Florida Senate - 2017             CONFERENCE COMMITTEE AMENDMENT
       Bill No. SB 7022
       
       
       
       
       
       
                                Ì392578WÎ392578                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                 Floor: AD/CR          .           Floor: AD            
             05/08/2017 04:12 PM       .      05/08/2017 08:38 PM       
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       The Conference Committee on SB 7022 recommended the following:
       
    1         Senate Conference Committee Amendment (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsection (2) and paragraphs (b), (f), (h), and
    7  (j) of subsection (3) of section 110.123, Florida Statutes, are
    8  amended, and paragraph (k) is added to subsection (3) of that
    9  section, to read:
   10         110.123 State group insurance program.—
   11         (2) DEFINITIONS.—As used in ss. 110.123-110.1239 this
   12  section, the term:
   13         (a) “Department” means the Department of Management
   14  Services.
   15         (b) “Enrollee” means all state officers and employees,
   16  retired state officers and employees, surviving spouses of
   17  deceased state officers and employees, and terminated employees
   18  or individuals with continuation coverage who are enrolled in an
   19  insurance plan offered by the state group insurance program.
   20  “Enrollee” includes all state university officers and employees,
   21  retired state university officers and employees, surviving
   22  spouses of deceased state university officers and employees, and
   23  terminated state university employees or individuals with
   24  continuation coverage who are enrolled in an insurance plan
   25  offered by the state group insurance program.
   26         (c) “Full-time state employees” means employees of all
   27  branches or agencies of state government holding salaried
   28  positions who are paid by state warrant or from agency funds and
   29  who work or are expected to work an average of at least 30 or
   30  more hours per week; employees paid from regular salary
   31  appropriations for 8 months’ employment, including university
   32  personnel on academic contracts; and employees paid from other
   33  personal-services (OPS) funds as described in subparagraphs 1.
   34  and 2. The term includes all full-time employees of the state
   35  universities. The term does not include seasonal workers who are
   36  paid from OPS funds.
   37         1. For persons hired before April 1, 2013, the term
   38  includes any person paid from OPS funds who:
   39         a. Has worked an average of at least 30 hours or more per
   40  week during the initial measurement period from April 1, 2013,
   41  through September 30, 2013; or
   42         b. Has worked an average of at least 30 hours or more per
   43  week during a subsequent measurement period.
   44         2. For persons hired after April 1, 2013, the term includes
   45  any person paid from OPS funds who:
   46         a. Is reasonably expected to work an average of at least 30
   47  hours or more per week; or
   48         b. Has worked an average of at least 30 hours or more per
   49  week during the person’s measurement period.
   50         (d) “Health maintenance organization” or “HMO” means an
   51  entity certified under part I of chapter 641.
   52         (e) “Health plan member” means any person participating in
   53  a state group health insurance plan, a TRICARE supplemental
   54  insurance plan, or a health maintenance organization plan under
   55  the state group insurance program, including enrollees and
   56  covered dependents thereof.
   57         (f) “Part-time state employee” means an employee of any
   58  branch or agency of state government paid by state warrant from
   59  salary appropriations or from agency funds, and who is employed
   60  for less than an average of 30 hours per week or, if on academic
   61  contract or seasonal or other type of employment which is less
   62  than year-round, is employed for less than 8 months during any
   63  12-month period, but does not include a person paid from other
   64  personal-services (OPS) funds. The term includes all part-time
   65  employees of the state universities.
   66         (g) “Plan year” means a calendar year.
   67         (h)(g) “Retired state officer or employee” or “retiree”
   68  means any state or state university officer or employee who
   69  retires under a state retirement system or a state optional
   70  annuity or retirement program or is placed on disability
   71  retirement, and who was insured under the state group insurance
   72  program at the time of retirement, and who begins receiving
   73  retirement benefits immediately after retirement from state or
   74  state university office or employment. The term also includes
   75  any state officer or state employee who retires under the
   76  Florida Retirement System Investment Plan established under part
   77  II of chapter 121 if he or she:
   78         1. Meets the age and service requirements to qualify for
   79  normal retirement as set forth in s. 121.021(29); or
   80         2. Has attained the age specified by s. 72(t)(2)(A)(i) of
   81  the Internal Revenue Code and has 6 years of creditable service.
   82         (i)(h) “State agency” or “agency” means any branch,
   83  department, or agency of state government. “State agency” or
   84  “agency” includes any state university for purposes of this
   85  section only.
   86         (j)(i) “Seasonal workers” has the same meaning as provided
   87  under 29 C.F.R. s. 500.20(s)(1).
   88         (k)(j) “State group health insurance plan or plans” or
   89  “state plan or plans” mean the state self-insured health
   90  insurance plan or plans offered to state officers and employees,
   91  retired state officers and employees, and surviving spouses of
   92  deceased state officers and employees pursuant to this section.
   93         (l)(k) “State-contracted HMO” means any health maintenance
   94  organization under contract with the department to participate
   95  in the state group insurance program.
   96         (m)(l) “State group insurance program” or “programs” means
   97  the package of insurance plans offered to state officers and
   98  employees, retired state officers and employees, and surviving
   99  spouses of deceased state officers and employees pursuant to
  100  this section, including the state group health insurance plan or
  101  plans, health maintenance organization plans, TRICARE
  102  supplemental insurance plans, and other plans required or
  103  authorized by law.
  104         (n)(m) “State officer” means any constitutional state
  105  officer, any elected state officer paid by state warrant, or any
  106  appointed state officer who is commissioned by the Governor and
  107  who is paid by state warrant.
  108         (o)(n) “Surviving spouse” means the widow or widower of a
  109  deceased state officer, full-time state employee, part-time
  110  state employee, or retiree if such widow or widower was covered
  111  as a dependent under the state group health insurance plan, a
  112  TRICARE supplemental insurance plan, or a health maintenance
  113  organization plan established pursuant to this section at the
  114  time of the death of the deceased officer, employee, or retiree.
  115  “Surviving spouse” also means any widow or widower who is
  116  receiving or eligible to receive a monthly state warrant from a
  117  state retirement system as the beneficiary of a state officer,
  118  full-time state employee, or retiree who died prior to July 1,
  119  1979. For the purposes of this section, any such widow or
  120  widower shall cease to be a surviving spouse upon his or her
  121  remarriage.
  122         (p)(o) “TRICARE supplemental insurance plan” means the
  123  Department of Defense Health Insurance Program for eligible
  124  members of the uniformed services authorized by 10 U.S.C. s.
  125  1097.
  126         (3) STATE GROUP INSURANCE PROGRAM.—
  127         (b) It is the intent of the Legislature to offer a
  128  comprehensive package of health insurance and retirement
  129  benefits and a personnel system for state employees which are
  130  provided in a cost-efficient and prudent manner, and to allow
  131  state employees the option to choose benefit plans which best
  132  suit their individual needs. Therefore, The state group
  133  insurance program is established which may include the state
  134  group health insurance plan or plans, health maintenance
  135  organization plans, group life insurance plans, TRICARE
  136  supplemental insurance plans, group accidental death and
  137  dismemberment plans, and group disability insurance plans,.
  138  Furthermore, the department is additionally authorized to
  139  establish and provide as part of the state group insurance
  140  program any other group insurance plans or coverage choices, and
  141  other benefits authorized by law that are consistent with the
  142  provisions of this section.
  143         (f) Except as provided for in subparagraph (h)2., the state
  144  contribution toward the cost of any plan in the state group
  145  insurance program shall be uniform with respect to all state
  146  employees in a state collective bargaining unit participating in
  147  the same coverage tier in the same plan. This section does not
  148  prohibit the development of separate benefit plans for officers
  149  and employees exempt from the career service or the development
  150  of separate benefit plans for each collective bargaining unit.
  151  For the 2020 plan year and each plan year thereafter, if the
  152  state’s contribution is more than the premium cost of the health
  153  plan selected by the employee, subject to federal limitation,
  154  the employee may elect to have the balance:
  155         1. Credited to the employee’s flexible spending account;
  156         2. Credited to the employee’s health savings account;
  157         3. Used to purchase additional benefits offered through the
  158  state group insurance program; or
  159         4. Used to increase the employee’s salary.
  160         (h)1. A person eligible to participate in the state group
  161  insurance program may be authorized by rules adopted by the
  162  department, in lieu of participating in the state group health
  163  insurance plan, to exercise an option to elect membership in a
  164  health maintenance organization plan which is under contract
  165  with the state in accordance with criteria established by this
  166  section and by said rules. The offer of optional membership in a
  167  health maintenance organization plan permitted by this paragraph
  168  may be limited or conditioned by rule as may be necessary to
  169  meet the requirements of state and federal laws.
  170         2. The department shall contract with health maintenance
  171  organizations seeking to participate in the state group
  172  insurance program through a request for proposal or other
  173  procurement process, as developed by the Department of
  174  Management Services and determined to be appropriate.
  175         a. The department shall establish a schedule of minimum
  176  benefits for health maintenance organization coverage, and that
  177  schedule shall include: physician services; inpatient and
  178  outpatient hospital services; emergency medical services,
  179  including out-of-area emergency coverage; diagnostic laboratory
  180  and diagnostic and therapeutic radiologic services; mental
  181  health, alcohol, and chemical dependency treatment services
  182  meeting the minimum requirements of state and federal law;
  183  skilled nursing facilities and services; prescription drugs;
  184  age-based and gender-based wellness benefits; and other benefits
  185  as may be required by the department. Additional services may be
  186  provided subject to the contract between the department and the
  187  HMO. As used in this paragraph, the term “age-based and gender
  188  based wellness benefits” includes aerobic exercise, education in
  189  alcohol and substance abuse prevention, blood cholesterol
  190  screening, health risk appraisals, blood pressure screening and
  191  education, nutrition education, program planning, safety belt
  192  education, smoking cessation, stress management, weight
  193  management, and women’s health education.
  194         b. The department may establish uniform deductibles,
  195  copayments, coverage tiers, or coinsurance schedules for all
  196  participating HMO plans.
  197         c. The department may require detailed information from
  198  each health maintenance organization participating in the
  199  procurement process, including information pertaining to
  200  organizational status, experience in providing prepaid health
  201  benefits, accessibility of services, financial stability of the
  202  plan, quality of management services, accreditation status,
  203  quality of medical services, network access and adequacy,
  204  performance measurement, ability to meet the department’s
  205  reporting requirements, and the actuarial basis of the proposed
  206  rates and other data determined by the director to be necessary
  207  for the evaluation and selection of health maintenance
  208  organization plans and negotiation of appropriate rates for
  209  these plans. Upon receipt of proposals by health maintenance
  210  organization plans and the evaluation of those proposals, the
  211  department may enter into negotiations with all of the plans or
  212  a subset of the plans, as the department determines appropriate.
  213  Nothing shall preclude the department from negotiating regional
  214  or statewide contracts with health maintenance organization
  215  plans when this is cost-effective and when the department
  216  determines that the plan offers high value to enrollees.
  217         d. The department may limit the number of HMOs that it
  218  contracts with in each service area based on the nature of the
  219  bids the department receives, the number of state employees in
  220  the service area, or any unique geographical characteristics of
  221  the service area. The department shall establish by rule service
  222  areas throughout the state.
  223         e. All persons participating in the state group insurance
  224  program may be required to contribute towards a total state
  225  group health premium that may vary depending upon the plan,
  226  coverage level, and coverage tier selected by the enrollee and
  227  the level of state contribution authorized by the Legislature.
  228         3. The department is authorized to negotiate and to
  229  contract with specialty psychiatric hospitals for mental health
  230  benefits, on a regional basis, for alcohol, drug abuse, and
  231  mental and nervous disorders. The department may establish,
  232  subject to the approval of the Legislature pursuant to
  233  subsection (5), any such regional plan upon completion of an
  234  actuarial study to determine any impact on plan benefits and
  235  premiums.
  236         4. In addition to contracting pursuant to subparagraph 2.,
  237  the department may enter into contract with any HMO to
  238  participate in the state group insurance program which:
  239         a. Serves greater than 5,000 recipients on a prepaid basis
  240  under the Medicaid program;
  241         b. Does not currently meet the 25-percent non-Medicare/non
  242  Medicaid enrollment composition requirement established by the
  243  Department of Health excluding participants enrolled in the
  244  state group insurance program;
  245         c. Meets the minimum benefit package and copayments and
  246  deductibles contained in sub-subparagraphs 2.a. and b.;
  247         d. Is willing to participate in the state group insurance
  248  program at a cost of premiums that is not greater than 95
  249  percent of the cost of HMO premiums accepted by the department
  250  in each service area; and
  251         e. Meets the minimum surplus requirements of s. 641.225.
