ENROLLED
       2017 Legislature                          SB 7022, 1st Engrossed
       
       
       
       
       
       
                                                             20177022er
    1  
    2         An act relating to public employees; amending s.
    3         110.123, F.S.; revising applicability of certain
    4         definitions; defining the term “plan year”;
    5         authorizing the state group insurance program to
    6         include additional benefits; authorizing an employee
    7         to use a specified portion of the state’s contribution
    8         to purchase additional program benefits and
    9         supplemental benefits under certain circumstances;
   10         providing for the program to offer health plans in
   11         specified benefit levels; requiring the Department of
   12         Management Services to develop a plan for
   13         implementation of the benefit levels; providing
   14         reporting requirements; providing for expiration of
   15         the implementation plan; creating s. 110.12303, F.S.;
   16         authorizing additional benefits to be included in the
   17         program; requiring the department to contract with at
   18         least one entity that provides comprehensive pricing
   19         and inclusive services for surgery and other medical
   20         procedures; providing contract and reporting
   21         requirements; requiring the department to contract
   22         with an entity to provide enrollees with online
   23         information on health care services and providers;
   24         providing contract and reporting requirements;
   25         creating s. 110.12304, F.S.; requiring that the
   26         department procure an independent benefits consultant;
   27         providing qualifications and duties of the independent
   28         benefits consultant; providing reporting requirements;
   29         requiring that the department, for informational
   30         purposes only, calculate alternative premiums for
   31         enrollees for the 2018 plan year; providing
   32         requirements for the determination of premiums;
   33         requiring the department to report alternative premium
   34         rates to the Governor and the Legislature by a certain
   35         date; requiring that the department determine and
   36         recommend premiums for enrollees for the 2019 plan
   37         year; providing requirements for the determination of
   38         premiums; requiring premium rates to be consistent
   39         with the total budgeted amount for the program in the
   40         General Appropriations Act for the 2018-2019 fiscal
   41         year; requiring the department to report premium rates
   42         to the Governor and the Legislature by a certain date;
   43         providing an appropriation and authorizing positions;
   44         amending s. 121.053, F.S.; authorizing renewed
   45         membership in the Florida Retirement System for
   46         retirees who are reemployed in a position eligible for
   47         the Elected Officers’ Class under certain
   48         circumstances; amending s. 121.055, F.S.; providing
   49         for renewed membership in the retirement system for
   50         retirees of the Senior Management Service Optional
   51         Annuity Program who are reemployed on or after a
   52         specified date; closing the Senior Management Service
   53         Optional Annuity Program to new members after a
   54         specified date; amending s. 121.091, F.S.; revising
   55         criteria for eligibility of payment of death benefits
   56         to the surviving children of a Special Risk Class
   57         member killed in the line of duty under specified
   58         circumstances; conforming a provision to changes made
   59         by the act; amending s. 121.122, F.S.; requiring that
   60         certain retirees who are reemployed on or after a
   61         specified date be renewed members in the investment
   62         plan; providing exceptions; specifying that creditable
   63         service does not accrue for employment during a
   64         specified period; prohibiting certain funds from being
   65         paid into a renewed member’s investment plan account
   66         for a specified period of employment; requiring the
   67         renewed member to satisfy vesting requirements;
   68         prohibiting a renewed member from receiving specified
   69         disability benefits; specifying limitations and
   70         requirements; requiring the employer and the retiree
   71         to make applicable contributions to the renewed
   72         member’s investment plan account; providing for the
   73         transfer of contributions; authorizing a renewed
   74         member to receive additional credit toward the health
   75         insurance subsidy under certain circumstances;
   76         prohibiting participation in the pension plan;
   77         providing that a retiree reemployed on or after a
   78         specified date in a regularly established position
   79         eligible for the State University System Optional
   80         Retirement Program or State Community College System
   81         Optional Retirement Program is a renewed member of
   82         that program; specifying limitations and requirements;
   83         requiring the employer and the retiree to make
   84         applicable contributions; amending s. 121.4501, F.S.;
   85         revising definitions; revising a provision relating to
   86         acknowledgement of an employee’s election to
   87         participate in the investment plan; enrolling certain
   88         employees in the pension plan from their date of hire
   89         until they are automatically enrolled in the
   90         investment plan or timely elect enrollment in the
   91         pension plan; creating an exception for special risk
   92         class members; conforming provisions to changes made
   93         by the act; revising requirements related to the
   94         education component; amending s. 121.591, F.S.;
   95         authorizing payment of death benefits to the surviving
   96         spouse or surviving children of a member in the
   97         investment plan; establishing qualifications and
   98         eligibility requirements for receipt of such benefits;
   99         prescribing the method of calculating the benefit;
  100         specifying circumstances under which benefit payments
  101         are terminated; amending s. 121.5912, F.S.; revising a
  102         provision regarding program qualification under the
  103         Internal Revenue Code and rulemaking authority, to
  104         conform to changes made by the act; amending s.
  105         121.71, F.S.; revising required employer retirement
  106         contribution rates for each membership class and
  107         subclass of the Florida Retirement System; amending s.
  108         121.735, F.S.; revising allocations to fund line-of
  109         duty death benefits for investment plan members, to
  110         conform to changes made by the act; declaring that the
  111         act fulfills an important state interest; providing a
  112         purpose and legislative intent with respect to
  113         provisions governing salary and benefit adjustments
  114         for specified state employees; providing for
  115         compensation adjustments for specified law enforcement
  116         personnel, the Department of Corrections, certain
  117         judicial officers, commissioners, and designated
  118         employees, and other state employees and officers;
  119         authorizing the use of specified pay additives and
  120         other incentive programs for the 2017-2018 fiscal
  121         year; providing appropriations to fund the salary and
  122         benefit adjustments; requiring the Office of Policy
  123         and Budget in the Executive Office of the Governor, in
  124         consultation with the Legislature, to distribute funds
  125         and budget authority; providing effective dates.
  126          
  127  Be It Enacted by the Legislature of the State of Florida:
  128  
  129         Section 1. Subsection (2) and paragraphs (b), (f), (h), and
  130  (j) of subsection (3) of section 110.123, Florida Statutes, are
  131  amended, and paragraph (k) is added to subsection (3) of that
  132  section, to read:
  133         110.123 State group insurance program.—
  134         (2) DEFINITIONS.—As used in ss. 110.123-110.1239 this
  135  section, the term:
  136         (a) “Department” means the Department of Management
  137  Services.
  138         (b) “Enrollee” means all state officers and employees,
  139  retired state officers and employees, surviving spouses of
  140  deceased state officers and employees, and terminated employees
  141  or individuals with continuation coverage who are enrolled in an
  142  insurance plan offered by the state group insurance program.
  143  “Enrollee” includes all state university officers and employees,
  144  retired state university officers and employees, surviving
  145  spouses of deceased state university officers and employees, and
  146  terminated state university employees or individuals with
  147  continuation coverage who are enrolled in an insurance plan
  148  offered by the state group insurance program.
  149         (c) “Full-time state employees” means employees of all
  150  branches or agencies of state government holding salaried
  151  positions who are paid by state warrant or from agency funds and
  152  who work or are expected to work an average of at least 30 or
  153  more hours per week; employees paid from regular salary
  154  appropriations for 8 months’ employment, including university
  155  personnel on academic contracts; and employees paid from other
  156  personal-services (OPS) funds as described in subparagraphs 1.
  157  and 2. The term includes all full-time employees of the state
  158  universities. The term does not include seasonal workers who are
  159  paid from OPS funds.
  160         1. For persons hired before April 1, 2013, the term
  161  includes any person paid from OPS funds who:
  162         a. Has worked an average of at least 30 hours or more per
  163  week during the initial measurement period from April 1, 2013,
  164  through September 30, 2013; or
  165         b. Has worked an average of at least 30 hours or more per
  166  week during a subsequent measurement period.
  167         2. For persons hired after April 1, 2013, the term includes
  168  any person paid from OPS funds who:
  169         a. Is reasonably expected to work an average of at least 30
  170  hours or more per week; or
  171         b. Has worked an average of at least 30 hours or more per
  172  week during the person’s measurement period.
  173         (d) “Health maintenance organization” or “HMO” means an
  174  entity certified under part I of chapter 641.
  175         (e) “Health plan member” means any person participating in
  176  a state group health insurance plan, a TRICARE supplemental
  177  insurance plan, or a health maintenance organization plan under
  178  the state group insurance program, including enrollees and
  179  covered dependents thereof.
  180         (f) “Part-time state employee” means an employee of any
  181  branch or agency of state government paid by state warrant from
  182  salary appropriations or from agency funds, and who is employed
  183  for less than an average of 30 hours per week or, if on academic
  184  contract or seasonal or other type of employment which is less
  185  than year-round, is employed for less than 8 months during any
  186  12-month period, but does not include a person paid from other
  187  personal-services (OPS) funds. The term includes all part-time
  188  employees of the state universities.
  189         (g) “Plan year” means a calendar year.
  190         (h)(g) “Retired state officer or employee” or “retiree”
  191  means any state or state university officer or employee who
  192  retires under a state retirement system or a state optional
  193  annuity or retirement program or is placed on disability
  194  retirement, and who was insured under the state group insurance
  195  program at the time of retirement, and who begins receiving
  196  retirement benefits immediately after retirement from state or
  197  state university office or employment. The term also includes
  198  any state officer or state employee who retires under the
  199  Florida Retirement System Investment Plan established under part
  200  II of chapter 121 if he or she:
  201         1. Meets the age and service requirements to qualify for
  202  normal retirement as set forth in s. 121.021(29); or
  203         2. Has attained the age specified by s. 72(t)(2)(A)(i) of
  204  the Internal Revenue Code and has 6 years of creditable service.
  205         (i)(h) “State agency” or “agency” means any branch,
  206  department, or agency of state government. “State agency” or
  207  “agency” includes any state university for purposes of this
  208  section only.
  209         (j)(i) “Seasonal workers” has the same meaning as provided
  210  under 29 C.F.R. s. 500.20(s)(1).
  211         (k)(j) “State group health insurance plan or plans” or
  212  “state plan or plans” mean the state self-insured health
  213  insurance plan or plans offered to state officers and employees,
  214  retired state officers and employees, and surviving spouses of
  215  deceased state officers and employees pursuant to this section.
  216         (l)(k) “State-contracted HMO” means any health maintenance
  217  organization under contract with the department to participate
  218  in the state group insurance program.
  219         (m)(l) “State group insurance program” or “programs” means
  220  the package of insurance plans offered to state officers and
  221  employees, retired state officers and employees, and surviving
  222  spouses of deceased state officers and employees pursuant to
  223  this section, including the state group health insurance plan or
  224  plans, health maintenance organization plans, TRICARE
  225  supplemental insurance plans, and other plans required or
  226  authorized by law.
  227         (n)(m) “State officer” means any constitutional state
  228  officer, any elected state officer paid by state warrant, or any
  229  appointed state officer who is commissioned by the Governor and
  230  who is paid by state warrant.
  231         (o)(n) “Surviving spouse” means the widow or widower of a
  232  deceased state officer, full-time state employee, part-time
  233  state employee, or retiree if such widow or widower was covered
  234  as a dependent under the state group health insurance plan, a
  235  TRICARE supplemental insurance plan, or a health maintenance
  236  organization plan established pursuant to this section at the
  237  time of the death of the deceased officer, employee, or retiree.
  238  “Surviving spouse” also means any widow or widower who is
  239  receiving or eligible to receive a monthly state warrant from a
  240  state retirement system as the beneficiary of a state officer,
  241  full-time state employee, or retiree who died prior to July 1,
  242  1979. For the purposes of this section, any such widow or
  243  widower shall cease to be a surviving spouse upon his or her
  244  remarriage.
  245         (p)(o) “TRICARE supplemental insurance plan” means the
  246  Department of Defense Health Insurance Program for eligible
  247  members of the uniformed services authorized by 10 U.S.C. s.
  248  1097.
  249         (3) STATE GROUP INSURANCE PROGRAM.—
  250         (b) It is the intent of the Legislature to offer a
  251  comprehensive package of health insurance and retirement
  252  benefits and a personnel system for state employees which are
  253  provided in a cost-efficient and prudent manner, and to allow
  254  state employees the option to choose benefit plans which best
  255  suit their individual needs. Therefore, The state group
  256  insurance program is established which may include the state
  257  group health insurance plan or plans, health maintenance
  258  organization plans, group life insurance plans, TRICARE
  259  supplemental insurance plans, group accidental death and
  260  dismemberment plans, and group disability insurance plans,.
  261  Furthermore, the department is additionally authorized to
  262  establish and provide as part of the state group insurance
  263  program any other group insurance plans or coverage choices, and
  264  other benefits authorized by law that are consistent with the
  265  provisions of this section.
  266         (f) Except as provided for in subparagraph (h)2., the state
  267  contribution toward the cost of any plan in the state group
  268  insurance program shall be uniform with respect to all state
  269  employees in a state collective bargaining unit participating in
  270  the same coverage tier in the same plan. This section does not
  271  prohibit the development of separate benefit plans for officers
  272  and employees exempt from the career service or the development
  273  of separate benefit plans for each collective bargaining unit.
  274  For the 2020 plan year and each plan year thereafter, if the
  275  state’s contribution is more than the premium cost of the health
  276  plan selected by the employee, subject to federal limitation,
  277  the employee may elect to have the balance:
  278         1. Credited to the employee’s flexible spending account;
  279         2. Credited to the employee’s health savings account;
  280         3. Used to purchase additional benefits offered through the
  281  state group insurance program; or
  282         4. Used to increase the employee’s salary.
