social security |
924 | contribution required for the participant. Contributions for |
925 | social security by each participant and each employer, in the |
926 | amount required for social security coverage as provided by the |
927 | federal Social Security Act, are in addition to contributions |
928 | specified in subparagraph 1. |
929 | 3. All employers paying the salary of a DROP participant |
930 | filling a regularly established position shall contribute the |
931 | percent of such participant's gross compensation required in s. |
932 | 121.071(4), which constitutes the employer's health insurance |
933 | subsidy contribution with respect to such participant. Such |
934 | contributions must be deposited by the administrator in the |
935 | Retiree Health Insurance Subsidy Trust Fund. |
936 | Section 16. Paragraph (h) of subsection (1) of section |
937 | 121.122, Florida Statutes, is amended to read: |
938 | 121.122 Renewed membership in system.- |
939 | (1) Except as provided in s. 121.053, effective July 1, |
940 | 1991, through June 30, 2010, any retiree of a state-administered |
941 | retirement system who is initially reemployed in a regularly |
942 | established position with a covered employer, including an |
943 | elective public office that does not qualify for the Elected |
944 | Officer's Class, shall be enrolled as a compulsory member of the |
945 | Regular Class of the Florida Retirement System. Effective July |
946 | 1, 1997, through June 30, 2010, any retiree of a state- |
947 | administered retirement system who is initially reemployed in a |
948 | position included in the Senior Management Service Class shall |
949 | be enrolled as a compulsory member of the Senior Management |
950 | Service Class of the Florida Retirement System as provided in s. |
951 | 121.055. A retiree is entitled to receive an additional |
952 | retirement benefit, subject to the following conditions: |
953 | (h) A renewed member who is not receiving the maximum |
954 | health insurance subsidy provided in s. 112.363 and meets the |
955 | requirements of s. 112.363 is entitled to earn additional credit |
956 | toward the maximum health insurance subsidy. Any additional |
957 | subsidy due because of such additional credit may be received |
958 | only at the time of payment of the second career retirement |
959 | benefit. The total health insurance subsidy received by a |
960 | retiree receiving benefits from initial and renewed membership |
961 | may not exceed the maximum allowed in s. 112.363. |
962 | Section 17. Effective June 30, 2011, paragraph (h) of |
963 | subsection (1) of section 121.122, Florida Statutes, as amended |
964 | by this act, is repealed, and paragraph (d) of subsection (1) of |
965 | that section is amended to read: |
966 | 121.122 Renewed membership in system.- |
967 | (1) Except as provided in s. 121.053, effective July 1, |
968 | 1991, through June 30, 2010, any retiree of a state-administered |
969 | retirement system who is initially reemployed in a regularly |
970 | established position with a covered employer, including an |
971 | elective public office that does not qualify for the Elected |
972 | Officer's Class, shall be enrolled as a compulsory member of the |
973 | Regular Class of the Florida Retirement System. Effective July |
974 | 1, 1997, through June 30, 2010, any retiree of a state- |
975 | administered retirement system who is initially reemployed in a |
976 | position included in the Senior Management Service Class shall |
977 | be enrolled as a compulsory member of the Senior Management |
978 | Service Class of the Florida Retirement System as provided in s. |
979 | 121.055. A retiree is entitled to receive an additional |
980 | retirement benefit, subject to the following conditions: |
981 | (d) Upon renewed membership or reemployment of a retiree, |
982 | the employer of such member shall pay the applicable employer |
983 | contributions as required by ss. 112.363, 121.71, 121.74, and |
984 | 121.76. |
985 | Section 18. Paragraph (c) of subsection (3) and paragraph |
986 | (a) of subsection (4) of section 121.35, Florida Statutes, are |
987 | amended to read: |
988 | 121.35 Optional retirement program for the State |
989 | University System.- |
990 | (3) ELECTION OF OPTIONAL PROGRAM.- |
991 | (c) Any employee who becomes eligible to participate in |
