Florida Senate - 2023 CS for SB 7024
By the Committees on Appropriations; and Governmental Oversight
and Accountability
576-03179-23 20237024c1
1 A bill to be entitled
2 An act relating to retirement; amending s. 112.363,
3 F.S.; providing that eligible retirees of the Florida
4 Retirement System pension plan must receive a certain
5 monthly retiree health insurance subsidy payment,
6 beginning on a specified date; specifying how such
7 payment is to be calculated; providing construction;
8 providing that eligible members of the Florida
9 Retirement System investment plan must receive a
10 certain monthly retiree health insurance subsidy
11 payment; specifying how such payment is to be
12 calculated; specifying that the member’s spouse at the
13 time of the member’s death is the member’s
14 beneficiary; providing an exception; requiring the
15 employer of members of a state-administered retirement
16 plan to contribute a certain percentage of gross
17 compensation each pay period, beginning on a specified
18 date; amending ss. 121.052, 121.055, and 121.071,
19 F.S.; revising the employer contribution rates for the
20 retiree health insurance subsidy; amending s. 121.71,
21 F.S.; revising required employer retirement
22 contribution rates for each membership class and
23 subclass of the Florida Retirement System; providing a
24 declaration of important state interest; providing an
25 effective date.
26
27 Be It Enacted by the Legislature of the State of Florida:
28
29 Section 1. Paragraph (f) is added to subsection (3) of
30 section 112.363, Florida Statutes, and paragraph (j) is added to
31 subsection (8) of that section, to read:
32 112.363 Retiree health insurance subsidy.—
33 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
34 (f)1. Beginning July 1, 2023, each eligible retiree of the
35 pension plan of the Florida Retirement System, or, if the
36 retiree is deceased, his or her beneficiary who is receiving a
37 monthly benefit from such retiree’s account and who is a spouse,
38 or a person who meets the definition of joint annuitant in s.
39 121.021, shall receive a monthly retiree health insurance
40 subsidy payment equal to the number of years of creditable
41 service, as defined in s. 121.021, completed at the time of
42 retirement multiplied by $7.50; however, an eligible retiree or
43 beneficiary may not receive a subsidy payment of more than $225
44 or less than $45. If there are multiple beneficiaries, the total
45 payment may not be greater than the payment to which the retiree
46 was entitled. The health insurance subsidy amount payable to any
47 person receiving the retiree health insurance subsidy payment on
48 July 1, 2023, may not be reduced solely by operation of this
49 subparagraph.
50 2. Beginning July 1, 2023, each eligible member of the
51 investment plan of the Florida Retirement System who has met the
52 requirements of this section, or, if the member is deceased, his
53 or her spouse who is the member’s designated beneficiary, shall
54 receive a monthly retiree health insurance subsidy payment equal
55 to the number of years of creditable service, as provided in
56 this subparagraph, completed at the time of retirement,
57 multiplied by $7.50; however, an eligible retiree or beneficiary
58 may not receive a subsidy payment of more than $225 or less than
59 $45. For purposes of determining a member’s creditable service
60 used to calculate the health insurance subsidy, a member’s years
61 of service credit or fraction thereof must be based on the
62 member’s work year as defined in s. 121.021(54). Credit must be
63 awarded for a full work year if health insurance subsidy
64 contributions have been made for each month in the member’s work
65 year. In addition, all years of creditable service retained
66 under the Florida Retirement System Pension Plan must be
67 included as creditable service for purposes of this section.
68 Notwithstanding this section, the spouse at the time of death is
69 the member’s beneficiary unless such member has designated a
70 different beneficiary subsequent to the member’s most recent
71 marriage.
72 (8) CONTRIBUTIONS.—For purposes of funding the insurance
73 subsidy provided by this section:
74 (j) Beginning July 1, 2023, the employer of each member of
75 a state-administered retirement plan shall contribute 2.00
76 percent of gross compensation each pay period.
77
78 Such contributions shall be submitted to the Department of
79 Management Services and deposited in the Retiree Health
80 Insurance Subsidy Trust Fund.
81 Section 2. Paragraph (d) of subsection (7) of section
82 121.052, Florida Statutes, is amended to read:
83 121.052 Membership class of elected officers.—
84 (7) CONTRIBUTIONS.—
85 (d) The following table states the required employer
86 contribution on behalf of each member of the Elected Officers’
87 Class in terms of a percentage of the member’s gross
88 compensation. Such contribution constitutes the entire health
89 insurance subsidy contribution with respect to each such member.
90 A change in the contribution rate is effective with the first
91 salary paid on or after the beginning date of the change. The
92 retiree health insurance subsidy contribution rate is as
93 follows:
94
95 Dates of Contribution Rate Changes ContributionRate
96
97 October 1, 1987, through December 31, 1988 0.24%
98 January 1, 1989, through December 31, 1993 0.48%
99 January 1, 1994, through December 31, 1994 0.56%
100 January 1, 1995, through June 30, 1998 0.66%
101 July 1, 1998, through June 30, 2001 0.94%
102 July 1, 2001, through June 30, 2013 1.11%
103 July 1, 2013, through June 30, 2014 1.20%
104 July 1, 2014, through June 30, 2015 1.26%
105
106 Effective July 1, 2015, through June 30, 2023 1.66%
107 Effective July 1, 2023 2.00%
108
109 Such contributions and accompanying payroll data are due and
110 payable no later than the 5th working day of the month
111 immediately following the month during which the payroll period
112 ended and shall be deposited by the administrator in the Retiree
113 Health Insurance Subsidy Trust Fund.
114 Section 3. Paragraph (d) of subsection (3) of section
115 121.055, Florida Statutes, is amended to read:
116 121.055 Senior Management Service Class.—There is hereby
117 established a separate class of membership within the Florida
118 Retirement System to be known as the “Senior Management Service
119 Class,” which shall become effective February 1, 1987.
120 (3)
121 (d) The following table states the required employer
122 contribution on behalf of each member of the Senior Management
123 Service Class in terms of a percentage of the member’s gross
124 compensation. Such contribution constitutes the entire health
125 insurance subsidy contribution with respect to each such member.