  283         (h)1. A person eligible to participate in the state group
  284  insurance program may be authorized by rules adopted by the
  285  department, in lieu of participating in the state group health
  286  insurance plan, to exercise an option to elect membership in a
  287  health maintenance organization plan which is under contract
  288  with the state in accordance with criteria established by this
  289  section and by said rules. The offer of optional membership in a
  290  health maintenance organization plan permitted by this paragraph
  291  may be limited or conditioned by rule as may be necessary to
  292  meet the requirements of state and federal laws.
  293         2. The department shall contract with health maintenance
  294  organizations seeking to participate in the state group
  295  insurance program through a request for proposal or other
  296  procurement process, as developed by the Department of
  297  Management Services and determined to be appropriate.
  298         a. The department shall establish a schedule of minimum
  299  benefits for health maintenance organization coverage, and that
  300  schedule shall include: physician services; inpatient and
  301  outpatient hospital services; emergency medical services,
  302  including out-of-area emergency coverage; diagnostic laboratory
  303  and diagnostic and therapeutic radiologic services; mental
  304  health, alcohol, and chemical dependency treatment services
  305  meeting the minimum requirements of state and federal law;
  306  skilled nursing facilities and services; prescription drugs;
  307  age-based and gender-based wellness benefits; and other benefits
  308  as may be required by the department. Additional services may be
  309  provided subject to the contract between the department and the
  310  HMO. As used in this paragraph, the term “age-based and gender
  311  based wellness benefits” includes aerobic exercise, education in
  312  alcohol and substance abuse prevention, blood cholesterol
  313  screening, health risk appraisals, blood pressure screening and
  314  education, nutrition education, program planning, safety belt
  315  education, smoking cessation, stress management, weight
  316  management, and women’s health education.
  317         b. The department may establish uniform deductibles,
  318  copayments, coverage tiers, or coinsurance schedules for all
  319  participating HMO plans.
  320         c. The department may require detailed information from
  321  each health maintenance organization participating in the
  322  procurement process, including information pertaining to
  323  organizational status, experience in providing prepaid health
  324  benefits, accessibility of services, financial stability of the
  325  plan, quality of management services, accreditation status,
  326  quality of medical services, network access and adequacy,
  327  performance measurement, ability to meet the department’s
  328  reporting requirements, and the actuarial basis of the proposed
  329  rates and other data determined by the director to be necessary
  330  for the evaluation and selection of health maintenance
  331  organization plans and negotiation of appropriate rates for
  332  these plans. Upon receipt of proposals by health maintenance
  333  organization plans and the evaluation of those proposals, the
  334  department may enter into negotiations with all of the plans or
  335  a subset of the plans, as the department determines appropriate.
  336  Nothing shall preclude the department from negotiating regional
  337  or statewide contracts with health maintenance organization
  338  plans when this is cost-effective and when the department
  339  determines that the plan offers high value to enrollees.
  340         d. The department may limit the number of HMOs that it
  341  contracts with in each service area based on the nature of the
  342  bids the department receives, the number of state employees in
  343  the service area, or any unique geographical characteristics of
  344  the service area. The department shall establish by rule service
  345  areas throughout the state.
  346         e. All persons participating in the state group insurance
  347  program may be required to contribute towards a total state
  348  group health premium that may vary depending upon the plan,
  349  coverage level, and coverage tier selected by the enrollee and
  350  the level of state contribution authorized by the Legislature.
  351         3. The department is authorized to negotiate and to
  352  contract with specialty psychiatric hospitals for mental health
  353  benefits, on a regional basis, for alcohol, drug abuse, and
  354  mental and nervous disorders. The department may establish,
  355  subject to the approval of the Legislature pursuant to
  356  subsection (5), any such regional plan upon completion of an
  357  actuarial study to determine any impact on plan benefits and
  358  premiums.
  359         4. In addition to contracting pursuant to subparagraph 2.,
  360  the department may enter into contract with any HMO to
  361  participate in the state group insurance program which:
  362         a. Serves greater than 5,000 recipients on a prepaid basis
  363  under the Medicaid program;
  364         b. Does not currently meet the 25-percent non-Medicare/non
  365  Medicaid enrollment composition requirement established by the
  366  Department of Health excluding participants enrolled in the
  367  state group insurance program;
  368         c. Meets the minimum benefit package and copayments and
  369  deductibles contained in sub-subparagraphs 2.a. and b.;
  370         d. Is willing to participate in the state group insurance
  371  program at a cost of premiums that is not greater than 95
  372  percent of the cost of HMO premiums accepted by the department
  373  in each service area; and
  374         e. Meets the minimum surplus requirements of s. 641.225.
  375  
  376  The department is authorized to contract with HMOs that meet the
  377  requirements of sub-subparagraphs a.-d. prior to the open
  378  enrollment period for state employees. The department is not
  379  required to renew the contract with the HMOs as set forth in
  380  this paragraph more than twice. Thereafter, the HMOs shall be
  381  eligible to participate in the state group insurance program
  382  only through the request for proposal or invitation to negotiate
  383  process described in subparagraph 2.
  384         5. All enrollees in a state group health insurance plan, a
  385  TRICARE supplemental insurance plan, or any health maintenance
  386  organization plan have the option of changing to any other
  387  health plan that is offered by the state within any open
  388  enrollment period designated by the department. Open enrollment
  389  shall be held at least once each calendar year.
  390         6. When a contract between a treating provider and the
  391  state-contracted health maintenance organization is terminated
  392  for any reason other than for cause, each party shall allow any
  393  enrollee for whom treatment was active to continue coverage and
  394  care when medically necessary, through completion of treatment
  395  of a condition for which the enrollee was receiving care at the
  396  time of the termination, until the enrollee selects another
  397  treating provider, or until the next open enrollment period
  398  offered, whichever is longer, but no longer than 6 months after
  399  termination of the contract. Each party to the terminated
  400  contract shall allow an enrollee who has initiated a course of
  401  prenatal care, regardless of the trimester in which care was
  402  initiated, to continue care and coverage until completion of
  403  postpartum care. This does not prevent a provider from refusing
  404  to continue to provide care to an enrollee who is abusive,
  405  noncompliant, or in arrears in payments for services provided.
  406  For care continued under this subparagraph, the program and the
  407  provider shall continue to be bound by the terms of the
  408  terminated contract. Changes made within 30 days before
  409  termination of a contract are effective only if agreed to by
  410  both parties.
  411         7. Any HMO participating in the state group insurance
  412  program shall submit health care utilization and cost data to
  413  the department, in such form and in such manner as the
  414  department shall require, as a condition of participating in the
  415  program. The department shall enter into negotiations with its
  416  contracting HMOs to determine the nature and scope of the data
  417  submission and the final requirements, format, penalties
  418  associated with noncompliance, and timetables for submission.
  419  These determinations shall be adopted by rule.
  420         8. The department may establish and direct, with respect to
  421  collective bargaining issues, a comprehensive package of
  422  insurance benefits that may include supplemental health and life
  423  coverage, dental care, long-term care, vision care, and other
  424  benefits it determines necessary to enable state employees to
  425  select from among benefit options that best suit their
  426  individual and family needs. Beginning with the 2018 plan year,
  427  the package of benefits may also include products and services
  428  described in s. 110.12303.
  429         a. Based upon a desired benefit package, the department
  430  shall issue a request for proposal or invitation to negotiate
  431  for health insurance providers interested in participating in
  432  the state group insurance program, and the department shall
  433  issue a request for proposal or invitation to negotiate for
  434  insurance providers interested in participating in the non
  435  health-related components of the state group insurance program.
  436  Upon receipt of all proposals, the department may enter into
  437  contract negotiations with insurance providers submitting bids
  438  or negotiate a specially designed benefit package. Insurance
  439  Providers offering or providing supplemental coverage as of May
  440  30, 1991, which qualify for pretax benefit treatment pursuant to
  441  s. 125 of the Internal Revenue Code of 1986, with 5,500 or more
  442  state employees currently enrolled may be included by the
  443  department in the supplemental insurance benefit plan
  444  established by the department without participating in a request
  445  for proposal, submitting bids, negotiating contracts, or
  446  negotiating a specially designed benefit package. These
  447  contracts shall provide state employees with the most cost
  448  effective and comprehensive coverage available; however, except
  449  as provided in subparagraph (f)3., no state or agency funds
  450  shall be contributed toward the cost of any part of the premium
  451  of such supplemental benefit plans. With respect to dental
  452  coverage, the division shall include in any solicitation or
  453  contract for any state group dental program made after July 1,
  454  2001, a comprehensive indemnity dental plan option which offers
  455  enrollees a completely unrestricted choice of dentists. If a
  456  dental plan is endorsed, or in some manner recognized as the
  457  preferred product, such plan shall include a comprehensive
  458  indemnity dental plan option which provides enrollees with a
  459  completely unrestricted choice of dentists.
  460         b. Pursuant to the applicable provisions of s. 110.161, and
  461  s. 125 of the Internal Revenue Code of 1986, the department
  462  shall enroll in the pretax benefit program those state employees
  463  who voluntarily elect coverage in any of the supplemental
  464  insurance benefit plans as provided by sub-subparagraph a.
  465         c. Nothing herein contained shall be construed to prohibit
  466  insurance providers from continuing to provide or offer
  467  supplemental benefit coverage to state employees as provided
  468  under existing agency plans.
  469         (j) For the 2020 plan year and each plan year thereafter,
  470  health plans shall be offered in the following benefit levels:
  471         1. Platinum level, which shall have an actuarial value of
  472  at least 90 percent.
  473         2. Gold level, which shall have an actuarial value of at
  474  least 80 percent.
  475         3. Silver level, which shall have an actuarial value of at
  476  least 70 percent.
  477         4. Bronze level, which shall have an actuarial value of at
  478  least 60 percent Notwithstanding paragraph (f) requiring uniform
  479  contributions, and for the 2011-2012 fiscal year only, the state
  480  contribution toward the cost of any plan in the state group
  481  insurance plan is the difference between the overall premium and
  482  the employee contribution. This subsection expires June 30,
  483  2012.
  484         (k) In consultation with the independent benefits
  485  consultant described in s. 110.12304, the department shall
  486  develop a plan for implementation of the benefit levels
  487  described in paragraph (j). The plan shall be submitted to the
  488  Governor, the President of the Senate, and the Speaker of the
  489  House of Representatives by January 1, 2019, and include
  490  recommendations for:
  491         1. Employer and employee contribution policies.
  492         2. Steps necessary for maintaining or improving total
  493  employee compensation levels when the transition is initiated.
  494         3. An education strategy to inform employees of the
  495  additional choices available in the state group insurance
  496  program.
  497  
  498  This paragraph expires July 1, 2019.
  499         Section 2. Section 110.12303, Florida Statutes, is created
  500  to read:
  501         110.12303 State group insurance program; additional
  502  benefits; price transparency program; reporting.—Beginning with
  503  the 2018 plan year:
  504         (1) In addition to the comprehensive package of health
  505  insurance and other benefits required or authorized to be
  506  included in the state group insurance program, the package of
  507  benefits may also include products and services offered by:
  508         (a) Prepaid limited health service organizations authorized
  509  pursuant to part I of chapter 636.
  510         (b) Discount medical plan organizations authorized pursuant
  511  to part II of chapter 636.
  512         (c) Prepaid health clinics licensed under part II of
  513  chapter 641.
  514         (d) Licensed health care providers, including hospitals and
  515  other health care facilities, health care clinics, and health
  516  professionals, who sell service contracts and arrangements for a
  517  specified amount and type of health services.
  518         (e) Provider organizations, including service networks,
  519  group practices, professional associations, and other
  520  incorporated organizations of providers, who sell service
  521  contracts and arrangements for a specified amount and type of
  522  health services.
  523         (f) Entities that provide specific health services in
  524  accordance with applicable state law and sell service contracts
  525  and arrangements for a specified amount and type of health
  526  services.
  527         (g) Entities that provide health services or treatments
  528  through a bidding process.
  529         (h) Entities that provide health services or treatments
  530  through the bundling or aggregating of health services or
  531  treatments.
  532         (i) Entities that provide other innovative and cost
  533  effective health service delivery methods.
  534         (2)(a) The department shall contract with at least one
  535  entity that provides comprehensive pricing and inclusive
  536  services for surgery and other medical procedures which may be
  537  accessed at the option of the enrollee. The contract shall
  538  require the entity to:
  539         1. Have procedures and evidence-based standards to ensure
  540  the inclusion of only high-quality health care providers.
  541         2. Provide assistance to the enrollee in accessing and
  542  coordinating care.
  543         3. Provide cost savings to the state group insurance
  544  program to be shared with both the state and the enrollee. Cost
  545  savings payable to an enrollee may be:
  546         a. Credited to the enrollee’s flexible spending account;
  547         b. Credited to the enrollee’s health savings account;
  548         c. Credited to the enrollee’s health reimbursement account;
  549  or
  550         d. Paid as additional health plan reimbursements not
  551  exceeding the amount of the enrollee’s out-of-pocket medical
  552  expenses.
  553         4. Provide an educational campaign for enrollees to learn
  554  about the services offered by the entity.
  555         (b) On or before January 15 of each year, the department
  556  shall report to the Governor, the President of the Senate, and
  557  the Speaker of the House of Representatives on the participation
  558  level and cost-savings to both the enrollee and the state
  559  resulting from the contract or contracts described in this
  560  subsection.
  561         (3) The department shall contract with an entity that
  562  provides enrollees with online information on the cost and
  563  quality of health care services and providers, allows an
  564  enrollee to shop for health care services and providers, and
  565  rewards the enrollee by sharing savings generated by the
  566  enrollee’s choice of services or providers. The contract shall
  567  require the entity to:
  568         (a) Establish an Internet-based, consumer-friendly platform
  569  that educates and informs enrollees about the price and quality
  570  of health care services and providers, including the average
  571  amount paid in each county for health care services and
  572  providers. The average amounts paid for such services and
  573  providers may be expressed for service bundles, which include
  574  all products and services associated with a particular treatment
  575  or episode of care, or for separate and distinct products and
  576  services.
