Florida Senate - 2017                             CS for SB 7030
       
       
        
       By the Committees on Appropriations; and Governmental Oversight
       and Accountability
       
       
       
       
       576-04755-17                                          20177030c1
    1                        A bill to be entitled                      
    2         An act relating to benefits and salaries for public
    3         employees; creating s. 112.1816, F.S.; defining the
    4         term “firefighter”; establishing a presumption as to a
    5         firefighter’s condition or impairment of health caused
    6         by certain types of cancer that he or she contracts in
    7         the line of duty; specifying criteria a firefighter
    8         must meet to be entitled to the presumption; requiring
    9         an employing agency to provide a physical examination
   10         for a firefighter; specifying circumstances under
   11         which the presumption does not apply; providing for
   12         applicability; amending s. 121.053, F.S.; authorizing
   13         renewed membership in the Florida Retirement System
   14         for retirees who are reemployed in a position eligible
   15         for the Elected Officers’ Class under certain
   16         circumstances; amending s. 121.055, F.S.; providing
   17         for renewed membership in the retirement system for
   18         retirees of the Senior Management Service Optional
   19         Annuity Program who are reemployed on or after a
   20         specified date; closing the Senior Management Service
   21         Optional Annuity Program to new members after a
   22         specified date; amending s. 121.091, F.S.; revising
   23         criteria for eligibility of payment of death benefits
   24         to the surviving children of a Special Risk Class
   25         member killed in the line of duty under specified
   26         circumstances; conforming a provision to changes made
   27         by the act; amending s. 121.122, F.S.; requiring that
   28         certain retirees who are reemployed on or after a
   29         specified date be renewed members in the investment
   30         plan; providing exceptions; specifying that creditable
   31         service does not accrue for employment during a
   32         specified period; prohibiting certain funds from being
   33         paid into a renewed member’s investment plan account
   34         for a specified period of employment; requiring the
   35         renewed member to satisfy vesting requirements;
   36         prohibiting a renewed member from receiving specified
   37         disability benefits; specifying limitations and
   38         requirements; requiring the employer and the retiree
   39         to make applicable contributions to the renewed
   40         member’s investment plan account; providing for the
   41         transfer of contributions; authorizing a renewed
   42         member to receive additional credit toward the health
   43         insurance subsidy under certain circumstances;
   44         prohibiting participation in the pension plan;
   45         providing that a retiree reemployed on or after a
   46         specified date in a regularly established position
   47         eligible for the State University System Optional
   48         Retirement Program or State Community College System
   49         Optional Retirement Program is a renewed member of
   50         that program; specifying limitations and requirements;
   51         requiring the employer and the retiree to make
   52         applicable contributions; amending s. 121.4501, F.S.;
   53         revising definitions; revising a provision relating to
   54         acknowledgement of an employee’s election to
   55         participate in the investment plan; enrolling certain
   56         employees in the pension plan from their date of hire
   57         until they are automatically enrolled in the
   58         investment plan or timely elect enrollment in the
   59         pension plan; providing an exception for employees who
   60         are in positions in the Special Risk Class; providing
   61         certain members with a specified timeframe within
   62         which they may choose participation in the pension
   63         plan or the investment plan; conforming provisions to
   64         changes made by the act; amending s. 121.591, F.S.;
   65         authorizing payment of death benefits to the surviving
   66         spouse or surviving children of a member in the
   67         investment plan; establishing qualifications and
   68         eligibility requirements for receipt of such benefits;
   69         prescribing the method of calculating the benefit;
   70         specifying circumstances under which benefit payments
   71         are terminated; amending s. 121.5912, F.S.; revising a
   72         provision regarding program qualification under the
   73         Internal Revenue Code and rulemaking authority, to
   74         conform to changes made by the act; amending s.
   75         121.735, F.S.; revising allocations to fund line-of
   76         duty death benefits for investment plan members, to
   77         conform to changes made by the act; requiring the
   78         Legislature to review specified cancer research
   79         programs by a certain date; revising employer
   80         contribution rates to fund changes made by the act;
   81         providing a directive to the Division of Law Revision
   82         and Information; providing a declaration of important
   83         state interest; amending s. 110.123, F.S.; revising
   84         applicability of certain definitions; defining the
   85         term “plan year”; authorizing the state group
   86         insurance program to include additional benefits;
   87         authorizing an employee to use a specified portion of
   88         the state’s contribution to purchase additional
   89         program benefits and supplemental benefits under
   90         certain circumstances; providing for the program to
   91         offer health plans in specified benefit levels;
   92         defining the term “actuarial value”; requiring the
   93         Department of Management Services to develop a plan
   94         for implementation of the benefit levels; providing
   95         reporting requirements; providing for expiration of
   96         the implementation plan; creating s. 110.12303, F.S.;
   97         authorizing additional benefits to be included in the
   98         state group insurance program; requiring the
   99         department to contract with at least one entity that
  100         provides comprehensive pricing and inclusive services
  101         for surgery and other medical procedures; providing
  102         contract and reporting requirements; requiring the
  103         department to contract with an entity to provide
  104         enrollees with online information on health care
  105         services and providers; providing contract and
  106         reporting requirements; specifying applicability;
  107         creating s. 110.12304, F.S.; directing the department
  108         to competitively procure an independent benefits
  109         consultant; providing qualifications and duties of the
  110         independent benefits consultant; providing reporting
  111         requirements; providing an appropriation and
  112         authorizing positions; providing a purpose and
  113         legislative intent with respect to provisions
  114         governing salary and benefit adjustments for specified
  115         state employees; providing for compensation
  116         adjustments for specified law enforcement personnel,
  117         the Department of Corrections, Assistant Public
  118         Defenders, certain judicial officers and designated
  119         employees, and other state employees and officers;
  120         authorizing the use of specified pay additives and
  121         other incentive programs for the 2017-2018 fiscal
  122         year; providing appropriations to fund the salary and
  123         benefit adjustments; requiring the Office of Policy
  124         and Budget in the Executive Office of the Governor, in
  125         consultation with the Legislature, to distribute funds
  126         and budget authority; providing effective dates.
  127          
  128  Be It Enacted by the Legislature of the State of Florida:
  129  
  130         Section 1. Section 112.1816, Florida Statutes, is created
  131  to read:
  132         112.1816 Firefighter disability or death from cancer
  133  presumed contracted in the line of duty.—
  134         (1) DEFINITION.—As used in this section, the term
  135  “firefighter” has the same meaning as in s. 112.81.
  136         (2) PRESUMPTION; ELIGIBILITY CONDITIONS.—
  137         (a) Any condition or impairment of the health of a
  138  firefighter employed full time by the state or any municipality,
  139  county, port authority, special tax district, or fire control
  140  district which is caused by multiple myeloma, non-Hodgkin’s
  141  lymphoma, prostate cancer, or testicular cancer and results in
  142  total or partial disability or death is presumed to have been
  143  accidental and to have been contracted in the line of duty
  144  unless the contrary is shown by competent evidence. In order to
  145  be entitled to this presumption, the firefighter:
  146         1. Must have successfully passed a physical examination
  147  administered before the individual began service as a
  148  firefighter and which failed to reveal any evidence of such a
  149  health condition;
  150         2. Must have been employed as a firefighter with his or her
  151  current employer for at least 5 continuous years before becoming
  152  totally or partially disabled or before his or her death;
  153         3. Must not have used tobacco products for at least 5 years
  154  before becoming totally or partially disabled or before his or
  155  her death; and
  156         4. Must not have been employed during the preceding 5 years
  157  in any other position that is proven to create a higher risk for
  158  multiple myeloma, non-Hodgkin’s lymphoma, prostate cancer, or
  159  testicular cancer. This includes any other employment as a
  160  firefighter at another employing agency within the preceding 5
  161  years.
  162         (b) An employing agency must provide a physical examination
  163  for a firefighter before he or she begins service or immediately
  164  thereafter. Notwithstanding subparagraph (a)1., if the employing
  165  agency fails to provide a physical examination before the
  166  firefighter begins service, or immediately thereafter, the
  167  firefighter is entitled to the presumption, provided that he or
  168  she meets the criteria specified in subparagraphs (a)2., (a)3.,
  169  and (a)4.
  170         (c) The presumption does not apply to benefits payable
  171  under or granted in a life insurance or disability insurance
  172  policy unless the insurer and insured have negotiated for the
  173  additional benefits to be included in the policy contract.
  174         (3) APPLICABILITY.—A firefighter employed on July 1, 2017,
  175  is not required to meet the physical examination requirement in
  176  subsection (2) in order to be entitled to the presumption set
  177  forth in this section.
  178         Section 2. Paragraph (a) of subsection (3) and subsection
  179  (5) of section 121.053, Florida Statutes, are amended to read:
  180         121.053 Participation in the Elected Officers’ Class for
  181  retired members.—
  182         (3) On or after July 1, 2010:
  183         (a) A retiree of a state-administered retirement system who
  184  is initially reemployed in elected or appointed for the first
  185  time to an elective office in a regularly established position
  186  with a covered employer may not reenroll in the Florida
  187  Retirement System, except as provided in s. 121.122.
  188         (5) Any renewed member, as described in s. 121.122(1), (3),
  189  (4), or (5) subsection (1) or subsection (2), who is not
  190  receiving the maximum health insurance subsidy provided in s.
  191  112.363 is entitled to earn additional credit toward the maximum
  192  health insurance subsidy. Any additional subsidy due because of
  193  such additional credit may be received only at the time of
  194  payment of the second career retirement benefit. The total
  195  health insurance subsidy received from initial and renewed
  196  membership may not exceed the maximum allowed in s. 112.363.
  197         Section 3. Paragraph (f) of subsection (1) and paragraph
  198  (c) of subsection (6) of section 121.055, Florida Statutes, are
  199  amended to read:
  200         121.055 Senior Management Service Class.—There is hereby
  201  established a separate class of membership within the Florida
  202  Retirement System to be known as the “Senior Management Service
  203  Class,” which shall become effective February 1, 1987.
  204         (1)
  205         (f) Effective July 1, 1997:
  206         1. Except as provided in subparagraph 3., an elected state
  207  officer eligible for membership in the Elected Officers’ Class
  208  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  209  Senior Management Service Class under s. 121.052(3)(c) may,
  210  within 6 months after assuming office or within 6 months after
  211  this act becomes a law for serving elected state officers, elect
  212  to participate in the Senior Management Service Optional Annuity
  213  Program, as provided in subsection (6), in lieu of membership in
  214  the Senior Management Service Class.
  215         2. Except as provided in subparagraph 3., an elected
  216  officer of a local agency employer eligible for membership in
  217  the Elected Officers’ Class under s. 121.052(2)(d) who elects
  218  membership in the Senior Management Service Class under s.
  219  121.052(3)(c) may, within 6 months after assuming office, or
  220  within 6 months after this act becomes a law for serving elected
  221  officers of a local agency employer, elect to withdraw from the
  222  Florida Retirement System, as provided in subparagraph (b)2., in
  223  lieu of membership in the Senior Management Service Class.
  224         3. A retiree of a state-administered retirement system who
  225  is initially reemployed in a regularly established position on
  226  or after July 1, 2010, through June 30, 2017, as an elected
  227  official eligible for the Elected Officers’ Class may not be
  228  enrolled in renewed membership in the Senior Management Service
  229  Class or in the Senior Management Service Optional Annuity
  230  Program as provided in subsection (6), and may not withdraw from
  231  the Florida Retirement System as a renewed member as provided in
  232  subparagraph (b)2., as applicable, in lieu of membership in the
  233  Senior Management Service Class. Effective July 1, 2017, a
  234  retiree of the Senior Management Service Optional Annuity
  235  Program who is reemployed in a regularly established position
  236  with a covered employer shall be enrolled as a renewed member as
  237  provided in s. 121.122.
  238         (6)
  239         (c) Participation.—
  240         1. An eligible employee who is employed on or before
  241  February 1, 1987, may elect to participate in the optional
  242  annuity program in lieu of participating in the Senior
  243  Management Service Class. Such election shall must be made in
  244  writing and filed with the department and the personnel officer
  245  of the employer on or before May 1, 1987. An eligible employee
  246  who is employed on or before February 1, 1987, and who fails to
  247  make an election to participate in the optional annuity program
  248  by May 1, 1987, is shall be deemed to have elected membership in
  249  the Senior Management Service Class.
  250         2. Except as provided in subparagraph 6., an employee who
  251  becomes eligible to participate in the optional annuity program
  252  by reason of initial employment commencing after February 1,
  253  1987, may, within 90 days after the date of commencing
  254  employment, elect to participate in the optional annuity
  255  program. Such election shall must be made in writing and filed
  256  with the personnel officer of the employer. An eligible employee
  257  who does not within 90 days after commencing employment elect to
  258  participate in the optional annuity program is shall be deemed
  259  to have elected membership in the Senior Management Service
  260  Class.
  261         3. A person who is appointed to a position in the Senior
  262  Management Service Class and who is a member of an existing
  263  retirement system or the Special Risk or Special Risk
  264  Administrative Support Classes of the Florida Retirement System
  265  may elect to remain in such system or class in lieu of
  266  participating in the Senior Management Service Class or optional
  267  annuity program. Such election shall must be made in writing and
  268  filed with the department and the personnel officer of the
  269  employer within 90 days after such appointment. An eligible
  270  employee who fails to make an election to participate in the
  271  existing system, the Special Risk Class of the Florida
  272  Retirement System, the Special Risk Administrative Support Class
  273  of the Florida Retirement System, or the optional annuity
  274  program is shall be deemed to have elected membership in the
  275  Senior Management Service Class.
  276         4. Except as provided in subparagraph 5., an employee’s
  277  election to participate in the optional annuity program is
  278  irrevocable if the employee continues to be employed in an
  279  eligible position and continues to meet the eligibility
  280  requirements set forth in this paragraph.
  281         5. Effective from July 1, 2002, through September 30, 2002,
  282  an active employee in a regularly established position who has
  283  elected to participate in the Senior Management Service Optional
  284  Annuity Program has one opportunity to choose to move from the
  285  Senior Management Service Optional Annuity Program to the
  286  Florida Retirement System Pension Plan.
  287         a. The election shall must be made in writing and must be
  288  filed with the department and the personnel officer of the
  289  employer before October 1, 2002, or, in the case of an active
  290  employee who is on a leave of absence on July 1, 2002, within 90
  291  days after the conclusion of the leave of absence. This election
  292  is irrevocable.
  293         b. The employee shall receive service credit under the
  294  pension plan equal to his or her years of service under the
  295  Senior Management Service Optional Annuity Program. The cost for
  296  such credit is the amount representing the present value of that
  297  employee’s accumulated benefit obligation for the affected
  298  period of service.