992 | the optional retirement program on or after January 1, 1993, |
993 | shall be a compulsory participant of the program unless such |
994 | employee elects membership in the Florida Retirement System. |
995 | Such election shall be made in writing and filed with the |
996 | personnel officer of the employer. Any eligible employee who |
997 | fails to make such election within the prescribed time period |
998 | shall be deemed to have elected to participate in the optional |
999 | retirement program. |
1000 | 1. Any employee whose optional retirement program |
1001 | eligibility results from initial employment shall be enrolled in |
1002 | the program at the commencement of employment. If, within 90 |
1003 | days after commencement of employment, the employee elects |
1004 | membership in the Florida Retirement System, such membership |
1005 | shall be effective retroactive to the date of commencement of |
1006 | employment. |
1007 | 2. Any employee whose optional retirement program |
1008 | eligibility results from a change in status due to the |
1009 | subsequent designation of the employee's position as one of |
1010 | those specified in paragraph (2)(a) or due to the employee's |
1011 | appointment, promotion, transfer, or reclassification to a |
1012 | position specified in paragraph (2)(a) shall be enrolled in the |
1013 | optional retirement program upon such change in status and shall |
1014 | be notified by the employer of such action. If, within 90 days |
1015 | after the date of such notification, the employee elects to |
1016 | retain membership in the Florida Retirement System, such |
1017 | continuation of membership shall be retroactive to the date of |
1018 | the change in status. |
1019 | 3. Notwithstanding the provisions of this paragraph, |
1020 | effective July 1, 1997, any employee who is eligible to |
1021 | participate in the Optional Retirement Program and who fails to |
1022 | execute a contract with one of the approved companies and to |
1023 | notify the department in writing as provided in subsection (4) |
1024 | within 90 days after the date of eligibility shall be deemed to |
1025 | have elected membership in the Florida Retirement System, except |
1026 | as provided in s. 121.051(1)(a). This provision shall also apply |
1027 | to any employee who terminates employment in an eligible |
1028 | position before executing the required annuity contract and |
1029 | notifying the department. Such membership shall be retroactive |
1030 | to the date of eligibility, and all appropriate contributions |
1031 | shall be transferred to the Florida Retirement System Trust Fund |
1032 | and the Health Insurance Subsidy Trust Fund through July 31, |
1033 | 2010. Effective August 1, 2010, such membership shall be |
1034 | retroactive to the date of eligibility, and all appropriate |
1035 | contributions shall be transferred to the Florida Retirement |
1036 | System Trust Fund. |
1037 | (4) CONTRIBUTIONS.- |
1038 | (a) Through June 30, 2001, each employer shall contribute |
1039 | on behalf of each participant in the optional retirement program |
1040 | an amount equal to the normal cost portion of the employer |
1041 | retirement contribution which would be required if the |
1042 | participant were a regular member of the Florida Retirement |
1043 | System defined benefit program, plus the portion of the |
1044 | contribution rate required in s. 112.363(8) that would otherwise |
1045 | be assigned to the Retiree Health Insurance Subsidy Trust Fund. |
1046 | Effective July 1, 2001, through July 31, 2010, each employer |
1047 | shall contribute on behalf of each participant in the optional |
1048 | program an amount equal to 10.43 percent of the participant's |
1049 | gross monthly compensation. Effective August 1, 2010, each |
1050 | employer shall contribute on behalf of each participant in the |
1051 | optional program an amount equal to 9.49 percent of the |
1052 | participant's gross monthly compensation. The department shall |
1053 | deduct an amount approved by the Legislature to provide for the |
1054 | administration of this program. The payment of the contributions |
1055 | to the optional program which is required by this paragraph for |
1056 | each participant shall be made by the employer to the |
1057 | department, which shall forward the contributions to the |
1058 | designated company or companies contracting for payment of |