  577         (b) Allow enrollees to shop for health care services and
  578  providers using the price and quality information provided on
  579  the Internet-based platform.
  580         (c) Permit a certified bargaining agent of state employees
  581  to provide educational materials and counseling to enrollees
  582  regarding the Internet-based platform.
  583         (d) Identify the savings realized to the enrollee and state
  584  if the enrollee chooses high-quality, lower-cost health care
  585  services or providers, and facilitate a shared savings payment
  586  to the enrollee. The amount of shared savings shall be
  587  determined by a methodology approved by the department and shall
  588  maximize value-based purchasing by enrollees. The amount payable
  589  to the enrollee may be:
  590         1. Credited to the enrollee’s flexible spending account;
  591         2. Credited to the enrollee’s health savings account;
  592         3. Credited to the enrollee’s health reimbursement account;
  593  or
  594         4. Paid as additional health plan reimbursements not
  595  exceeding the amount of the enrollee’s out-of-pocket medical
  596  expenses.
  597         (e) On or before January 1 of 2019, 2020, and 2021, the
  598  department shall report to the Governor, the President of the
  599  Senate, and the Speaker of the House of Representatives on the
  600  participation level, amount paid to enrollees, and cost-savings
  601  to both the enrollees and the state resulting from the
  602  implementation of this subsection.
  603         Section 3. Section 110.12304, Florida Statutes, is created
  604  to read:
  605         110.12304 Independent benefits consultant.—
  606         (1) The department shall competitively procure an
  607  independent benefits consultant.
  608         (2) The independent benefits consultant may not:
  609         (a) Be owned or controlled by a health maintenance
  610  organization or insurer.
  611         (b) Have an ownership interest in a health maintenance
  612  organization or insurer.
  613         (c) Have a direct or indirect financial interest in a
  614  health maintenance organization or insurer.
  615         (3) The independent benefits consultant must have
  616  substantial experience in consultation and design of employee
  617  benefit programs for large employers and public employers,
  618  including experience with plans that qualify as cafeteria plans
  619  under s. 125 of the Internal Revenue Code of 1986.
  620         (4) The independent benefits consultant shall:
  621         (a) Provide an ongoing assessment of trends in benefits and
  622  employer-sponsored insurance that affect the state group
  623  insurance program.
  624         (b) Conduct a comprehensive analysis of the state group
  625  insurance program, including available benefits, coverage
  626  options, and claims experience.
  627         (c) Identify and establish appropriate adjustment
  628  procedures necessary to respond to any risk segmentation that
  629  may occur when increased choices are offered to employees.
  630         (d) Assist the department with the submission of any
  631  necessary plan revisions for federal review.
  632         (e) Assist the department in ensuring compliance with
  633  applicable federal and state regulations.
  634         (f) Assist the department in monitoring the adequacy of
  635  funding and reserves for the state self-insured plan.
  636         (g) Assist the department in preparing recommendations for
  637  any modifications to the state group insurance program which
  638  shall be submitted to the Governor, the President of the Senate,
  639  and the Speaker of the House of Representatives by January 1 of
  640  each year.
  641         Section 4. For the 2018 plan year, for informational
  642  purposes only, the Department of Management Services shall
  643  calculate alternative premiums for enrollees that reflect the
  644  actual differences in costs to the program for each of the
  645  health maintenance organization and the preferred provider
  646  organization plan options offered in the state group insurance
  647  program for both self-insured and fully insured plans. The
  648  premium alternatives for the plan options shall reflect the
  649  costs to the program for both medical and prescription drug
  650  benefits. By October 1, 2017, the department shall report the
  651  alternative enrollee premium rates for the 2018 plan year to the
  652  Governor, the President of the Senate, and the Speaker of the
  653  House of Representatives.
  654         Section 5. For the 2019 plan year, the Department of
  655  Management Services shall determine and recommend premiums for
  656  enrollees that reflect the actual differences in costs to the
  657  program for each of the health maintenance organization and the
  658  preferred provider organization plan options offered in the
  659  state group insurance program for both self-insured and fully
  660  insured plans. The premiums for the plan options shall reflect
  661  the costs to the program for both medical and prescription drug
  662  benefits. The premium rate for employers shall be the same as
  663  those established for the state group insurance program in the
  664  General Appropriations Act for the 2018-2019 fiscal year. By
  665  July 1, 2018, the department shall report the premium rates to
  666  the Governor, the President of the Senate, and the Speaker of
  667  the House of Representatives.
  668         Section 6. (1) For the 2017-2018 fiscal year, the sums of
  669  $151,216 in recurring funds and $507,546 in nonrecurring funds
  670  are appropriated from the State Employees Health Insurance Trust
  671  Fund to the Department of Management Services, and two full-time
  672  equivalent positions and associated salary rate of 120,000 are
  673  authorized, for the purpose of implementing this act.
  674         (2)(a) The recurring funds appropriated in this section
  675  shall be allocated to the following specific appropriation
  676  categories within the Insurance Benefits Administration Program:
  677  $150,528 in Salaries and Benefits and $688 in Special Categories
  678  Transfer to Department of Management Services—Human Resources
  679  Purchased per Statewide Contract.
  680         (b) The nonrecurring funds appropriated in this section
  681  shall be allocated to the following specific appropriation
  682  categories: $500,000 in Special Categories Contracted Services
  683  and $7,546 in Expenses.
  684         Section 7. Paragraph (a) of subsection (3) and subsection
  685  (5) of section 121.053, Florida Statutes, are amended to read:
  686         121.053 Participation in the Elected Officers’ Class for
  687  retired members.—
  688         (3) On or after July 1, 2010:
  689         (a) A retiree of a state-administered retirement system who
  690  is initially reemployed in elected or appointed for the first
  691  time to an elective office in a regularly established position
  692  with a covered employer may not reenroll in the Florida
  693  Retirement System, except as provided in s. 121.122.
  694         (5) Any renewed member, as described in s. 121.122(1), (3),
  695  (4), or (5) subsection (1) or subsection (2), who is not
  696  receiving the maximum health insurance subsidy provided in s.
  697  112.363 is entitled to earn additional credit toward the maximum
  698  health insurance subsidy. Any additional subsidy due because of
  699  such additional credit may be received only at the time of
  700  payment of the second career retirement benefit. The total
  701  health insurance subsidy received from initial and renewed
  702  membership may not exceed the maximum allowed in s. 112.363.
  703         Section 8. Paragraph (f) of subsection (1) and paragraph
  704  (c) of subsection (6) of section 121.055, Florida Statutes, are
  705  amended to read:
  706         121.055 Senior Management Service Class.—There is hereby
  707  established a separate class of membership within the Florida
  708  Retirement System to be known as the “Senior Management Service
  709  Class,” which shall become effective February 1, 1987.
  710         (1)
  711         (f) Effective July 1, 1997:
  712         1. Except as provided in subparagraph 3., an elected state
  713  officer eligible for membership in the Elected Officers’ Class
  714  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  715  Senior Management Service Class under s. 121.052(3)(c) may,
  716  within 6 months after assuming office or within 6 months after
  717  this act becomes a law for serving elected state officers, elect
  718  to participate in the Senior Management Service Optional Annuity
  719  Program, as provided in subsection (6), in lieu of membership in
  720  the Senior Management Service Class.
  721         2. Except as provided in subparagraph 3., an elected
  722  officer of a local agency employer eligible for membership in
  723  the Elected Officers’ Class under s. 121.052(2)(d) who elects
  724  membership in the Senior Management Service Class under s.
  725  121.052(3)(c) may, within 6 months after assuming office, or
  726  within 6 months after this act becomes a law for serving elected
  727  officers of a local agency employer, elect to withdraw from the
  728  Florida Retirement System, as provided in subparagraph (b)2., in
  729  lieu of membership in the Senior Management Service Class.
  730         3. A retiree of a state-administered retirement system who
  731  is initially reemployed in a regularly established position on
  732  or after July 1, 2010, through June 30, 2017, as an elected
  733  official eligible for the Elected Officers’ Class may not be
  734  enrolled in renewed membership in the Senior Management Service
  735  Class or in the Senior Management Service Optional Annuity
  736  Program as provided in subsection (6), and may not withdraw from
  737  the Florida Retirement System as a renewed member as provided in
  738  subparagraph (b)2., as applicable, in lieu of membership in the
  739  Senior Management Service Class. Effective July 1, 2017, a
  740  retiree of the Senior Management Service Optional Annuity
  741  Program who is reemployed in a regularly established position
  742  with a covered employer shall be enrolled as a renewed member as
  743  provided in s. 121.122.
  744         (6)
  745         (c) Participation.—
  746         1. An eligible employee who is employed on or before
  747  February 1, 1987, may elect to participate in the optional
  748  annuity program in lieu of participating in the Senior
  749  Management Service Class. Such election shall must be made in
  750  writing and filed with the department and the personnel officer
  751  of the employer on or before May 1, 1987. An eligible employee
  752  who is employed on or before February 1, 1987, and who fails to
  753  make an election to participate in the optional annuity program
  754  by May 1, 1987, is shall be deemed to have elected membership in
  755  the Senior Management Service Class.
  756         2. Except as provided in subparagraph 6., an employee who
  757  becomes eligible to participate in the optional annuity program
  758  by reason of initial employment commencing after February 1,
  759  1987, may, within 90 days after the date of commencing
  760  employment, elect to participate in the optional annuity
  761  program. Such election shall must be made in writing and filed
  762  with the personnel officer of the employer. An eligible employee
  763  who does not within 90 days after commencing employment elect to
  764  participate in the optional annuity program is shall be deemed
  765  to have elected membership in the Senior Management Service
  766  Class.
  767         3. A person who is appointed to a position in the Senior
  768  Management Service Class and who is a member of an existing
  769  retirement system or the Special Risk or Special Risk
  770  Administrative Support Classes of the Florida Retirement System
  771  may elect to remain in such system or class in lieu of
  772  participating in the Senior Management Service Class or optional
  773  annuity program. Such election shall must be made in writing and
  774  filed with the department and the personnel officer of the
  775  employer within 90 days after such appointment. An eligible
  776  employee who fails to make an election to participate in the
  777  existing system, the Special Risk Class of the Florida
  778  Retirement System, the Special Risk Administrative Support Class
  779  of the Florida Retirement System, or the optional annuity
  780  program is shall be deemed to have elected membership in the
  781  Senior Management Service Class.
  782         4. Except as provided in subparagraph 5., an employee’s
  783  election to participate in the optional annuity program is
  784  irrevocable if the employee continues to be employed in an
  785  eligible position and continues to meet the eligibility
  786  requirements set forth in this paragraph.
  787         5. Effective from July 1, 2002, through September 30, 2002,
  788  an active employee in a regularly established position who has
  789  elected to participate in the Senior Management Service Optional
  790  Annuity Program has one opportunity to choose to move from the
  791  Senior Management Service Optional Annuity Program to the
  792  Florida Retirement System Pension Plan.
  793         a. The election shall must be made in writing and must be
  794  filed with the department and the personnel officer of the
  795  employer before October 1, 2002, or, in the case of an active
  796  employee who is on a leave of absence on July 1, 2002, within 90
  797  days after the conclusion of the leave of absence. This election
  798  is irrevocable.
  799         b. The employee shall receive service credit under the
  800  pension plan equal to his or her years of service under the
  801  Senior Management Service Optional Annuity Program. The cost for
  802  such credit is the amount representing the present value of that
  803  employee’s accumulated benefit obligation for the affected
  804  period of service.
  805         c. The employee shall must transfer the total accumulated
  806  employer contributions and earnings on deposit in his or her
  807  Senior Management Service Optional Annuity Program account. If
  808  the transferred amount is not sufficient to pay the amount due,
  809  the employee shall must pay a sum representing the remainder of
  810  the amount due. The employee may not retain any employer
  811  contributions or earnings from the Senior Management Service
  812  Optional Annuity Program account.
  813         6. A retiree of a state-administered retirement system who
  814  is initially reemployed on or after July 1, 2010, through June
  815  30, 2017, may not renew membership in the Senior Management
  816  Service Optional Annuity Program. Effective July 1, 2017, a
  817  retiree of the Senior Management Service Optional Annuity
  818  Program who is reemployed in a regularly established position
  819  with a covered employer shall be enrolled as a renewed member as
  820  provided in s. 121.122.
  821         7. Effective July 1, 2017, the Senior Management Service
  822  Optional Annuity Program is closed to new members. A member
  823  enrolled in the Senior Management Service Optional Annuity
  824  Program before July 1, 2017, may retain his or her membership in
  825  the annuity program.
  826         Section 9. Paragraphs (d) and (i) of subsection (7) and
  827  paragraph (c) of subsection (9) of section 121.091, Florida
  828  Statutes, are amended to read:
  829         121.091 Benefits payable under the system.—Benefits may not
  830  be paid under this section unless the member has terminated
  831  employment as provided in s. 121.021(39)(a) or begun
  832  participation in the Deferred Retirement Option Program as
  833  provided in subsection (13), and a proper application has been
  834  filed in the manner prescribed by the department. The department
  835  may cancel an application for retirement benefits when the
  836  member or beneficiary fails to timely provide the information
  837  and documents required by this chapter and the department’s
  838  rules. The department shall adopt rules establishing procedures
  839  for application for retirement benefits and for the cancellation
  840  of such application when the required information or documents
  841  are not received.