  299         c. The employee shall must transfer the total accumulated
  300  employer contributions and earnings on deposit in his or her
  301  Senior Management Service Optional Annuity Program account. If
  302  the transferred amount is not sufficient to pay the amount due,
  303  the employee shall must pay a sum representing the remainder of
  304  the amount due. The employee may not retain any employer
  305  contributions or earnings from the Senior Management Service
  306  Optional Annuity Program account.
  307         6. A retiree of a state-administered retirement system who
  308  is initially reemployed on or after July 1, 2010, through June
  309  30, 2017, may not renew membership in the Senior Management
  310  Service Optional Annuity Program. Effective July 1, 2017, a
  311  retiree of the Senior Management Service Optional Annuity
  312  Program who is reemployed in a regularly established position
  313  with a covered employer shall be enrolled as a renewed member as
  314  provided in s. 121.122.
  315         7. Effective July 1, 2017, the Senior Management Service
  316  Optional Annuity Program is closed to new members. A member
  317  enrolled in the Senior Management Service Optional Annuity
  318  Program before July 1, 2017, may retain his or her membership in
  319  the annuity program.
  320         Section 4. Paragraphs (d) and (i) of subsection (7) and
  321  paragraph (c) of subsection (9) of section 121.091, Florida
  322  Statutes, are amended to read:
  323         121.091 Benefits payable under the system.—Benefits may not
  324  be paid under this section unless the member has terminated
  325  employment as provided in s. 121.021(39)(a) or begun
  326  participation in the Deferred Retirement Option Program as
  327  provided in subsection (13), and a proper application has been
  328  filed in the manner prescribed by the department. The department
  329  may cancel an application for retirement benefits when the
  330  member or beneficiary fails to timely provide the information
  331  and documents required by this chapter and the department’s
  332  rules. The department shall adopt rules establishing procedures
  333  for application for retirement benefits and for the cancellation
  334  of such application when the required information or documents
  335  are not received.
  336         (7) DEATH BENEFITS.—
  337         (d) Notwithstanding any other provision in this chapter to
  338  the contrary, with the exception of the Deferred Retirement
  339  Option Program, as provided in subsection (13):
  340         1. The surviving spouse of any member killed in the line of
  341  duty may receive a monthly pension equal to one-half of the
  342  monthly salary being received by the member at the time of death
  343  for the rest of the surviving spouse’s lifetime or, if the
  344  member was vested, such surviving spouse may elect to receive a
  345  benefit as provided in paragraph (b). Benefits provided by this
  346  paragraph shall supersede any other distribution that may have
  347  been provided by the member’s designation of beneficiary.
  348         2. If the surviving spouse of a member killed in the line
  349  of duty dies, the monthly payments that would have been payable
  350  to such surviving spouse had such surviving spouse lived shall
  351  be paid for the use and benefit of such member’s child or
  352  children under 18 years of age and unmarried until the 18th
  353  birthday of the member’s youngest child. Beginning July 1, 2016,
  354  such payments may be extended, for the surviving child of a
  355  member in the Special Risk Class at the time he or she was
  356  killed in the line of duty on or after July 1, 2013, until the
  357  25th birthday of any child of the member if the child is
  358  unmarried and enrolled as a full-time student. Beginning July 1,
  359  2017, such payments may be extended, for the surviving child of
  360  a member in the Special Risk Class at the time he or she was
  361  killed in the line of duty on or after July 1, 2002, until the
  362  25th birthday of any child of the member if the child is
  363  unmarried and enrolled as a full-time student.
  364         3. If a member killed in the line of duty leaves no
  365  surviving spouse but is survived by a child or children under 18
  366  years of age, the benefits provided by subparagraph 1., normally
  367  payable to a surviving spouse, shall be paid for the use and
  368  benefit of such member’s child or children under 18 years of age
  369  and unmarried until the 18th birthday of the member’s youngest
  370  child. Beginning July 1, 2016, such monthly payments may be
  371  extended, for the surviving child of a member in the Special
  372  Risk Class at the time he or she was killed in the line of duty
  373  on or after July 1, 2013, until the 25th birthday of any child
  374  of the member if the child is unmarried and enrolled as a full
  375  time student. Beginning July 1, 2017, such monthly payments may
  376  be extended, for the surviving child of a member in the Special
  377  Risk Class at the time he or she was killed in the line of duty
  378  on or after July 1, 2002, until the 25th birthday of any child
  379  of the member if the child is unmarried and enrolled as a full
  380  time student.
  381         4. The surviving spouse of a member whose benefit
  382  terminated because of remarriage shall have the benefit
  383  reinstated beginning July 1, 1993, at an amount that would have
  384  been payable had the benefit not been terminated.
  385         (i) Effective July 1, 2016, and Notwithstanding any
  386  provision in this chapter to the contrary, if a member in the
  387  Special Risk Class, other than a participant in the Deferred
  388  Retirement Option Program under subsection (13), is killed in
  389  the line of duty on or after July 1, 2002 2013, the following
  390  benefits are payable in addition to the benefits provided in
  391  paragraph (d):
  392         1. The surviving spouse may receive a monthly pension equal
  393  to one-half of the monthly salary being received by the member
  394  at the time of the member’s death for the rest of the surviving
  395  spouse’s lifetime or, if the member was vested, such surviving
  396  spouse may elect to receive a benefit as provided in paragraph
  397  (b). Benefits provided by this paragraph supersede any other
  398  distribution that may have been provided by the member’s
  399  designation of beneficiary.
  400         2. If the surviving spouse dies, the monthly payments that
  401  otherwise would have been payable to such surviving spouse shall
  402  be paid for the use and benefit of the member’s child or
  403  children under 18 years of age and unmarried until the 18th
  404  birthday of the member’s youngest child. Such monthly payments
  405  may be extended until the 25th birthday of the member’s child if
  406  the child is unmarried and enrolled as a full-time student.
  407         3. If the member leaves no surviving spouse but is survived
  408  by a child or children under 18 years of age, the benefits
  409  provided by subparagraph 1., normally payable to a surviving
  410  spouse, shall be paid for the use and benefit of such member’s
  411  child or children under 18 years of age and unmarried until the
  412  18th birthday of the member’s youngest child. Such monthly
  413  payments may be extended until the 25th birthday of any of the
  414  member’s children if the child is unmarried and enrolled as a
  415  full-time student.
  416         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  417         (c) Any person whose retirement is effective on or after
  418  July 1, 2010, or whose participation in the Deferred Retirement
  419  Option Program terminates on or after July 1, 2010, who is
  420  retired under this chapter, except under the disability
  421  retirement provisions of subsection (4) or as provided in s.
  422  121.053, may be reemployed by an employer that participates in a
  423  state-administered retirement system and receive retirement
  424  benefits and compensation from that employer. However, a person
  425  may not be reemployed by an employer participating in the
  426  Florida Retirement System before meeting the definition of
  427  termination in s. 121.021 and may not receive both a salary from
  428  the employer and retirement benefits for 6 calendar months after
  429  meeting the definition of termination. However, a DROP
  430  participant shall continue employment and receive a salary
  431  during the period of participation in the Deferred Retirement
  432  Option Program, as provided in subsection (13).
  433         1. The reemployed retiree may not renew membership in the
  434  Florida Retirement System, except as provided in s. 121.122.
  435         2. The employer shall pay retirement contributions in an
  436  amount equal to the unfunded actuarial liability portion of the
  437  employer contribution that would be required for active members
  438  of the Florida Retirement System in addition to the
  439  contributions required by s. 121.76.
  440         3. A retiree initially reemployed in violation of this
  441  paragraph and an employer that employs or appoints such person
  442  are jointly and severally liable for reimbursement of any
  443  retirement benefits paid to the retirement trust fund from which
  444  the benefits were paid, including the Florida Retirement System
  445  Trust Fund and the Public Employee Optional Retirement Program
  446  Trust Fund, as appropriate. The employer must have a written
  447  statement from the employee that he or she is not retired from a
  448  state-administered retirement system. Retirement benefits shall
  449  remain suspended until repayment is made. Benefits suspended
  450  beyond the end of the retiree’s 6-month reemployment limitation
  451  period shall apply toward the repayment of benefits received in
  452  violation of this paragraph.
  453         Section 5. Subsection (2) of section 121.122, Florida
  454  Statutes, is amended, and subsections (3), (4), and (5) are
  455  added to that section, to read:
  456         121.122 Renewed membership in system.—
  457         (2) Except as otherwise provided in subsections (3), (4),
  458  and (5), a retiree of a state-administered retirement system who
  459  is initially reemployed in a regularly established position on
  460  or after July 1, 2010, may not be enrolled as a renewed member.
  461         (3) A retiree of the investment plan, the State University
  462  System Optional Retirement Program, the Senior Management
  463  Service Optional Annuity Program, or the State Community College
  464  System Optional Retirement Program who is reemployed with a
  465  covered employer in a regularly established position on or after
  466  July 1, 2017, shall be enrolled as a renewed member of the
  467  investment plan unless employed in a position eligible for
  468  participation in the State University System Optional Retirement
  469  Program as provided in subsection (4) or the State Community
  470  College System Optional Retirement Program as provided in
  471  subsection (5). The renewed member must satisfy the vesting
  472  requirements and other provisions of this chapter.
  473         (a) A renewed member of the investment plan shall be
  474  enrolled in one of the following membership classes:
  475         1. In the Regular Class, if the position does not meet the
  476  requirements for membership under s. 121.0515, s. 121.053, or s.
  477  121.055.
  478         2. In the Special Risk Class, if the position meets the
  479  requirements of s. 121.0515.
  480         3. In the Elected Officers’ Class, if the position meets
  481  the requirements of s. 121.053.
  482         4. In the Senior Management Service Class, if the position
  483  meets the requirements of s. 121.055.
  484         (b) Creditable service, including credit toward the retiree
  485  health insurance subsidy provided in s. 112.363, does not accrue
  486  for a renewed member’s employment in a regularly established
  487  position with a covered employer from July 1, 2010, through June
  488  30, 2017.
  489         (c) Employer and employee contributions, interest,
  490  earnings, or any other funds may not be paid into a renewed
  491  member’s investment plan account for any employment in a
  492  regularly established position with a covered employer on or
  493  after July 1, 2010, through June 30, 2017, by the renewed member
  494  or the employer on behalf of the renewed member.
  495         (d) To be eligible to receive a retirement benefit, the
  496  renewed member must satisfy the vesting requirements in s.
  497  121.4501(6).
  498         (e) The renewed member is ineligible to receive disability
  499  benefits as provided in s. 121.091(4) or s. 121.591(2).
  500         (f) The renewed member is subject to the limitations on
  501  reemployment after retirement provided in s. 121.091(9), as
  502  applicable.
  503         (g) The renewed member must satisfy the requirements for
  504  termination from employment provided in s. 121.021(39).
  505         (h) Upon renewed membership or reemployment of a retiree,
  506  the employer and the renewed member shall pay the applicable
  507  employer and employee contributions required under ss. 112.363,
  508  121.71, 121.74, and 121.76. The contributions are payable only
  509  for employment and salary earned in a regularly established
  510  position with a covered employer on or after July 1, 2017. The
  511  employer and employee contributions shall be transferred to the
  512  investment plan and placed in a default fund as designated by
  513  the state board. The renewed member may move the contributions
  514  once an account is activated in the investment plan.
  515         (i) A renewed member who earns creditable service under the
  516  investment plan and who is not receiving the maximum health
  517  insurance subsidy provided in s. 112.363 is entitled to earn
  518  additional credit toward the subsidy. Such credit may be earned
  519  only for employment in a regularly established position with a
  520  covered employer on or after July 1, 2017. Any additional
  521  subsidy due because of additional credit may be received only at
  522  the time of paying the second career retirement benefit. The
  523  total health insurance subsidy received by a retiree receiving
  524  benefits from initial and renewed membership may not exceed the
  525  maximum allowed under s. 112.363.
  526         (j) Notwithstanding s. 121.4501(4)(f), the renewed member
  527  is not eligible to elect membership in the pension plan.
  528         (4) A retiree of the investment plan, the State University
  529  System Optional Retirement Program, the Senior Management
  530  Service Optional Annuity Program, or the State Community College
  531  System Optional Retirement Program who is reemployed on or after
  532  July 1, 2017, in a regularly established position eligible for
  533  participation in the State University System Optional Retirement
  534  Program shall become a renewed member of the optional retirement
  535  program. The renewed member must satisfy the vesting
  536  requirements and other provisions of this chapter. Once
  537  enrolled, a renewed member remains enrolled in the optional
  538  retirement program while employed in an eligible position for
  539  the optional retirement program. If employment in a different
  540  covered position results in the renewed member’s enrollment in
  541  the investment plan, the renewed member is no longer eligible to
  542  participate in the optional retirement program unless employed
  543  in a mandatory position under s. 121.35.
  544         (a) The renewed member is subject to the limitations on
  545  reemployment after retirement provided in s. 121.091(9), as
  546  applicable.
  547         (b) The renewed member must satisfy the requirements for
  548  termination from employment provided in s. 121.021(39).
  549         (c) Upon renewed membership or reemployment of a retiree,
  550  the employer and the renewed member shall pay the applicable
  551  employer and employee contributions required under s. 121.35.
  552         (d) Employer and employee contributions, interest,
  553  earnings, or any other funds may not be paid into a renewed
  554  member’s optional retirement program account for any employment
  555  in a regularly stablished position with a covered employer on or
  556  after July 1, 2010, through June 30, 2017, by the renewed member
  557  or the employer on behalf of the renewed member.
  558         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  559  is not eligible to elect membership in the pension plan.
  560         (5) A retiree of the investment plan, the State University
  561  System Optional Retirement Program, the Senior Management
  562  Service Optional Annuity Program, or the State Community College
  563  System Optional Retirement Program who is reemployed on or after
  564  July 1, 2017, in a regularly established position eligible for
  565  participation in the State Community College System Optional
  566  Retirement Program shall become a renewed member of the optional
  567  retirement program. The renewed member must satisfy the
  568  eligibility requirements of this chapter and s. 1012.875 for the
  569  optional retirement program. Once enrolled, a renewed member
  570  remains enrolled in the optional retirement program while
  571  employed in an eligible position for the optional retirement
  572  program. If employment in a different covered position results
  573  in the renewed member’s enrollment in the investment plan, the
  574  renewed member is no longer eligible to participate in the
  575  optional retirement program.
  576         (a) The renewed member is subject to the limitations on
  577  reemployment after retirement provided in s. 121.091(9), as
  578  applicable.
  579         (b) The renewed member must satisfy the requirements for
  580  termination from employment provided in s. 121.021(39).
  581         (c) Upon renewed membership or reemployment of a retiree,
  582  the employer and the renewed member shall pay the applicable
  583  employer and employee contributions required under ss.
  584  121.051(2)(c) and 1012.875.
  585         (d) Employer and employee contributions, interest,
  586  earnings, or any other funds may not be paid into a renewed
  587  member’s optional retirement program account for any employment
  588  in a regularly established position with a covered employer on
  589  or after July 1, 2010, through June 30, 2017, by the renewed
  590  member or the employer on behalf of the renewed member.