  252  
  253  The department is authorized to contract with HMOs that meet the
  254  requirements of sub-subparagraphs a.-d. prior to the open
  255  enrollment period for state employees. The department is not
  256  required to renew the contract with the HMOs as set forth in
  257  this paragraph more than twice. Thereafter, the HMOs shall be
  258  eligible to participate in the state group insurance program
  259  only through the request for proposal or invitation to negotiate
  260  process described in subparagraph 2.
  261         5. All enrollees in a state group health insurance plan, a
  262  TRICARE supplemental insurance plan, or any health maintenance
  263  organization plan have the option of changing to any other
  264  health plan that is offered by the state within any open
  265  enrollment period designated by the department. Open enrollment
  266  shall be held at least once each calendar year.
  267         6. When a contract between a treating provider and the
  268  state-contracted health maintenance organization is terminated
  269  for any reason other than for cause, each party shall allow any
  270  enrollee for whom treatment was active to continue coverage and
  271  care when medically necessary, through completion of treatment
  272  of a condition for which the enrollee was receiving care at the
  273  time of the termination, until the enrollee selects another
  274  treating provider, or until the next open enrollment period
  275  offered, whichever is longer, but no longer than 6 months after
  276  termination of the contract. Each party to the terminated
  277  contract shall allow an enrollee who has initiated a course of
  278  prenatal care, regardless of the trimester in which care was
  279  initiated, to continue care and coverage until completion of
  280  postpartum care. This does not prevent a provider from refusing
  281  to continue to provide care to an enrollee who is abusive,
  282  noncompliant, or in arrears in payments for services provided.
  283  For care continued under this subparagraph, the program and the
  284  provider shall continue to be bound by the terms of the
  285  terminated contract. Changes made within 30 days before
  286  termination of a contract are effective only if agreed to by
  287  both parties.
  288         7. Any HMO participating in the state group insurance
  289  program shall submit health care utilization and cost data to
  290  the department, in such form and in such manner as the
  291  department shall require, as a condition of participating in the
  292  program. The department shall enter into negotiations with its
  293  contracting HMOs to determine the nature and scope of the data
  294  submission and the final requirements, format, penalties
  295  associated with noncompliance, and timetables for submission.
  296  These determinations shall be adopted by rule.
  297         8. The department may establish and direct, with respect to
  298  collective bargaining issues, a comprehensive package of
  299  insurance benefits that may include supplemental health and life
  300  coverage, dental care, long-term care, vision care, and other
  301  benefits it determines necessary to enable state employees to
  302  select from among benefit options that best suit their
  303  individual and family needs. Beginning with the 2018 plan year,
  304  the package of benefits may also include products and services
  305  described in s. 110.12303.
  306         a. Based upon a desired benefit package, the department
  307  shall issue a request for proposal or invitation to negotiate
  308  for health insurance providers interested in participating in
  309  the state group insurance program, and the department shall
  310  issue a request for proposal or invitation to negotiate for
  311  insurance providers interested in participating in the non
  312  health-related components of the state group insurance program.
  313  Upon receipt of all proposals, the department may enter into
  314  contract negotiations with insurance providers submitting bids
  315  or negotiate a specially designed benefit package. Insurance
  316  Providers offering or providing supplemental coverage as of May
  317  30, 1991, which qualify for pretax benefit treatment pursuant to
  318  s. 125 of the Internal Revenue Code of 1986, with 5,500 or more
  319  state employees currently enrolled may be included by the
  320  department in the supplemental insurance benefit plan
  321  established by the department without participating in a request
  322  for proposal, submitting bids, negotiating contracts, or
  323  negotiating a specially designed benefit package. These
  324  contracts shall provide state employees with the most cost
  325  effective and comprehensive coverage available; however, except
  326  as provided in subparagraph (f)3., no state or agency funds
  327  shall be contributed toward the cost of any part of the premium
  328  of such supplemental benefit plans. With respect to dental
  329  coverage, the division shall include in any solicitation or
  330  contract for any state group dental program made after July 1,
  331  2001, a comprehensive indemnity dental plan option which offers
  332  enrollees a completely unrestricted choice of dentists. If a
  333  dental plan is endorsed, or in some manner recognized as the
  334  preferred product, such plan shall include a comprehensive
  335  indemnity dental plan option which provides enrollees with a
  336  completely unrestricted choice of dentists.
  337         b. Pursuant to the applicable provisions of s. 110.161, and
  338  s. 125 of the Internal Revenue Code of 1986, the department
  339  shall enroll in the pretax benefit program those state employees
  340  who voluntarily elect coverage in any of the supplemental
  341  insurance benefit plans as provided by sub-subparagraph a.
  342         c. Nothing herein contained shall be construed to prohibit
  343  insurance providers from continuing to provide or offer
  344  supplemental benefit coverage to state employees as provided
  345  under existing agency plans.
  346         (j) For the 2020 plan year and each plan year thereafter,
  347  health plans shall be offered in the following benefit levels:
  348         1. Platinum level, which shall have an actuarial value of
  349  at least 90 percent.
  350         2. Gold level, which shall have an actuarial value of at
  351  least 80 percent.
  352         3. Silver level, which shall have an actuarial value of at
  353  least 70 percent.
  354         4. Bronze level, which shall have an actuarial value of at
  355  least 60 percent Notwithstanding paragraph (f) requiring uniform
  356  contributions, and for the 2011-2012 fiscal year only, the state
  357  contribution toward the cost of any plan in the state group
  358  insurance plan is the difference between the overall premium and
  359  the employee contribution. This subsection expires June 30,
  360  2012.
  361         (k) In consultation with the independent benefits
  362  consultant described in s. 110.12304, the department shall
  363  develop a plan for implementation of the benefit levels
  364  described in paragraph (j). The plan shall be submitted to the
  365  Governor, the President of the Senate, and the Speaker of the
  366  House of Representatives by January 1, 2019, and include
  367  recommendations for:
  368         1. Employer and employee contribution policies.
  369         2. Steps necessary for maintaining or improving total
  370  employee compensation levels when the transition is initiated.
  371         3. An education strategy to inform employees of the
  372  additional choices available in the state group insurance
  373  program.
  374  
  375  This paragraph expires July 1, 2019.
  376         Section 2. Section 110.12303, Florida Statutes, is created
  377  to read:
  378         110.12303 State group insurance program; additional
  379  benefits; price transparency program; reporting.—Beginning with
  380  the 2018 plan year:
  381         (1) In addition to the comprehensive package of health
  382  insurance and other benefits required or authorized to be
  383  included in the state group insurance program, the package of
  384  benefits may also include products and services offered by:
  385         (a) Prepaid limited health service organizations authorized
  386  pursuant to part I of chapter 636.
  387         (b) Discount medical plan organizations authorized pursuant
  388  to part II of chapter 636.
  389         (c) Prepaid health clinics licensed under part II of
  390  chapter 641.
  391         (d) Licensed health care providers, including hospitals and
  392  other health care facilities, health care clinics, and health
  393  professionals, who sell service contracts and arrangements for a
  394  specified amount and type of health services.
  395         (e) Provider organizations, including service networks,
  396  group practices, professional associations, and other
  397  incorporated organizations of providers, who sell service
  398  contracts and arrangements for a specified amount and type of
  399  health services.
  400         (f) Entities that provide specific health services in
  401  accordance with applicable state law and sell service contracts
  402  and arrangements for a specified amount and type of health
  403  services.
  404         (g) Entities that provide health services or treatments
  405  through a bidding process.
  406         (h) Entities that provide health services or treatments
  407  through the bundling or aggregating of health services or
  408  treatments.
  409         (i) Entities that provide other innovative and cost
  410  effective health service delivery methods.
  411         (2)(a) The department shall contract with at least one
  412  entity that provides comprehensive pricing and inclusive
  413  services for surgery and other medical procedures which may be
  414  accessed at the option of the enrollee. The contract shall
  415  require the entity to:
  416         1. Have procedures and evidence-based standards to ensure
  417  the inclusion of only high-quality health care providers.
  418         2. Provide assistance to the enrollee in accessing and
  419  coordinating care.
  420         3. Provide cost savings to the state group insurance
  421  program to be shared with both the state and the enrollee. Cost
  422  savings payable to an enrollee may be:
  423         a. Credited to the enrollee’s flexible spending account;
  424         b. Credited to the enrollee’s health savings account;
  425         c. Credited to the enrollee’s health reimbursement account;
  426  or
  427         d. Paid as additional health plan reimbursements not
  428  exceeding the amount of the enrollee’s out-of-pocket medical
  429  expenses.
  430         4. Provide an educational campaign for enrollees to learn
  431  about the services offered by the entity.
  432         (b) On or before January 15 of each year, the department
  433  shall report to the Governor, the President of the Senate, and
  434  the Speaker of the House of Representatives on the participation
  435  level and cost-savings to both the enrollee and the state
  436  resulting from the contract or contracts described in this
  437  subsection.
  438         (3) The department shall contract with an entity that
  439  provides enrollees with online information on the cost and
  440  quality of health care services and providers, allows an
  441  enrollee to shop for health care services and providers, and
  442  rewards the enrollee by sharing savings generated by the
  443  enrollee’s choice of services or providers. The contract shall
  444  require the entity to:
  445         (a) Establish an Internet-based, consumer-friendly platform
  446  that educates and informs enrollees about the price and quality
  447  of health care services and providers, including the average
  448  amount paid in each county for health care services and
  449  providers. The average amounts paid for such services and
  450  providers may be expressed for service bundles, which include
  451  all products and services associated with a particular treatment
  452  or episode of care, or for separate and distinct products and
  453  services.
  454         (b) Allow enrollees to shop for health care services and
  455  providers using the price and quality information provided on
  456  the Internet-based platform.
  457         (c) Permit a certified bargaining agent of state employees
  458  to provide educational materials and counseling to enrollees
  459  regarding the Internet-based platform.
  460         (d) Identify the savings realized to the enrollee and state
  461  if the enrollee chooses high-quality, lower-cost health care
  462  services or providers, and facilitate a shared savings payment
  463  to the enrollee. The amount of shared savings shall be
  464  determined by a methodology approved by the department and shall
  465  maximize value-based purchasing by enrollees. The amount payable
  466  to the enrollee may be:
  467         1. Credited to the enrollee’s flexible spending account;
  468         2. Credited to the enrollee’s health savings account;
  469         3. Credited to the enrollee’s health reimbursement account;
  470  or
  471         4. Paid as additional health plan reimbursements not
  472  exceeding the amount of the enrollee’s out-of-pocket medical
  473  expenses.
  474         (e) On or before January 1 of 2019, 2020, and 2021, the
  475  department shall report to the Governor, the President of the
  476  Senate, and the Speaker of the House of Representatives on the
  477  participation level, amount paid to enrollees, and cost-savings
  478  to both the enrollees and the state resulting from the
  479  implementation of this subsection.
  480         Section 3. Section 110.12304, Florida Statutes, is created
  481  to read:
  482         110.12304 Independent benefits consultant.—
  483         (1) The department shall competitively procure an
  484  independent benefits consultant.
  485         (2) The independent benefits consultant may not:
  486         (a) Be owned or controlled by a health maintenance
  487  organization or insurer.
  488         (b) Have an ownership interest in a health maintenance
  489  organization or insurer.
  490         (c) Have a direct or indirect financial interest in a
  491  health maintenance organization or insurer.
  492         (3) The independent benefits consultant must have
  493  substantial experience in consultation and design of employee
  494  benefit programs for large employers and public employers,
  495  including experience with plans that qualify as cafeteria plans
  496  under s. 125 of the Internal Revenue Code of 1986.
  497         (4) The independent benefits consultant shall:
  498         (a) Provide an ongoing assessment of trends in benefits and
  499  employer-sponsored insurance that affect the state group
  500  insurance program.
  501         (b) Conduct a comprehensive analysis of the state group
  502  insurance program, including available benefits, coverage
  503  options, and claims experience.
  504         (c) Identify and establish appropriate adjustment
  505  procedures necessary to respond to any risk segmentation that
  506  may occur when increased choices are offered to employees.
  507         (d) Assist the department with the submission of any
  508  necessary plan revisions for federal review.
  509         (e) Assist the department in ensuring compliance with
  510  applicable federal and state regulations.
  511         (f) Assist the department in monitoring the adequacy of
  512  funding and reserves for the state self-insured plan.
  513         (g) Assist the department in preparing recommendations for
  514  any modifications to the state group insurance program which
  515  shall be submitted to the Governor, the President of the Senate,
  516  and the Speaker of the House of Representatives by January 1 of
  517  each year.