  842         (7) DEATH BENEFITS.—
  843         (d) Notwithstanding any other provision in this chapter to
  844  the contrary, with the exception of the Deferred Retirement
  845  Option Program, as provided in subsection (13):
  846         1. The surviving spouse of any member killed in the line of
  847  duty may receive a monthly pension equal to one-half of the
  848  monthly salary being received by the member at the time of death
  849  for the rest of the surviving spouse’s lifetime or, if the
  850  member was vested, such surviving spouse may elect to receive a
  851  benefit as provided in paragraph (b). Benefits provided by this
  852  paragraph shall supersede any other distribution that may have
  853  been provided by the member’s designation of beneficiary.
  854         2. If the surviving spouse of a member killed in the line
  855  of duty dies, the monthly payments that would have been payable
  856  to such surviving spouse had such surviving spouse lived shall
  857  be paid for the use and benefit of such member’s child or
  858  children under 18 years of age and unmarried until the 18th
  859  birthday of the member’s youngest child. Beginning July 1, 2016,
  860  such payments may be extended, for the surviving child of a
  861  member in the Special Risk Class at the time he or she was
  862  killed in the line of duty on or after July 1, 2013, until the
  863  25th birthday of any child of the member if the child is
  864  unmarried and enrolled as a full-time student. Beginning July 1,
  865  2017, such payments may be extended, for the surviving child of
  866  a member in the Special Risk Class at the time he or she was
  867  killed in the line of duty on or after July 1, 2002, until the
  868  25th birthday of any child of the member if the child is
  869  unmarried and enrolled as a full-time student.
  870         3. If a member killed in the line of duty leaves no
  871  surviving spouse but is survived by a child or children under 18
  872  years of age, the benefits provided by subparagraph 1., normally
  873  payable to a surviving spouse, shall be paid for the use and
  874  benefit of such member’s child or children under 18 years of age
  875  and unmarried until the 18th birthday of the member’s youngest
  876  child. Beginning July 1, 2016, such monthly payments may be
  877  extended, for the surviving child of a member in the Special
  878  Risk Class at the time he or she was killed in the line of duty
  879  on or after July 1, 2013, until the 25th birthday of any child
  880  of the member if the child is unmarried and enrolled as a full
  881  time student. Beginning July 1, 2017, such monthly payments may
  882  be extended, for the surviving child of a member in the Special
  883  Risk Class at the time he or she was killed in the line of duty
  884  on or after July 1, 2002, until the 25th birthday of any child
  885  of the member if the child is unmarried and enrolled as a full
  886  time student.
  887         4. The surviving spouse of a member whose benefit
  888  terminated because of remarriage shall have the benefit
  889  reinstated beginning July 1, 1993, at an amount that would have
  890  been payable had the benefit not been terminated.
  891         (i) Effective July 1, 2016, and Notwithstanding any
  892  provision in this chapter to the contrary, if a member in the
  893  Special Risk Class, other than a participant in the Deferred
  894  Retirement Option Program under subsection (13), is killed in
  895  the line of duty on or after July 1, 2002 2013, the following
  896  benefits are payable in addition to the benefits provided in
  897  paragraph (d):
  898         1. The surviving spouse may receive a monthly pension equal
  899  to one-half of the monthly salary being received by the member
  900  at the time of the member’s death for the rest of the surviving
  901  spouse’s lifetime or, if the member was vested, such surviving
  902  spouse may elect to receive a benefit as provided in paragraph
  903  (b). Benefits provided by this paragraph supersede any other
  904  distribution that may have been provided by the member’s
  905  designation of beneficiary.
  906         2. If the surviving spouse dies, the monthly payments that
  907  otherwise would have been payable to such surviving spouse shall
  908  be paid for the use and benefit of the member’s child or
  909  children under 18 years of age and unmarried until the 18th
  910  birthday of the member’s youngest child. Such monthly payments
  911  may be extended until the 25th birthday of the member’s child if
  912  the child is unmarried and enrolled as a full-time student.
  913         3. If the member leaves no surviving spouse but is survived
  914  by a child or children under 18 years of age, the benefits
  915  provided by subparagraph 1., normally payable to a surviving
  916  spouse, shall be paid for the use and benefit of such member’s
  917  child or children under 18 years of age and unmarried until the
  918  18th birthday of the member’s youngest child. Such monthly
  919  payments may be extended until the 25th birthday of any of the
  920  member’s children if the child is unmarried and enrolled as a
  921  full-time student.
  922         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  923         (c) Any person whose retirement is effective on or after
  924  July 1, 2010, or whose participation in the Deferred Retirement
  925  Option Program terminates on or after July 1, 2010, who is
  926  retired under this chapter, except under the disability
  927  retirement provisions of subsection (4) or as provided in s.
  928  121.053, may be reemployed by an employer that participates in a
  929  state-administered retirement system and receive retirement
  930  benefits and compensation from that employer. However, a person
  931  may not be reemployed by an employer participating in the
  932  Florida Retirement System before meeting the definition of
  933  termination in s. 121.021 and may not receive both a salary from
  934  the employer and retirement benefits for 6 calendar months after
  935  meeting the definition of termination. However, a DROP
  936  participant shall continue employment and receive a salary
  937  during the period of participation in the Deferred Retirement
  938  Option Program, as provided in subsection (13).
  939         1. The reemployed retiree may not renew membership in the
  940  Florida Retirement System, except as provided in s. 121.122.
  941         2. The employer shall pay retirement contributions in an
  942  amount equal to the unfunded actuarial liability portion of the
  943  employer contribution that would be required for active members
  944  of the Florida Retirement System in addition to the
  945  contributions required by s. 121.76.
  946         3. A retiree initially reemployed in violation of this
  947  paragraph and an employer that employs or appoints such person
  948  are jointly and severally liable for reimbursement of any
  949  retirement benefits paid to the retirement trust fund from which
  950  the benefits were paid, including the Florida Retirement System
  951  Trust Fund and the Public Employee Optional Retirement Program
  952  Trust Fund, as appropriate. The employer must have a written
  953  statement from the employee that he or she is not retired from a
  954  state-administered retirement system. Retirement benefits shall
  955  remain suspended until repayment is made. Benefits suspended
  956  beyond the end of the retiree’s 6-month reemployment limitation
  957  period shall apply toward the repayment of benefits received in
  958  violation of this paragraph.
  959         Section 10. Subsection (2) of section 121.122, Florida
  960  Statutes, is amended, and subsections (3), (4), and (5) are
  961  added to that section, to read:
  962         121.122 Renewed membership in system.—
  963         (2) Except as otherwise provided in subsections (3), (4),
  964  and (5), a retiree of a state-administered retirement system who
  965  is initially reemployed in a regularly established position on
  966  or after July 1, 2010, may not be enrolled as a renewed member.
  967         (3) A retiree of the investment plan, the State University
  968  System Optional Retirement Program, the Senior Management
  969  Service Optional Annuity Program, or the State Community College
  970  System Optional Retirement Program who is reemployed with a
  971  covered employer in a regularly established position on or after
  972  July 1, 2017, shall be enrolled as a renewed member of the
  973  investment plan unless employed in a position eligible for
  974  participation in the State University System Optional Retirement
  975  Program as provided in subsection (4) or the State Community
  976  College System Optional Retirement Program as provided in
  977  subsection (5). The renewed member must satisfy the vesting
  978  requirements and other provisions of this chapter.
  979         (a) A renewed member of the investment plan shall be
  980  enrolled in one of the following membership classes:
  981         1. In the Regular Class, if the position does not meet the
  982  requirements for membership under s. 121.0515, s. 121.053, or s.
  983  121.055.
  984         2. In the Special Risk Class, if the position meets the
  985  requirements of s. 121.0515.
  986         3. In the Elected Officers’ Class, if the position meets
  987  the requirements of s. 121.053.
  988         4. In the Senior Management Service Class, if the position
  989  meets the requirements of s. 121.055.
  990         (b) Creditable service, including credit toward the retiree
  991  health insurance subsidy provided in s. 112.363, does not accrue
  992  for a renewed member’s employment in a regularly established
  993  position with a covered employer from July 1, 2010, through June
  994  30, 2017.
  995         (c) Employer and employee contributions, interest,
  996  earnings, or any other funds may not be paid into a renewed
  997  member’s investment plan account for any employment in a
  998  regularly established position with a covered employer on or
  999  after July 1, 2010, through June 30, 2017, by the renewed member
 1000  or the employer on behalf of the renewed member.
 1001         (d) To be eligible to receive a retirement benefit, the
 1002  renewed member must satisfy the vesting requirements in s.
 1003  121.4501(6).
 1004         (e) The renewed member is ineligible to receive disability
 1005  benefits as provided in s. 121.091(4) or s. 121.591(2).
 1006         (f) The renewed member is subject to the limitations on
 1007  reemployment after retirement provided in s. 121.091(9), as
 1008  applicable.
 1009         (g) The renewed member must satisfy the requirements for
 1010  termination from employment provided in s. 121.021(39).
 1011         (h) Upon renewed membership or reemployment of a retiree,
 1012  the employer and the renewed member shall pay the applicable
 1013  employer and employee contributions required under ss. 112.363,
 1014  121.71, 121.74, and 121.76. The contributions are payable only
 1015  for employment and salary earned in a regularly established
 1016  position with a covered employer on or after July 1, 2017. The
 1017  employer and employee contributions shall be transferred to the
 1018  investment plan and placed in a default fund as designated by
 1019  the state board. The renewed member may move the contributions
 1020  once an account is activated in the investment plan.
 1021         (i) A renewed member who earns creditable service under the
 1022  investment plan and who is not receiving the maximum health
 1023  insurance subsidy provided in s. 112.363 is entitled to earn
 1024  additional credit toward the subsidy. Such credit may be earned
 1025  only for employment in a regularly established position with a
 1026  covered employer on or after July 1, 2017. Any additional
 1027  subsidy due because of additional credit may be received only at
 1028  the time of paying the second career retirement benefit. The
 1029  total health insurance subsidy received by a retiree receiving
 1030  benefits from initial and renewed membership may not exceed the
 1031  maximum allowed under s. 112.363.
 1032         (j) Notwithstanding s. 121.4501(4)(f), the renewed member
 1033  is not eligible to elect membership in the pension plan.
 1034         (4) A retiree of the investment plan, the State University
 1035  System Optional Retirement Program, the Senior Management
 1036  Service Optional Annuity Program, or the State Community College
 1037  System Optional Retirement Program who is reemployed on or after
 1038  July 1, 2017, in a regularly established position eligible for
 1039  participation in the State University System Optional Retirement
 1040  Program shall become a renewed member of the optional retirement
 1041  program. The renewed member must satisfy the vesting
 1042  requirements and other provisions of this chapter. Once
 1043  enrolled, a renewed member remains enrolled in the optional
 1044  retirement program while employed in an eligible position for
 1045  the optional retirement program. If employment in a different
 1046  covered position results in the renewed member’s enrollment in
 1047  the investment plan, the renewed member is no longer eligible to
 1048  participate in the optional retirement program unless employed
 1049  in a mandatory position under s. 121.35.
 1050         (a) The renewed member is subject to the limitations on
 1051  reemployment after retirement provided in s. 121.091(9), as
 1052  applicable.
 1053         (b) The renewed member must satisfy the requirements for
 1054  termination from employment provided in s. 121.021(39).
 1055         (c) Upon renewed membership or reemployment of a retiree,
 1056  the employer and the renewed member shall pay the applicable
 1057  employer and employee contributions required under s. 121.35.
 1058         (d) Employer and employee contributions, interest,
 1059  earnings, or any other funds may not be paid into a renewed
 1060  member’s optional retirement program account for any employment
 1061  in a regularly established position with a covered employer on
 1062  or after July 1, 2010, through June 30, 2017, by the renewed
 1063  member or the employer on behalf of the renewed member.
 1064         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
 1065  is not eligible to elect membership in the pension plan.
 1066         (5) A retiree of the investment plan, the State University
 1067  System Optional Retirement Program, the Senior Management
 1068  Service Optional Annuity Program, or the State Community College
 1069  System Optional Retirement Program who is reemployed on or after
 1070  July 1, 2017, in a regularly established position eligible for
 1071  participation in the State Community College System Optional
 1072  Retirement Program shall become a renewed member of the optional
 1073  retirement program. The renewed member must satisfy the
 1074  eligibility requirements of this chapter and s. 1012.875 for the
 1075  optional retirement program. Once enrolled, a renewed member
 1076  remains enrolled in the optional retirement program while
 1077  employed in an eligible position for the optional retirement
 1078  program. If employment in a different covered position results
 1079  in the renewed member’s enrollment in the investment plan, the
 1080  renewed member is no longer eligible to participate in the
 1081  optional retirement program.
 1082         (a) The renewed member is subject to the limitations on
 1083  reemployment after retirement provided in s. 121.091(9), as
 1084  applicable.
 1085         (b) The renewed member must satisfy the requirements for
 1086  termination from employment provided in s. 121.021(39).
 1087         (c) Upon renewed membership or reemployment of a retiree,
 1088  the employer and the renewed member shall pay the applicable
 1089  employer and employee contributions required under ss.
 1090  121.051(2)(c) and 1012.875.
 1091         (d) Employer and employee contributions, interest,
 1092  earnings, or any other funds may not be paid into a renewed
 1093  member’s optional retirement program account for any employment
 1094  in a regularly established position with a covered employer on
 1095  or after July 1, 2010, through June 30, 2017, by the renewed
 1096  member or the employer on behalf of the renewed member.
 1097         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
 1098  is not eligible to elect membership in the pension plan.