  591         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  592  is not eligible to elect membership in the pension plan.
  593         Section 6. Paragraphs (e) and (i) of subsection (2),
  594  paragraph (b) of subsection (3), subsection (4), paragraph (c)
  595  of subsection (5), and paragraphs (a) and (h) of subsection (10)
  596  of section 121.4501, Florida Statutes, are amended to read:
  597         121.4501 Florida Retirement System Investment Plan.—
  598         (2) DEFINITIONS.—As used in this part, the term:
  599         (e) “Eligible employee” means an officer or employee, as
  600  defined in s. 121.021, who:
  601         1. Is a member of, or is eligible for membership in, the
  602  Florida Retirement System, including any renewed member of the
  603  Florida Retirement System initially enrolled before July 1,
  604  2010; or
  605         2. Participates in, or is eligible to participate in, the
  606  Senior Management Service Optional Annuity Program as
  607  established under s. 121.055(6), the State Community College
  608  System Optional Retirement Program as established under s.
  609  121.051(2)(c), or the State University System Optional
  610  Retirement Program established under s. 121.35; or
  611         3. Is a retired member of the investment plan, the State
  612  University System Optional Retirement Program, the Senior
  613  Management Service Optional Annuity Program, or the State
  614  Community College System Optional Retirement Program who is
  615  reemployed in a regularly established position on or after July
  616  1, 2017, and enrolled as a renewed member as provided in s.
  617  121.122.
  618  
  619  The term does not include any member participating in the
  620  Deferred Retirement Option Program established under s.
  621  121.091(13), a retiree of the pension plan who is reemployed in
  622  a regularly established position on or after July 1, 2010, a
  623  retiree of a state-administered retirement system initially
  624  reemployed in a regularly established position on or after July
  625  1, 2010, through June 30, 2017, or a mandatory participant of
  626  the State University System Optional Retirement Program
  627  established under s. 121.35.
  628         (i) “Member” or “employee” means an eligible employee who
  629  enrolls in, or who defaults into, the investment plan as
  630  provided in subsection (4), a terminated Deferred Retirement
  631  Option Program member as described in subsection (21), or a
  632  beneficiary or alternate payee of a member or employee.
  633         (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
  634         (b) Notwithstanding paragraph (a), an eligible employee who
  635  elects to participate in, or who defaults into, the investment
  636  plan and establishes one or more individual member accounts may
  637  elect to transfer to the investment plan a sum representing the
  638  present value of the employee’s accumulated benefit obligation
  639  under the pension plan, except as provided in paragraph (4)(b).
  640  Upon transfer, all service credit earned under the pension plan
  641  is nullified for purposes of entitlement to a future benefit
  642  under the pension plan. A member may not transfer the
  643  accumulated benefit obligation balance from the pension plan
  644  after the time period for enrolling in the investment plan has
  645  expired.
  646         1. For purposes of this subsection, the present value of
  647  the member’s accumulated benefit obligation is based upon the
  648  member’s estimated creditable service and estimated average
  649  final compensation under the pension plan, subject to
  650  recomputation under subparagraph 2. For state employees, initial
  651  estimates shall be based upon creditable service and average
  652  final compensation as of midnight on June 30, 2002; for district
  653  school board employees, initial estimates shall be based upon
  654  creditable service and average final compensation as of midnight
  655  on September 30, 2002; and for local government employees,
  656  initial estimates shall be based upon creditable service and
  657  average final compensation as of midnight on December 31, 2002.
  658  The dates specified are the “estimate date” for these employees.
  659  The actuarial present value of the employee’s accumulated
  660  benefit obligation shall be based on the following:
  661         a. The discount rate and other relevant actuarial
  662  assumptions used to value the Florida Retirement System Trust
  663  Fund at the time the amount to be transferred is determined,
  664  consistent with the factors provided in sub-subparagraphs b. and
  665  c.
  666         b. A benefit commencement age, based on the member’s
  667  estimated creditable service as of the estimate date.
  668         c. Except as provided under sub-subparagraph d., for a
  669  member initially enrolled:
  670         (I) Before July 1, 2011, the benefit commencement age is
  671  the younger of the following, but may not be younger than the
  672  member’s age as of the estimate date:
  673         (A) Age 62; or
  674         (B) The age the member would attain if the member completed
  675  30 years of service with an employer, assuming the member worked
  676  continuously from the estimate date, and disregarding any
  677  vesting requirement that would otherwise apply under the pension
  678  plan.
  679         (II) On or after July 1, 2011, the benefit commencement age
  680  is the younger of the following, but may not be younger than the
  681  member’s age as of the estimate date:
  682         (A) Age 65; or
  683         (B) The age the member would attain if the member completed
  684  33 years of service with an employer, assuming the member worked
  685  continuously from the estimate date, and disregarding any
  686  vesting requirement that would otherwise apply under the pension
  687  plan.
  688         d. For members of the Special Risk Class and for members of
  689  the Special Risk Administrative Support Class entitled to retain
  690  the special risk normal retirement date:
  691         (I) Initially enrolled before July 1, 2011, the benefit
  692  commencement age is the younger of the following, but may not be
  693  younger than the member’s age as of the estimate date:
  694         (A) Age 55; or
  695         (B) The age the member would attain if the member completed
  696  25 years of service with an employer, assuming the member worked
  697  continuously from the estimate date, and disregarding any
  698  vesting requirement that would otherwise apply under the pension
  699  plan.
  700         (II) Initially enrolled on or after July 1, 2011, the
  701  benefit commencement age is the younger of the following, but
  702  may not be younger than the member’s age as of the estimate
  703  date:
  704         (A) Age 60; or
  705         (B) The age the member would attain if the member completed
  706  30 years of service with an employer, assuming the member worked
  707  continuously from the estimate date, and disregarding any
  708  vesting requirement that would otherwise apply under the pension
  709  plan.
  710         e. The calculation must disregard vesting requirements and
  711  early retirement reduction factors that would otherwise apply
  712  under the pension plan.
  713         2. For each member who elects to transfer moneys from the
  714  pension plan to his or her account in the investment plan, the
  715  division shall recompute the amount transferred under
  716  subparagraph 1. within 60 days after the actual transfer of
  717  funds based upon the member’s actual creditable service and
  718  actual final average compensation as of the initial date of
  719  participation in the investment plan. If the recomputed amount
  720  differs from the amount transferred by $10 or more, the division
  721  shall:
  722         a. Transfer, or cause to be transferred, from the Florida
  723  Retirement System Trust Fund to the member’s account the excess,
  724  if any, of the recomputed amount over the previously transferred
  725  amount together with interest from the initial date of transfer
  726  to the date of transfer under this subparagraph, based upon the
  727  effective annual interest equal to the assumed return on the
  728  actuarial investment which was used in the most recent actuarial
  729  valuation of the system, compounded annually.
  730         b. Transfer, or cause to be transferred, from the member’s
  731  account to the Florida Retirement System Trust Fund the excess,
  732  if any, of the previously transferred amount over the recomputed
  733  amount, together with interest from the initial date of transfer
  734  to the date of transfer under this subparagraph, based upon 6
  735  percent effective annual interest, compounded annually, pro rata
  736  based on the member’s allocation plan.
  737         3. If contribution adjustments are made as a result of
  738  employer errors or corrections, including plan corrections,
  739  following recomputation of the amount transferred under
  740  subparagraph 1., the member is entitled to the additional
  741  contributions or is responsible for returning any excess
  742  contributions resulting from the correction. However, a any
  743  return of such erroneous excess pretax contribution by the plan
  744  must be made within the period allowed by the Internal Revenue
  745  Service. The present value of the member’s accumulated benefit
  746  obligation may shall not be recalculated.
  747         4. As directed by the member, the state board shall
  748  transfer or cause to be transferred the appropriate amounts to
  749  the designated accounts within 30 days after the effective date
  750  of the member’s participation in the investment plan unless the
  751  major financial markets for securities available for a transfer
  752  are seriously disrupted by an unforeseen event that causes the
  753  suspension of trading on a any national securities exchange in
  754  the country where the securities were issued. In that event, the
  755  30-day period may be extended by a resolution of the state
  756  board. Transfers are not commissionable or subject to other fees
  757  and may be in the form of securities or cash, as determined by
  758  the state board. Such securities are valued as of the date of
  759  receipt in the member’s account.
  760         5. If the state board or the division receives notification
  761  from the United States Internal Revenue Service that this
  762  paragraph or any portion of this paragraph will cause the
  763  retirement system, or a portion thereof, to be disqualified for
  764  tax purposes under the Internal Revenue Code, the portion that
  765  will cause the disqualification does not apply. Upon such
  766  notice, the state board and the division shall notify the
  767  presiding officers of the Legislature.
  768         (4) PARTICIPATION; ENROLLMENT.—
  769         (a)1. Effective June 1, 2002, through February 28, 2003, a
  770  90-day election period was provided to each eligible employee
  771  participating in the Florida Retirement System, preceded by a
  772  90-day education period, permitting each eligible employee to
  773  elect membership in the investment plan. An employee who failed
  774  to elect the investment plan during the election period remained
  775  in the pension plan. An eligible employee who was employed in a
  776  regularly established position during the election period was
  777  granted the option to make one subsequent election, as provided
  778  in paragraph (f). With respect to an eligible employee who did
  779  not participate in the initial election period or who is
  780  initially employed in a regularly established position after the
  781  close of the initial election period but before January 1, 2018,
  782  on June 1, 2002, by a state employer:
  783         a. Any such employee may elect to participate in the
  784  investment plan in lieu of retaining his or her membership in
  785  the pension plan. The election must be made in writing or by
  786  electronic means and must be filed with the third-party
  787  administrator by August 31, 2002, or, in the case of an active
  788  employee who is on a leave of absence on April 1, 2002, by the
  789  last business day of the 5th month following the month the leave
  790  of absence concludes. This election is irrevocable, except as
  791  provided in paragraph (g). Upon making such election, the
  792  employee shall be enrolled as a member of the investment plan,
  793  the employee’s membership in the Florida Retirement System is
  794  governed by the provisions of this part, and the employee’s
  795  membership in the pension plan terminates. The employee’s
  796  enrollment in the investment plan is effective the first day of
  797  the month for which a full month’s employer contribution is made
  798  to the investment plan.
  799         b. Any such employee who fails to elect to participate in
  800  the investment plan within the prescribed time period is deemed
  801  to have elected to retain membership in the pension plan, and
  802  the employee’s option to elect to participate in the investment
  803  plan is forfeited.
  804         2. With respect to employees who become eligible to
  805  participate in the investment plan by reason of employment in a
  806  regularly established position with a state employer commencing
  807  after April 1, 2002:
  808         a. Any such employee shall, by default, be enrolled in the
  809  pension plan at the commencement of employment, and may, by the
  810  last business day of the 5th month following the employee’s
  811  month of hire, elect to participate in the investment plan. The
  812  employee’s election must be made in writing or by electronic
  813  means and must be filed with the third-party administrator. The
  814  election to participate in the investment plan is irrevocable,
  815  except as provided in paragraph (f) (g).
  816         a.b. If the employee files such election within the
  817  prescribed time period, enrollment in the investment plan is
  818  effective on the first day of employment. The retirement
  819  contributions paid through the month of the employee plan change
  820  shall be transferred to the investment program, and, effective
  821  the first day of the next month, the employer and employee must
  822  pay the applicable contributions based on the employee
  823  membership class in the program.
  824         b.c. An employee who fails to elect to participate in the
  825  investment plan within the prescribed time period is deemed to
  826  have elected to retain membership in the pension plan, and the
  827  employee’s option to elect to participate in the investment plan
  828  is forfeited.
  829         2.3. With respect to employees who become eligible to
  830  participate in the investment plan pursuant to s.
  831  121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
  832  participate in the investment plan in lieu of retaining his or
  833  her membership in the State Community College System Optional
  834  Retirement Program or the State University System Optional
  835  Retirement Program. The election must be made in writing or by
  836  electronic means and must be filed with the third-party
  837  administrator. This election is irrevocable, except as provided
  838  in paragraph (f) (g). Upon making such election, the employee
  839  shall be enrolled as a member in the investment plan, the
  840  employee’s membership in the Florida Retirement System is
  841  governed by the provisions of this part, and the employee’s
  842  participation in the State Community College System Optional
  843  Retirement Program or the State University System Optional
  844  Retirement Program terminates. The employee’s enrollment in the
  845  investment plan is effective on the first day of the month for
  846  which a full month’s employer and employee contribution is made
  847  to the investment plan.
  848         (b)1. With respect to employees who become eligible to
  849  participate in the investment plan by reason of employment in a
  850  regularly established position commencing on or after January 1,
  851  2018, or who did not complete an election window before January
  852  1, 2018, any such employee shall be enrolled in the pension plan
  853  at the commencement of employment and may, by the last business
  854  day of the eighth month following the employee’s month of hire,
  855  elect to participate in the pension plan or the investment plan.
  856  Eligible employees may make a plan election only if they are
  857  earning service credit in an employer-employee relationship
  858  consistent with s. 121.021(17)(b), excluding leaves of absence
  859  without pay.
  860         2. The employee’s election must be made in writing or by
  861  electronic means and must be filed with the third-party
  862  administrator. The election to participate in the pension plan
  863  or investment plan is irrevocable, except as provided in
  864  paragraph (f).
  865         3.a. Except as provided in sub-subparagraph b., if the
  866  employee fails to make an election to either the pension plan or
  867  the investment plan during the 8-month period following the
  868  month of hire, the employee is deemed to have elected the
  869  investment plan and shall default into the investment plan
  870  retroactively to the employee’s date of employment. The
  871  employee’s option to participate in the pension plan is
  872  forfeited, except as provided in paragraph (f).
  873         b. If the employee is employed in a position included in
  874  the Special Risk Class and fails to make an election to either
  875  the pension plan or the investment plan during the 8-month
  876  period following the month of hire, the employee is deemed to
  877  have elected the pension plan and shall default into the pension
  878  plan retroactively to the employee’s date of employment. The
  879  employee’s option to participate in the investment plan is
  880  forfeited, except as provided in paragraph (f).
  881         4. The amount of the employee and employer contributions
  882  paid through the date of default to the investment plan shall be
  883  transferred to the investment plan and shall be placed in a
  884  default fund as designated by the State Board of Administration.
  885  The employee may move the contributions once an account is
  886  activated in the investment plan.
  887         5. Effective the first day of the month after an eligible
  888  employee makes a plan election of the pension plan or the
  889  investment plan, or the first day of the month after default to
  890  the investment plan, the employee and employer shall pay the
  891  applicable contributions based on the employee membership class
  892  in the program.
  893         4. For purposes of this paragraph, “state employer” means
  894  any agency, board, branch, commission, community college,
  895  department, institution, institution of higher education, or
  896  water management district of the state, which participates in
  897  the Florida Retirement System for the benefit of certain
  898  employees.