  518         Section 4. For the 2018 plan year, for informational
  519  purposes only, the Department of Management Services shall
  520  calculate alternative premiums for enrollees that reflect the
  521  actual differences in costs to the program for each of the
  522  health maintenance organization and the preferred provider
  523  organization plan options offered in the state group insurance
  524  program for both self-insured and fully insured plans. The
  525  premium alternatives for the plan options shall reflect the
  526  costs to the program for both medical and prescription drug
  527  benefits. By October 1, 2017, the department shall report the
  528  alternative enrollee premium rates for the 2018 plan year to the
  529  Governor, the President of the Senate, and the Speaker of the
  530  House of Representatives.
  531         Section 5. For the 2019 plan year, the Department of
  532  Management Services shall determine and recommend premiums for
  533  enrollees that reflect the actual differences in costs to the
  534  program for each of the health maintenance organization and the
  535  preferred provider organization plan options offered in the
  536  state group insurance program for both self-insured and fully
  537  insured plans. The premiums for the plan options shall reflect
  538  the costs to the program for both medical and prescription drug
  539  benefits. The premium rate for employers shall be the same as
  540  those established for the state group insurance program in the
  541  General Appropriations Act for the 2018-2019 fiscal year. By
  542  July 1, 2018, the department shall report the premium rates to
  543  the Governor, the President of the Senate, and the Speaker of
  544  the House of Representatives.
  545         Section 6. (1) For the 2017-2018 fiscal year, the sums of
  546  $151,216 in recurring funds and $507,546 in nonrecurring funds
  547  are appropriated from the State Employees Health Insurance Trust
  548  Fund to the Department of Management Services, and two full-time
  549  equivalent positions and associated salary rate of 120,000 are
  550  authorized, for the purpose of implementing this act.
  551         (2)(a) The recurring funds appropriated in this section
  552  shall be allocated to the following specific appropriation
  553  categories within the Insurance Benefits Administration Program:
  554  $150,528 in Salaries and Benefits and $688 in Special Categories
  555  Transfer to Department of Management Services—Human Resources
  556  Purchased per Statewide Contract.
  557         (b) The nonrecurring funds appropriated in this section
  558  shall be allocated to the following specific appropriation
  559  categories: $500,000 in Special Categories Contracted Services
  560  and $7,546 in Expenses.
  561         Section 7. Paragraph (a) of subsection (3) and subsection
  562  (5) of section 121.053, Florida Statutes, are amended to read:
  563         121.053 Participation in the Elected Officers’ Class for
  564  retired members.—
  565         (3) On or after July 1, 2010:
  566         (a) A retiree of a state-administered retirement system who
  567  is initially reemployed in elected or appointed for the first
  568  time to an elective office in a regularly established position
  569  with a covered employer may not reenroll in the Florida
  570  Retirement System, except as provided in s. 121.122.
  571         (5) Any renewed member, as described in s. 121.122(1), (3),
  572  (4), or (5) subsection (1) or subsection (2), who is not
  573  receiving the maximum health insurance subsidy provided in s.
  574  112.363 is entitled to earn additional credit toward the maximum
  575  health insurance subsidy. Any additional subsidy due because of
  576  such additional credit may be received only at the time of
  577  payment of the second career retirement benefit. The total
  578  health insurance subsidy received from initial and renewed
  579  membership may not exceed the maximum allowed in s. 112.363.
  580         Section 8. Paragraph (f) of subsection (1) and paragraph
  581  (c) of subsection (6) of section 121.055, Florida Statutes, are
  582  amended to read:
  583         121.055 Senior Management Service Class.—There is hereby
  584  established a separate class of membership within the Florida
  585  Retirement System to be known as the “Senior Management Service
  586  Class,” which shall become effective February 1, 1987.
  587         (1)
  588         (f) Effective July 1, 1997:
  589         1. Except as provided in subparagraph 3., an elected state
  590  officer eligible for membership in the Elected Officers’ Class
  591  under s. 121.052(2)(a), (b), or (c) who elects membership in the
  592  Senior Management Service Class under s. 121.052(3)(c) may,
  593  within 6 months after assuming office or within 6 months after
  594  this act becomes a law for serving elected state officers, elect
  595  to participate in the Senior Management Service Optional Annuity
  596  Program, as provided in subsection (6), in lieu of membership in
  597  the Senior Management Service Class.
  598         2. Except as provided in subparagraph 3., an elected
  599  officer of a local agency employer eligible for membership in
  600  the Elected Officers’ Class under s. 121.052(2)(d) who elects
  601  membership in the Senior Management Service Class under s.
  602  121.052(3)(c) may, within 6 months after assuming office, or
  603  within 6 months after this act becomes a law for serving elected
  604  officers of a local agency employer, elect to withdraw from the
  605  Florida Retirement System, as provided in subparagraph (b)2., in
  606  lieu of membership in the Senior Management Service Class.
  607         3. A retiree of a state-administered retirement system who
  608  is initially reemployed in a regularly established position on
  609  or after July 1, 2010, through June 30, 2017, as an elected
  610  official eligible for the Elected Officers’ Class may not be
  611  enrolled in renewed membership in the Senior Management Service
  612  Class or in the Senior Management Service Optional Annuity
  613  Program as provided in subsection (6), and may not withdraw from
  614  the Florida Retirement System as a renewed member as provided in
  615  subparagraph (b)2., as applicable, in lieu of membership in the
  616  Senior Management Service Class. Effective July 1, 2017, a
  617  retiree of the Senior Management Service Optional Annuity
  618  Program who is reemployed in a regularly established position
  619  with a covered employer shall be enrolled as a renewed member as
  620  provided in s. 121.122.
  621         (6)
  622         (c) Participation.—
  623         1. An eligible employee who is employed on or before
  624  February 1, 1987, may elect to participate in the optional
  625  annuity program in lieu of participating in the Senior
  626  Management Service Class. Such election shall must be made in
  627  writing and filed with the department and the personnel officer
  628  of the employer on or before May 1, 1987. An eligible employee
  629  who is employed on or before February 1, 1987, and who fails to
  630  make an election to participate in the optional annuity program
  631  by May 1, 1987, is shall be deemed to have elected membership in
  632  the Senior Management Service Class.
  633         2. Except as provided in subparagraph 6., an employee who
  634  becomes eligible to participate in the optional annuity program
  635  by reason of initial employment commencing after February 1,
  636  1987, may, within 90 days after the date of commencing
  637  employment, elect to participate in the optional annuity
  638  program. Such election shall must be made in writing and filed
  639  with the personnel officer of the employer. An eligible employee
  640  who does not within 90 days after commencing employment elect to
  641  participate in the optional annuity program is shall be deemed
  642  to have elected membership in the Senior Management Service
  643  Class.
  644         3. A person who is appointed to a position in the Senior
  645  Management Service Class and who is a member of an existing
  646  retirement system or the Special Risk or Special Risk
  647  Administrative Support Classes of the Florida Retirement System
  648  may elect to remain in such system or class in lieu of
  649  participating in the Senior Management Service Class or optional
  650  annuity program. Such election shall must be made in writing and
  651  filed with the department and the personnel officer of the
  652  employer within 90 days after such appointment. An eligible
  653  employee who fails to make an election to participate in the
  654  existing system, the Special Risk Class of the Florida
  655  Retirement System, the Special Risk Administrative Support Class
  656  of the Florida Retirement System, or the optional annuity
  657  program is shall be deemed to have elected membership in the
  658  Senior Management Service Class.
  659         4. Except as provided in subparagraph 5., an employee’s
  660  election to participate in the optional annuity program is
  661  irrevocable if the employee continues to be employed in an
  662  eligible position and continues to meet the eligibility
  663  requirements set forth in this paragraph.
  664         5. Effective from July 1, 2002, through September 30, 2002,
  665  an active employee in a regularly established position who has
  666  elected to participate in the Senior Management Service Optional
  667  Annuity Program has one opportunity to choose to move from the
  668  Senior Management Service Optional Annuity Program to the
  669  Florida Retirement System Pension Plan.
  670         a. The election shall must be made in writing and must be
  671  filed with the department and the personnel officer of the
  672  employer before October 1, 2002, or, in the case of an active
  673  employee who is on a leave of absence on July 1, 2002, within 90
  674  days after the conclusion of the leave of absence. This election
  675  is irrevocable.
  676         b. The employee shall receive service credit under the
  677  pension plan equal to his or her years of service under the
  678  Senior Management Service Optional Annuity Program. The cost for
  679  such credit is the amount representing the present value of that
  680  employee’s accumulated benefit obligation for the affected
  681  period of service.
  682         c. The employee shall must transfer the total accumulated
  683  employer contributions and earnings on deposit in his or her
  684  Senior Management Service Optional Annuity Program account. If
  685  the transferred amount is not sufficient to pay the amount due,
  686  the employee shall must pay a sum representing the remainder of
  687  the amount due. The employee may not retain any employer
  688  contributions or earnings from the Senior Management Service
  689  Optional Annuity Program account.
  690         6. A retiree of a state-administered retirement system who
  691  is initially reemployed on or after July 1, 2010, through June
  692  30, 2017, may not renew membership in the Senior Management
  693  Service Optional Annuity Program. Effective July 1, 2017, a
  694  retiree of the Senior Management Service Optional Annuity
  695  Program who is reemployed in a regularly established position
  696  with a covered employer shall be enrolled as a renewed member as
  697  provided in s. 121.122.
  698         7. Effective July 1, 2017, the Senior Management Service
  699  Optional Annuity Program is closed to new members. A member
  700  enrolled in the Senior Management Service Optional Annuity
  701  Program before July 1, 2017, may retain his or her membership in
  702  the annuity program.
  703         Section 9. Paragraphs (d) and (i) of subsection (7) and
  704  paragraph (c) of subsection (9) of section 121.091, Florida
  705  Statutes, are amended to read:
  706         121.091 Benefits payable under the system.—Benefits may not
  707  be paid under this section unless the member has terminated
  708  employment as provided in s. 121.021(39)(a) or begun
  709  participation in the Deferred Retirement Option Program as
  710  provided in subsection (13), and a proper application has been
  711  filed in the manner prescribed by the department. The department
  712  may cancel an application for retirement benefits when the
  713  member or beneficiary fails to timely provide the information
  714  and documents required by this chapter and the department’s
  715  rules. The department shall adopt rules establishing procedures
  716  for application for retirement benefits and for the cancellation
  717  of such application when the required information or documents
  718  are not received.
  719         (7) DEATH BENEFITS.—
  720         (d) Notwithstanding any other provision in this chapter to
  721  the contrary, with the exception of the Deferred Retirement
  722  Option Program, as provided in subsection (13):
  723         1. The surviving spouse of any member killed in the line of
  724  duty may receive a monthly pension equal to one-half of the
  725  monthly salary being received by the member at the time of death
  726  for the rest of the surviving spouse’s lifetime or, if the
  727  member was vested, such surviving spouse may elect to receive a
  728  benefit as provided in paragraph (b). Benefits provided by this
  729  paragraph shall supersede any other distribution that may have
  730  been provided by the member’s designation of beneficiary.
  731         2. If the surviving spouse of a member killed in the line
  732  of duty dies, the monthly payments that would have been payable
  733  to such surviving spouse had such surviving spouse lived shall
  734  be paid for the use and benefit of such member’s child or
  735  children under 18 years of age and unmarried until the 18th
  736  birthday of the member’s youngest child. Beginning July 1, 2016,
  737  such payments may be extended, for the surviving child of a
  738  member in the Special Risk Class at the time he or she was
  739  killed in the line of duty on or after July 1, 2013, until the
  740  25th birthday of any child of the member if the child is
  741  unmarried and enrolled as a full-time student. Beginning July 1,
  742  2017, such payments may be extended, for the surviving child of
  743  a member in the Special Risk Class at the time he or she was
  744  killed in the line of duty on or after July 1, 2002, until the
  745  25th birthday of any child of the member if the child is
  746  unmarried and enrolled as a full-time student.
  747         3. If a member killed in the line of duty leaves no
  748  surviving spouse but is survived by a child or children under 18
  749  years of age, the benefits provided by subparagraph 1., normally
  750  payable to a surviving spouse, shall be paid for the use and
  751  benefit of such member’s child or children under 18 years of age
  752  and unmarried until the 18th birthday of the member’s youngest
  753  child. Beginning July 1, 2016, such monthly payments may be
  754  extended, for the surviving child of a member in the Special
  755  Risk Class at the time he or she was killed in the line of duty
  756  on or after July 1, 2013, until the 25th birthday of any child
  757  of the member if the child is unmarried and enrolled as a full
  758  time student. Beginning July 1, 2017, such monthly payments may
  759  be extended, for the surviving child of a member in the Special
  760  Risk Class at the time he or she was killed in the line of duty
  761  on or after July 1, 2002, until the 25th birthday of any child
  762  of the member if the child is unmarried and enrolled as a full
  763  time student.
  764         4. The surviving spouse of a member whose benefit
  765  terminated because of remarriage shall have the benefit
  766  reinstated beginning July 1, 1993, at an amount that would have
  767  been payable had the benefit not been terminated.