 1099         Section 11. Paragraphs (e) and (i) of subsection (2),
 1100  paragraph (b) of subsection (3), subsection (4), paragraph (c)
 1101  of subsection (5), and paragraphs (a) and (h) of subsection (10)
 1102  of section 121.4501, Florida Statutes, are amended to read:
 1103         121.4501 Florida Retirement System Investment Plan.—
 1104         (2) DEFINITIONS.—As used in this part, the term:
 1105         (e) “Eligible employee” means an officer or employee, as
 1106  defined in s. 121.021, who:
 1107         1. Is a member of, or is eligible for membership in, the
 1108  Florida Retirement System, including any renewed member of the
 1109  Florida Retirement System initially enrolled before July 1,
 1110  2010; or
 1111         2. Participates in, or is eligible to participate in, the
 1112  Senior Management Service Optional Annuity Program as
 1113  established under s. 121.055(6), the State Community College
 1114  System Optional Retirement Program as established under s.
 1115  121.051(2)(c), or the State University System Optional
 1116  Retirement Program established under s. 121.35; or
 1117         3. Is a retired member of the investment plan, the State
 1118  University System Optional Retirement Program, the Senior
 1119  Management Service Optional Annuity Program, or the State
 1120  Community College System Optional Retirement Program who is
 1121  reemployed in a regularly established position on or after July
 1122  1, 2017, and enrolled as a renewed member as provided in s.
 1123  121.122.
 1124  
 1125  The term does not include any member participating in the
 1126  Deferred Retirement Option Program established under s.
 1127  121.091(13), a retiree of the pension plan who is reemployed in
 1128  a regularly established position on or after July 1, 2010, a
 1129  retiree of a state-administered retirement system initially
 1130  reemployed in a regularly established position on or after July
 1131  1, 2010, through June 30, 2017, or a mandatory participant of
 1132  the State University System Optional Retirement Program
 1133  established under s. 121.35.
 1134         (i) “Member” or “employee” means an eligible employee who
 1135  enrolls in, or who defaults into, the investment plan as
 1136  provided in subsection (4), a terminated Deferred Retirement
 1137  Option Program member as described in subsection (21), or a
 1138  beneficiary or alternate payee of a member or employee.
 1139         (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
 1140         (b) Notwithstanding paragraph (a), an eligible employee who
 1141  elects to participate in, or who defaults into, the investment
 1142  plan and establishes one or more individual member accounts may
 1143  elect to transfer to the investment plan a sum representing the
 1144  present value of the employee’s accumulated benefit obligation
 1145  under the pension plan, except as provided in paragraph (4)(b).
 1146  Upon transfer, all service credit earned under the pension plan
 1147  is nullified for purposes of entitlement to a future benefit
 1148  under the pension plan. A member may not transfer the
 1149  accumulated benefit obligation balance from the pension plan
 1150  after the time period for enrolling in the investment plan has
 1151  expired.
 1152         1. For purposes of this subsection, the present value of
 1153  the member’s accumulated benefit obligation is based upon the
 1154  member’s estimated creditable service and estimated average
 1155  final compensation under the pension plan, subject to
 1156  recomputation under subparagraph 2. For state employees, initial
 1157  estimates shall be based upon creditable service and average
 1158  final compensation as of midnight on June 30, 2002; for district
 1159  school board employees, initial estimates shall be based upon
 1160  creditable service and average final compensation as of midnight
 1161  on September 30, 2002; and for local government employees,
 1162  initial estimates shall be based upon creditable service and
 1163  average final compensation as of midnight on December 31, 2002.
 1164  The dates specified are the “estimate date” for these employees.
 1165  The actuarial present value of the employee’s accumulated
 1166  benefit obligation shall be based on the following:
 1167         a. The discount rate and other relevant actuarial
 1168  assumptions used to value the Florida Retirement System Trust
 1169  Fund at the time the amount to be transferred is determined,
 1170  consistent with the factors provided in sub-subparagraphs b. and
 1171  c.
 1172         b. A benefit commencement age, based on the member’s
 1173  estimated creditable service as of the estimate date.
 1174         c. Except as provided under sub-subparagraph d., for a
 1175  member initially enrolled:
 1176         (I) Before July 1, 2011, the benefit commencement age is
 1177  the younger of the following, but may not be younger than the
 1178  member’s age as of the estimate date:
 1179         (A) Age 62; or
 1180         (B) The age the member would attain if the member completed
 1181  30 years of service with an employer, assuming the member worked
 1182  continuously from the estimate date, and disregarding any
 1183  vesting requirement that would otherwise apply under the pension
 1184  plan.
 1185         (II) On or after July 1, 2011, the benefit commencement age
 1186  is the younger of the following, but may not be younger than the
 1187  member’s age as of the estimate date:
 1188         (A) Age 65; or
 1189         (B) The age the member would attain if the member completed
 1190  33 years of service with an employer, assuming the member worked
 1191  continuously from the estimate date, and disregarding any
 1192  vesting requirement that would otherwise apply under the pension
 1193  plan.
 1194         d. For members of the Special Risk Class and for members of
 1195  the Special Risk Administrative Support Class entitled to retain
 1196  the special risk normal retirement date:
 1197         (I) Initially enrolled before July 1, 2011, the benefit
 1198  commencement age is the younger of the following, but may not be
 1199  younger than the member’s age as of the estimate date:
 1200         (A) Age 55; or
 1201         (B) The age the member would attain if the member completed
 1202  25 years of service with an employer, assuming the member worked
 1203  continuously from the estimate date, and disregarding any
 1204  vesting requirement that would otherwise apply under the pension
 1205  plan.
 1206         (II) Initially enrolled on or after July 1, 2011, the
 1207  benefit commencement age is the younger of the following, but
 1208  may not be younger than the member’s age as of the estimate
 1209  date:
 1210         (A) Age 60; or
 1211         (B) The age the member would attain if the member completed
 1212  30 years of service with an employer, assuming the member worked
 1213  continuously from the estimate date, and disregarding any
 1214  vesting requirement that would otherwise apply under the pension
 1215  plan.
 1216         e. The calculation must disregard vesting requirements and
 1217  early retirement reduction factors that would otherwise apply
 1218  under the pension plan.
 1219         2. For each member who elects to transfer moneys from the
 1220  pension plan to his or her account in the investment plan, the
 1221  division shall recompute the amount transferred under
 1222  subparagraph 1. within 60 days after the actual transfer of
 1223  funds based upon the member’s actual creditable service and
 1224  actual final average compensation as of the initial date of
 1225  participation in the investment plan. If the recomputed amount
 1226  differs from the amount transferred by $10 or more, the division
 1227  shall:
 1228         a. Transfer, or cause to be transferred, from the Florida
 1229  Retirement System Trust Fund to the member’s account the excess,
 1230  if any, of the recomputed amount over the previously transferred
 1231  amount together with interest from the initial date of transfer
 1232  to the date of transfer under this subparagraph, based upon the
 1233  effective annual interest equal to the assumed return on the
 1234  actuarial investment which was used in the most recent actuarial
 1235  valuation of the system, compounded annually.
 1236         b. Transfer, or cause to be transferred, from the member’s
 1237  account to the Florida Retirement System Trust Fund the excess,
 1238  if any, of the previously transferred amount over the recomputed
 1239  amount, together with interest from the initial date of transfer
 1240  to the date of transfer under this subparagraph, based upon 6
 1241  percent effective annual interest, compounded annually, pro rata
 1242  based on the member’s allocation plan.
 1243         3. If contribution adjustments are made as a result of
 1244  employer errors or corrections, including plan corrections,
 1245  following recomputation of the amount transferred under
 1246  subparagraph 1., the member is entitled to the additional
 1247  contributions or is responsible for returning any excess
 1248  contributions resulting from the correction. However, a any
 1249  return of such erroneous excess pretax contribution by the plan
 1250  must be made within the period allowed by the Internal Revenue
 1251  Service. The present value of the member’s accumulated benefit
 1252  obligation may shall not be recalculated.
 1253         4. As directed by the member, the state board shall
 1254  transfer or cause to be transferred the appropriate amounts to
 1255  the designated accounts within 30 days after the effective date
 1256  of the member’s participation in the investment plan unless the
 1257  major financial markets for securities available for a transfer
 1258  are seriously disrupted by an unforeseen event that causes the
 1259  suspension of trading on a any national securities exchange in
 1260  the country where the securities were issued. In that event, the
 1261  30-day period may be extended by a resolution of the state
 1262  board. Transfers are not commissionable or subject to other fees
 1263  and may be in the form of securities or cash, as determined by
 1264  the state board. Such securities are valued as of the date of
 1265  receipt in the member’s account.
 1266         5. If the state board or the division receives notification
 1267  from the United States Internal Revenue Service that this
 1268  paragraph or any portion of this paragraph will cause the
 1269  retirement system, or a portion thereof, to be disqualified for
 1270  tax purposes under the Internal Revenue Code, the portion that
 1271  will cause the disqualification does not apply. Upon such
 1272  notice, the state board and the division shall notify the
 1273  presiding officers of the Legislature.
 1274         (4) PARTICIPATION; ENROLLMENT.—
 1275         (a)1. Effective June 1, 2002, through February 28, 2003, a
 1276  90-day election period was provided to each eligible employee
 1277  participating in the Florida Retirement System, preceded by a
 1278  90-day education period, permitting each eligible employee to
 1279  elect membership in the investment plan. An employee who failed
 1280  to elect the investment plan during the election period remained
 1281  in the pension plan. An eligible employee who was employed in a
 1282  regularly established position during the election period was
 1283  granted the option to make one subsequent election, as provided
 1284  in paragraph (f). With respect to an eligible employee who did
 1285  not participate in the initial election period or who is
 1286  initially employed in a regularly established position after the
 1287  close of the initial election period but before January 1, 2018,
 1288  on June 1, 2002, by a state employer:
 1289         a. Any such employee may elect to participate in the
 1290  investment plan in lieu of retaining his or her membership in
 1291  the pension plan. The election must be made in writing or by
 1292  electronic means and must be filed with the third-party
 1293  administrator by August 31, 2002, or, in the case of an active
 1294  employee who is on a leave of absence on April 1, 2002, by the
 1295  last business day of the 5th month following the month the leave
 1296  of absence concludes. This election is irrevocable, except as
 1297  provided in paragraph (g). Upon making such election, the
 1298  employee shall be enrolled as a member of the investment plan,
 1299  the employee’s membership in the Florida Retirement System is
 1300  governed by the provisions of this part, and the employee’s
 1301  membership in the pension plan terminates. The employee’s
 1302  enrollment in the investment plan is effective the first day of
 1303  the month for which a full month’s employer contribution is made
 1304  to the investment plan.
 1305         b. Any such employee who fails to elect to participate in
 1306  the investment plan within the prescribed time period is deemed
 1307  to have elected to retain membership in the pension plan, and
 1308  the employee’s option to elect to participate in the investment
 1309  plan is forfeited.
 1310         2. With respect to employees who become eligible to
 1311  participate in the investment plan by reason of employment in a
 1312  regularly established position with a state employer commencing
 1313  after April 1, 2002:
 1314         a. Any such employee shall, by default, be enrolled in the
 1315  pension plan at the commencement of employment, and may, by the
 1316  last business day of the 5th month following the employee’s
 1317  month of hire, elect to participate in the investment plan. The
 1318  employee’s election must be made in writing or by electronic
 1319  means and must be filed with the third-party administrator. The
 1320  election to participate in the investment plan is irrevocable,
 1321  except as provided in paragraph (f) (g).
 1322         a.b. If the employee files such election within the
 1323  prescribed time period, enrollment in the investment plan is
 1324  effective on the first day of employment. The retirement
 1325  contributions paid through the month of the employee plan change
 1326  shall be transferred to the investment program, and, effective
 1327  the first day of the next month, the employer and employee must
 1328  pay the applicable contributions based on the employee
 1329  membership class in the program.
 1330         b.c. An employee who fails to elect to participate in the
 1331  investment plan within the prescribed time period is deemed to
 1332  have elected to retain membership in the pension plan, and the
 1333  employee’s option to elect to participate in the investment plan
 1334  is forfeited.
 1335         2.3. With respect to employees who become eligible to
 1336  participate in the investment plan pursuant to s.
 1337  121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
 1338  participate in the investment plan in lieu of retaining his or
 1339  her membership in the State Community College System Optional
 1340  Retirement Program or the State University System Optional
 1341  Retirement Program. The election must be made in writing or by
 1342  electronic means and must be filed with the third-party
 1343  administrator. This election is irrevocable, except as provided
 1344  in paragraph (f) (g). Upon making such election, the employee
 1345  shall be enrolled as a member in the investment plan, the
 1346  employee’s membership in the Florida Retirement System is
 1347  governed by the provisions of this part, and the employee’s
 1348  participation in the State Community College System Optional
 1349  Retirement Program or the State University System Optional
 1350  Retirement Program terminates. The employee’s enrollment in the
 1351  investment plan is effective on the first day of the month for
 1352  which a full month’s employer and employee contribution is made
 1353  to the investment plan.
 1354         (b)1. With respect to employees who become eligible to
 1355  participate in the investment plan by reason of employment in a
 1356  regularly established position commencing on or after January 1,
 1357  2018, or who did not complete an election window before January
 1358  1, 2018, any such employee shall be enrolled in the pension plan
 1359  at the commencement of employment and may, by the last business
 1360  day of the eighth month following the employee’s month of hire,
 1361  elect to participate in the pension plan or the investment plan.
 1362  Eligible employees may make a plan election only if they are
 1363  earning service credit in an employer-employee relationship
 1364  consistent with s. 121.021(17)(b), excluding leaves of absence
 1365  without pay.