1059 | benefits for the participant under the program. However, such |
1060 | contributions paid on behalf of an employee described in |
1061 | paragraph (3)(c) shall not be forwarded to a company and shall |
1062 | not begin to accrue interest until the employee has executed a |
1063 | contract and notified the department. |
1064 | Section 19. Effective June 30, 2011, subsection (18) of |
1065 | section 121.4501, Florida Statutes, is repealed, subsections |
1066 | (19) through (22) of that section are renumbered as subsections |
1067 | (18) through (21), respectively, and paragraph (j) of subsection |
1068 | (2) of that section, as amended by chapter 2010-180, Laws of |
1069 | Florida, is amended to read: |
1070 | 121.4501 Public Employee Optional Retirement Program.- |
1071 | (2) DEFINITIONS.-As used in this part, the term: |
1072 | (j) "Participant" means an eligible employee who enrolls |
1073 | in the optional program as provided in subsection (4) or a |
1074 | terminated Deferred Retirement Option Program participant as |
1075 | described in subsection (20) (21). |
1076 | Section 20. Effective June 30, 2011, subsection (3) of |
1077 | section 121.571, Florida Statutes, is amended to read: |
1078 | 121.571 Contributions.-Contributions to the Public |
1079 | Employee Optional Retirement Program shall be made as follows: |
1080 | (3) CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR |
1081 | RETIREE HEALTH INSURANCE SUBSIDY.-Contributions required under |
1082 | this section shall be in addition to employer and member |
1083 | contributions required for social security and the Retiree |
1084 | Health Insurance Subsidy Trust Fund as provided in ss. 112.363, |
1085 | 121.052, 121.055, and 121.071, as appropriate. |
1086 | Section 21. Paragraphs (a) and (b) of subsection (3) of |
1087 | section 121.591, Florida Statutes, are amended to read: |
1088 | 121.591 Benefits payable under the Public Employee |
1089 | Optional Retirement Program of the Florida Retirement System.- |
1090 | Benefits may not be paid under this section unless the member |
1091 | has terminated employment as provided in s. 121.021(39)(a) or is |
1092 | deceased and a proper application has been filed in the manner |
1093 | prescribed by the state board or the department. The state board |
1094 | or department, as appropriate, may cancel an application for |
1095 | retirement benefits when the member or beneficiary fails to |
1096 | timely provide the information and documents required by this |
1097 | chapter and the rules of the state board and department. In |
1098 | accordance with their respective responsibilities as provided |
1099 | herein, the State Board of Administration and the Department of |
1100 | Management Services shall adopt rules establishing procedures |
1101 | for application for retirement benefits and for the cancellation |
1102 | of such application when the required information or documents |
1103 | are not received. The State Board of Administration and the |
1104 | Department of Management Services, as appropriate, are |
1105 | authorized to cash out a de minimis account of a participant who |
1106 | has been terminated from Florida Retirement System covered |
1107 | employment for a minimum of 6 calendar months. A de minimis |
1108 | account is an account containing employer contributions and |
1109 | accumulated earnings of not more than $5,000 made under the |
1110 | provisions of this chapter. Such cash-out must either be a |
1111 | complete lump-sum liquidation of the account balance, subject to |
1112 | the provisions of the Internal Revenue Code, or a lump-sum |
1113 | direct rollover distribution paid directly to the custodian of |
1114 | an eligible retirement plan, as defined by the Internal Revenue |
1115 | Code, on behalf of the participant. If any financial instrument |
1116 | issued for the payment of retirement benefits under this section |
1117 | is not presented for payment within 180 days after the last day |
1118 | of the month in which it was originally issued, the third-party |
1119 | administrator or other duly authorized agent of the State Board |
1120 | of Administration shall cancel the instrument and credit the |
1121 | amount of the instrument to the suspense account of the Public |
1122 | Employee Optional Retirement Program Trust Fund authorized under |