  899         (b)1. With respect to an eligible employee who is employed
  900  in a regularly established position on September 1, 2002, by a
  901  district school board employer:
  902         a. Any such employee may elect to participate in the
  903  investment plan in lieu of retaining his or her membership in
  904  the pension plan. The election must be made in writing or by
  905  electronic means and must be filed with the third-party
  906  administrator by November 30, or, in the case of an active
  907  employee who is on a leave of absence on July 1, 2002, by the
  908  last business day of the 5th month following the month the leave
  909  of absence concludes. This election is irrevocable, except as
  910  provided in paragraph (g). Upon making such election, the
  911  employee shall be enrolled as a member of the investment plan,
  912  the employee’s membership in the Florida Retirement System is
  913  governed by the provisions of this part, and the employee’s
  914  membership in the pension plan terminates. The employee’s
  915  enrollment in the investment plan is effective the first day of
  916  the month for which a full month’s employer contribution is made
  917  to the investment program.
  918         b. Any such employee who fails to elect to participate in
  919  the investment plan within the prescribed time period is deemed
  920  to have elected to retain membership in the pension plan, and
  921  the employee’s option to elect to participate in the investment
  922  plan is forfeited.
  923         2. With respect to employees who become eligible to
  924  participate in the investment plan by reason of employment in a
  925  regularly established position with a district school board
  926  employer commencing after July 1, 2002:
  927         a. Any such employee shall, by default, be enrolled in the
  928  pension plan at the commencement of employment, and may, by the
  929  last business day of the 5th month following the employee’s
  930  month of hire, elect to participate in the investment plan. The
  931  employee’s election must be made in writing or by electronic
  932  means and must be filed with the third-party administrator. The
  933  election to participate in the investment plan is irrevocable,
  934  except as provided in paragraph (g).
  935         b. If the employee files such election within the
  936  prescribed time period, enrollment in the investment plan is
  937  effective on the first day of employment. The employer
  938  retirement contributions paid through the month of the employee
  939  plan change shall be transferred to the investment plan, and,
  940  effective the first day of the next month, the employer shall
  941  pay the applicable contributions based on the employee
  942  membership class in the investment plan.
  943         c. Any such employee who fails to elect to participate in
  944  the investment plan within the prescribed time period is deemed
  945  to have elected to retain membership in the pension plan, and
  946  the employee’s option to elect to participate in the investment
  947  plan is forfeited.
  948         3. For purposes of this paragraph, “district school board
  949  employer” means any district school board that participates in
  950  the Florida Retirement System for the benefit of certain
  951  employees, or a charter school or charter technical career
  952  center that participates in the Florida Retirement System as
  953  provided in s. 121.051(2)(d).
  954         (c)1. With respect to an eligible employee who is employed
  955  in a regularly established position on December 1, 2002, by a
  956  local employer:
  957         a. Any such employee may elect to participate in the
  958  investment plan in lieu of retaining his or her membership in
  959  the pension plan. The election must be made in writing or by
  960  electronic means and must be filed with the third-party
  961  administrator by February 28, 2003, or, in the case of an active
  962  employee who is on a leave of absence on October 1, 2002, by the
  963  last business day of the 5th month following the month the leave
  964  of absence concludes. This election is irrevocable, except as
  965  provided in paragraph (g). Upon making such election, the
  966  employee shall be enrolled as a participant of the investment
  967  plan, the employee’s membership in the Florida Retirement System
  968  is governed by the provisions of this part, and the employee’s
  969  membership in the pension plan terminates. The employee’s
  970  enrollment in the investment plan is effective the first day of
  971  the month for which a full month’s employer contribution is made
  972  to the investment plan.
  973         b. Any such employee who fails to elect to participate in
  974  the investment plan within the prescribed time period is deemed
  975  to have elected to retain membership in the pension plan, and
  976  the employee’s option to elect to participate in the investment
  977  plan is forfeited.
  978         2. With respect to employees who become eligible to
  979  participate in the investment plan by reason of employment in a
  980  regularly established position with a local employer commencing
  981  after October 1, 2002:
  982         a. Any such employee shall, by default, be enrolled in the
  983  pension plan at the commencement of employment, and may, by the
  984  last business day of the 5th month following the employee’s
  985  month of hire, elect to participate in the investment plan. The
  986  employee’s election must be made in writing or by electronic
  987  means and must be filed with the third-party administrator. The
  988  election to participate in the investment plan is irrevocable,
  989  except as provided in paragraph (g).
  990         b. If the employee files such election within the
  991  prescribed time period, enrollment in the investment plan is
  992  effective on the first day of employment. The employer
  993  retirement contributions paid through the month of the employee
  994  plan change shall be transferred to the investment plan, and,
  995  effective the first day of the next month, the employer shall
  996  pay the applicable contributions based on the employee
  997  membership class in the investment plan.
  998         c. Any such employee who fails to elect to participate in
  999  the investment plan within the prescribed time period is deemed
 1000  to have elected to retain membership in the pension plan, and
 1001  the employee’s option to elect to participate in the investment
 1002  plan is forfeited.
 1003         3. For purposes of this paragraph, “local employer” means
 1004  any employer not included in paragraph (a) or paragraph (b).
 1005         (c)(d) Contributions available for self-direction by a
 1006  member who has not selected one or more specific investment
 1007  products shall be allocated as prescribed by the state board.
 1008  The third-party administrator shall notify the member at least
 1009  quarterly that the member should take an affirmative action to
 1010  make an asset allocation among the investment products.
 1011         (d)(e) On or after July 1, 2011, a member of the pension
 1012  plan who obtains a refund of employee contributions retains his
 1013  or her prior plan choice upon return to employment in a
 1014  regularly established position with a participating employer.
 1015         (e)1.(f) A member of the investment plan who takes a
 1016  distribution of any contributions from his or her investment
 1017  plan account is considered a retiree. A retiree who is initially
 1018  reemployed in a regularly established position on or after July
 1019  1, 2010, through June 30, 2017, is not eligible for to be
 1020  enrolled in renewed membership, except as provided in s.
 1021  121.122.
 1022         2. A retiree who is reemployed on or after July 1, 2017,
 1023  shall be enrolled as a renewed member as provided in s. 121.122.
 1024         (f)(g) After the period during which an eligible employee
 1025  had the choice to elect the pension plan or the investment plan,
 1026  or the month following the receipt of the eligible employee’s
 1027  plan election, if sooner, the employee shall have one
 1028  opportunity, at the employee’s discretion, to choose to move
 1029  from the pension plan to the investment plan or from the
 1030  investment plan to the pension plan. Eligible employees may
 1031  elect to move between plans only if they are earning service
 1032  credit in an employer-employee relationship consistent with s.
 1033  121.021(17)(b), excluding leaves of absence without pay.
 1034  Effective July 1, 2005, such elections are effective on the
 1035  first day of the month following the receipt of the election by
 1036  the third-party administrator and are not subject to the
 1037  requirements regarding an employer-employee relationship or
 1038  receipt of contributions for the eligible employee in the
 1039  effective month, except when the election is received by the
 1040  third-party administrator. This paragraph is contingent upon
 1041  approval by the Internal Revenue Service.
 1042         1. If the employee chooses to move to the investment plan,
 1043  the provisions of subsection (3) govern the transfer.
 1044         2. If the employee chooses to move to the pension plan, the
 1045  employee must transfer from his or her investment plan account,
 1046  and from other employee moneys as necessary, a sum representing
 1047  the present value of that employee’s accumulated benefit
 1048  obligation immediately following the time of such movement,
 1049  determined assuming that attained service equals the sum of
 1050  service in the pension plan and service in the investment plan.
 1051  Benefit commencement occurs on the first date the employee is
 1052  eligible for unreduced benefits, using the discount rate and
 1053  other relevant actuarial assumptions that were used to value the
 1054  pension plan liabilities in the most recent actuarial valuation.
 1055  For any employee who, at the time of the second election,
 1056  already maintains an accrued benefit amount in the pension plan,
 1057  the then-present value of the accrued benefit is deemed part of
 1058  the required transfer amount. The division must ensure that the
 1059  transfer sum is prepared using a formula and methodology
 1060  certified by an enrolled actuary. A refund of any employee
 1061  contributions or additional member payments made which exceed
 1062  the employee contributions that would have accrued had the
 1063  member remained in the pension plan and not transferred to the
 1064  investment plan is not permitted.
 1065         3. Notwithstanding subparagraph 2., an employee who chooses
 1066  to move to the pension plan and who became eligible to
 1067  participate in the investment plan by reason of employment in a
 1068  regularly established position with a state employer after June
 1069  1, 2002; a district school board employer after September 1,
 1070  2002; or a local employer after December 1, 2002, must transfer
 1071  from his or her investment plan account, and from other employee
 1072  moneys as necessary, a sum representing the employee’s actuarial
 1073  accrued liability. A refund of any employee contributions or
 1074  additional member participant payments made which exceed the
 1075  employee contributions that would have accrued had the member
 1076  remained in the pension plan and not transferred to the
 1077  investment plan is not permitted.
 1078         4. An employee’s ability to transfer from the pension plan
 1079  to the investment plan pursuant to paragraphs (a) and (b) (a)
 1080  (d), and the ability of a current employee to have an option to
 1081  later transfer back into the pension plan under subparagraph 2.,
 1082  shall be deemed a significant system amendment. Pursuant to s.
 1083  121.031(4), any resulting unfunded liability arising from actual
 1084  original transfers from the pension plan to the investment plan
 1085  must be amortized within 30 plan years as a separate unfunded
 1086  actuarial base independent of the reserve stabilization
 1087  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
 1088  direct amortization payment may not be calculated for this base.
 1089  During this 25-year period, the separate base shall be used to
 1090  offset the impact of employees exercising their second program
 1091  election under this paragraph. The actuarial funded status of
 1092  the pension plan will not be affected by such second program
 1093  elections in any significant manner, after due recognition of
 1094  the separate unfunded actuarial base. Following the initial 25
 1095  year period, any remaining balance of the original separate base
 1096  shall be amortized over the remaining 5 years of the required
 1097  30-year amortization period.
 1098         5. If the employee chooses to transfer from the investment
 1099  plan to the pension plan and retains an excess account balance
 1100  in the investment plan after satisfying the buy-in requirements
 1101  under this paragraph, the excess may not be distributed until
 1102  the member retires from the pension plan. The excess account
 1103  balance may be rolled over to the pension plan and used to
 1104  purchase service credit or upgrade creditable service in the
 1105  pension plan.
 1106         (5) CONTRIBUTIONS.—
 1107         (c) The state board, acting as plan fiduciary, must ensure
 1108  that all plan assets are held in a trust, pursuant to s. 401 of
 1109  the Internal Revenue Code. The fiduciary must ensure that such
 1110  contributions are allocated as follows:
 1111         1. The employer and employee contribution portion earmarked
 1112  for member accounts shall be used to purchase interests in the
 1113  appropriate investment vehicles as specified by the member, or
 1114  in accordance with paragraph (4)(c) (4)(d).
 1115         2. The employer contribution portion earmarked for
 1116  administrative and educational expenses shall be transferred to
 1117  the state board’s Administrative Trust Fund.
 1118         3. The employer contribution portion earmarked for
 1119  disability benefits and line-of-duty death benefits shall be
 1120  transferred to the Florida Retirement System Trust Fund.
 1121         (10) EDUCATION COMPONENT.—
 1122         (a) The state board, in coordination with the department,
 1123  shall provide for an education component for eligible employees
 1124  system members in a manner consistent with the provisions of
 1125  this subsection section. The education component must be
 1126  available to eligible employees at least 90 days prior to the
 1127  beginning date of the election period for the employees of the
 1128  respective types of employers.
 1129         (h) Pursuant to subsection (8), all Florida Retirement
 1130  System employers have an obligation to regularly communicate the
 1131  existence of the two Florida Retirement System plans and the
 1132  plan choice in the natural course of administering their
 1133  personnel functions, using the educational materials supplied by
 1134  the state board and the Department of Management Services.
 1135         Section 7. Subsection (4) of section 121.591, Florida
 1136  Statutes, is amended to read:
 1137         121.591 Payment of benefits.—Benefits may not be paid under
 1138  the Florida Retirement System Investment Plan unless the member
 1139  has terminated employment as provided in s. 121.021(39)(a) or is
 1140  deceased and a proper application has been filed as prescribed
 1141  by the state board or the department. Benefits, including
 1142  employee contributions, are not payable under the investment
 1143  plan for employee hardships, unforeseeable emergencies, loans,
 1144  medical expenses, educational expenses, purchase of a principal
 1145  residence, payments necessary to prevent eviction or foreclosure
 1146  on an employee’s principal residence, or any other reason except
 1147  a requested distribution for retirement, a mandatory de minimis
 1148  distribution authorized by the administrator, or a required
 1149  minimum distribution provided pursuant to the Internal Revenue
 1150  Code. The state board or department, as appropriate, may cancel
 1151  an application for retirement benefits if the member or
 1152  beneficiary fails to timely provide the information and
 1153  documents required by this chapter and the rules of the state
 1154  board and department. In accordance with their respective
 1155  responsibilities, the state board and the department shall adopt
 1156  rules establishing procedures for application for retirement
 1157  benefits and for the cancellation of such application if the
 1158  required information or documents are not received. The state
 1159  board and the department, as appropriate, are authorized to cash
 1160  out a de minimis account of a member who has been terminated
 1161  from Florida Retirement System covered employment for a minimum
 1162  of 6 calendar months. A de minimis account is an account
 1163  containing employer and employee contributions and accumulated
 1164  earnings of not more than $5,000 made under the provisions of
 1165  this chapter. Such cash-out must be a complete lump-sum
 1166  liquidation of the account balance, subject to the provisions of
 1167  the Internal Revenue Code, or a lump-sum direct rollover
 1168  distribution paid directly to the custodian of an eligible
 1169  retirement plan, as defined by the Internal Revenue Code, on
 1170  behalf of the member. Any nonvested accumulations and associated
 1171  service credit, including amounts transferred to the suspense
 1172  account of the Florida Retirement System Investment Plan Trust
 1173  Fund authorized under s. 121.4501(6), shall be forfeited upon
 1174  payment of any vested benefit to a member or beneficiary, except
 1175  for de minimis distributions or minimum required distributions
 1176  as provided under this section. If any financial instrument
 1177  issued for the payment of retirement benefits under this section
 1178  is not presented for payment within 180 days after the last day
 1179  of the month in which it was originally issued, the third-party
 1180  administrator or other duly authorized agent of the state board
 1181  shall cancel the instrument and credit the amount of the
 1182  instrument to the suspense account of the Florida Retirement
 1183  System Investment Plan Trust Fund authorized under s.
 1184  121.4501(6). Any amounts transferred to the suspense account are
 1185  payable upon a proper application, not to include earnings
 1186  thereon, as provided in this section, within 10 years after the
 1187  last day of the month in which the instrument was originally
 1188  issued, after which time such amounts and any earnings
 1189  attributable to employer contributions shall be forfeited. Any
 1190  forfeited amounts are assets of the trust fund and are not
 1191  subject to chapter 717.