  768         (i) Effective July 1, 2016, and Notwithstanding any
  769  provision in this chapter to the contrary, if a member in the
  770  Special Risk Class, other than a participant in the Deferred
  771  Retirement Option Program under subsection (13), is killed in
  772  the line of duty on or after July 1, 2002 2013, the following
  773  benefits are payable in addition to the benefits provided in
  774  paragraph (d):
  775         1. The surviving spouse may receive a monthly pension equal
  776  to one-half of the monthly salary being received by the member
  777  at the time of the member’s death for the rest of the surviving
  778  spouse’s lifetime or, if the member was vested, such surviving
  779  spouse may elect to receive a benefit as provided in paragraph
  780  (b). Benefits provided by this paragraph supersede any other
  781  distribution that may have been provided by the member’s
  782  designation of beneficiary.
  783         2. If the surviving spouse dies, the monthly payments that
  784  otherwise would have been payable to such surviving spouse shall
  785  be paid for the use and benefit of the member’s child or
  786  children under 18 years of age and unmarried until the 18th
  787  birthday of the member’s youngest child. Such monthly payments
  788  may be extended until the 25th birthday of the member’s child if
  789  the child is unmarried and enrolled as a full-time student.
  790         3. If the member leaves no surviving spouse but is survived
  791  by a child or children under 18 years of age, the benefits
  792  provided by subparagraph 1., normally payable to a surviving
  793  spouse, shall be paid for the use and benefit of such member’s
  794  child or children under 18 years of age and unmarried until the
  795  18th birthday of the member’s youngest child. Such monthly
  796  payments may be extended until the 25th birthday of any of the
  797  member’s children if the child is unmarried and enrolled as a
  798  full-time student.
  799         (9) EMPLOYMENT AFTER RETIREMENT; LIMITATION.—
  800         (c) Any person whose retirement is effective on or after
  801  July 1, 2010, or whose participation in the Deferred Retirement
  802  Option Program terminates on or after July 1, 2010, who is
  803  retired under this chapter, except under the disability
  804  retirement provisions of subsection (4) or as provided in s.
  805  121.053, may be reemployed by an employer that participates in a
  806  state-administered retirement system and receive retirement
  807  benefits and compensation from that employer. However, a person
  808  may not be reemployed by an employer participating in the
  809  Florida Retirement System before meeting the definition of
  810  termination in s. 121.021 and may not receive both a salary from
  811  the employer and retirement benefits for 6 calendar months after
  812  meeting the definition of termination. However, a DROP
  813  participant shall continue employment and receive a salary
  814  during the period of participation in the Deferred Retirement
  815  Option Program, as provided in subsection (13).
  816         1. The reemployed retiree may not renew membership in the
  817  Florida Retirement System, except as provided in s. 121.122.
  818         2. The employer shall pay retirement contributions in an
  819  amount equal to the unfunded actuarial liability portion of the
  820  employer contribution that would be required for active members
  821  of the Florida Retirement System in addition to the
  822  contributions required by s. 121.76.
  823         3. A retiree initially reemployed in violation of this
  824  paragraph and an employer that employs or appoints such person
  825  are jointly and severally liable for reimbursement of any
  826  retirement benefits paid to the retirement trust fund from which
  827  the benefits were paid, including the Florida Retirement System
  828  Trust Fund and the Public Employee Optional Retirement Program
  829  Trust Fund, as appropriate. The employer must have a written
  830  statement from the employee that he or she is not retired from a
  831  state-administered retirement system. Retirement benefits shall
  832  remain suspended until repayment is made. Benefits suspended
  833  beyond the end of the retiree’s 6-month reemployment limitation
  834  period shall apply toward the repayment of benefits received in
  835  violation of this paragraph.
  836         Section 10. Subsection (2) of section 121.122, Florida
  837  Statutes, is amended, and subsections (3), (4), and (5) are
  838  added to that section, to read:
  839         121.122 Renewed membership in system.—
  840         (2) Except as otherwise provided in subsections (3), (4),
  841  and (5), a retiree of a state-administered retirement system who
  842  is initially reemployed in a regularly established position on
  843  or after July 1, 2010, may not be enrolled as a renewed member.
  844         (3) A retiree of the investment plan, the State University
  845  System Optional Retirement Program, the Senior Management
  846  Service Optional Annuity Program, or the State Community College
  847  System Optional Retirement Program who is reemployed with a
  848  covered employer in a regularly established position on or after
  849  July 1, 2017, shall be enrolled as a renewed member of the
  850  investment plan unless employed in a position eligible for
  851  participation in the State University System Optional Retirement
  852  Program as provided in subsection (4) or the State Community
  853  College System Optional Retirement Program as provided in
  854  subsection (5). The renewed member must satisfy the vesting
  855  requirements and other provisions of this chapter.
  856         (a) A renewed member of the investment plan shall be
  857  enrolled in one of the following membership classes:
  858         1. In the Regular Class, if the position does not meet the
  859  requirements for membership under s. 121.0515, s. 121.053, or s.
  860  121.055.
  861         2. In the Special Risk Class, if the position meets the
  862  requirements of s. 121.0515.
  863         3. In the Elected Officers’ Class, if the position meets
  864  the requirements of s. 121.053.
  865         4. In the Senior Management Service Class, if the position
  866  meets the requirements of s. 121.055.
  867         (b) Creditable service, including credit toward the retiree
  868  health insurance subsidy provided in s. 112.363, does not accrue
  869  for a renewed member’s employment in a regularly established
  870  position with a covered employer from July 1, 2010, through June
  871  30, 2017.
  872         (c) Employer and employee contributions, interest,
  873  earnings, or any other funds may not be paid into a renewed
  874  member’s investment plan account for any employment in a
  875  regularly established position with a covered employer on or
  876  after July 1, 2010, through June 30, 2017, by the renewed member
  877  or the employer on behalf of the renewed member.
  878         (d) To be eligible to receive a retirement benefit, the
  879  renewed member must satisfy the vesting requirements in s.
  880  121.4501(6).
  881         (e) The renewed member is ineligible to receive disability
  882  benefits as provided in s. 121.091(4) or s. 121.591(2).
  883         (f) The renewed member is subject to the limitations on
  884  reemployment after retirement provided in s. 121.091(9), as
  885  applicable.
  886         (g) The renewed member must satisfy the requirements for
  887  termination from employment provided in s. 121.021(39).
  888         (h) Upon renewed membership or reemployment of a retiree,
  889  the employer and the renewed member shall pay the applicable
  890  employer and employee contributions required under ss. 112.363,
  891  121.71, 121.74, and 121.76. The contributions are payable only
  892  for employment and salary earned in a regularly established
  893  position with a covered employer on or after July 1, 2017. The
  894  employer and employee contributions shall be transferred to the
  895  investment plan and placed in a default fund as designated by
  896  the state board. The renewed member may move the contributions
  897  once an account is activated in the investment plan.
  898         (i) A renewed member who earns creditable service under the
  899  investment plan and who is not receiving the maximum health
  900  insurance subsidy provided in s. 112.363 is entitled to earn
  901  additional credit toward the subsidy. Such credit may be earned
  902  only for employment in a regularly established position with a
  903  covered employer on or after July 1, 2017. Any additional
  904  subsidy due because of additional credit may be received only at
  905  the time of paying the second career retirement benefit. The
  906  total health insurance subsidy received by a retiree receiving
  907  benefits from initial and renewed membership may not exceed the
  908  maximum allowed under s. 112.363.
  909         (j) Notwithstanding s. 121.4501(4)(f), the renewed member
  910  is not eligible to elect membership in the pension plan.
  911         (4) A retiree of the investment plan, the State University
  912  System Optional Retirement Program, the Senior Management
  913  Service Optional Annuity Program, or the State Community College
  914  System Optional Retirement Program who is reemployed on or after
  915  July 1, 2017, in a regularly established position eligible for
  916  participation in the State University System Optional Retirement
  917  Program shall become a renewed member of the optional retirement
  918  program. The renewed member must satisfy the vesting
  919  requirements and other provisions of this chapter. Once
  920  enrolled, a renewed member remains enrolled in the optional
  921  retirement program while employed in an eligible position for
  922  the optional retirement program. If employment in a different
  923  covered position results in the renewed member’s enrollment in
  924  the investment plan, the renewed member is no longer eligible to
  925  participate in the optional retirement program unless employed
  926  in a mandatory position under s. 121.35.
  927         (a) The renewed member is subject to the limitations on
  928  reemployment after retirement provided in s. 121.091(9), as
  929  applicable.
  930         (b) The renewed member must satisfy the requirements for
  931  termination from employment provided in s. 121.021(39).
  932         (c) Upon renewed membership or reemployment of a retiree,
  933  the employer and the renewed member shall pay the applicable
  934  employer and employee contributions required under s. 121.35.
  935         (d) Employer and employee contributions, interest,
  936  earnings, or any other funds may not be paid into a renewed
  937  member’s optional retirement program account for any employment
  938  in a regularly established position with a covered employer on
  939  or after July 1, 2010, through June 30, 2017, by the renewed
  940  member or the employer on behalf of the renewed member.
  941         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  942  is not eligible to elect membership in the pension plan.
  943         (5) A retiree of the investment plan, the State University
  944  System Optional Retirement Program, the Senior Management
  945  Service Optional Annuity Program, or the State Community College
  946  System Optional Retirement Program who is reemployed on or after
  947  July 1, 2017, in a regularly established position eligible for
  948  participation in the State Community College System Optional
  949  Retirement Program shall become a renewed member of the optional
  950  retirement program. The renewed member must satisfy the
  951  eligibility requirements of this chapter and s. 1012.875 for the
  952  optional retirement program. Once enrolled, a renewed member
  953  remains enrolled in the optional retirement program while
  954  employed in an eligible position for the optional retirement
  955  program. If employment in a different covered position results
  956  in the renewed member’s enrollment in the investment plan, the
  957  renewed member is no longer eligible to participate in the
  958  optional retirement program.
  959         (a) The renewed member is subject to the limitations on
  960  reemployment after retirement provided in s. 121.091(9), as
  961  applicable.
  962         (b) The renewed member must satisfy the requirements for
  963  termination from employment provided in s. 121.021(39).
  964         (c) Upon renewed membership or reemployment of a retiree,
  965  the employer and the renewed member shall pay the applicable
  966  employer and employee contributions required under ss.
  967  121.051(2)(c) and 1012.875.
  968         (d) Employer and employee contributions, interest,
  969  earnings, or any other funds may not be paid into a renewed
  970  member’s optional retirement program account for any employment
  971  in a regularly established position with a covered employer on
  972  or after July 1, 2010, through June 30, 2017, by the renewed
  973  member or the employer on behalf of the renewed member.
  974         (e) Notwithstanding s. 121.4501(4)(f), the renewed member
  975  is not eligible to elect membership in the pension plan.
  976         Section 11. Paragraphs (e) and (i) of subsection (2),
  977  paragraph (b) of subsection (3), subsection (4), paragraph (c)
  978  of subsection (5), and paragraphs (a) and (h) of subsection (10)
  979  of section 121.4501, Florida Statutes, are amended to read:
  980         121.4501 Florida Retirement System Investment Plan.—
  981         (2) DEFINITIONS.—As used in this part, the term:
  982         (e) “Eligible employee” means an officer or employee, as
  983  defined in s. 121.021, who:
  984         1. Is a member of, or is eligible for membership in, the
  985  Florida Retirement System, including any renewed member of the
  986  Florida Retirement System initially enrolled before July 1,
  987  2010; or
  988         2. Participates in, or is eligible to participate in, the
  989  Senior Management Service Optional Annuity Program as
  990  established under s. 121.055(6), the State Community College
  991  System Optional Retirement Program as established under s.
  992  121.051(2)(c), or the State University System Optional
  993  Retirement Program established under s. 121.35; or
  994         3. Is a retired member of the investment plan, the State
  995  University System Optional Retirement Program, the Senior
  996  Management Service Optional Annuity Program, or the State
  997  Community College System Optional Retirement Program who is
  998  reemployed in a regularly established position on or after July
  999  1, 2017, and enrolled as a renewed member as provided in s.
 1000  121.122.
 1001  
 1002  The term does not include any member participating in the
 1003  Deferred Retirement Option Program established under s.
 1004  121.091(13), a retiree of the pension plan who is reemployed in
 1005  a regularly established position on or after July 1, 2010, a
 1006  retiree of a state-administered retirement system initially
 1007  reemployed in a regularly established position on or after July
 1008  1, 2010, through June 30, 2017, or a mandatory participant of
 1009  the State University System Optional Retirement Program
 1010  established under s. 121.35.
 1011         (i) “Member” or “employee” means an eligible employee who
 1012  enrolls in, or who defaults into, the investment plan as
 1013  provided in subsection (4), a terminated Deferred Retirement
 1014  Option Program member as described in subsection (21), or a
 1015  beneficiary or alternate payee of a member or employee.