 1366         2. The employee’s election must be made in writing or by
 1367  electronic means and must be filed with the third-party
 1368  administrator. The election to participate in the pension plan
 1369  or investment plan is irrevocable, except as provided in
 1370  paragraph (f).
 1371         3.a. Except as provided in subparagraph 4., if the employee
 1372  fails to make an election to either the pension plan or the
 1373  investment plan during the 8-month period following the month of
 1374  hire, the employee is deemed to have elected the investment plan
 1375  and shall default into the investment plan retroactively to the
 1376  employee’s date of employment. The employee’s option to
 1377  participate in the pension plan is forfeited, except as provided
 1378  in paragraph (f).
 1379         b. The amount of the employee and employer contributions
 1380  paid through the date of default to the investment plan shall be
 1381  transferred to the investment plan and shall be placed in a
 1382  default fund as designated by the State Board of Administration.
 1383  The employee may move the contributions once an account is
 1384  activated in the investment plan.
 1385         4. If the employee is employed in a position included in
 1386  the Special Risk Class and fails to make an election to either
 1387  the pension plan or the investment plan during the 8-month
 1388  period following the month of hire, the employee is deemed to
 1389  have elected the pension plan and shall default into the pension
 1390  plan retroactively to the employee’s date of employment. The
 1391  employee’s option to participate in the investment plan is
 1392  forfeited, except as provided in paragraph (f).
 1393         5. Effective the first day of the month after an eligible
 1394  employee makes a plan election of the pension plan or investment
 1395  plan, or the first day of the month after default, the employee
 1396  and employer shall pay the applicable contributions based on the
 1397  employee membership class in the program.
 1398         4. For purposes of this paragraph, “state employer” means
 1399  any agency, board, branch, commission, community college,
 1400  department, institution, institution of higher education, or
 1401  water management district of the state, which participates in
 1402  the Florida Retirement System for the benefit of certain
 1403  employees.
 1404         (b)1. With respect to an eligible employee who is employed
 1405  in a regularly established position on September 1, 2002, by a
 1406  district school board employer:
 1407         a. Any such employee may elect to participate in the
 1408  investment plan in lieu of retaining his or her membership in
 1409  the pension plan. The election must be made in writing or by
 1410  electronic means and must be filed with the third-party
 1411  administrator by November 30, or, in the case of an active
 1412  employee who is on a leave of absence on July 1, 2002, by the
 1413  last business day of the 5th month following the month the leave
 1414  of absence concludes. This election is irrevocable, except as
 1415  provided in paragraph (g). Upon making such election, the
 1416  employee shall be enrolled as a member of the investment plan,
 1417  the employee’s membership in the Florida Retirement System is
 1418  governed by the provisions of this part, and the employee’s
 1419  membership in the pension plan terminates. The employee’s
 1420  enrollment in the investment plan is effective the first day of
 1421  the month for which a full month’s employer contribution is made
 1422  to the investment program.
 1423         b. Any such employee who fails to elect to participate in
 1424  the investment plan within the prescribed time period is deemed
 1425  to have elected to retain membership in the pension plan, and
 1426  the employee’s option to elect to participate in the investment
 1427  plan is forfeited.
 1428         2. With respect to employees who become eligible to
 1429  participate in the investment plan by reason of employment in a
 1430  regularly established position with a district school board
 1431  employer commencing after July 1, 2002:
 1432         a. Any such employee shall, by default, be enrolled in the
 1433  pension plan at the commencement of employment, and may, by the
 1434  last business day of the 5th month following the employee’s
 1435  month of hire, elect to participate in the investment plan. The
 1436  employee’s election must be made in writing or by electronic
 1437  means and must be filed with the third-party administrator. The
 1438  election to participate in the investment plan is irrevocable,
 1439  except as provided in paragraph (g).
 1440         b. If the employee files such election within the
 1441  prescribed time period, enrollment in the investment plan is
 1442  effective on the first day of employment. The employer
 1443  retirement contributions paid through the month of the employee
 1444  plan change shall be transferred to the investment plan, and,
 1445  effective the first day of the next month, the employer shall
 1446  pay the applicable contributions based on the employee
 1447  membership class in the investment plan.
 1448         c. Any such employee who fails to elect to participate in
 1449  the investment plan within the prescribed time period is deemed
 1450  to have elected to retain membership in the pension plan, and
 1451  the employee’s option to elect to participate in the investment
 1452  plan is forfeited.
 1453         3. For purposes of this paragraph, “district school board
 1454  employer” means any district school board that participates in
 1455  the Florida Retirement System for the benefit of certain
 1456  employees, or a charter school or charter technical career
 1457  center that participates in the Florida Retirement System as
 1458  provided in s. 121.051(2)(d).
 1459         (c)1. With respect to an eligible employee who is employed
 1460  in a regularly established position on December 1, 2002, by a
 1461  local employer:
 1462         a. Any such employee may elect to participate in the
 1463  investment plan in lieu of retaining his or her membership in
 1464  the pension plan. The election must be made in writing or by
 1465  electronic means and must be filed with the third-party
 1466  administrator by February 28, 2003, or, in the case of an active
 1467  employee who is on a leave of absence on October 1, 2002, by the
 1468  last business day of the 5th month following the month the leave
 1469  of absence concludes. This election is irrevocable, except as
 1470  provided in paragraph (g). Upon making such election, the
 1471  employee shall be enrolled as a participant of the investment
 1472  plan, the employee’s membership in the Florida Retirement System
 1473  is governed by the provisions of this part, and the employee’s
 1474  membership in the pension plan terminates. The employee’s
 1475  enrollment in the investment plan is effective the first day of
 1476  the month for which a full month’s employer contribution is made
 1477  to the investment plan.
 1478         b. Any such employee who fails to elect to participate in
 1479  the investment plan within the prescribed time period is deemed
 1480  to have elected to retain membership in the pension plan, and
 1481  the employee’s option to elect to participate in the investment
 1482  plan is forfeited.
 1483         2. With respect to employees who become eligible to
 1484  participate in the investment plan by reason of employment in a
 1485  regularly established position with a local employer commencing
 1486  after October 1, 2002:
 1487         a. Any such employee shall, by default, be enrolled in the
 1488  pension plan at the commencement of employment, and may, by the
 1489  last business day of the 5th month following the employee’s
 1490  month of hire, elect to participate in the investment plan. The
 1491  employee’s election must be made in writing or by electronic
 1492  means and must be filed with the third-party administrator. The
 1493  election to participate in the investment plan is irrevocable,
 1494  except as provided in paragraph (g).
 1495         b. If the employee files such election within the
 1496  prescribed time period, enrollment in the investment plan is
 1497  effective on the first day of employment. The employer
 1498  retirement contributions paid through the month of the employee
 1499  plan change shall be transferred to the investment plan, and,
 1500  effective the first day of the next month, the employer shall
 1501  pay the applicable contributions based on the employee
 1502  membership class in the investment plan.
 1503         c. Any such employee who fails to elect to participate in
 1504  the investment plan within the prescribed time period is deemed
 1505  to have elected to retain membership in the pension plan, and
 1506  the employee’s option to elect to participate in the investment
 1507  plan is forfeited.
 1508         3. For purposes of this paragraph, “local employer” means
 1509  any employer not included in paragraph (a) or paragraph (b).
 1510         (c)(d) Contributions available for self-direction by a
 1511  member who has not selected one or more specific investment
 1512  products shall be allocated as prescribed by the state board.
 1513  The third-party administrator shall notify the member at least
 1514  quarterly that the member should take an affirmative action to
 1515  make an asset allocation among the investment products.
 1516         (d)(e) On or after July 1, 2011, a member of the pension
 1517  plan who obtains a refund of employee contributions retains his
 1518  or her prior plan choice upon return to employment in a
 1519  regularly established position with a participating employer.
 1520         (e)1.(f) A member of the investment plan who takes a
 1521  distribution of any contributions from his or her investment
 1522  plan account is considered a retiree. A retiree who is initially
 1523  reemployed in a regularly established position on or after July
 1524  1, 2010, through June 30, 2017, is not eligible for to be
 1525  enrolled in renewed membership, except as provided in s.
 1526  121.122.
 1527         2. A retiree who is reemployed on or after July 1, 2017,
 1528  shall be enrolled as a renewed member as provided in s. 121.122.
 1529         (f)(g) After the period during which an eligible employee
 1530  had the choice to elect the pension plan or the investment plan,
 1531  or the month following the receipt of the eligible employee’s
 1532  plan election, if sooner, the employee shall have one
 1533  opportunity, at the employee’s discretion, to choose to move
 1534  from the pension plan to the investment plan or from the
 1535  investment plan to the pension plan. Eligible employees may
 1536  elect to move between plans only if they are earning service
 1537  credit in an employer-employee relationship consistent with s.
 1538  121.021(17)(b), excluding leaves of absence without pay.
 1539  Effective July 1, 2005, such elections are effective on the
 1540  first day of the month following the receipt of the election by
 1541  the third-party administrator and are not subject to the
 1542  requirements regarding an employer-employee relationship or
 1543  receipt of contributions for the eligible employee in the
 1544  effective month, except when the election is received by the
 1545  third-party administrator. This paragraph is contingent upon
 1546  approval by the Internal Revenue Service.
 1547         1. If the employee chooses to move to the investment plan,
 1548  the provisions of subsection (3) govern the transfer.
 1549         2. If the employee chooses to move to the pension plan, the
 1550  employee must transfer from his or her investment plan account,
 1551  and from other employee moneys as necessary, a sum representing
 1552  the present value of that employee’s accumulated benefit
 1553  obligation immediately following the time of such movement,
 1554  determined assuming that attained service equals the sum of
 1555  service in the pension plan and service in the investment plan.
 1556  Benefit commencement occurs on the first date the employee is
 1557  eligible for unreduced benefits, using the discount rate and
 1558  other relevant actuarial assumptions that were used to value the
 1559  pension plan liabilities in the most recent actuarial valuation.
 1560  For any employee who, at the time of the second election,
 1561  already maintains an accrued benefit amount in the pension plan,
 1562  the then-present value of the accrued benefit is deemed part of
 1563  the required transfer amount. The division must ensure that the
 1564  transfer sum is prepared using a formula and methodology
 1565  certified by an enrolled actuary. A refund of any employee
 1566  contributions or additional member payments made which exceed
 1567  the employee contributions that would have accrued had the
 1568  member remained in the pension plan and not transferred to the
 1569  investment plan is not permitted.
 1570         3. Notwithstanding subparagraph 2., an employee who chooses
 1571  to move to the pension plan and who became eligible to
 1572  participate in the investment plan by reason of employment in a
 1573  regularly established position with a state employer after June
 1574  1, 2002; a district school board employer after September 1,
 1575  2002; or a local employer after December 1, 2002, must transfer
 1576  from his or her investment plan account, and from other employee
 1577  moneys as necessary, a sum representing the employee’s actuarial
 1578  accrued liability. A refund of any employee contributions or
 1579  additional member participant payments made which exceed the
 1580  employee contributions that would have accrued had the member
 1581  remained in the pension plan and not transferred to the
 1582  investment plan is not permitted.
 1583         4. An employee’s ability to transfer from the pension plan
 1584  to the investment plan pursuant to paragraphs (a) and (b) (a)
 1585  (d), and the ability of a current employee to have an option to
 1586  later transfer back into the pension plan under subparagraph 2.,
 1587  shall be deemed a significant system amendment. Pursuant to s.
 1588  121.031(4), any resulting unfunded liability arising from actual
 1589  original transfers from the pension plan to the investment plan
 1590  must be amortized within 30 plan years as a separate unfunded
 1591  actuarial base independent of the reserve stabilization
 1592  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
 1593  direct amortization payment may not be calculated for this base.
 1594  During this 25-year period, the separate base shall be used to
 1595  offset the impact of employees exercising their second program
 1596  election under this paragraph. The actuarial funded status of
 1597  the pension plan will not be affected by such second program
 1598  elections in any significant manner, after due recognition of
 1599  the separate unfunded actuarial base. Following the initial 25
 1600  year period, any remaining balance of the original separate base
 1601  shall be amortized over the remaining 5 years of the required
 1602  30-year amortization period.
 1603         5. If the employee chooses to transfer from the investment
 1604  plan to the pension plan and retains an excess account balance
 1605  in the investment plan after satisfying the buy-in requirements
 1606  under this paragraph, the excess may not be distributed until
 1607  the member retires from the pension plan. The excess account
 1608  balance may be rolled over to the pension plan and used to
 1609  purchase service credit or upgrade creditable service in the
 1610  pension plan.
 1611         (5) CONTRIBUTIONS.—
 1612         (c) The state board, acting as plan fiduciary, must ensure
 1613  that all plan assets are held in a trust, pursuant to s. 401 of
 1614  the Internal Revenue Code. The fiduciary must ensure that such
 1615  contributions are allocated as follows:
 1616         1. The employer and employee contribution portion earmarked
 1617  for member accounts shall be used to purchase interests in the
 1618  appropriate investment vehicles as specified by the member, or
 1619  in accordance with paragraph (4)(c) (4)(d).
 1620         2. The employer contribution portion earmarked for
 1621  administrative and educational expenses shall be transferred to
 1622  the state board’s Administrative Trust Fund.
 1623         3. The employer contribution portion earmarked for
 1624  disability benefits and line-of-duty death benefits shall be
 1625  transferred to the Florida Retirement System Trust Fund.
 1626         (10) EDUCATION COMPONENT.—
 1627         (a) The state board, in coordination with the department,
 1628  shall provide for an education component for eligible employees
 1629  system members in a manner consistent with the provisions of
 1630  this subsection section. The education component must be
 1631  available to eligible employees at least 90 days prior to the
 1632  beginning date of the election period for the employees of the
 1633  respective types of employers.