 1192         (4) LINE-OF-DUTY DEATH BENEFITS FOR INVESTMENT PLAN SPECIAL
 1193  RISK CLASS MEMBERS.—Benefits are provided under this subsection
 1194  to the spouse and child or children of members in the investment
 1195  plan Special Risk Class when such members are killed in the line
 1196  of duty and are payable in lieu of the benefits that would
 1197  otherwise be payable under subsection (1) or subsection (3).
 1198  Benefits provided by this subsection supersede any other
 1199  distribution that may have been provided by the member’s
 1200  designation of beneficiary. Such benefits must be funded from
 1201  employer contributions made under s. 121.571, transferred
 1202  employee contributions and funds accumulated pursuant to
 1203  paragraph (a), and interest and earnings thereon.
 1204         (a) Transfer of funds.—To qualify to receive monthly
 1205  benefits under this subsection:
 1206         1. All moneys accumulated in the member’s account,
 1207  including vested and nonvested accumulations as described in s.
 1208  121.4501(6), must be transferred from such individual accounts
 1209  to the division for deposit in the survivor benefit account of
 1210  the Florida Retirement System Trust Fund. Moneys in the survivor
 1211  benefit account must be accounted for separately. Earnings must
 1212  be credited on an annual basis for amounts held in the survivor
 1213  benefit account of the Florida Retirement System Trust Fund
 1214  based on actual earnings of the trust fund.
 1215         2. If the member has retained retirement credit earned
 1216  under the pension plan as provided in s. 121.4501(3), a sum
 1217  representing the actuarial present value of such credit within
 1218  the Florida Retirement System Trust Fund shall be transferred by
 1219  the division from the pension plan to the survivor benefit
 1220  retirement program as implemented under this subsection and
 1221  shall be deposited in the survivor benefit account of the trust
 1222  fund.
 1223         (b) Survivor retirement; entitlement.—An investment plan
 1224  member who is in the Special Risk Class at the time the member
 1225  is killed in the line of duty on or after July 1, 2002 2013,
 1226  regardless of length of creditable service, may have survivor
 1227  benefits paid as provided in s. 121.091(7)(d) and (i) to:
 1228         1. The surviving spouse for the spouse’s lifetime; or
 1229         2. If there is no surviving spouse or the surviving spouse
 1230  dies, the member’s child or children under 18 years of age and
 1231  unmarried until the 18th birthday of the member’s youngest
 1232  child. Such payments may be extended until the 25th birthday of
 1233  any child of the member if the child is unmarried and enrolled
 1234  as a full-time student as provided in s. 121.091(7)(d) and (i).
 1235         (c) Survivor benefit retirement effective date.—
 1236         1. The effective retirement date for the surviving spouse
 1237  or eligible child of a Special Risk Class member who is killed
 1238  in the line of duty is:
 1239         a.1. The first day of the month following the member’s
 1240  death if the member dies on or after July 1, 2016.
 1241         b.2. July 1, 2016, for a member of the Special Risk Class
 1242  when killed in the line of duty on or after July 1, 2013, but
 1243  before July 1, 2016, if the application is received before July
 1244  1, 2016; or the first day of the month following the receipt of
 1245  such application.
 1246         2. Except as provided in subparagraph 1., the effective
 1247  retirement date for the surviving spouse or eligible child of an
 1248  investment plan member who is killed in the line of duty is:
 1249         a. The first day of the month following the member’s death
 1250  if the member dies on or after July 1, 2017.
 1251         b. July 1, 2017, if the member is killed in the line of
 1252  duty on or after July 1, 2002, but before July 1, 2017, if the
 1253  application is received before July 1, 2017; or the first day of
 1254  the month following the receipt of such application.
 1255  
 1256  If the investment plan account balance has already been paid out
 1257  to the surviving spouse or the eligible unmarried dependent
 1258  child or children, the benefit payable shall be actuarially
 1259  reduced by the amount of the payout.
 1260         (d) Line-of-duty death benefit.—
 1261         1. The following individuals are eligible to receive a
 1262  retirement benefit under s. 121.091(7)(d) and (i) if the
 1263  member’s account balance is surrendered and an application is
 1264  received and approved:
 1265         a. The surviving spouse.
 1266         b. If there is no surviving spouse or the surviving spouse
 1267  dies, the member’s child or children under 18 years of age and
 1268  unmarried until the 18th birthday of the member’s youngest
 1269  child, or until the 25th birthday of the member’s child if the
 1270  child is unmarried and enrolled as a full-time student.
 1271         2. Such surviving spouse or such child or children shall
 1272  receive a monthly survivor benefit that begins accruing on the
 1273  first day of the month of survivor benefit retirement, as
 1274  approved by the division, and is payable on the last day of that
 1275  month and each month thereafter during the surviving spouse’s
 1276  lifetime or on behalf of the unmarried children of the member
 1277  until the 18th birthday of the youngest child, or until the 25th
 1278  birthday of any of the member’s unmarried children who are
 1279  enrolled as full-time students. Survivor benefits must be paid
 1280  out of the survivor benefit account of the Florida Retirement
 1281  System Trust Fund established under this subsection.
 1282  
 1283  If the investment plan account balance has already been paid out
 1284  to the surviving spouse or the eligible unmarried dependent
 1285  child or children, the benefit payable shall be actuarially
 1286  reduced by the amount of the payout.
 1287         (e) Computation of survivor benefit retirement benefit.—The
 1288  amount of each monthly payment must be calculated as provided
 1289  under s. 121.091(7)(d) and (i).
 1290         (f) Death of the surviving spouse or children.—
 1291         1. Upon the death of a surviving spouse, the monthly
 1292  benefits shall be paid through the last day of the month of
 1293  death and shall terminate or be paid on behalf of the unmarried
 1294  child or children until the 18th birthday of the youngest child,
 1295  or the 25th birthday of any of the member’s unmarried children
 1296  who are enrolled as full-time students.
 1297         2. If the surviving spouse dies and the benefits are being
 1298  paid on behalf of the member’s unmarried children as provided in
 1299  subparagraph 1., benefits shall be paid through the last day of
 1300  the month until the later of the month the youngest child
 1301  reaches his or her 18th birthday, the month of the 25th birthday
 1302  of any of the member’s unmarried children enrolled as full-time
 1303  students, or the month of the death of the youngest child.
 1304         Section 8. Section 121.5912, Florida Statutes, is amended
 1305  to read:
 1306         121.5912 Survivor benefit retirement program; qualified
 1307  status; rulemaking authority.—It is the intent of the
 1308  Legislature that the survivor benefit retirement program for
 1309  Special Risk Class members of the Florida Retirement System
 1310  Investment Plan meet all applicable requirements for a qualified
 1311  plan. If the state board or the division receives notification
 1312  from the Internal Revenue Service that this program or any
 1313  portion of this program will cause the retirement system, or any
 1314  portion thereof, to be disqualified for tax purposes under the
 1315  Internal Revenue Code, the portion that will cause the
 1316  disqualification does not apply. Upon such notice, the state
 1317  board or the division shall notify the presiding officers of the
 1318  Legislature. The state board and the department may adopt any
 1319  rules necessary to maintain the qualified status of the survivor
 1320  benefit retirement program.
 1321         Section 9. Subsections (1) and (3) of section 121.735,
 1322  Florida Statutes, are amended to read:
 1323         121.735 Allocations for member line-of-duty death benefits;
 1324  percentage amounts.—
 1325         (1) The allocations established in subsection (3) shall be
 1326  used to provide line-of-duty death benefit coverage for Special
 1327  Risk Class members in the investment plan and shall be
 1328  transferred monthly by the division from the Florida Retirement
 1329  System Contributions Clearing Trust Fund to the survivor benefit
 1330  account of the Florida Retirement System Trust Fund.
 1331         (3) Effective July 1, 2017 2016, allocations from the
 1332  Florida Retirement System Contributions Clearing Trust Fund to
 1333  provide line-of-duty death benefits for Special Risk Class
 1334  members in the investment plan and to offset the costs of
 1335  administering said coverage, are as follows:
 1336  
 1337  
 1338  Membership Class                  Percentage of Gross Compensation 
 1339  Regular Class                                  0.05%               
 1340  Special Risk Class                          1.15% 0.82%            
 1341  Special Risk Administrative Support Class              0.03%               
 1342  Elected Officers’ Class—Legislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders              0.15%               
 1343  Elected Officers’ Class—Justices, Judges              0.09%               
 1344  Elected Officers’ Class—County Elected Officers              0.20%               
 1345  Senior Management Service Class                0.05%               
 1346         Section 10. The Legislature shall review the current status
 1347  of research programs, funded wholly or in part by the General
 1348  Appropriations Act, which study the incidence of cancer in
 1349  firefighters. This review must be conducted before the convening
 1350  of the 2018 Regular Session of the Legislature to determine
 1351  whether any further statutory changes are necessary as a result
 1352  of the enactment of s. 112.1816, Florida Statutes, by this act.
 1353         Section 11. (1) In order to fund the benefit changes
 1354  provided in this act, the required employer contribution rate
 1355  for members of the Florida Retirement System established in s.
 1356  121.71(4), Florida Statutes, are adjusted as follows:
 1357         (a) The Regular Class is increased by 0.01 percentage
 1358  point.
 1359         (b) The Special Risk Class is increased by 0.06 percentage
 1360  point.
 1361         (c) The Special Risk Administrative Support Class is
 1362  increased by 0.02 percentage point.
 1363         (d) The Elected Officers’ Class—Legislators, Governor, Lt.
 1364  Governor, Cabinet Officers, State Attorneys, and Public
 1365  Defenders is increased by 0.04 percentage point.
 1366         (e) The Elected Officers’ Class—Justices, Judges is
 1367  increased by 0.01 percentage point.
 1368         (f) The Elected Officers’ Class—County Elected Officers is
 1369  increased by 0.06 percentage point.
 1370         (g) The Senior Management Service Class is increased by
 1371  0.01 percentage point.
 1372         (2) In order to fund the benefit changes provided in this
 1373  act, the required employer contribution rate for the unfunded
 1374  actuarial liability of the Florida Retirement System established
 1375  in s. 121.71(5), Florida Statutes, for the Special Risk Class is
 1376  increased by 0.12 percentage point.
 1377         (3) The adjustments provided in subsections (1) and (2) are
 1378  in addition to any other changes to such contribution rates
 1379  which may be enacted into law to take effect on July 1, 2017.
 1380  The Division of Law Revision and Information is directed to
 1381  adjust accordingly the contribution rates provided in s. 121.71,
 1382  Florida Statutes.
 1383         Section 12. The Legislature finds that a proper and
 1384  legitimate state purpose is served when employees and retirees
 1385  of the state and its political subdivisions, and the dependents,
 1386  survivors, and beneficiaries of such employees and retirees, are
 1387  extended the basic protections afforded by governmental
 1388  retirement systems. These persons must be provided benefits that
 1389  are fair and adequate and that are managed, administered, and
 1390  funded in an actuarially sound manner, as required by s. 14,
 1391  Article X of the State Constitution and part VII of chapter 112,
 1392  Florida Statutes. Therefore, the Legislature determines and
 1393  declares that this act fulfills an important state interest.
 1394         Section 13. Subsection (2) and paragraphs (b), (f), (h),
 1395  and (j) of subsection (3) of section 110.123, Florida Statutes,
 1396  are amended, and paragraph (k) is added to subsection (3) of
 1397  that section, to read:
 1398         110.123 State group insurance program.—
 1399         (2) DEFINITIONS.—As used in ss. 110.123-110.1239 this
 1400  section, the term:
 1401         (a) “Department” means the Department of Management
 1402  Services.
 1403         (b) “Enrollee” means all state officers and employees,
 1404  retired state officers and employees, surviving spouses of
 1405  deceased state officers and employees, and terminated employees
 1406  or individuals with continuation coverage who are enrolled in an
 1407  insurance plan offered by the state group insurance program.
 1408  “Enrollee” includes all state university officers and employees,
 1409  retired state university officers and employees, surviving
 1410  spouses of deceased state university officers and employees, and
 1411  terminated state university employees or individuals with
 1412  continuation coverage who are enrolled in an insurance plan
 1413  offered by the state group insurance program.
 1414         (c) “Full-time state employees” means employees of all
 1415  branches or agencies of state government holding salaried
 1416  positions who are paid by state warrant or from agency funds and
 1417  who work or are expected to work an average of at least 30 or
 1418  more hours per week; employees paid from regular salary
 1419  appropriations for 8 months’ employment, including university
 1420  personnel on academic contracts; and employees paid from other
 1421  personal-services (OPS) funds as described in subparagraphs 1.
 1422  and 2. The term includes all full-time employees of the state
 1423  universities. The term does not include seasonal workers who are
 1424  paid from OPS funds.
 1425         1. For persons hired before April 1, 2013, the term
 1426  includes any person paid from OPS funds who:
 1427         a. Has worked an average of at least 30 hours or more per
 1428  week during the initial measurement period from April 1, 2013,
 1429  through September 30, 2013; or
 1430         b. Has worked an average of at least 30 hours or more per
 1431  week during a subsequent measurement period.
 1432         2. For persons hired after April 1, 2013, the term includes
 1433  any person paid from OPS funds who:
 1434         a. Is reasonably expected to work an average of at least 30
 1435  hours or more per week; or
 1436         b. Has worked an average of at least 30 hours or more per
 1437  week during the person’s measurement period.
 1438         (d) “Health maintenance organization” or “HMO” means an
 1439  entity certified under part I of chapter 641.
 1440         (e) “Health plan member” means any person participating in
 1441  a state group health insurance plan, a TRICARE supplemental
 1442  insurance plan, or a health maintenance organization plan under
 1443  the state group insurance program, including enrollees and
 1444  covered dependents thereof.
 1445         (f) “Part-time state employee” means an employee of any
 1446  branch or agency of state government paid by state warrant from
 1447  salary appropriations or from agency funds, and who is employed
 1448  for less than an average of 30 hours per week or, if on academic
 1449  contract or seasonal or other type of employment which is less
 1450  than year-round, is employed for less than 8 months during any
 1451  12-month period, but does not include a person paid from other
 1452  personal-services (OPS) funds. The term includes all part-time
 1453  employees of the state universities.
 1454         (g) “Plan year” means a calendar year.
 1455         (h)(g) “Retired state officer or employee” or “retiree”
 1456  means any state or state university officer or employee who
 1457  retires under a state retirement system or a state optional
 1458  annuity or retirement program or is placed on disability
 1459  retirement, and who was insured under the state group insurance
 1460  program at the time of retirement, and who begins receiving
 1461  retirement benefits immediately after retirement from state or
 1462  state university office or employment. The term also includes
 1463  any state officer or state employee who retires under the
 1464  Florida Retirement System Investment Plan established under part
 1465  II of chapter 121 if he or she:
 1466         1. Meets the age and service requirements to qualify for
 1467  normal retirement as set forth in s. 121.021(29); or
 1468         2. Has attained the age specified by s. 72(t)(2)(A)(i) of
 1469  the Internal Revenue Code and has 6 years of creditable service.