126 A change in the contribution rate is effective with the first
127 salary paid on or after the beginning date of the change. The
128 retiree health insurance subsidy contribution rate is as
129 follows:
130
131 Dates of Contribution Rate Changes ContributionRate
132
133 October 1, 1987, through December 31, 1988 0.24%
134 January 1, 1989, through December 31, 1993 0.48%
135 January 1, 1994, through December 31, 1994 0.56%
136 January 1, 1995, through June 30, 1998 0.66%
137 July 1, 1998, through June 30, 2001 0.94%
138 July 1, 2001, through June 30, 2013 1.11%
139 July 1, 2013, through June 30, 2014 1.20%
140 July 1, 2014, through June 30, 2015 1.26%
141
142 Effective July 1, 2015, through June 30, 2023 1.66%
143 Effective July 1, 2023 2.00%
144
145 Such contributions and accompanying payroll data are due and
146 payable no later than the 5th working day of the month
147 immediately following the month during which the payroll period
148 ended and shall be deposited by the administrator in the Retiree
149 Health Insurance Subsidy Trust Fund.
150 Section 4. Subsection (4) of section 121.071, Florida
151 Statutes, is amended to read:
152 121.071 Contributions.—Contributions to the system shall be
153 made as follows:
154 (4) The following table states the required employer
155 contribution on behalf of each member of the Regular Class,
156 Special Risk Class, or Special Risk Administrative Support Class
157 in terms of a percentage of the member’s gross compensation.
158 Such contribution constitutes the entire health insurance
159 subsidy contribution with respect to each such member. A change
160 in the contribution rate is effective with the first salary paid
161 on or after the beginning date of the change. The retiree health
162 insurance subsidy contribution rate is as follows:
163
164 Dates of Contribution Rate Changes ContributionRate
165
166 October 1, 1987, through December 31, 1988 0.24%
167 January 1, 1989, through December 31, 1993 0.48%
168 January 1, 1994, through December 31, 1994 0.56%
169 January 1, 1995, through June 30, 1998 0.66%
170 July 1, 1998, through June 30, 2001 0.94%
171 July 1, 2001, through June 30, 2013 1.11%
172 July 1, 2013, through June 30, 2014 1.20%
173 July 1, 2014, through June 30, 2015 1.26%
174
175 Effective July 1, 2015, through June 30, 2023 1.66%
176 Effective July 1, 2023 2.00%
177
178 Such contributions shall be deposited by the administrator in
179 the Retiree Health Insurance Subsidy Trust Fund.
180 Section 5. Subsections (4) and (5) of section 121.71,
181 Florida Statutes, are amended to read:
182 121.71 Uniform rates; process; calculations; levy.—
183 (4) Required employer retirement contribution rates for
184 each membership class and subclass of the Florida Retirement
185 System for both retirement plans are as follows:
186
187 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022
188
189 Regular Class 6.14% 5.96%
190 Special Risk Class 17.05% 16.44%
191 Special Risk Administrative Support Class 10.75% 10.77%
192 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 9.69% 9.31%
193 Elected Officers’ Class— Justices, Judges 14.64% 14.41%
194 Elected Officers’ Class— County Elected Officers 11.74% 11.30%
195 Senior Management Service Class 7.90% 7.70%
196 DROP 8.18% 7.79%
197 (5) In order to address unfunded actuarial liabilities of
198 the system, the required employer retirement contribution rates
199 for each membership class and subclass of the Florida Retirement
200 System for both retirement plans are as follows:
201
202 Membership Class Percentage ofGrossCompensation,EffectiveJuly 1, 2023 2022
203
204 Regular Class 4.72% 4.23%
205 Special Risk Class 10.83% 9.67%
206 Special Risk Administrative Support Class 25.02% 26.16%
207 Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders 49.85% 56.76%
208 Elected Officers’ Class— Justices, Judges 27.63% 27.64%
209 Elected Officers’ Class— County Elected Officers 44.04% 43.98%
210 Senior Management Service Class 23.61% 22.15%
211 DROP 10.01% 9.15%
212 Section 6. The Legislature finds that a proper and
213 legitimate state purpose is served when employees, officers, and
214 retirees of the state and its political subdivisions, and the
215 dependents, survivors, and beneficiaries of such employees,
216 officers, and retirees, are extended the basic protections
217 afforded by governmental retirement systems. These persons must
218 be provided benefits that are fair and adequate and that are
219 managed, administered, and funded in an actuarially sound manner
220 as required by s. 14, Article X of the State Constitution and
221 part VII of chapter 112, Florida Statutes. Therefore, the
222 Legislature determines and declares that this act fulfills an
223 important state interest.
224 Section 7. This act shall take effect July 1, 2023.