 1016         (3) RETIREMENT SERVICE CREDIT; TRANSFER OF BENEFITS.—
 1017         (b) Notwithstanding paragraph (a), an eligible employee who
 1018  elects to participate in, or who defaults into, the investment
 1019  plan and establishes one or more individual member accounts may
 1020  elect to transfer to the investment plan a sum representing the
 1021  present value of the employee’s accumulated benefit obligation
 1022  under the pension plan, except as provided in paragraph (4)(b).
 1023  Upon transfer, all service credit earned under the pension plan
 1024  is nullified for purposes of entitlement to a future benefit
 1025  under the pension plan. A member may not transfer the
 1026  accumulated benefit obligation balance from the pension plan
 1027  after the time period for enrolling in the investment plan has
 1028  expired.
 1029         1. For purposes of this subsection, the present value of
 1030  the member’s accumulated benefit obligation is based upon the
 1031  member’s estimated creditable service and estimated average
 1032  final compensation under the pension plan, subject to
 1033  recomputation under subparagraph 2. For state employees, initial
 1034  estimates shall be based upon creditable service and average
 1035  final compensation as of midnight on June 30, 2002; for district
 1036  school board employees, initial estimates shall be based upon
 1037  creditable service and average final compensation as of midnight
 1038  on September 30, 2002; and for local government employees,
 1039  initial estimates shall be based upon creditable service and
 1040  average final compensation as of midnight on December 31, 2002.
 1041  The dates specified are the “estimate date” for these employees.
 1042  The actuarial present value of the employee’s accumulated
 1043  benefit obligation shall be based on the following:
 1044         a. The discount rate and other relevant actuarial
 1045  assumptions used to value the Florida Retirement System Trust
 1046  Fund at the time the amount to be transferred is determined,
 1047  consistent with the factors provided in sub-subparagraphs b. and
 1048  c.
 1049         b. A benefit commencement age, based on the member’s
 1050  estimated creditable service as of the estimate date.
 1051         c. Except as provided under sub-subparagraph d., for a
 1052  member initially enrolled:
 1053         (I) Before July 1, 2011, the benefit commencement age is
 1054  the younger of the following, but may not be younger than the
 1055  member’s age as of the estimate date:
 1056         (A) Age 62; or
 1057         (B) The age the member would attain if the member completed
 1058  30 years of service with an employer, assuming the member worked
 1059  continuously from the estimate date, and disregarding any
 1060  vesting requirement that would otherwise apply under the pension
 1061  plan.
 1062         (II) On or after July 1, 2011, the benefit commencement age
 1063  is the younger of the following, but may not be younger than the
 1064  member’s age as of the estimate date:
 1065         (A) Age 65; or
 1066         (B) The age the member would attain if the member completed
 1067  33 years of service with an employer, assuming the member worked
 1068  continuously from the estimate date, and disregarding any
 1069  vesting requirement that would otherwise apply under the pension
 1070  plan.
 1071         d. For members of the Special Risk Class and for members of
 1072  the Special Risk Administrative Support Class entitled to retain
 1073  the special risk normal retirement date:
 1074         (I) Initially enrolled before July 1, 2011, the benefit
 1075  commencement age is the younger of the following, but may not be
 1076  younger than the member’s age as of the estimate date:
 1077         (A) Age 55; or
 1078         (B) The age the member would attain if the member completed
 1079  25 years of service with an employer, assuming the member worked
 1080  continuously from the estimate date, and disregarding any
 1081  vesting requirement that would otherwise apply under the pension
 1082  plan.
 1083         (II) Initially enrolled on or after July 1, 2011, the
 1084  benefit commencement age is the younger of the following, but
 1085  may not be younger than the member’s age as of the estimate
 1086  date:
 1087         (A) Age 60; or
 1088         (B) The age the member would attain if the member completed
 1089  30 years of service with an employer, assuming the member worked
 1090  continuously from the estimate date, and disregarding any
 1091  vesting requirement that would otherwise apply under the pension
 1092  plan.
 1093         e. The calculation must disregard vesting requirements and
 1094  early retirement reduction factors that would otherwise apply
 1095  under the pension plan.
 1096         2. For each member who elects to transfer moneys from the
 1097  pension plan to his or her account in the investment plan, the
 1098  division shall recompute the amount transferred under
 1099  subparagraph 1. within 60 days after the actual transfer of
 1100  funds based upon the member’s actual creditable service and
 1101  actual final average compensation as of the initial date of
 1102  participation in the investment plan. If the recomputed amount
 1103  differs from the amount transferred by $10 or more, the division
 1104  shall:
 1105         a. Transfer, or cause to be transferred, from the Florida
 1106  Retirement System Trust Fund to the member’s account the excess,
 1107  if any, of the recomputed amount over the previously transferred
 1108  amount together with interest from the initial date of transfer
 1109  to the date of transfer under this subparagraph, based upon the
 1110  effective annual interest equal to the assumed return on the
 1111  actuarial investment which was used in the most recent actuarial
 1112  valuation of the system, compounded annually.
 1113         b. Transfer, or cause to be transferred, from the member’s
 1114  account to the Florida Retirement System Trust Fund the excess,
 1115  if any, of the previously transferred amount over the recomputed
 1116  amount, together with interest from the initial date of transfer
 1117  to the date of transfer under this subparagraph, based upon 6
 1118  percent effective annual interest, compounded annually, pro rata
 1119  based on the member’s allocation plan.
 1120         3. If contribution adjustments are made as a result of
 1121  employer errors or corrections, including plan corrections,
 1122  following recomputation of the amount transferred under
 1123  subparagraph 1., the member is entitled to the additional
 1124  contributions or is responsible for returning any excess
 1125  contributions resulting from the correction. However, a any
 1126  return of such erroneous excess pretax contribution by the plan
 1127  must be made within the period allowed by the Internal Revenue
 1128  Service. The present value of the member’s accumulated benefit
 1129  obligation may shall not be recalculated.
 1130         4. As directed by the member, the state board shall
 1131  transfer or cause to be transferred the appropriate amounts to
 1132  the designated accounts within 30 days after the effective date
 1133  of the member’s participation in the investment plan unless the
 1134  major financial markets for securities available for a transfer
 1135  are seriously disrupted by an unforeseen event that causes the
 1136  suspension of trading on a any national securities exchange in
 1137  the country where the securities were issued. In that event, the
 1138  30-day period may be extended by a resolution of the state
 1139  board. Transfers are not commissionable or subject to other fees
 1140  and may be in the form of securities or cash, as determined by
 1141  the state board. Such securities are valued as of the date of
 1142  receipt in the member’s account.
 1143         5. If the state board or the division receives notification
 1144  from the United States Internal Revenue Service that this
 1145  paragraph or any portion of this paragraph will cause the
 1146  retirement system, or a portion thereof, to be disqualified for
 1147  tax purposes under the Internal Revenue Code, the portion that
 1148  will cause the disqualification does not apply. Upon such
 1149  notice, the state board and the division shall notify the
 1150  presiding officers of the Legislature.
 1151         (4) PARTICIPATION; ENROLLMENT.—
 1152         (a)1. Effective June 1, 2002, through February 28, 2003, a
 1153  90-day election period was provided to each eligible employee
 1154  participating in the Florida Retirement System, preceded by a
 1155  90-day education period, permitting each eligible employee to
 1156  elect membership in the investment plan. An employee who failed
 1157  to elect the investment plan during the election period remained
 1158  in the pension plan. An eligible employee who was employed in a
 1159  regularly established position during the election period was
 1160  granted the option to make one subsequent election, as provided
 1161  in paragraph (f). With respect to an eligible employee who did
 1162  not participate in the initial election period or who is
 1163  initially employed in a regularly established position after the
 1164  close of the initial election period but before January 1, 2018,
 1165  on June 1, 2002, by a state employer:
 1166         a. Any such employee may elect to participate in the
 1167  investment plan in lieu of retaining his or her membership in
 1168  the pension plan. The election must be made in writing or by
 1169  electronic means and must be filed with the third-party
 1170  administrator by August 31, 2002, or, in the case of an active
 1171  employee who is on a leave of absence on April 1, 2002, by the
 1172  last business day of the 5th month following the month the leave
 1173  of absence concludes. This election is irrevocable, except as
 1174  provided in paragraph (g). Upon making such election, the
 1175  employee shall be enrolled as a member of the investment plan,
 1176  the employee’s membership in the Florida Retirement System is
 1177  governed by the provisions of this part, and the employee’s
 1178  membership in the pension plan terminates. The employee’s
 1179  enrollment in the investment plan is effective the first day of
 1180  the month for which a full month’s employer contribution is made
 1181  to the investment plan.
 1182         b. Any such employee who fails to elect to participate in
 1183  the investment plan within the prescribed time period is deemed
 1184  to have elected to retain membership in the pension plan, and
 1185  the employee’s option to elect to participate in the investment
 1186  plan is forfeited.
 1187         2. With respect to employees who become eligible to
 1188  participate in the investment plan by reason of employment in a
 1189  regularly established position with a state employer commencing
 1190  after April 1, 2002:
 1191         a. Any such employee shall, by default, be enrolled in the
 1192  pension plan at the commencement of employment, and may, by the
 1193  last business day of the 5th month following the employee’s
 1194  month of hire, elect to participate in the investment plan. The
 1195  employee’s election must be made in writing or by electronic
 1196  means and must be filed with the third-party administrator. The
 1197  election to participate in the investment plan is irrevocable,
 1198  except as provided in paragraph (f) (g).
 1199         a.b. If the employee files such election within the
 1200  prescribed time period, enrollment in the investment plan is
 1201  effective on the first day of employment. The retirement
 1202  contributions paid through the month of the employee plan change
 1203  shall be transferred to the investment program, and, effective
 1204  the first day of the next month, the employer and employee must
 1205  pay the applicable contributions based on the employee
 1206  membership class in the program.
 1207         b.c. An employee who fails to elect to participate in the
 1208  investment plan within the prescribed time period is deemed to
 1209  have elected to retain membership in the pension plan, and the
 1210  employee’s option to elect to participate in the investment plan
 1211  is forfeited.
 1212         2.3. With respect to employees who become eligible to
 1213  participate in the investment plan pursuant to s.
 1214  121.051(2)(c)3. or s. 121.35(3)(i), the employee may elect to
 1215  participate in the investment plan in lieu of retaining his or
 1216  her membership in the State Community College System Optional
 1217  Retirement Program or the State University System Optional
 1218  Retirement Program. The election must be made in writing or by
 1219  electronic means and must be filed with the third-party
 1220  administrator. This election is irrevocable, except as provided
 1221  in paragraph (f) (g). Upon making such election, the employee
 1222  shall be enrolled as a member in the investment plan, the
 1223  employee’s membership in the Florida Retirement System is
 1224  governed by the provisions of this part, and the employee’s
 1225  participation in the State Community College System Optional
 1226  Retirement Program or the State University System Optional
 1227  Retirement Program terminates. The employee’s enrollment in the
 1228  investment plan is effective on the first day of the month for
 1229  which a full month’s employer and employee contribution is made
 1230  to the investment plan.
 1231         (b)1. With respect to employees who become eligible to
 1232  participate in the investment plan by reason of employment in a
 1233  regularly established position commencing on or after January 1,
 1234  2018, or who did not complete an election window before January
 1235  1, 2018, any such employee shall be enrolled in the pension plan
 1236  at the commencement of employment and may, by the last business
 1237  day of the eighth month following the employee’s month of hire,
 1238  elect to participate in the pension plan or the investment plan.
 1239  Eligible employees may make a plan election only if they are
 1240  earning service credit in an employer-employee relationship
 1241  consistent with s. 121.021(17)(b), excluding leaves of absence
 1242  without pay.
 1243         2. The employee’s election must be made in writing or by
 1244  electronic means and must be filed with the third-party
 1245  administrator. The election to participate in the pension plan
 1246  or investment plan is irrevocable, except as provided in
 1247  paragraph (f).
 1248         3.a. Except as provided in subparagraph 4., if the employee
 1249  fails to make an election to either the pension plan or the
 1250  investment plan during the 8-month period following the month of
 1251  hire, the employee is deemed to have elected the investment plan
 1252  and shall default into the investment plan retroactively to the
 1253  employee’s date of employment. The employee’s option to
 1254  participate in the pension plan is forfeited, except as provided
 1255  in paragraph (f).
 1256         b. The amount of the employee and employer contributions
 1257  paid through the date of default to the investment plan shall be
 1258  transferred to the investment plan and shall be placed in a
 1259  default fund as designated by the State Board of Administration.
 1260  The employee may move the contributions once an account is
 1261  activated in the investment plan.