 1470         (i)(h) “State agency” or “agency” means any branch,
 1471  department, or agency of state government. “State agency” or
 1472  “agency” includes any state university for purposes of this
 1473  section only.
 1474         (j)(i) “Seasonal workers” has the same meaning as provided
 1475  under 29 C.F.R. s. 500.20(s)(1).
 1476         (k)(j) “State group health insurance plan or plans” or
 1477  “state plan or plans” mean the state self-insured health
 1478  insurance plan or plans offered to state officers and employees,
 1479  retired state officers and employees, and surviving spouses of
 1480  deceased state officers and employees pursuant to this section.
 1481         (l)(k) “State-contracted HMO” means any health maintenance
 1482  organization under contract with the department to participate
 1483  in the state group insurance program.
 1484         (m)(l) “State group insurance program” or “programs” means
 1485  the package of insurance plans offered to state officers and
 1486  employees, retired state officers and employees, and surviving
 1487  spouses of deceased state officers and employees pursuant to
 1488  this section, including the state group health insurance plan or
 1489  plans, health maintenance organization plans, TRICARE
 1490  supplemental insurance plans, and other plans required or
 1491  authorized by law.
 1492         (n)(m) “State officer” means any constitutional state
 1493  officer, any elected state officer paid by state warrant, or any
 1494  appointed state officer who is commissioned by the Governor and
 1495  who is paid by state warrant.
 1496         (o)(n) “Surviving spouse” means the widow or widower of a
 1497  deceased state officer, full-time state employee, part-time
 1498  state employee, or retiree if such widow or widower was covered
 1499  as a dependent under the state group health insurance plan, a
 1500  TRICARE supplemental insurance plan, or a health maintenance
 1501  organization plan established pursuant to this section at the
 1502  time of the death of the deceased officer, employee, or retiree.
 1503  “Surviving spouse” also means any widow or widower who is
 1504  receiving or eligible to receive a monthly state warrant from a
 1505  state retirement system as the beneficiary of a state officer,
 1506  full-time state employee, or retiree who died prior to July 1,
 1507  1979. For the purposes of this section, any such widow or
 1508  widower shall cease to be a surviving spouse upon his or her
 1509  remarriage.
 1510         (p)(o) “TRICARE supplemental insurance plan” means the
 1511  Department of Defense Health Insurance Program for eligible
 1512  members of the uniformed services authorized by 10 U.S.C. s.
 1513  1097.
 1514         (3) STATE GROUP INSURANCE PROGRAM.—
 1515         (b) It is the intent of the Legislature to offer a
 1516  comprehensive package of health insurance and retirement
 1517  benefits and a personnel system for state employees which are
 1518  provided in a cost-efficient and prudent manner, and to allow
 1519  state employees the option to choose benefit plans which best
 1520  suit their individual needs. Therefore, The state group
 1521  insurance program is established which may include the state
 1522  group health insurance plan or plans, health maintenance
 1523  organization plans, group life insurance plans, TRICARE
 1524  supplemental insurance plans, group accidental death and
 1525  dismemberment plans, and group disability insurance plans,.
 1526  Furthermore, the department is additionally authorized to
 1527  establish and provide as part of the state group insurance
 1528  program any other group insurance plans or coverage choices, and
 1529  other benefits authorized by law that are consistent with the
 1530  provisions of s. 125 of the Internal Revenue Code this section.
 1531         (f) Except as provided for in subparagraph (h)2., the state
 1532  contribution toward the cost of any plan in the state group
 1533  insurance program shall be uniform with respect to all state
 1534  employees in a state collective bargaining unit participating in
 1535  the same coverage tier in the same plan. This section does not
 1536  prohibit the development of separate benefit plans for officers
 1537  and employees exempt from the career service or the development
 1538  of separate benefit plans for each collective bargaining unit.
 1539  For the 2020 plan year and each plan year thereafter, if the
 1540  state’s contribution is more than the premium cost of the health
 1541  plan selected by the employee, subject to federal limitation,
 1542  the employee may elect to have the balance:
 1543         1. Credited to the employee’s flexible spending account;
 1544         2. Credited to the employee’s health savings account;
 1545         3. Used to purchase additional benefits offered through the
 1546  state group insurance program; or
 1547         4. Used to increase the employee’s salary.
 1548         (h)1. A person eligible to participate in the state group
 1549  insurance program may be authorized by rules adopted by the
 1550  department, in lieu of participating in the state group health
 1551  insurance plan, to exercise an option to elect membership in a
 1552  health maintenance organization plan which is under contract
 1553  with the state in accordance with criteria established by this
 1554  section and by said rules. The offer of optional membership in a
 1555  health maintenance organization plan permitted by this paragraph
 1556  may be limited or conditioned by rule as may be necessary to
 1557  meet the requirements of state and federal laws.
 1558         2. The department shall contract with health maintenance
 1559  organizations seeking to participate in the state group
 1560  insurance program through a request for proposal or other
 1561  procurement process, as developed by the Department of
 1562  Management Services and determined to be appropriate.
 1563         a. The department shall establish a schedule of minimum
 1564  benefits for health maintenance organization coverage, and that
 1565  schedule shall include: physician services; inpatient and
 1566  outpatient hospital services; emergency medical services,
 1567  including out-of-area emergency coverage; diagnostic laboratory
 1568  and diagnostic and therapeutic radiologic services; mental
 1569  health, alcohol, and chemical dependency treatment services
 1570  meeting the minimum requirements of state and federal law;
 1571  skilled nursing facilities and services; prescription drugs;
 1572  age-based and gender-based wellness benefits; and other benefits
 1573  as may be required by the department. Additional services may be
 1574  provided subject to the contract between the department and the
 1575  HMO. As used in this paragraph, the term “age-based and gender
 1576  based wellness benefits” includes aerobic exercise, education in
 1577  alcohol and substance abuse prevention, blood cholesterol
 1578  screening, health risk appraisals, blood pressure screening and
 1579  education, nutrition education, program planning, safety belt
 1580  education, smoking cessation, stress management, weight
 1581  management, and women’s health education.
 1582         b. The department may establish uniform deductibles,
 1583  copayments, coverage tiers, or coinsurance schedules for all
 1584  participating HMO plans.
 1585         c. The department may require detailed information from
 1586  each health maintenance organization participating in the
 1587  procurement process, including information pertaining to
 1588  organizational status, experience in providing prepaid health
 1589  benefits, accessibility of services, financial stability of the
 1590  plan, quality of management services, accreditation status,
 1591  quality of medical services, network access and adequacy,
 1592  performance measurement, ability to meet the department’s
 1593  reporting requirements, and the actuarial basis of the proposed
 1594  rates and other data determined by the director to be necessary
 1595  for the evaluation and selection of health maintenance
 1596  organization plans and negotiation of appropriate rates for
 1597  these plans. Upon receipt of proposals by health maintenance
 1598  organization plans and the evaluation of those proposals, the
 1599  department may enter into negotiations with all of the plans or
 1600  a subset of the plans, as the department determines appropriate.
 1601  Nothing shall preclude the department from negotiating regional
 1602  or statewide contracts with health maintenance organization
 1603  plans when this is cost-effective and when the department
 1604  determines that the plan offers high value to enrollees.
 1605         d. The department may limit the number of HMOs that it
 1606  contracts with in each service area based on the nature of the
 1607  bids the department receives, the number of state employees in
 1608  the service area, or any unique geographical characteristics of
 1609  the service area. The department shall establish by rule service
 1610  areas throughout the state.
 1611         e. All persons participating in the state group insurance
 1612  program may be required to contribute towards a total state
 1613  group health premium that may vary depending upon the plan,
 1614  benefit level, and coverage tier selected by the enrollee and
 1615  the level of state contribution authorized by the Legislature.
 1616         3. The department is authorized to negotiate and to
 1617  contract with specialty psychiatric hospitals for mental health
 1618  benefits, on a regional basis, for alcohol, drug abuse, and
 1619  mental and nervous disorders. The department may establish,
 1620  subject to the approval of the Legislature pursuant to
 1621  subsection (5), any such regional plan upon completion of an
 1622  actuarial study to determine any impact on plan benefits and
 1623  premiums.
 1624         4. In addition to contracting pursuant to subparagraph 2.,
 1625  the department may enter into contract with any HMO to
 1626  participate in the state group insurance program which:
 1627         a. Serves greater than 5,000 recipients on a prepaid basis
 1628  under the Medicaid program;
 1629         b. Does not currently meet the 25-percent non-Medicare/non
 1630  Medicaid enrollment composition requirement established by the
 1631  Department of Health excluding participants enrolled in the
 1632  state group insurance program;
 1633         c. Meets the minimum benefit package and copayments and
 1634  deductibles contained in sub-subparagraphs 2.a. and b.;
 1635         d. Is willing to participate in the state group insurance
 1636  program at a cost of premiums that is not greater than 95
 1637  percent of the cost of HMO premiums accepted by the department
 1638  in each service area; and
 1639         e. Meets the minimum surplus requirements of s. 641.225.
 1640  
 1641  The department is authorized to contract with HMOs that meet the
 1642  requirements of sub-subparagraphs a.-d. prior to the open
 1643  enrollment period for state employees. The department is not
 1644  required to renew the contract with the HMOs as set forth in
 1645  this paragraph more than twice. Thereafter, the HMOs shall be
 1646  eligible to participate in the state group insurance program
 1647  only through the request for proposal or invitation to negotiate
 1648  process described in subparagraph 2.
 1649         5. All enrollees in a state group health insurance plan, a
 1650  TRICARE supplemental insurance plan, or any health maintenance
 1651  organization plan have the option of changing to any other
 1652  health plan that is offered by the state within any open
 1653  enrollment period designated by the department. Open enrollment
 1654  shall be held at least once each calendar year.
 1655         6. When a contract between a treating provider and the
 1656  state-contracted health maintenance organization is terminated
 1657  for any reason other than for cause, each party shall allow any
 1658  enrollee for whom treatment was active to continue coverage and
 1659  care when medically necessary, through completion of treatment
 1660  of a condition for which the enrollee was receiving care at the
 1661  time of the termination, until the enrollee selects another
 1662  treating provider, or until the next open enrollment period
 1663  offered, whichever is longer, but no longer than 6 months after
 1664  termination of the contract. Each party to the terminated
 1665  contract shall allow an enrollee who has initiated a course of
 1666  prenatal care, regardless of the trimester in which care was
 1667  initiated, to continue care and coverage until completion of
 1668  postpartum care. This does not prevent a provider from refusing
 1669  to continue to provide care to an enrollee who is abusive,
 1670  noncompliant, or in arrears in payments for services provided.
 1671  For care continued under this subparagraph, the program and the
 1672  provider shall continue to be bound by the terms of the
 1673  terminated contract. Changes made within 30 days before
 1674  termination of a contract are effective only if agreed to by
 1675  both parties.
 1676         7. Any HMO participating in the state group insurance
 1677  program shall submit health care utilization and cost data to
 1678  the department, in such form and in such manner as the
 1679  department shall require, as a condition of participating in the
 1680  program. The department shall enter into negotiations with its
 1681  contracting HMOs to determine the nature and scope of the data
 1682  submission and the final requirements, format, penalties
 1683  associated with noncompliance, and timetables for submission.
 1684  These determinations shall be adopted by rule.
 1685         8. The department may establish and direct, with respect to
 1686  collective bargaining issues, a comprehensive package of
 1687  insurance benefits that may include supplemental health and life
 1688  coverage, dental care, long-term care, vision care, and other
 1689  benefits it determines necessary to enable state employees to
 1690  select from among benefit options that best suit their
 1691  individual and family needs. Beginning with the 2018 plan year,
 1692  the package of benefits may also include products and services
 1693  described in s. 110.12303.
 1694         a. Based upon a desired benefit package, the department
 1695  shall issue a request for proposal or invitation to negotiate
 1696  for health insurance providers interested in participating in
 1697  the state group insurance program, and the department shall
 1698  issue a request for proposal or invitation to negotiate for
 1699  insurance providers interested in participating in the non
 1700  health-related components of the state group insurance program.
 1701  Upon receipt of all proposals, the department may enter into
 1702  contract negotiations with insurance providers submitting bids
 1703  or negotiate a specially designed benefit package. Insurance
 1704  Providers offering or providing supplemental coverage as of May
 1705  30, 1991, which qualify for pretax benefit treatment pursuant to
 1706  s. 125 of the Internal Revenue Code of 1986, with 5,500 or more
 1707  state employees currently enrolled may be included by the
 1708  department in the supplemental insurance benefit plan
 1709  established by the department without participating in a request
 1710  for proposal, submitting bids, negotiating contracts, or
 1711  negotiating a specially designed benefit package. These
 1712  contracts shall provide state employees with the most cost
 1713  effective and comprehensive coverage available; however, except
 1714  as provided in subparagraph (f)3., no state or agency funds
 1715  shall be contributed toward the cost of any part of the premium
 1716  of such supplemental benefit plans. With respect to dental
 1717  coverage, the division shall include in any solicitation or
 1718  contract for any state group dental program made after July 1,
 1719  2001, a comprehensive indemnity dental plan option which offers
 1720  enrollees a completely unrestricted choice of dentists. If a
 1721  dental plan is endorsed, or in some manner recognized as the
 1722  preferred product, such plan shall include a comprehensive
 1723  indemnity dental plan option which provides enrollees with a
 1724  completely unrestricted choice of dentists.
 1725         b. Pursuant to the applicable provisions of s. 110.161, and
 1726  s. 125 of the Internal Revenue Code of 1986, the department
 1727  shall enroll in the pretax benefit program those state employees
 1728  who voluntarily elect coverage in any of the supplemental
 1729  insurance benefit plans as provided by sub-subparagraph a.
 1730         c. Nothing herein contained shall be construed to prohibit
 1731  insurance providers from continuing to provide or offer
 1732  supplemental benefit coverage to state employees as provided
 1733  under existing agency plans.
 1734         (j)1. For the 2020 plan year and each plan year thereafter,
 1735  health plans shall be offered in the following benefit levels:
 1736         a. Platinum level, which shall have an actuarial value of
 1737  at least 90 percent.
 1738         b. Gold level, which shall have an actuarial value of at
 1739  least 80 percent.
 1740         c. Silver level, which shall have an actuarial value of at
 1741  least 70 percent.
 1742         d. Bronze level, which shall have an actuarial value of at
 1743  least 60 percent.