 1634         (h) Pursuant to subsection (8), all Florida Retirement
 1635  System employers have an obligation to regularly communicate the
 1636  existence of the two Florida Retirement System plans and the
 1637  plan choice in the natural course of administering their
 1638  personnel functions, using the educational materials supplied by
 1639  the state board and the Department of Management Services.
 1640         Section 12. Subsection (4) of section 121.591, Florida
 1641  Statutes, is amended to read:
 1642         121.591 Payment of benefits.—Benefits may not be paid under
 1643  the Florida Retirement System Investment Plan unless the member
 1644  has terminated employment as provided in s. 121.021(39)(a) or is
 1645  deceased and a proper application has been filed as prescribed
 1646  by the state board or the department. Benefits, including
 1647  employee contributions, are not payable under the investment
 1648  plan for employee hardships, unforeseeable emergencies, loans,
 1649  medical expenses, educational expenses, purchase of a principal
 1650  residence, payments necessary to prevent eviction or foreclosure
 1651  on an employee’s principal residence, or any other reason except
 1652  a requested distribution for retirement, a mandatory de minimis
 1653  distribution authorized by the administrator, or a required
 1654  minimum distribution provided pursuant to the Internal Revenue
 1655  Code. The state board or department, as appropriate, may cancel
 1656  an application for retirement benefits if the member or
 1657  beneficiary fails to timely provide the information and
 1658  documents required by this chapter and the rules of the state
 1659  board and department. In accordance with their respective
 1660  responsibilities, the state board and the department shall adopt
 1661  rules establishing procedures for application for retirement
 1662  benefits and for the cancellation of such application if the
 1663  required information or documents are not received. The state
 1664  board and the department, as appropriate, are authorized to cash
 1665  out a de minimis account of a member who has been terminated
 1666  from Florida Retirement System covered employment for a minimum
 1667  of 6 calendar months. A de minimis account is an account
 1668  containing employer and employee contributions and accumulated
 1669  earnings of not more than $5,000 made under the provisions of
 1670  this chapter. Such cash-out must be a complete lump-sum
 1671  liquidation of the account balance, subject to the provisions of
 1672  the Internal Revenue Code, or a lump-sum direct rollover
 1673  distribution paid directly to the custodian of an eligible
 1674  retirement plan, as defined by the Internal Revenue Code, on
 1675  behalf of the member. Any nonvested accumulations and associated
 1676  service credit, including amounts transferred to the suspense
 1677  account of the Florida Retirement System Investment Plan Trust
 1678  Fund authorized under s. 121.4501(6), shall be forfeited upon
 1679  payment of any vested benefit to a member or beneficiary, except
 1680  for de minimis distributions or minimum required distributions
 1681  as provided under this section. If any financial instrument
 1682  issued for the payment of retirement benefits under this section
 1683  is not presented for payment within 180 days after the last day
 1684  of the month in which it was originally issued, the third-party
 1685  administrator or other duly authorized agent of the state board
 1686  shall cancel the instrument and credit the amount of the
 1687  instrument to the suspense account of the Florida Retirement
 1688  System Investment Plan Trust Fund authorized under s.
 1689  121.4501(6). Any amounts transferred to the suspense account are
 1690  payable upon a proper application, not to include earnings
 1691  thereon, as provided in this section, within 10 years after the
 1692  last day of the month in which the instrument was originally
 1693  issued, after which time such amounts and any earnings
 1694  attributable to employer contributions shall be forfeited. Any
 1695  forfeited amounts are assets of the trust fund and are not
 1696  subject to chapter 717.
 1697         (4) LINE-OF-DUTY DEATH BENEFITS FOR INVESTMENT PLAN SPECIAL
 1698  RISK CLASS MEMBERS.—Benefits are provided under this subsection
 1699  to the spouse and child or children of members in the investment
 1700  plan Special Risk Class when such members are killed in the line
 1701  of duty and are payable in lieu of the benefits that would
 1702  otherwise be payable under subsection (1) or subsection (3).
 1703  Benefits provided by this subsection supersede any other
 1704  distribution that may have been provided by the member’s
 1705  designation of beneficiary. Such benefits must be funded from
 1706  employer contributions made under s. 121.571, transferred
 1707  employee contributions and funds accumulated pursuant to
 1708  paragraph (a), and interest and earnings thereon.
 1709         (a) Transfer of funds.—To qualify to receive monthly
 1710  benefits under this subsection:
 1711         1. All moneys accumulated in the member’s account,
 1712  including vested and nonvested accumulations as described in s.
 1713  121.4501(6), must be transferred from such individual accounts
 1714  to the division for deposit in the survivor benefit account of
 1715  the Florida Retirement System Trust Fund. Moneys in the survivor
 1716  benefit account must be accounted for separately. Earnings must
 1717  be credited on an annual basis for amounts held in the survivor
 1718  benefit account of the Florida Retirement System Trust Fund
 1719  based on actual earnings of the trust fund.
 1720         2. If the member has retained retirement credit earned
 1721  under the pension plan as provided in s. 121.4501(3), a sum
 1722  representing the actuarial present value of such credit within
 1723  the Florida Retirement System Trust Fund shall be transferred by
 1724  the division from the pension plan to the survivor benefit
 1725  retirement program as implemented under this subsection and
 1726  shall be deposited in the survivor benefit account of the trust
 1727  fund.
 1728         (b) Survivor retirement; entitlement.—An investment plan
 1729  member who is in the Special Risk Class at the time the member
 1730  is killed in the line of duty on or after July 1, 2002 2013,
 1731  regardless of length of creditable service, may have survivor
 1732  benefits paid as provided in s. 121.091(7)(d) and (i) to:
 1733         1. The surviving spouse for the spouse’s lifetime; or
 1734         2. If there is no surviving spouse or the surviving spouse
 1735  dies, the member’s child or children under 18 years of age and
 1736  unmarried until the 18th birthday of the member’s youngest
 1737  child. Such payments may be extended until the 25th birthday of
 1738  any child of the member if the child is unmarried and enrolled
 1739  as a full-time student as provided in s. 121.091(7)(d) and (i).
 1740         (c) Survivor benefit retirement effective date.—
 1741         1. The effective retirement date for the surviving spouse
 1742  or eligible child of a Special Risk Class member who is killed
 1743  in the line of duty is:
 1744         a.1. The first day of the month following the member’s
 1745  death if the member dies on or after July 1, 2016.
 1746         b.2. July 1, 2016, for a member of the Special Risk Class
 1747  when killed in the line of duty on or after July 1, 2013, but
 1748  before July 1, 2016, if the application is received before July
 1749  1, 2016; or the first day of the month following the receipt of
 1750  such application.
 1751         2. Except as provided in subparagraph 1., the effective
 1752  retirement date for the surviving spouse or eligible child of an
 1753  investment plan member who is killed in the line of duty is:
 1754         a. The first day of the month following the member’s death
 1755  if the member dies on or after July 1, 2017.
 1756         b. July 1, 2017, if the member is killed in the line of
 1757  duty on or after July 1, 2002, but before July 1, 2017, if the
 1758  application is received before July 1, 2017; or the first day of
 1759  the month following the receipt of such application.
 1760  
 1761  If the investment plan account balance has already been paid out
 1762  to the surviving spouse or the eligible unmarried dependent
 1763  child or children, the benefit payable shall be actuarially
 1764  reduced by the amount of the payout.
 1765         (d) Line-of-duty death benefit.—
 1766         1. The following individuals are eligible to receive a
 1767  retirement benefit under s. 121.091(7)(d) and (i) if the
 1768  member’s account balance is surrendered and an application is
 1769  received and approved:
 1770         a. The surviving spouse.
 1771         b. If there is no surviving spouse or the surviving spouse
 1772  dies, the member’s child or children under 18 years of age and
 1773  unmarried until the 18th birthday of the member’s youngest
 1774  child, or until the 25th birthday of the member’s child if the
 1775  child is unmarried and enrolled as a full-time student.
 1776         2. Such surviving spouse or such child or children shall
 1777  receive a monthly survivor benefit that begins accruing on the
 1778  first day of the month of survivor benefit retirement, as
 1779  approved by the division, and is payable on the last day of that
 1780  month and each month thereafter during the surviving spouse’s
 1781  lifetime or on behalf of the unmarried children of the member
 1782  until the 18th birthday of the youngest child, or until the 25th
 1783  birthday of any of the member’s unmarried children who are
 1784  enrolled as full-time students. Survivor benefits must be paid
 1785  out of the survivor benefit account of the Florida Retirement
 1786  System Trust Fund established under this subsection.
 1787  
 1788  If the investment plan account balance has already been paid out
 1789  to the surviving spouse or the eligible unmarried dependent
 1790  child or children, the benefit payable shall be actuarially
 1791  reduced by the amount of the payout.
 1792         (e) Computation of survivor benefit retirement benefit.—The
 1793  amount of each monthly payment must be calculated as provided
 1794  under s. 121.091(7)(d) and (i).
 1795         (f) Death of the surviving spouse or children.—
 1796         1. Upon the death of a surviving spouse, the monthly
 1797  benefits shall be paid through the last day of the month of
 1798  death and shall terminate or be paid on behalf of the unmarried
 1799  child or children until the 18th birthday of the youngest child,
 1800  or the 25th birthday of any of the member’s unmarried children
 1801  who are enrolled as full-time students.
 1802         2. If the surviving spouse dies and the benefits are being
 1803  paid on behalf of the member’s unmarried children as provided in
 1804  subparagraph 1., benefits shall be paid through the last day of
 1805  the month until the later of the month the youngest child
 1806  reaches his or her 18th birthday, the month of the 25th birthday
 1807  of any of the member’s unmarried children enrolled as full-time
 1808  students, or the month of the death of the youngest child.
 1809         Section 13. Section 121.5912, Florida Statutes, is amended
 1810  to read:
 1811         121.5912 Survivor benefit retirement program; qualified
 1812  status; rulemaking authority.—It is the intent of the
 1813  Legislature that the survivor benefit retirement program for
 1814  Special Risk Class members of the Florida Retirement System
 1815  Investment Plan meet all applicable requirements for a qualified
 1816  plan. If the state board or the division receives notification
 1817  from the Internal Revenue Service that this program or any
 1818  portion of this program will cause the retirement system, or any
 1819  portion thereof, to be disqualified for tax purposes under the
 1820  Internal Revenue Code, the portion that will cause the
 1821  disqualification does not apply. Upon such notice, the state
 1822  board or the division shall notify the presiding officers of the
 1823  Legislature. The state board and the department may adopt any
 1824  rules necessary to maintain the qualified status of the survivor
 1825  benefit retirement program.
 1826         Section 14. Subsections (4) and (5) of section 121.71,
 1827  Florida Statutes, are amended to read:
 1828         121.71 Uniform rates; process; calculations; levy.—
 1829         (4) Required employer retirement contribution rates for
 1830  each membership class and subclass of the Florida Retirement
 1831  System for both retirement plans are as follows:
 1832  
 1833  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2017 2016
 1834  
 1835  Regular Class                             2.90% 2.97%              
 1836  Special Risk Class                       11.86% 11.80%             
 1837  Special Risk Administrative Support Class              3.83% 3.87%              
 1838  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              6.45% 6.63%              
 1839  Elected Officers’ Class— Justices, Judges             11.67% 11.68%             
 1840  Elected Officers’ Class— County Elected Officers              8.54% 8.55%              
 1841  Senior Management Class                   4.29% 4.38%              
 1842  DROP                                      4.17% 4.23%              
 1843  
 1844         (5) 
 1845         In order to address unfunded actuarial liabilities of the
 1846  system, the required employer retirement contribution rates for
 1847  each membership class and subclass of the Florida Retirement
 1848  System for both retirement plans are as follows:
 1849  
 1850  
 1851  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2017 2016
 1852  
 1853  Regular Class                             3.30% 2.83%              
 1854  Special Risk Class                        9.69% 9.05%              
 1855  Special Risk Administrative Support Class             29.08% 22.47%             
 1856  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             42.69% 33.75%             
 1857  Elected Officers’ Class— Justices, Judges             26.25% 23.30%             
 1858  Elected Officers’ Class— County Elected Officers             35.24% 32.20%             
 1859  Senior Management Service Class             16.70% 15.67%             
 1860  DROP                                      7.43% 7.10%              
 1861  
 1862         Section 15. Subsections (1) and (3) of section 121.735,
 1863  Florida Statutes, are amended to read:
 1864         121.735 Allocations for member line-of-duty death benefits;
 1865  percentage amounts.—
 1866         (1) The allocations established in subsection (3) shall be
 1867  used to provide line-of-duty death benefit coverage for Special
 1868  Risk Class members in the investment plan and shall be
 1869  transferred monthly by the division from the Florida Retirement
 1870  System Contributions Clearing Trust Fund to the survivor benefit
 1871  account of the Florida Retirement System Trust Fund.
 1872         (3) Effective July 1, 2017 2016, allocations from the
 1873  Florida Retirement System Contributions Clearing Trust Fund to
 1874  provide line-of-duty death benefits for Special Risk Class
 1875  members in the investment plan and to offset the costs of
 1876  administering said coverage, are as follows:
 1877  
 1878  
 1879  Membership Class                  Percentage of Gross Compensation 
 1880  Regular Class                                  0.05%               
 1881  Special Risk Class                          1.15% 0.82%            
 1882  Special Risk Administrative Support Class              0.03%               
 1883  Elected Officers’ Class—Legislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders              0.15%               
 1884  Elected Officers’ Class—Justices, Judges              0.09%               
 1885  Elected Officers’ Class—County Elected Officers              0.20%               
 1886  Senior Management Service Class                0.05%               
 1887  
 1888         Section 16. The Legislature finds that a proper and
 1889  legitimate state purpose is served when employees and retirees
 1890  of the state and its political subdivisions, and the dependents,
 1891  survivors, and beneficiaries of such employees and retirees, are
 1892  extended the basic protections afforded by governmental
 1893  retirement systems. These persons must be provided benefits that
 1894  are fair and adequate and that are managed, administered, and
 1895  funded in an actuarially sound manner, as required by s. 14,
 1896  Article X of the State Constitution and part VII of chapter 112,
 1897  Florida Statutes. Therefore, the Legislature determines and
 1898  declares that this act fulfills an important state interest.