 1262         4. If the employee is employed in a position included in
 1263  the Special Risk Class and fails to make an election to either
 1264  the pension plan or the investment plan during the 8-month
 1265  period following the month of hire, the employee is deemed to
 1266  have elected the pension plan and shall default into the pension
 1267  plan retroactively to the employee’s date of employment. The
 1268  employee’s option to participate in the investment plan is
 1269  forfeited, except as provided in paragraph (f).
 1270         5. Effective the first day of the month after an eligible
 1271  employee makes a plan election of the pension plan or investment
 1272  plan, or the first day of the month after default, the employee
 1273  and employer shall pay the applicable contributions based on the
 1274  employee membership class in the program.
 1275         4. For purposes of this paragraph, “state employer” means
 1276  any agency, board, branch, commission, community college,
 1277  department, institution, institution of higher education, or
 1278  water management district of the state, which participates in
 1279  the Florida Retirement System for the benefit of certain
 1280  employees.
 1281         (b)1. With respect to an eligible employee who is employed
 1282  in a regularly established position on September 1, 2002, by a
 1283  district school board employer:
 1284         a. Any such employee may elect to participate in the
 1285  investment plan in lieu of retaining his or her membership in
 1286  the pension plan. The election must be made in writing or by
 1287  electronic means and must be filed with the third-party
 1288  administrator by November 30, or, in the case of an active
 1289  employee who is on a leave of absence on July 1, 2002, by the
 1290  last business day of the 5th month following the month the leave
 1291  of absence concludes. This election is irrevocable, except as
 1292  provided in paragraph (g). Upon making such election, the
 1293  employee shall be enrolled as a member of the investment plan,
 1294  the employee’s membership in the Florida Retirement System is
 1295  governed by the provisions of this part, and the employee’s
 1296  membership in the pension plan terminates. The employee’s
 1297  enrollment in the investment plan is effective the first day of
 1298  the month for which a full month’s employer contribution is made
 1299  to the investment program.
 1300         b. Any such employee who fails to elect to participate in
 1301  the investment plan within the prescribed time period is deemed
 1302  to have elected to retain membership in the pension plan, and
 1303  the employee’s option to elect to participate in the investment
 1304  plan is forfeited.
 1305         2. With respect to employees who become eligible to
 1306  participate in the investment plan by reason of employment in a
 1307  regularly established position with a district school board
 1308  employer commencing after July 1, 2002:
 1309         a. Any such employee shall, by default, be enrolled in the
 1310  pension plan at the commencement of employment, and may, by the
 1311  last business day of the 5th month following the employee’s
 1312  month of hire, elect to participate in the investment plan. The
 1313  employee’s election must be made in writing or by electronic
 1314  means and must be filed with the third-party administrator. The
 1315  election to participate in the investment plan is irrevocable,
 1316  except as provided in paragraph (g).
 1317         b. If the employee files such election within the
 1318  prescribed time period, enrollment in the investment plan is
 1319  effective on the first day of employment. The employer
 1320  retirement contributions paid through the month of the employee
 1321  plan change shall be transferred to the investment plan, and,
 1322  effective the first day of the next month, the employer shall
 1323  pay the applicable contributions based on the employee
 1324  membership class in the investment plan.
 1325         c. Any such employee who fails to elect to participate in
 1326  the investment plan within the prescribed time period is deemed
 1327  to have elected to retain membership in the pension plan, and
 1328  the employee’s option to elect to participate in the investment
 1329  plan is forfeited.
 1330         3. For purposes of this paragraph, “district school board
 1331  employer” means any district school board that participates in
 1332  the Florida Retirement System for the benefit of certain
 1333  employees, or a charter school or charter technical career
 1334  center that participates in the Florida Retirement System as
 1335  provided in s. 121.051(2)(d).
 1336         (c)1. With respect to an eligible employee who is employed
 1337  in a regularly established position on December 1, 2002, by a
 1338  local employer:
 1339         a. Any such employee may elect to participate in the
 1340  investment plan in lieu of retaining his or her membership in
 1341  the pension plan. The election must be made in writing or by
 1342  electronic means and must be filed with the third-party
 1343  administrator by February 28, 2003, or, in the case of an active
 1344  employee who is on a leave of absence on October 1, 2002, by the
 1345  last business day of the 5th month following the month the leave
 1346  of absence concludes. This election is irrevocable, except as
 1347  provided in paragraph (g). Upon making such election, the
 1348  employee shall be enrolled as a participant of the investment
 1349  plan, the employee’s membership in the Florida Retirement System
 1350  is governed by the provisions of this part, and the employee’s
 1351  membership in the pension plan terminates. The employee’s
 1352  enrollment in the investment plan is effective the first day of
 1353  the month for which a full month’s employer contribution is made
 1354  to the investment plan.
 1355         b. Any such employee who fails to elect to participate in
 1356  the investment plan within the prescribed time period is deemed
 1357  to have elected to retain membership in the pension plan, and
 1358  the employee’s option to elect to participate in the investment
 1359  plan is forfeited.
 1360         2. With respect to employees who become eligible to
 1361  participate in the investment plan by reason of employment in a
 1362  regularly established position with a local employer commencing
 1363  after October 1, 2002:
 1364         a. Any such employee shall, by default, be enrolled in the
 1365  pension plan at the commencement of employment, and may, by the
 1366  last business day of the 5th month following the employee’s
 1367  month of hire, elect to participate in the investment plan. The
 1368  employee’s election must be made in writing or by electronic
 1369  means and must be filed with the third-party administrator. The
 1370  election to participate in the investment plan is irrevocable,
 1371  except as provided in paragraph (g).
 1372         b. If the employee files such election within the
 1373  prescribed time period, enrollment in the investment plan is
 1374  effective on the first day of employment. The employer
 1375  retirement contributions paid through the month of the employee
 1376  plan change shall be transferred to the investment plan, and,
 1377  effective the first day of the next month, the employer shall
 1378  pay the applicable contributions based on the employee
 1379  membership class in the investment plan.
 1380         c. Any such employee who fails to elect to participate in
 1381  the investment plan within the prescribed time period is deemed
 1382  to have elected to retain membership in the pension plan, and
 1383  the employee’s option to elect to participate in the investment
 1384  plan is forfeited.
 1385         3. For purposes of this paragraph, “local employer” means
 1386  any employer not included in paragraph (a) or paragraph (b).
 1387         (c)(d) Contributions available for self-direction by a
 1388  member who has not selected one or more specific investment
 1389  products shall be allocated as prescribed by the state board.
 1390  The third-party administrator shall notify the member at least
 1391  quarterly that the member should take an affirmative action to
 1392  make an asset allocation among the investment products.
 1393         (d)(e) On or after July 1, 2011, a member of the pension
 1394  plan who obtains a refund of employee contributions retains his
 1395  or her prior plan choice upon return to employment in a
 1396  regularly established position with a participating employer.
 1397         (e)1.(f) A member of the investment plan who takes a
 1398  distribution of any contributions from his or her investment
 1399  plan account is considered a retiree. A retiree who is initially
 1400  reemployed in a regularly established position on or after July
 1401  1, 2010, through June 30, 2017, is not eligible for to be
 1402  enrolled in renewed membership, except as provided in s.
 1403  121.122.
 1404         2. A retiree who is reemployed on or after July 1, 2017,
 1405  shall be enrolled as a renewed member as provided in s. 121.122.
 1406         (f)(g) After the period during which an eligible employee
 1407  had the choice to elect the pension plan or the investment plan,
 1408  or the month following the receipt of the eligible employee’s
 1409  plan election, if sooner, the employee shall have one
 1410  opportunity, at the employee’s discretion, to choose to move
 1411  from the pension plan to the investment plan or from the
 1412  investment plan to the pension plan. Eligible employees may
 1413  elect to move between plans only if they are earning service
 1414  credit in an employer-employee relationship consistent with s.
 1415  121.021(17)(b), excluding leaves of absence without pay.
 1416  Effective July 1, 2005, such elections are effective on the
 1417  first day of the month following the receipt of the election by
 1418  the third-party administrator and are not subject to the
 1419  requirements regarding an employer-employee relationship or
 1420  receipt of contributions for the eligible employee in the
 1421  effective month, except when the election is received by the
 1422  third-party administrator. This paragraph is contingent upon
 1423  approval by the Internal Revenue Service.
 1424         1. If the employee chooses to move to the investment plan,
 1425  the provisions of subsection (3) govern the transfer.
 1426         2. If the employee chooses to move to the pension plan, the
 1427  employee must transfer from his or her investment plan account,
 1428  and from other employee moneys as necessary, a sum representing
 1429  the present value of that employee’s accumulated benefit
 1430  obligation immediately following the time of such movement,
 1431  determined assuming that attained service equals the sum of
 1432  service in the pension plan and service in the investment plan.
 1433  Benefit commencement occurs on the first date the employee is
 1434  eligible for unreduced benefits, using the discount rate and
 1435  other relevant actuarial assumptions that were used to value the
 1436  pension plan liabilities in the most recent actuarial valuation.
 1437  For any employee who, at the time of the second election,
 1438  already maintains an accrued benefit amount in the pension plan,
 1439  the then-present value of the accrued benefit is deemed part of
 1440  the required transfer amount. The division must ensure that the
 1441  transfer sum is prepared using a formula and methodology
 1442  certified by an enrolled actuary. A refund of any employee
 1443  contributions or additional member payments made which exceed
 1444  the employee contributions that would have accrued had the
 1445  member remained in the pension plan and not transferred to the
 1446  investment plan is not permitted.
 1447         3. Notwithstanding subparagraph 2., an employee who chooses
 1448  to move to the pension plan and who became eligible to
 1449  participate in the investment plan by reason of employment in a
 1450  regularly established position with a state employer after June
 1451  1, 2002; a district school board employer after September 1,
 1452  2002; or a local employer after December 1, 2002, must transfer
 1453  from his or her investment plan account, and from other employee
 1454  moneys as necessary, a sum representing the employee’s actuarial
 1455  accrued liability. A refund of any employee contributions or
 1456  additional member participant payments made which exceed the
 1457  employee contributions that would have accrued had the member
 1458  remained in the pension plan and not transferred to the
 1459  investment plan is not permitted.
 1460         4. An employee’s ability to transfer from the pension plan
 1461  to the investment plan pursuant to paragraphs (a) and (b) (a)
 1462  (d), and the ability of a current employee to have an option to
 1463  later transfer back into the pension plan under subparagraph 2.,
 1464  shall be deemed a significant system amendment. Pursuant to s.
 1465  121.031(4), any resulting unfunded liability arising from actual
 1466  original transfers from the pension plan to the investment plan
 1467  must be amortized within 30 plan years as a separate unfunded
 1468  actuarial base independent of the reserve stabilization
 1469  mechanism defined in s. 121.031(3)(f). For the first 25 years, a
 1470  direct amortization payment may not be calculated for this base.
 1471  During this 25-year period, the separate base shall be used to
 1472  offset the impact of employees exercising their second program
 1473  election under this paragraph. The actuarial funded status of
 1474  the pension plan will not be affected by such second program
 1475  elections in any significant manner, after due recognition of
 1476  the separate unfunded actuarial base. Following the initial 25
 1477  year period, any remaining balance of the original separate base
 1478  shall be amortized over the remaining 5 years of the required
 1479  30-year amortization period.
 1480         5. If the employee chooses to transfer from the investment
 1481  plan to the pension plan and retains an excess account balance
 1482  in the investment plan after satisfying the buy-in requirements
 1483  under this paragraph, the excess may not be distributed until
 1484  the member retires from the pension plan. The excess account
 1485  balance may be rolled over to the pension plan and used to
 1486  purchase service credit or upgrade creditable service in the
 1487  pension plan.
 1488         (5) CONTRIBUTIONS.—
 1489         (c) The state board, acting as plan fiduciary, must ensure
 1490  that all plan assets are held in a trust, pursuant to s. 401 of
 1491  the Internal Revenue Code. The fiduciary must ensure that such
 1492  contributions are allocated as follows:
 1493         1. The employer and employee contribution portion earmarked
 1494  for member accounts shall be used to purchase interests in the
 1495  appropriate investment vehicles as specified by the member, or
 1496  in accordance with paragraph (4)(c) (4)(d).
 1497         2. The employer contribution portion earmarked for
 1498  administrative and educational expenses shall be transferred to
 1499  the state board’s Administrative Trust Fund.
 1500         3. The employer contribution portion earmarked for
 1501  disability benefits and line-of-duty death benefits shall be
 1502  transferred to the Florida Retirement System Trust Fund.
 1503         (10) EDUCATION COMPONENT.—
 1504         (a) The state board, in coordination with the department,
 1505  shall provide for an education component for eligible employees
 1506  system members in a manner consistent with the provisions of
 1507  this subsection section. The education component must be
 1508  available to eligible employees at least 90 days prior to the
 1509  beginning date of the election period for the employees of the
 1510  respective types of employers.