 1744         2. For purposes of this paragraph, the term “actuarial
 1745  value” means the percentage paid by a health plan of the
 1746  percentage of the total allowed costs of benefits
 1747  Notwithstanding paragraph (f) requiring uniform contributions,
 1748  and for the 2011-2012 fiscal year only, the state contribution
 1749  toward the cost of any plan in the state group insurance plan is
 1750  the difference between the overall premium and the employee
 1751  contribution. This subsection expires June 30, 2012.
 1752         (k) In consultation with the independent benefits
 1753  consultant described in s. 110.12304, the department shall
 1754  develop a plan for implementation of the benefit levels
 1755  described in paragraph (j). The plan shall be submitted to the
 1756  Governor, the President of the Senate, and the Speaker of the
 1757  House of Representatives by January 1, 2019, and must include an
 1758  actuarial study of the trends, costs, and savings over the next
 1759  15 years which are associated with the implementation of benefit
 1760  levels for employers and enrollees. The plan must also include
 1761  recommendations for:
 1762         1. Employer and enrollee contribution policies.
 1763         2. Steps necessary for maintaining or improving total
 1764  employee compensation levels.
 1765         3. An education strategy to inform employees of the
 1766  additional choices available in the state group insurance
 1767  program.
 1768  
 1769  This paragraph expires July 1, 2019.
 1770         Section 14. Section 110.12303, Florida Statutes, is created
 1771  to read:
 1772         110.12303 State group insurance program; additional
 1773  benefits; price transparency program; reporting.—Beginning with
 1774  the 2018 plan year:
 1775         (1) In addition to the comprehensive package of health
 1776  insurance and other benefits required or authorized to be
 1777  included in the state group insurance program, the package of
 1778  benefits may also include products and services consistent with
 1779  the provisions of s. 125 of the Internal Revenue Code which are
 1780  offered by:
 1781         (a) Prepaid limited health service organizations authorized
 1782  pursuant to part I of chapter 636.
 1783         (b) Discount medical plan organizations authorized pursuant
 1784  to part II of chapter 636.
 1785         (c) Prepaid health clinics licensed under part II of
 1786  chapter 641.
 1787         (d) Licensed health care providers, including hospitals and
 1788  other health care facilities, health care clinics, and health
 1789  professionals, who sell service contracts and arrangements for a
 1790  specified amount and type of health services.
 1791         (e) Provider organizations, including service networks,
 1792  group practices, professional associations, and other
 1793  incorporated organizations of providers, who sell service
 1794  contracts and arrangements for a specified amount and type of
 1795  health services.
 1796         (f) Entities that provide specific health services in
 1797  accordance with applicable state law and sell service contracts
 1798  and arrangements for a specified amount and type of health
 1799  services.
 1800         (g) Entities that provide health services or treatments
 1801  through a bidding process.
 1802         (h) Entities that provide health services or treatments
 1803  through the bundling or aggregating of health services or
 1804  treatments.
 1805         (i) Entities that provide other innovative and cost
 1806  effective health service delivery methods.
 1807         (2)(a) The department shall contract with at least one
 1808  entity that provides comprehensive pricing and inclusive
 1809  services for surgery and other medical procedures which may be
 1810  accessed at the option of the enrollee. The contract shall
 1811  require the entity to:
 1812         1. Have procedures and evidence-based standards to ensure
 1813  the inclusion of only high-quality health care providers.
 1814         2. Provide assistance to the enrollee in accessing and
 1815  coordinating care.
 1816         3. Provide cost savings to the state group insurance
 1817  program to be shared equally with both the state and the
 1818  enrollee. Cost savings payable to an enrollee may be:
 1819         a. Credited to the enrollee’s flexible spending account;
 1820         b. Credited to the enrollee’s health savings account;
 1821         c. Credited to the enrollee’s health reimbursement account;
 1822  or
 1823         d. Paid as additional health plan reimbursements not
 1824  exceeding the amount of the enrollee’s out-of-pocket medical
 1825  expenses.
 1826         4. Provide, subject to approval by the department, an
 1827  educational campaign for enrollees to learn about the services
 1828  offered by the entity.
 1829         (b)1. On or before February 1 of each year, the department
 1830  shall report to the Governor, the President of the Senate, and
 1831  the Speaker of the House of Representatives on the participation
 1832  level and cost-savings to both the enrollee and the state
 1833  resulting from the contract or contracts described in this
 1834  subsection.
 1835         2. In preparation of its report, the department must use
 1836  the official information developed by the Self-Insurance
 1837  Estimating Conference relating to the cost savings of the
 1838  program.
 1839         (3) The department shall contract with an entity that
 1840  provides enrollees with online information on the cost and
 1841  quality of health care services and providers, allows an
 1842  enrollee to shop for health care services and providers, and
 1843  rewards the enrollee by sharing savings generated by the
 1844  enrollee’s choice of services or providers. The contract shall
 1845  require the entity to:
 1846         (a) Establish an Internet-based, consumer-friendly platform
 1847  that educates and informs enrollees about the price and quality
 1848  of health care services and providers, including the average
 1849  amount paid in each county for health care services and
 1850  providers. The average amounts paid for such services and
 1851  providers may be expressed for service bundles, which include
 1852  all products and services associated with a particular treatment
 1853  or episode of care, or for separate and distinct products and
 1854  services.
 1855         (b) Allow enrollees to shop for health care services and
 1856  providers using the price and quality information provided on
 1857  the Internet-based platform.
 1858         (c) Permit a certified bargaining agent of state employees
 1859  to provide educational materials and counseling, subject to
 1860  approval by the department, to enrollees regarding the Internet
 1861  based platform.
 1862         (d) Identify the savings realized to the enrollee and state
 1863  if the enrollee chooses high-quality, lower-cost health care
 1864  services or providers, and facilitate a shared savings payment
 1865  to the enrollee. The amount of shared savings shall be
 1866  determined by a methodology approved by the department and shall
 1867  maximize value-based purchasing by enrollees. The amount payable
 1868  to the enrollee may be:
 1869         1. Credited to the enrollee’s flexible spending account;
 1870         2. Credited to the enrollee’s health savings account;
 1871         3. Credited to the enrollee’s health reimbursement account;
 1872  or
 1873         4. Paid as additional health plan reimbursements not
 1874  exceeding the amount of the enrollee’s out-of-pocket medical
 1875  expenses.
 1876         (e)1. On or before February 1 of each year, the department
 1877  shall report to the Governor, the President of the Senate, and
 1878  the Speaker of the House of Representatives on the participation
 1879  level, amount paid to enrollees, and cost-savings to both the
 1880  enrollees and the state resulting from the implementation of
 1881  this subsection.
 1882         2. In preparation of its report, the department must use
 1883  the official information developed by the Self-Insurance
 1884  Estimating Conference relating to the cost savings of the
 1885  program.
 1886         (4)(a) The programs established pursuant to subsections (2)
 1887  and (3) are limited to enrollees in the self-insured products
 1888  offered through the state group insurance program.
 1889         (b) The programs may be expanded to include enrollees in
 1890  the fully insured products if the department and the state
 1891  contracted HMO execute an agreement on the implementation of the
 1892  program, including a limited program, which does not result in
 1893  additional costs to the state group insurance program.
 1894         Section 15. Section 110.12304, Florida Statutes, is created
 1895  to read:
 1896         110.12304 Independent benefits consultant.—
 1897         (1) The department shall competitively procure an
 1898  independent benefits consultant.
 1899         (2) The independent benefits consultant may not:
 1900         (a) Be owned or controlled by a health maintenance
 1901  organization or insurer.
 1902         (b) Have an ownership interest in a health maintenance
 1903  organization or insurer.
 1904         (c) Have a direct or indirect financial interest in a
 1905  health maintenance organization or insurer.
 1906         (3) The independent benefits consultant must have
 1907  substantial experience in consultation and design of employee
 1908  benefit programs for large employers and public employers,
 1909  including experience with plans that qualify as cafeteria plans
 1910  under s. 125 of the Internal Revenue Code of 1986.
 1911         (4) The independent benefits consultant shall:
 1912         (a) Provide an ongoing assessment of trends in benefits and
 1913  employer-sponsored insurance that affect the state group
 1914  insurance program.
 1915         (b) Conduct a comprehensive analysis of the state group
 1916  insurance program, including available benefits, coverage
 1917  options, and claims experience.
 1918         (c) Identify and establish appropriate adjustment
 1919  procedures necessary to respond to any risk segmentation that
 1920  may occur when increased choices are offered to employees.
 1921         (d) Assist the department with the submission of any
 1922  necessary plan revisions for federal review.
 1923         (e) Assist the department in ensuring compliance with
 1924  applicable federal and state regulations.
 1925         (f) Assist the department in monitoring the adequacy of
 1926  funding and reserves for the state self-insured plan.
 1927         (g) Assist the department in preparing recommendations for
 1928  any modifications to the state group insurance program which
 1929  shall be submitted to the Governor, the President of the Senate,
 1930  and the Speaker of the House of Representatives by January 1 of
 1931  each year.
 1932         Section 16. (1) For the 2017-2018 fiscal year, the sums of
 1933  $151,216 in recurring funds and $507,546 in nonrecurring funds
 1934  are appropriated from the State Employees Health Insurance Trust
 1935  Fund to the Department of Management Services, and two full-time
 1936  equivalent positions and associated salary rate of 120,000 are
 1937  authorized, for the purpose of implementing this act.
 1938         (2)(a) The recurring funds appropriated in this section
 1939  shall be allocated to the following specific appropriation
 1940  categories within the Insurance Benefits Administration Program:
 1941  $150,528 in Salaries and Benefits and $688 in Special Categories
 1942  Transfer to Department of Management Services—Human Resources
 1943  Purchased per Statewide Contract.
 1944         (b) The nonrecurring funds appropriated in this section
 1945  shall be allocated to the following specific appropriation
 1946  categories: $500,000 in Special Categories Contracted Services
 1947  and $7,546 in Expenses.
 1948         Section 17. (1) PURPOSE.—This section provides instructions
 1949  for implementing the 2017-2018 fiscal year salary and benefit
 1950  adjustments provided in this act. All allocations,
 1951  distributions, and uses of these funds are to be made in strict
 1952  accordance with the provisions of this act and chapter 216,
 1953  Florida Statutes.
 1954         (2) LEGISLATIVE INTENT.—It is the intent of the Legislature
 1955  that the minimum for each pay grade and pay band may not be
 1956  adjusted during the 2017-2018 fiscal year and that the maximums
 1957  for each pay grade and pay band shall be adjusted upward by 6
 1958  percent, effective July 1, 2017. In addition, the Legislature
 1959  intends that all eligible employees receive the increases
 1960  specified in this section, even if the implementation of such
 1961  increases results in an employee’s salary exceeding the adjusted
 1962  pay grade maximum. Salary increases provided under this section
 1963  shall be prorated based on the full-time equivalency of the
 1964  employee’s position. Employees classified as other-personnel
 1965  services employees are not eligible for an increase based on the
 1966  implementation of increases authorized in this section.
 1967         (3) LAW ENFORCEMENT COMPENSATION ADJUSTMENTS.—
 1968         (a) Effective July 1, 2017, funds are provided in section
 1969  18 of this act to grant a competitive pay adjustment of 5
 1970  percent of each eligible law enforcement employee’s base rate of
 1971  pay on June 30, 2017, in the Department of Legal Affairs, the
 1972  Department of Agriculture and Consumer Services, the Department
 1973  of Financial Services, the Department of Law Enforcement, the
 1974  Department of Highway Safety and Motor Vehicles, the Department
 1975  of Business and Professional Regulation, and the Department of
 1976  the Lottery; the Fish and Wildlife Conservation Commission; the
 1977  offices of State Attorneys; and the Florida Commission on
 1978  Offender Review.
 1979         (b) For purposes of this subsection, the term “law
 1980  enforcement employee” means:
 1981         1. Sworn officers of the Law Enforcement, Florida Highway
 1982  Patrol, Special Agent, and Lottery Law Enforcement bargaining
 1983  units in the following classification codes: Law Enforcement
 1984  Officer (8515); Law Enforcement Corporal (8517); Law Enforcement
 1985  Sergeant (8519); Law Enforcement Investigator I (8540); Law
 1986  Enforcement Investigator II (8541); Law Enforcement Airplane
 1987  Pilot I (8532); Law Enforcement Airplane Pilot II (8534);
 1988  Special Agent Trainee (8580); Special Agent (8581); Special
 1989  Agent I (2724); Special Agent II (2608); Security Agent-FDLE
 1990  (8593); and Security Agent Supervisor-FDLE (8596).
 1991         2. Sworn officers in the following classification codes:
 1992  Law Enforcement Lieutenant (8522); Law Enforcement Captain (8525
 1993  and 8632); Law Enforcement Major (8526, 8626, and 8630); Special
 1994  Agent Supervisor (1126 and 8584); Inspector-FDLE (8590); and
 1995  Investigators I-VI (6661, 6662, 6663, 6664, 6665, and 6666).
 1996         (4) DEPARTMENT OF CORRECTIONS COMPENSATION ADJUSTMENTS.—
 1997         (a) Effective October 1, 2017, the Department of
 1998  Corrections shall adjust the minimum base rate of pay for its
 1999  positions in the correctional officer classification series as
 2000  follows:
 2001         1. Correctional officer (8003) to $33,500.
 2002         2. Correctional officer sergeant (8005) to $36,850.
 2003         3. Correctional officer lieutenant (8011) to $40,535.
 2004         4. Correctional officer captain (8013) to $44,589.
 2005         (b) Effective October 1, 2017, funds are provided in
 2006  section 18 of this act to fund the adjustments to the minimum
 2007  base rates of pay authorized in paragraph (a) and to fund
 2008  competitive pay adjustments to all other employees of the
 2009  Department of Corrections filling a position in the correctional
 2010  officer classification series (class codes 8003, 8005, 8011, and
 2011  8013). The adjustments to the base rate of pay shall be the
 2012  amount necessary to increase the employee’s base rate of pay as
 2013  of September 30, 2017, to the applicable class minimum specified
 2014  in paragraph (a) or by $2,500, whichever amount is greater.
 2015         (5) ASSISTANT PUBLIC DEFENDER COMPENSATION ADJUSTMENTS.
 2016  Effective October 1, 2017, funds are provided in section 18 of
 2017  this act to grant a competitive pay adjustment of 6 percent of
 2018  each eligible employee’s base rate of pay as of September 30,
 2019  2017, each eligible assistant public defender (class code 5901)
 2020  and each eligible assistant public defender chief (class code
 2021  5909). For purposes of this subsection, an “eligible employee”
 2022  means an employee filling a position as an assistant public
 2023  defender (class code 5901) or as an assistant public defender
 2024  chief (class code 5909) who has completed at least 3 years of
 2025  service as an attorney in the judicial circuit in which the
 2026  attorney is currently employed.
 2027         (6) COMPENSATION ADJUSTMENTS FOR CERTAIN OFFICERS AND
 2028  DESIGNATED EMPLOYEES.—
 2029         (a) For the period July 1, 2017, through September 30,
 2030  2017, the following officers and designated employees shall be
 2031  paid at the annual rate authorized in this paragraph:
 2032         1. Supreme Court Justices at the annual rate of $162,200.
