HB 15C

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.

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