 1511         (h) Pursuant to subsection (8), all Florida Retirement
 1512  System employers have an obligation to regularly communicate the
 1513  existence of the two Florida Retirement System plans and the
 1514  plan choice in the natural course of administering their
 1515  personnel functions, using the educational materials supplied by
 1516  the state board and the Department of Management Services.
 1517         Section 12. Subsection (4) of section 121.591, Florida
 1518  Statutes, is amended to read:
 1519         121.591 Payment of benefits.—Benefits may not be paid under
 1520  the Florida Retirement System Investment Plan unless the member
 1521  has terminated employment as provided in s. 121.021(39)(a) or is
 1522  deceased and a proper application has been filed as prescribed
 1523  by the state board or the department. Benefits, including
 1524  employee contributions, are not payable under the investment
 1525  plan for employee hardships, unforeseeable emergencies, loans,
 1526  medical expenses, educational expenses, purchase of a principal
 1527  residence, payments necessary to prevent eviction or foreclosure
 1528  on an employee’s principal residence, or any other reason except
 1529  a requested distribution for retirement, a mandatory de minimis
 1530  distribution authorized by the administrator, or a required
 1531  minimum distribution provided pursuant to the Internal Revenue
 1532  Code. The state board or department, as appropriate, may cancel
 1533  an application for retirement benefits if the member or
 1534  beneficiary fails to timely provide the information and
 1535  documents required by this chapter and the rules of the state
 1536  board and department. In accordance with their respective
 1537  responsibilities, the state board and the department shall adopt
 1538  rules establishing procedures for application for retirement
 1539  benefits and for the cancellation of such application if the
 1540  required information or documents are not received. The state
 1541  board and the department, as appropriate, are authorized to cash
 1542  out a de minimis account of a member who has been terminated
 1543  from Florida Retirement System covered employment for a minimum
 1544  of 6 calendar months. A de minimis account is an account
 1545  containing employer and employee contributions and accumulated
 1546  earnings of not more than $5,000 made under the provisions of
 1547  this chapter. Such cash-out must be a complete lump-sum
 1548  liquidation of the account balance, subject to the provisions of
 1549  the Internal Revenue Code, or a lump-sum direct rollover
 1550  distribution paid directly to the custodian of an eligible
 1551  retirement plan, as defined by the Internal Revenue Code, on
 1552  behalf of the member. Any nonvested accumulations and associated
 1553  service credit, including amounts transferred to the suspense
 1554  account of the Florida Retirement System Investment Plan Trust
 1555  Fund authorized under s. 121.4501(6), shall be forfeited upon
 1556  payment of any vested benefit to a member or beneficiary, except
 1557  for de minimis distributions or minimum required distributions
 1558  as provided under this section. If any financial instrument
 1559  issued for the payment of retirement benefits under this section
 1560  is not presented for payment within 180 days after the last day
 1561  of the month in which it was originally issued, the third-party
 1562  administrator or other duly authorized agent of the state board
 1563  shall cancel the instrument and credit the amount of the
 1564  instrument to the suspense account of the Florida Retirement
 1565  System Investment Plan Trust Fund authorized under s.
 1566  121.4501(6). Any amounts transferred to the suspense account are
 1567  payable upon a proper application, not to include earnings
 1568  thereon, as provided in this section, within 10 years after the
 1569  last day of the month in which the instrument was originally
 1570  issued, after which time such amounts and any earnings
 1571  attributable to employer contributions shall be forfeited. Any
 1572  forfeited amounts are assets of the trust fund and are not
 1573  subject to chapter 717.
 1574         (4) LINE-OF-DUTY DEATH BENEFITS FOR INVESTMENT PLAN SPECIAL
 1575  RISK CLASS MEMBERS.—Benefits are provided under this subsection
 1576  to the spouse and child or children of members in the investment
 1577  plan Special Risk Class when such members are killed in the line
 1578  of duty and are payable in lieu of the benefits that would
 1579  otherwise be payable under subsection (1) or subsection (3).
 1580  Benefits provided by this subsection supersede any other
 1581  distribution that may have been provided by the member’s
 1582  designation of beneficiary. Such benefits must be funded from
 1583  employer contributions made under s. 121.571, transferred
 1584  employee contributions and funds accumulated pursuant to
 1585  paragraph (a), and interest and earnings thereon.
 1586         (a) Transfer of funds.—To qualify to receive monthly
 1587  benefits under this subsection:
 1588         1. All moneys accumulated in the member’s account,
 1589  including vested and nonvested accumulations as described in s.
 1590  121.4501(6), must be transferred from such individual accounts
 1591  to the division for deposit in the survivor benefit account of
 1592  the Florida Retirement System Trust Fund. Moneys in the survivor
 1593  benefit account must be accounted for separately. Earnings must
 1594  be credited on an annual basis for amounts held in the survivor
 1595  benefit account of the Florida Retirement System Trust Fund
 1596  based on actual earnings of the trust fund.
 1597         2. If the member has retained retirement credit earned
 1598  under the pension plan as provided in s. 121.4501(3), a sum
 1599  representing the actuarial present value of such credit within
 1600  the Florida Retirement System Trust Fund shall be transferred by
 1601  the division from the pension plan to the survivor benefit
 1602  retirement program as implemented under this subsection and
 1603  shall be deposited in the survivor benefit account of the trust
 1604  fund.
 1605         (b) Survivor retirement; entitlement.—An investment plan
 1606  member who is in the Special Risk Class at the time the member
 1607  is killed in the line of duty on or after July 1, 2002 2013,
 1608  regardless of length of creditable service, may have survivor
 1609  benefits paid as provided in s. 121.091(7)(d) and (i) to:
 1610         1. The surviving spouse for the spouse’s lifetime; or
 1611         2. If there is no surviving spouse or the surviving spouse
 1612  dies, the member’s child or children under 18 years of age and
 1613  unmarried until the 18th birthday of the member’s youngest
 1614  child. Such payments may be extended until the 25th birthday of
 1615  any child of the member if the child is unmarried and enrolled
 1616  as a full-time student as provided in s. 121.091(7)(d) and (i).
 1617         (c) Survivor benefit retirement effective date.—
 1618         1. The effective retirement date for the surviving spouse
 1619  or eligible child of a Special Risk Class member who is killed
 1620  in the line of duty is:
 1621         a.1. The first day of the month following the member’s
 1622  death if the member dies on or after July 1, 2016.
 1623         b.2. July 1, 2016, for a member of the Special Risk Class
 1624  when killed in the line of duty on or after July 1, 2013, but
 1625  before July 1, 2016, if the application is received before July
 1626  1, 2016; or the first day of the month following the receipt of
 1627  such application.
 1628         2. Except as provided in subparagraph 1., the effective
 1629  retirement date for the surviving spouse or eligible child of an
 1630  investment plan member who is killed in the line of duty is:
 1631         a. The first day of the month following the member’s death
 1632  if the member dies on or after July 1, 2017.
 1633         b. July 1, 2017, if the member is killed in the line of
 1634  duty on or after July 1, 2002, but before July 1, 2017, if the
 1635  application is received before July 1, 2017; or the first day of
 1636  the month following the receipt of such application.
 1637  
 1638  If the investment plan account balance has already been paid out
 1639  to the surviving spouse or the eligible unmarried dependent
 1640  child or children, the benefit payable shall be actuarially
 1641  reduced by the amount of the payout.
 1642         (d) Line-of-duty death benefit.—
 1643         1. The following individuals are eligible to receive a
 1644  retirement benefit under s. 121.091(7)(d) and (i) if the
 1645  member’s account balance is surrendered and an application is
 1646  received and approved:
 1647         a. The surviving spouse.
 1648         b. If there is no surviving spouse or the surviving spouse
 1649  dies, the member’s child or children under 18 years of age and
 1650  unmarried until the 18th birthday of the member’s youngest
 1651  child, or until the 25th birthday of the member’s child if the
 1652  child is unmarried and enrolled as a full-time student.
 1653         2. Such surviving spouse or such child or children shall
 1654  receive a monthly survivor benefit that begins accruing on the
 1655  first day of the month of survivor benefit retirement, as
 1656  approved by the division, and is payable on the last day of that
 1657  month and each month thereafter during the surviving spouse’s
 1658  lifetime or on behalf of the unmarried children of the member
 1659  until the 18th birthday of the youngest child, or until the 25th
 1660  birthday of any of the member’s unmarried children who are
 1661  enrolled as full-time students. Survivor benefits must be paid
 1662  out of the survivor benefit account of the Florida Retirement
 1663  System Trust Fund established under this subsection.
 1664  
 1665  If the investment plan account balance has already been paid out
 1666  to the surviving spouse or the eligible unmarried dependent
 1667  child or children, the benefit payable shall be actuarially
 1668  reduced by the amount of the payout.
 1669         (e) Computation of survivor benefit retirement benefit.—The
 1670  amount of each monthly payment must be calculated as provided
 1671  under s. 121.091(7)(d) and (i).
 1672         (f) Death of the surviving spouse or children.—
 1673         1. Upon the death of a surviving spouse, the monthly
 1674  benefits shall be paid through the last day of the month of
 1675  death and shall terminate or be paid on behalf of the unmarried
 1676  child or children until the 18th birthday of the youngest child,
 1677  or the 25th birthday of any of the member’s unmarried children
 1678  who are enrolled as full-time students.
 1679         2. If the surviving spouse dies and the benefits are being
 1680  paid on behalf of the member’s unmarried children as provided in
 1681  subparagraph 1., benefits shall be paid through the last day of
 1682  the month until the later of the month the youngest child
 1683  reaches his or her 18th birthday, the month of the 25th birthday
 1684  of any of the member’s unmarried children enrolled as full-time
 1685  students, or the month of the death of the youngest child.
 1686         Section 13. Section 121.5912, Florida Statutes, is amended
 1687  to read:
 1688         121.5912 Survivor benefit retirement program; qualified
 1689  status; rulemaking authority.—It is the intent of the
 1690  Legislature that the survivor benefit retirement program for
 1691  Special Risk Class members of the Florida Retirement System
 1692  Investment Plan meet all applicable requirements for a qualified
 1693  plan. If the state board or the division receives notification
 1694  from the Internal Revenue Service that this program or any
 1695  portion of this program will cause the retirement system, or any
 1696  portion thereof, to be disqualified for tax purposes under the
 1697  Internal Revenue Code, the portion that will cause the
 1698  disqualification does not apply. Upon such notice, the state
 1699  board or the division shall notify the presiding officers of the
 1700  Legislature. The state board and the department may adopt any
 1701  rules necessary to maintain the qualified status of the survivor
 1702  benefit retirement program.
 1703         Section 14. Subsections (4) and (5) of section 121.71,
 1704  Florida Statutes, are amended to read:
 1705         121.71 Uniform rates; process; calculations; levy.—
 1706         (4) Required employer retirement contribution rates for
 1707  each membership class and subclass of the Florida Retirement
 1708  System for both retirement plans are as follows:
 1709  
 1710  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2017 2016
 1711  
 1712  Regular Class                             2.90% 2.97%              
 1713  Special Risk Class                       11.86% 11.80%             
 1714  Special Risk Administrative Support Class              3.83% 3.87%              
 1715  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders              6.45% 6.63%              
 1716  Elected Officers’ Class— Justices, Judges             11.67% 11.68%             
 1717  Elected Officers’ Class— County Elected Officers              8.54% 8.55%              
 1718  Senior Management Class                   4.29% 4.38%              
 1719  DROP                                      4.17% 4.23%              
 1720  
 1721         (5) 
 1722         In order to address unfunded actuarial liabilities of the
 1723  system, the required employer retirement contribution rates for
 1724  each membership class and subclass of the Florida Retirement
 1725  System for both retirement plans are as follows:
 1726  
 1727  
 1728  Membership Class            Percentage ofGrossCompensation,EffectiveJuly 1, 2017 2016
 1729  
 1730  Regular Class                             3.30% 2.83%              
 1731  Special Risk Class                        9.69% 9.05%              
 1732  Special Risk Administrative Support Class             29.08% 22.47%             
 1733  Elected Officers’ Class— Legislators, Governor, Lt. Governor, Cabinet Officers, State Attorneys, Public Defenders             42.69% 33.75%             
 1734  Elected Officers’ Class— Justices, Judges             26.25% 23.30%             
 1735  Elected Officers’ Class— County Elected Officers             35.24% 32.20%             
 1736  Senior Management Service Class             16.70% 15.67%             
 1737  DROP                                      7.43% 7.10%              
 1738  
 1739         Section 15. Subsections (1) and (3) of section 121.735,
 1740  Florida Statutes, are amended to read:
 1741         121.735 Allocations for member line-of-duty death benefits;
 1742  percentage amounts.—
 1743         (1) The allocations established in subsection (3) shall be
 1744  used to provide line-of-duty death benefit coverage for Special
 1745  Risk Class members in the investment plan and shall be
 1746  transferred monthly by the division from the Florida Retirement
 1747  System Contributions Clearing Trust Fund to the survivor benefit
 1748  account of the Florida Retirement System Trust Fund.