 2033         2. District Court of Appeal Judges at the annual rate of
 2034  $154,140.
 2035         3. Circuit Court Judges at the annual rate of $146,080.
 2036         4. County Court Judges at the annual rate of $138,020.
 2037         5. State Attorneys at the annual rate of $154,140.
 2038         6. Public Defenders at the annual rate of $154,140.
 2039         7. Criminal Conflict and Civil Regional Counsels at the
 2040  annual rate of $105,000.
 2041         (b) Beginning October 1, 2017, from the funds provided in
 2042  section 18 of this act, the following officers and designated
 2043  employees shall be paid at the annual rate authorized in this
 2044  paragraph:
 2045         1. Supreme Court Justices at the annual rate of $178,420.
 2046         2. District Court of Appeal Judges at the annual rate of
 2047  $169,554.
 2048         3. Circuit Court Judges at the annual rate of $160,688.
 2049         4. County Court Judges at the annual rate of $151,822.
 2050         5. State Attorneys at the annual rate of $169,554.
 2051         6. Public Defenders at the annual rate of $169,554.
 2052         7. Criminal Conflict and Civil Regional Counsels at the
 2053  annual rate of $115,000.
 2054  
 2055  None of the officers, commission members, or employees whose
 2056  salaries have been fixed in this subsection shall receive any
 2057  supplemental salary or benefits from any county or municipality.
 2058         (7) EMPLOYEE AND OFFICER COMPENSATION ADJUSTMENTS.—
 2059         (a) For purposes of this subsection, the term “competitive
 2060  pay adjustment” means:
 2061         1. For employees with a base rate of pay of $40,000 or less
 2062  on September 30, 2017, an annual increase of $1,400.
 2063         2. For employees with a base rate of pay greater than
 2064  $40,000 on September 30, 2017, an annual increase of $1,000;
 2065  provided however, in no instance may an employee’s base rate of
 2066  pay be increased to an annual amount less than $41,400.
 2067  
 2068  For the purpose of determining the applicable increase for part
 2069  time employees, the full-time equivalent value of the base rate
 2070  of pay on September 30, 2017, shall be used; but the amount of
 2071  the annual increase for a part-time employee must be
 2072  proportional to the full-time equivalency of the employee’s
 2073  position.
 2074         (b) For purposes of this subsection, the term “eligible
 2075  employees” means employees who are, at a minimum, meeting their
 2076  required performance standards, if applicable. If an ineligible
 2077  employee achieves performance standards subsequent to the salary
 2078  increase implementation date but on or before the end of the
 2079  2017-2018 fiscal year, the employee may receive an increase;
 2080  however, such increase shall take effect on the date the
 2081  employee becomes eligible and is not retroactive to the salary
 2082  increase implementation date. In addition, the salary increase
 2083  provided under this section shall be prorated based on the full
 2084  time equivalency of the employee’s position. Employees
 2085  classified as being other-personnel-services employees are not
 2086  eligible for an increase.
 2087         (c) Effective October 1, 2017, funds are provided in
 2088  section 18 of this act to grant competitive pay adjustments for
 2089  all eligible employees in the Career Service, the Selected
 2090  Exempt Service, the Senior Management Service, the lottery pay
 2091  plan, the judicial branch pay plan, the legislative pay plan,
 2092  and the pay plans administered by the Justice Administration
 2093  Commission, except those officers and employees receiving
 2094  compensation adjustments pursuant to subsections (3), (4), (5),
 2095  and (6) and paragraphs (8)(c) and (8)(d).
 2096         (8) SPECIAL PAY ISSUES.—
 2097         (a) The Department of Highway Safety and Motor Vehicles is
 2098  authorized to increase the minimum annual salaries of current
 2099  and new employees hired to fill positions in the law enforcement
 2100  officer class (class code 8515) to $36,223. This paragraph is
 2101  effective upon becoming a law.
 2102         (b) From funds in section 18 of this act, the Department of
 2103  Veterans’ Affairs is authorized to implement its competitive pay
 2104  plan proposed in the department’s initial legislative budget
 2105  request to address recruitment and retention of its employees
 2106  who hold an active nursing assistant certification and fill a
 2107  position in one of the following classification codes: certified
 2108  nursing assistant (class code 5707); senior certified nursing
 2109  assistant (class code 5708); therapy aide I (class code 5556);
 2110  or therapy aide II (class code 5557).
 2111         (c) From funds in section 18 of this act, and beginning
 2112  October 1, 2017, the Justice Administrative Commission is
 2113  authorized to implement the salary adjustment proposed in its
 2114  initial legislative budget request for the Statewide Guardian Ad
 2115  Litem Program. To be eligible to receive this competitive pay
 2116  adjustment, the employee must be an employee of the Statewide
 2117  Guardian Ad Litem Program and must fill a position in one of the
 2118  following classification codes: child advocate manager (class
 2119  code 8401); senior child advocate manager (class code 8402);
 2120  volunteer recruiter (class code 8403); program attorney (class
 2121  code 8700); or senior program attorney (class code 8701).
 2122         (d) From the funds in section 18 of this act, and beginning
 2123  April 1, 2018, the Department of Legal Affairs is authorized to:
 2124         1. Increase the starting salary of employees in the
 2125  Attorney-Assistant Attorney General class (class code 7737) to
 2126  $43,900;
 2127         2. Grant a competitive pay adjustment of $6,000 to each
 2128  employee employed as an Assistant Attorney General (class code
 2129  7746) who has worked for the department for at least 2 years and
 2130  meets or exceeds performance expectations; and
 2131         3. Grant a competitive pay adjustment of $3,000 to each
 2132  employee employed as a Senior Assistant Attorney General (class
 2133  code 7747); Attorney Supervisor-Assistant Attorney General
 2134  (class code 7744); Special Counsel–Assistant Attorney General
 2135  (class code 7165); Chief–Assistant Attorney General (class code
 2136  7748); Assistant Statewide Prosecutor–Attorney (class code
 2137  8681); Assistant Statewide Prosecutor–Senior Attorney (class
 2138  code 8682); Assistant Statewide Prosecutor–Special Counsel
 2139  (class code 6120); or Assistant Statewide Prosecutor–Chief
 2140  (class code 9191) who has worked for the department for at least
 2141  2 years and meets or exceeds performance expectations.
 2142         (9) PAY ADDITIVES AND OTHER INCENTIVE PROGRAMS.—The
 2143  following pay additives and other incentive programs are
 2144  authorized for the 2017-2018 fiscal year from existing agency
 2145  resources consistent with the provisions of ss. 110.2035 and
 2146  216.251, Florida Statutes, the applicable rules adopted by the
 2147  Department of Management Services, and negotiated collective
 2148  bargaining agreements.
 2149         (a) Each agency is authorized to continue to pay, at the
 2150  levels in effect on June 30, 2007, on-call fees and shift
 2151  differentials as necessary to perform normal operations of the
 2152  agency.
 2153         (b) Each agency that had a training program in existence on
 2154  June 30, 2006, which included granting pay additives to
 2155  participating employees, is authorized to continue such training
 2156  program for the 2017-2018 fiscal year. Such additives shall be
 2157  granted in accordance with applicable law, administrative rules,
 2158  and collective bargaining agreements.
 2159         (c) Each agency is authorized to continue to grant
 2160  temporary special duties pay additives to employees assigned
 2161  additional duties as a result of another employee being absent
 2162  from work pursuant to the federal Family Medical Leave Act or
 2163  authorized military leave.
 2164         (d) Contingent upon the availability of funds, and at the
 2165  agency head’s discretion, each agency is authorized to grant
 2166  competitive pay adjustments to a cohort of 10 or fewer employees
 2167  sharing the same job classification or job occupations to
 2168  address retention, pay inequities, or other staffing issues. The
 2169  agency is responsible for retaining sufficient documentation
 2170  justifying any adjustments provided herein to an employee’s
 2171  compensation. The authority granted by this paragraph may be
 2172  used only once by each agency during the 2017-2018 fiscal year.
 2173         (e) Contingent upon the availability of funds, and at the
 2174  agency head’s discretion, each agency is authorized to grant a
 2175  competitive pay adjustment to an employee to address retention,
 2176  pay inequities, or other staffing issues. The agency is
 2177  responsible for retaining sufficient documentation justifying
 2178  any adjustments provided herein to an employee’s compensation.
 2179         (f) Each agency is authorized to grant merit pay increases
 2180  based on the employee’s exemplary performance as evidenced by a
 2181  performance evaluation conducted pursuant to chapter 60L-35,
 2182  Florida Administrative Code, or a similar performance evaluation
 2183  applicable to other pay plans. The Chief Justice may exempt
 2184  judicial branch employees from the performance evaluation
 2185  requirements of this paragraph.
 2186         (g) Contingent upon the availability of funds and at the
 2187  agency head’s discretion, each agency is authorized to grant a
 2188  temporary special duties pay additive, of up to 15 percent of
 2189  the employee’s base rate of pay, to each employee temporarily
 2190  deployed to a facility or area closed due to emergency
 2191  conditions from another area of the state that is not closed.
 2192         (h) The Fish and Wildlife Conservation Commission may
 2193  continue to grant temporary special duty pay additives to law
 2194  enforcement officers who perform additional duties as K-9
 2195  handlers, regional recruiters/media coordinators, and breath
 2196  test operators/inspectors, and may grant temporary special duty
 2197  pay additives to law enforcement officers who perform additional
 2198  duties as offshore patrol vessel crew members, special
 2199  operations group members, and long-term covert investigators.
 2200         (i) The Fish and Wildlife Conservation Commission is
 2201  authorized to grant critical market pay additives to employees
 2202  residing in and assigned to Broward County, Collier County, Lee
 2203  County, Miami-Dade County, or Monroe County, at the levels that
 2204  the employing agency granted salary increases for similar
 2205  purposes before July 1, 2006. These critical market pay
 2206  additives may be granted only during the time in which the
 2207  employee resides in and is assigned to duties within those
 2208  counties. The employee may not receive an adjustment to the
 2209  employee’s base rate of pay and a critical market pay additive
 2210  based on the employee residing in and being assigned in the
 2211  specified counties.
 2212         (j) The Department of Highway Safety and Motor Vehicles is
 2213  authorized to grant critical market pay additives to sworn law
 2214  enforcement officers residing in and assigned to:
 2215         1. Collier County, Lee County, or Monroe County, at the
 2216  levels that the employing agency granted salary increases for
 2217  similar purposes before July 1, 2006.
 2218         2. Duval, Escambia, Hillsborough, Marion, Orange, and
 2219  Pinellas Counties, at $5,000, or, in lieu thereof, an equivalent
 2220  salary adjustment that was made during the 2015-2016 fiscal
 2221  year.
 2222         3. Pasco County at $5,000.
 2223  
 2224  These critical market pay additives may be granted only during
 2225  the time in which the employee resides in, and is assigned to
 2226  duties within, those counties. The employee may not receive an
 2227  adjustment to the employee’s base rate of pay and a critical
 2228  market pay additive based on the employee residing in and being
 2229  assigned in the specified counties.
 2230         (k) The Department of Highway Safety and Motor Vehicles may
 2231  grant special duty pay additives of $2,000 for law enforcement
 2232  officers who perform additional duties as K-9 handlers; felony
 2233  officers; criminal interdiction officers; criminal investigation
 2234  and intelligence officers; new recruit background checks and
 2235  training, and technical support officers; drug recognition
 2236  experts; hazardous material squad members; compliance
 2237  investigation squad members; motorcycle squad members; Quick
 2238  Response Force Team; or Florida Advanced Investigation and
 2239  Reconstruction Teams.
 2240         (l) The Department of Highway Safety and Motor Vehicles may
 2241  provide a critical market pay additive of $1,300 to non-sworn
 2242  Florida Highway Patrol personnel working and residing in Broward
 2243  and Miami-Dade Counties. These critical market pay additives
 2244  shall be granted during the time the employee resides in, and is
 2245  assigned duties within, those counties.
 2246         (m) The Department of Highway Safety and Motor Vehicles is
 2247  authorized to continue to grant a pay additive of $162.50 per
 2248  pay period for law enforcement officers assigned to the Office
 2249  of Motor Carrier Compliance who maintain certification by the
 2250  Commercial Vehicle Safety Alliance.
 2251         (n) The Department of Transportation is authorized to
 2252  continue its training program for employees in the areas of
 2253  transportation engineering, right-of-way acquisition, relocation
 2254  benefits administration, right-of-way property management, real
 2255  estate appraisal, and business valuation under the same
 2256  guidelines established for the training program before June 30,
 2257  2006.
 2258         (o) The Department of Corrections may continue to grant
 2259  hazardous duty pay additives, as necessary, to those employees
 2260  assigned to the Department of Corrections institutions’ Rapid
 2261  Response Teams, including the baton, shotgun, and chemical agent
 2262  teams, and the Correctional Emergency Response Teams.
 2263         (p) The Department of Corrections is authorized to award a
 2264  temporary special duties pay additive of up to 10 percent of the
 2265  employee’s base rate of pay for each certified correctional
 2266  officer (class code 8003); certified correctional officer
 2267  sergeant (class code 8005); certified correctional officer
 2268  lieutenant (class code 8011); and certified correctional officer
 2269  captain (class code 8013). For purposes of determining
 2270  eligibility for this special pay additive, the term “certified”
 2271  means the employee has obtained a correctional behavioral mental
 2272  health certification as provided through the American
 2273  Correctional Association. Such additive may be awarded only
 2274  during the time the certified officer is employed in an assigned
 2275  mental health unit post.
 2276         (q) The Department of Corrections is authorized to award a
 2277  one-time $1,000 hiring bonus to newly-hired correctional
 2278  officers (class code 8003) who are hired to fill positions at a
 2279  correctional institution that had a vacancy rate for such
 2280  positions of more than 10 percent for the preceding calendar
 2281  quarter. The bonus may not be awarded before the officer
 2282  obtaining his or her correctional officer certification. Current
 2283  employees and former employees who have had a break in service
 2284  with the Department of Corrections of 31 days or less, are not
 2285  eligible for this bonus.
 2286         Section 18. The sums of $112,210,610 of recurring funds in
 2287  the General Revenue Fund and $73,949,000 of recurring funds from
 2288  trust funds are appropriated for the salary adjustments
 2289  authorized in section 17 of this act. The Office of Policy and
 2290  Budget in the Executive Office of the Governor, in consultation
 2291  with the Legislature, shall distribute the funds and budget
 2292  authority to the state agencies and the legislative and judicial
 2293  branches in accordance with chapter 216, Florida Statutes.
 2294         Section 19. Except as otherwise expressly provided in this
 2295  act and except for this section, which shall take effect upon
 2296  becoming a law, this act shall take effect July 1, 2017.