1123 | s. 121.4501(6). Any such amounts transferred to the suspense |
1124 | account are payable upon a proper application, not to include |
1125 | earnings thereon, as provided in this section, within 10 years |
1126 | after the last day of the month in which the instrument was |
1127 | originally issued, after which time such amounts and any |
1128 | earnings thereon shall be forfeited. Any such forfeited amounts |
1129 | are assets of the Public Employee Optional Retirement Program |
1130 | Trust Fund and are not subject to the provisions of chapter 717. |
1131 | (3) DEATH BENEFITS.-Under the Public Employee Optional |
1132 | Retirement Program: |
1133 | (a) Survivor benefits shall be payable in accordance with |
1134 | the following terms and conditions: |
1135 | 1. To the extent vested, benefits shall be payable only to |
1136 | a participant's beneficiary or beneficiaries as designated by |
1137 | the participant as provided in s. 121.4501(19)(20). |
1138 | 2. Benefits shall be paid by the third-party administrator |
1139 | or designated approved providers in accordance with the law, the |
1140 | contracts, and any applicable board rule or policy. |
1141 | 3. To receive benefits under this subsection, the |
1142 | participant must be deceased. |
1143 | (b) In the event of a participant's death, all vested |
1144 | accumulations as described in s. 121.4501(6), less withholding |
1145 | taxes remitted to the Internal Revenue Service, shall be |
1146 | distributed, as provided in paragraph (c) or as described in s. |
1147 | 121.4501(19)(20), as if the participant retired on the date of |
1148 | death. No other death benefits shall be available for survivors |
1149 | of participants under the Public Employee Optional Retirement |
1150 | Program, except for such benefits, or coverage for such |
1151 | benefits, as are otherwise provided by law or are separately |
1152 | afforded by the employer, at the employer's discretion. |
1153 | Section 22. Section 121.76, Florida Statutes, is amended |
1154 | to read: |
1155 | 121.76 Contributions for social security and for retiree |
1156 | health insurance subsidy.-Contributions required under this part |
1157 | for social security shall be made or deducted, as may be |
1158 | appropriate, for each pay period and are in addition to employer |
1159 | and member contributions required for social security and the |
1160 | Retiree Health Insurance Subsidy Trust Fund as provided under |
1161 | parts I and II of this chapter. |
1162 | Section 23. Paragraph (a) of subsection (4) of section |
1163 | 1012.875, Florida Statutes, is amended to read: |
1164 | 1012.875 State Community College System Optional |
1165 | Retirement Program.-Each community college may implement an |
1166 | optional retirement program, if such program is established |
1167 | therefor pursuant to s. 1001.64(20), under which annuity or |
1168 | other contracts providing retirement and death benefits may be |
1169 | purchased by, and on behalf of, eligible employees who |
1170 | participate in the program, in accordance with s. 403(b) of the |
1171 | Internal Revenue Code. Except as otherwise provided herein, this |
1172 | retirement program, which shall be known as the State Community |
1173 | College System Optional Retirement Program, may be implemented |
1174 | and administered only by an individual community college or by a |
1175 | consortium of community colleges. |
1176 | (4)(a) Each college must contribute on behalf of each |
1177 | program participant an amount equal to 10.43 percent of the |
1178 | participant's gross monthly compensation through July 31, 2010. |
1179 | Effective August 1, 2010, each college must contribute on behalf |
1180 | of each program participant an amount equal to 9.49 percent of |
1181 | the participant's gross monthly compensation. The college shall |
1182 | deduct an amount approved by the district board of trustees of |
1183 | the college to provide for the administration of the optional |
1184 | retirement program. Payment of this contribution must be made |
1185 | either directly by the college or through the program |
1186 | administrator to the designated company contracting for payment |
1187 | of benefits to the program participant. |
1188 | Section 24. Except as otherwise expressly provided in this |
1189 | act, this act shall take effect August 1, 2010. |