 1899         Section 17. (1) PURPOSE.—This section provides instructions
 1900  for implementing the 2017-2018 fiscal year salary and benefit
 1901  adjustments provided in this act. All allocations,
 1902  distributions, and uses of these funds are to be made in strict
 1903  accordance with the provisions of this act and chapter 216,
 1904  Florida Statutes.
 1905         (2) LEGISLATIVE INTENT.—It is the intent of the Legislature
 1906  that the minimum for each pay grade and pay band may not be
 1907  adjusted during the 2017-2018 fiscal year and that the maximums
 1908  for each pay grade and pay band shall be adjusted upward by 6
 1909  percent, effective July 1, 2017. In addition, the Legislature
 1910  intends that all eligible employees receive the increases
 1911  specified in this section, even if the implementation of such
 1912  increases results in an employee’s salary exceeding the adjusted
 1913  pay grade maximum. Salary increases provided under this section
 1914  shall be prorated based on the full-time equivalency of the
 1915  employee’s position. Employees classified as other-personnel
 1916  services employees are not eligible for an increase based on the
 1917  implementation of increases authorized in this section.
 1918         (3) LAW ENFORCEMENT COMPENSATION ADJUSTMENTS.—
 1919         (a) Effective July 1, 2017, funds are provided in section
 1920  18 of this act to grant a competitive pay adjustment of 5
 1921  percent of each eligible law enforcement employee’s base rate of
 1922  pay on June 30, 2017, in the Department of Legal Affairs, the
 1923  Department of Agriculture and Consumer Services, the Department
 1924  of Financial Services, the Department of Law Enforcement, the
 1925  Department of Highway Safety and Motor Vehicles, the Department
 1926  of Business and Professional Regulation, and the Department of
 1927  the Lottery; the Fish and Wildlife Conservation Commission; the
 1928  offices of State Attorneys; the Florida Commission on Offender
 1929  Review; and the Florida School for the Deaf and the Blind.
 1930         (b) For purposes of this subsection, the term “law
 1931  enforcement employee” means:
 1932         1. Sworn officers of the Law Enforcement, Florida Highway
 1933  Patrol, Special Agent, and Lottery Law Enforcement bargaining
 1934  units in the following classification codes: Law Enforcement
 1935  Officer (8515); Law Enforcement Corporal (8517); Law Enforcement
 1936  Sergeant (8519); Law Enforcement Investigator I (8540); Law
 1937  Enforcement Investigator II (8541); Law Enforcement Airplane
 1938  Pilot I (8532); Law Enforcement Airplane Pilot II (8534);
 1939  Special Agent Trainee (8580); Special Agent (8581); Special
 1940  Agent I (2724); Special Agent II (2608); Security Agent-FDLE
 1941  (8593); and Security Agent Supervisor-FDLE (8596).
 1942         2. Sworn officers in the following classification codes:
 1943  Law Enforcement Lieutenant (8522); Law Enforcement Captain (8525
 1944  and 8632); Law Enforcement Major (8526, 8626, and 8630); Special
 1945  Agent Supervisor (1126 and 8584); Inspector-FDLE (8590); and
 1946  Investigators I-VI (6661, 6662, 6663, 6664, 6665, and 6666).
 1947         (4) DEPARTMENT OF CORRECTIONS COMPENSATION ADJUSTMENTS.—
 1948         (a) Effective October 1, 2017, the Department of
 1949  Corrections shall adjust the minimum base rate of pay for its
 1950  positions in the correctional officer classification series as
 1951  follows:
 1952         1. Correctional officer (8003) to $33,500.
 1953         2. Correctional officer sergeant (8005) to $36,850.
 1954         3. Correctional officer lieutenant (8011) to $40,535.
 1955         4. Correctional officer captain (8013) to $44,589.
 1956         (b) Effective October 1, 2017, funds are provided in
 1957  section 18 of this act to fund the adjustments to the minimum
 1958  base rates of pay authorized in paragraph (a) and to fund
 1959  competitive pay adjustments to all other employees of the
 1960  Department of Corrections filling a position in the correctional
 1961  officer classification series (class codes 8003, 8005, 8011, and
 1962  8013). The adjustments to the base rate of pay shall be the
 1963  amount necessary to increase the employee’s base rate of pay as
 1964  of September 30, 2017, to the applicable class minimum specified
 1965  in paragraph (a) or by $2,500, whichever amount is greater.
 1966         (5) COMPENSATION ADJUSTMENTS FOR CERTAIN OFFICERS AND
 1967  DESIGNATED EMPLOYEES.—Beginning October 1, 2017, from the funds
 1968  provided in section 18 of this act and notwithstanding the
 1969  provisions of ss. 27.35, 27.5301(1), 27.5301(3), and 29.23,
 1970  Florida Statutes, which require the salaries of certain officers
 1971  and employees to be established in the general appropriations
 1972  act, the following officers and designated employees shall be
 1973  paid at the annual rate authorized in this subsection:
 1974         (a) Supreme Court Justices at the annual rate of $178,420.
 1975         (b) District Court of Appeal Judges at the annual rate of
 1976  $169,554.
 1977         (c) Circuit Court Judges at the annual rate of $160,688.
 1978         (d) County Court Judges at the annual rate of $151,822.
 1979         (e) State Attorneys at the annual rate of $169,554.
 1980         (f) Public Defenders at the annual rate of $169,554.
 1981         (g) Criminal Conflict and Civil Regional Counsels at the
 1982  annual rate of $115,000.
 1983         (h) Public Service Commissioner at the annual rate of
 1984  $132,036.
 1985         (i) Chair of the Public Employees Relations Commission at
 1986  the annual rate of $97,789.
 1987         (j) Commissioners of the Public Employees Relations
 1988  Commission at the rate of $46,362.
 1989         (k) Parole Commissioners at the annual rate of $92,724.
 1990  
 1991  None of the officers, commission members, or employees whose
 1992  salaries have been fixed in this subsection shall receive any
 1993  supplemental salary or benefits from any county or municipality.
 1994         (6) EMPLOYEE AND OFFICER COMPENSATION ADJUSTMENTS.—
 1995         (a) For purposes of this subsection, the term “competitive
 1996  pay adjustment” means:
 1997         1. For employees with a base rate of pay of $40,000 or less
 1998  on September 30, 2017, an annual increase of $1,400.
 1999         2. For employees with a base rate of pay greater than
 2000  $40,000 on September 30, 2017, an annual increase of $1,000;
 2001  provided however, in no instance may an employee’s base rate of
 2002  pay be increased to an annual amount less than $41,400.
 2003  
 2004  For the purpose of determining the applicable increase for part
 2005  time employees, the full-time equivalent value of the base rate
 2006  of pay on September 30, 2017, shall be used; but the amount of
 2007  the annual increase for a part-time employee must be
 2008  proportional to the full-time equivalency of the employee’s
 2009  position.
 2010         (b) For purposes of this subsection, the term “eligible
 2011  employees” means employees who are, at a minimum, meeting their
 2012  required performance standards, if applicable. If an ineligible
 2013  employee achieves performance standards subsequent to the salary
 2014  increase implementation date but on or before the end of the
 2015  2017-2018 fiscal year, the employee may receive an increase;
 2016  however, such increase shall take effect on the date the
 2017  employee becomes eligible and is not retroactive to the salary
 2018  increase implementation date. In addition, the salary increase
 2019  provided under this section shall be prorated based on the full
 2020  time equivalency of the employee’s position. Employees
 2021  classified as being other-personnel-services employees are not
 2022  eligible for an increase.
 2023         (c) Effective October 1, 2017, funds are provided in
 2024  section 18 of this act to grant competitive pay adjustments for
 2025  all eligible employees in the Career Service, the Selected
 2026  Exempt Service, the Senior Management Service, the lottery pay
 2027  plan, the judicial branch pay plan, the legislative pay plan,
 2028  and the pay plans administered by the Justice Administration
 2029  Commission, except those officers and employees receiving
 2030  compensation adjustments pursuant to subsections (3), (4), and
 2031  (5), paragraph (7)(c), and subparagraphs (7)(d)2. and 3.
 2032         (7) SPECIAL PAY ISSUES.—
 2033         (a) The Department of Highway Safety and Motor Vehicles is
 2034  authorized to increase the minimum annual salaries of current
 2035  and new employees hired to fill positions in the law enforcement
 2036  officer class (class code 8515) to $36,223. This paragraph is
 2037  effective upon becoming a law.
 2038         (b) The Department of Veterans’ Affairs is authorized to
 2039  implement its competitive pay plan proposed in the department’s
 2040  initial legislative budget request to address recruitment and
 2041  retention of its employees who hold an active nursing assistant
 2042  certification and fill a position in one of the following
 2043  classification codes: certified nursing assistant (class code
 2044  5707); senior certified nursing assistant (class code 5708);
 2045  therapy aide I (class code 5556); or therapy aide II (class code
 2046  5557).
 2047         (c) From funds in section 18 of this act, and beginning
 2048  October 1, 2017, the Justice Administrative Commission is
 2049  authorized to implement the salary adjustment proposed in its
 2050  initial legislative budget request for the Statewide Guardian Ad
 2051  Litem Program. To be eligible to receive this competitive pay
 2052  adjustment, the employee must be an employee of the Statewide
 2053  Guardian Ad Litem Program and must fill a position in one of the
 2054  following classification codes: child advocate manager (class
 2055  code 8401); senior child advocate manager (class code 8402);
 2056  volunteer recruiter (class code 8403); program attorney (class
 2057  code 8700); or senior program attorney (class code 8701).
 2058         (d) From the funds in section 18 of this act, and beginning
 2059  October 1, 2017, the Department of Legal Affairs is authorized
 2060  to:
 2061         1. Increase the starting salary of employees in the
 2062  Attorney-Assistant Attorney General class (class code 7737) to
 2063  $43,900;
 2064         2. Grant a competitive pay adjustment of $6,000 to each
 2065  employee employed as an Assistant Attorney General (class code
 2066  7746) who has worked for the department for at least 2 years and
 2067  meets or exceeds performance expectations; and
 2068         3. Grant a competitive pay adjustment of $3,000 to each
 2069  employee employed as a Senior Assistant Attorney General (class
 2070  code 7747); Attorney Supervisor-Assistant Attorney General
 2071  (class code 7744); Special Counsel–Assistant Attorney General
 2072  (class code 7165); Chief–Assistant Attorney General (class code
 2073  7748); Assistant Statewide Prosecutor–Attorney (class code
 2074  8681); Assistant Statewide Prosecutor–Senior Attorney (class
 2075  code 8682); Assistant Statewide Prosecutor–Special Counsel
 2076  (class code 6120); or Assistant Statewide Prosecutor–Chief
 2077  (class code 9191) who has worked for the department for at least
 2078  2 years and meets or exceeds performance expectations.
 2079         (8) PAY ADDITIVES AND OTHER INCENTIVE PROGRAMS.—The
 2080  following pay additives and other incentive programs are
 2081  authorized for the 2017-2018 fiscal year from existing agency
 2082  resources consistent with the provisions of ss. 110.2035 and
 2083  216.251, Florida Statutes, the applicable rules adopted by the
 2084  Department of Management Services, and negotiated collective
 2085  bargaining agreements.
 2086         (a) The Department of Corrections is authorized to award a
 2087  temporary special duties pay additive of up to 10 percent of the
 2088  employee’s base rate of pay for each certified correctional
 2089  officer (class code 8003); certified correctional officer
 2090  sergeant (class code 8005); certified correctional officer
 2091  lieutenant (class code 8011); and certified correctional officer
 2092  captain (class code 8013). For purposes of determining
 2093  eligibility for this special pay additive, the term “certified”
 2094  means the employee has obtained a correctional behavioral mental
 2095  health certification as provided through the American
 2096  Correctional Association. Such additive may be awarded only
 2097  during the time the certified officer is employed in an assigned
 2098  mental health unit post.
 2099         (b) The Department of Corrections is authorized to award a
 2100  one-time $1,000 hiring bonus to newly-hired correctional
 2101  officers (class code 8003) who are hired to fill positions at a
 2102  correctional institution that had a vacancy rate for such
 2103  positions of more than 10 percent for the preceding calendar
 2104  quarter. The bonus may not be awarded before the officer obtains
 2105  his or her correctional officer certification. Current employees
 2106  and former employees who have had a break in service with the
 2107  Department of Corrections of 31 days or less, are not eligible
 2108  for this bonus.
 2109         Section 18. The sums of $109,675,610 of recurring funds in
 2110  the General Revenue Fund and $73,389,000 of recurring funds from
 2111  trust funds are appropriated for the salary adjustments
 2112  authorized in section 17 of this act. The Office of Policy and
 2113  Budget in the Executive Office of the Governor, in consultation
 2114  with the Legislature, shall distribute the funds and budget
 2115  authority to the state agencies and the legislative and judicial
 2116  branches in accordance with chapter 216, Florida Statutes.
 2117         Section 19. Except as otherwise expressly provided in this
 2118  act and except for this section, which shall take effect upon
 2119  becoming a law, this act shall take effect July 1, 2017.