 1749         (3) Effective July 1, 2017 2016, allocations from the
 1750  Florida Retirement System Contributions Clearing Trust Fund to
 1751  provide line-of-duty death benefits for Special Risk Class
 1752  members in the investment plan and to offset the costs of
 1753  administering said coverage, are as follows:
 1754  
 1755  
 1756  Membership Class                  Percentage of Gross Compensation 
 1757  Regular Class                                  0.05%               
 1758  Special Risk Class                          1.15% 0.82%            
 1759  Special Risk Administrative Support Class              0.03%               
 1760  Elected Officers’ Class—Legislators, Governor,Lt. Governor, Cabinet Officers,State Attorneys, Public Defenders              0.15%               
 1761  Elected Officers’ Class—Justices, Judges              0.09%               
 1762  Elected Officers’ Class—County Elected Officers              0.20%               
 1763  Senior Management Service Class                0.05%               
 1764  
 1765         Section 16. The Legislature finds that a proper and
 1766  legitimate state purpose is served when employees and retirees
 1767  of the state and its political subdivisions, and the dependents,
 1768  survivors, and beneficiaries of such employees and retirees, are
 1769  extended the basic protections afforded by governmental
 1770  retirement systems. These persons must be provided benefits that
 1771  are fair and adequate and that are managed, administered, and
 1772  funded in an actuarially sound manner, as required by s. 14,
 1773  Article X of the State Constitution and part VII of chapter 112,
 1774  Florida Statutes. Therefore, the Legislature determines and
 1775  declares that this act fulfills an important state interest.
 1776         Section 17. (1) PURPOSE.—This section provides instructions
 1777  for implementing the 2017-2018 fiscal year salary and benefit
 1778  adjustments provided in this act. All allocations,
 1779  distributions, and uses of these funds are to be made in strict
 1780  accordance with the provisions of this act and chapter 216,
 1781  Florida Statutes.
 1782         (2) LEGISLATIVE INTENT.—It is the intent of the Legislature
 1783  that the minimum for each pay grade and pay band may not be
 1784  adjusted during the 2017-2018 fiscal year and that the maximums
 1785  for each pay grade and pay band shall be adjusted upward by 6
 1786  percent, effective July 1, 2017. In addition, the Legislature
 1787  intends that all eligible employees receive the increases
 1788  specified in this section, even if the implementation of such
 1789  increases results in an employee’s salary exceeding the adjusted
 1790  pay grade maximum. Salary increases provided under this section
 1791  shall be prorated based on the full-time equivalency of the
 1792  employee’s position. Employees classified as other-personnel
 1793  services employees are not eligible for an increase based on the
 1794  implementation of increases authorized in this section.
 1795         (3) LAW ENFORCEMENT COMPENSATION ADJUSTMENTS.—
 1796         (a) Effective July 1, 2017, funds are provided in section
 1797  18 of this act to grant a competitive pay adjustment of 5
 1798  percent of each eligible law enforcement employee’s base rate of
 1799  pay on June 30, 2017, in the Department of Legal Affairs, the
 1800  Department of Agriculture and Consumer Services, the Department
 1801  of Financial Services, the Department of Law Enforcement, the
 1802  Department of Highway Safety and Motor Vehicles, the Department
 1803  of Business and Professional Regulation, and the Department of
 1804  the Lottery; the Fish and Wildlife Conservation Commission; the
 1805  offices of State Attorneys; the Florida Commission on Offender
 1806  Review; and the Florida School for the Deaf and the Blind.
 1807         (b) For purposes of this subsection, the term “law
 1808  enforcement employee” means:
 1809         1. Sworn officers of the Law Enforcement, Florida Highway
 1810  Patrol, Special Agent, and Lottery Law Enforcement bargaining
 1811  units in the following classification codes: Law Enforcement
 1812  Officer (8515); Law Enforcement Corporal (8517); Law Enforcement
 1813  Sergeant (8519); Law Enforcement Investigator I (8540); Law
 1814  Enforcement Investigator II (8541); Law Enforcement Airplane
 1815  Pilot I (8532); Law Enforcement Airplane Pilot II (8534);
 1816  Special Agent Trainee (8580); Special Agent (8581); Special
 1817  Agent I (2724); Special Agent II (2608); Security Agent-FDLE
 1818  (8593); and Security Agent Supervisor-FDLE (8596).
 1819         2. Sworn officers in the following classification codes:
 1820  Law Enforcement Lieutenant (8522); Law Enforcement Captain (8525
 1821  and 8632); Law Enforcement Major (8526, 8626, and 8630); Special
 1822  Agent Supervisor (1126 and 8584); Inspector-FDLE (8590); and
 1823  Investigators I-VI (6661, 6662, 6663, 6664, 6665, and 6666).
 1824         (4) DEPARTMENT OF CORRECTIONS COMPENSATION ADJUSTMENTS.—
 1825         (a) Effective October 1, 2017, the Department of
 1826  Corrections shall adjust the minimum base rate of pay for its
 1827  positions in the correctional officer classification series as
 1828  follows:
 1829         1. Correctional officer (8003) to $33,500.
 1830         2. Correctional officer sergeant (8005) to $36,850.
 1831         3. Correctional officer lieutenant (8011) to $40,535.
 1832         4. Correctional officer captain (8013) to $44,589.
 1833         (b) Effective October 1, 2017, funds are provided in
 1834  section 18 of this act to fund the adjustments to the minimum
 1835  base rates of pay authorized in paragraph (a) and to fund
 1836  competitive pay adjustments to all other employees of the
 1837  Department of Corrections filling a position in the correctional
 1838  officer classification series (class codes 8003, 8005, 8011, and
 1839  8013). The adjustments to the base rate of pay shall be the
 1840  amount necessary to increase the employee’s base rate of pay as
 1841  of September 30, 2017, to the applicable class minimum specified
 1842  in paragraph (a) or by $2,500, whichever amount is greater.
 1843         (5) COMPENSATION ADJUSTMENTS FOR CERTAIN OFFICERS AND
 1844  DESIGNATED EMPLOYEES.—Beginning October 1, 2017, from the funds
 1845  provided in section 18 of this act and notwithstanding the
 1846  provisions of ss. 27.35, 27.5301(1), 27.5301(3), and 29.23,
 1847  Florida Statutes, which require the salaries of certain officers
 1848  and employees to be established in the general appropriations
 1849  act, the following officers and designated employees shall be
 1850  paid at the annual rate authorized in this subsection:
 1851         (a) Supreme Court Justices at the annual rate of $178,420.
 1852         (b) District Court of Appeal Judges at the annual rate of
 1853  $169,554.
 1854         (c) Circuit Court Judges at the annual rate of $160,688.
 1855         (d) County Court Judges at the annual rate of $151,822.
 1856         (e) State Attorneys at the annual rate of $169,554.
 1857         (f) Public Defenders at the annual rate of $169,554.
 1858         (g) Criminal Conflict and Civil Regional Counsels at the
 1859  annual rate of $115,000.
 1860         (h) Public Service Commissioner at the annual rate of
 1861  $132,036.
 1862         (i) Chair of the Public Employees Relations Commission at
 1863  the annual rate of $97,789.
 1864         (j) Commissioners of the Public Employees Relations
 1865  Commission at the rate of $46,362.
 1866         (k) Parole Commissioners at the annual rate of $92,724.
 1867  
 1868  None of the officers, commission members, or employees whose
 1869  salaries have been fixed in this subsection shall receive any
 1870  supplemental salary or benefits from any county or municipality.
 1871         (6) EMPLOYEE AND OFFICER COMPENSATION ADJUSTMENTS.—
 1872         (a) For purposes of this subsection, the term “competitive
 1873  pay adjustment” means:
 1874         1. For employees with a base rate of pay of $40,000 or less
 1875  on September 30, 2017, an annual increase of $1,400.
 1876         2. For employees with a base rate of pay greater than
 1877  $40,000 on September 30, 2017, an annual increase of $1,000;
 1878  provided however, in no instance may an employee’s base rate of
 1879  pay be increased to an annual amount less than $41,400.
 1880  
 1881  For the purpose of determining the applicable increase for part
 1882  time employees, the full-time equivalent value of the base rate
 1883  of pay on September 30, 2017, shall be used; but the amount of
 1884  the annual increase for a part-time employee must be
 1885  proportional to the full-time equivalency of the employee’s
 1886  position.
 1887         (b) For purposes of this subsection, the term “eligible
 1888  employees” means employees who are, at a minimum, meeting their
 1889  required performance standards, if applicable. If an ineligible
 1890  employee achieves performance standards subsequent to the salary
 1891  increase implementation date but on or before the end of the
 1892  2017-2018 fiscal year, the employee may receive an increase;
 1893  however, such increase shall take effect on the date the
 1894  employee becomes eligible and is not retroactive to the salary
 1895  increase implementation date. In addition, the salary increase
 1896  provided under this section shall be prorated based on the full
 1897  time equivalency of the employee’s position. Employees
 1898  classified as being other-personnel-services employees are not
 1899  eligible for an increase.
 1900         (c) Effective October 1, 2017, funds are provided in
 1901  section 18 of this act to grant competitive pay adjustments for
 1902  all eligible employees in the Career Service, the Selected
 1903  Exempt Service, the Senior Management Service, the lottery pay
 1904  plan, the judicial branch pay plan, the legislative pay plan,
 1905  and the pay plans administered by the Justice Administration
 1906  Commission, except those officers and employees receiving
 1907  compensation adjustments pursuant to subsections (3), (4), and
 1908  (5), paragraph (7)(c), and subparagraphs (7)(d)2. and 3.
 1909         (7) SPECIAL PAY ISSUES.—
 1910         (a) The Department of Highway Safety and Motor Vehicles is
 1911  authorized to increase the minimum annual salaries of current
 1912  and new employees hired to fill positions in the law enforcement
 1913  officer class (class code 8515) to $36,223. This paragraph is
 1914  effective upon becoming a law.
 1915         (b) The Department of Veterans’ Affairs is authorized to
 1916  implement its competitive pay plan proposed in the department’s
 1917  initial legislative budget request to address recruitment and
 1918  retention of its employees who hold an active nursing assistant
 1919  certification and fill a position in one of the following
 1920  classification codes: certified nursing assistant (class code
 1921  5707); senior certified nursing assistant (class code 5708);
 1922  therapy aide I (class code 5556); or therapy aide II (class code
 1923  5557).
 1924         (c) From funds in section 18 of this act, and beginning
 1925  October 1, 2017, the Justice Administrative Commission is
 1926  authorized to implement the salary adjustment proposed in its
 1927  initial legislative budget request for the Statewide Guardian Ad
 1928  Litem Program. To be eligible to receive this competitive pay
 1929  adjustment, the employee must be an employee of the Statewide
 1930  Guardian Ad Litem Program and must fill a position in one of the
 1931  following classification codes: child advocate manager (class
 1932  code 8401); senior child advocate manager (class code 8402);
 1933  volunteer recruiter (class code 8403); program attorney (class
 1934  code 8700); or senior program attorney (class code 8701).
 1935         (d) From the funds in section 18 of this act, and beginning
 1936  October 1, 2017, the Department of Legal Affairs is authorized
 1937  to:
 1938         1. Increase the starting salary of employees in the
 1939  Attorney-Assistant Attorney General class (class code 7737) to
 1940  $43,900;
 1941         2. Grant a competitive pay adjustment of $6,000 to each
 1942  employee employed as an Assistant Attorney General (class code
 1943  7746) who has worked for the department for at least 2 years and
 1944  meets or exceeds performance expectations; and
 1945         3. Grant a competitive pay adjustment of $3,000 to each
 1946  employee employed as a Senior Assistant Attorney General (class
 1947  code 7747); Attorney Supervisor-Assistant Attorney General
 1948  (class code 7744); Special Counsel–Assistant Attorney General
 1949  (class code 7165); Chief–Assistant Attorney General (class code
 1950  7748); Assistant Statewide Prosecutor–Attorney (class code
 1951  8681); Assistant Statewide Prosecutor–Senior Attorney (class
 1952  code 8682); Assistant Statewide Prosecutor–Special Counsel
 1953  (class code 6120); or Assistant Statewide Prosecutor–Chief
 1954  (class code 9191) who has worked for the department for at least
 1955  2 years and meets or exceeds performance expectations.
 1956         (8) PAY ADDITIVES AND OTHER INCENTIVE PROGRAMS.—The
 1957  following pay additives and other incentive programs are
 1958  authorized for the 2017-2018 fiscal year from existing agency
 1959  resources consistent with the provisions of ss. 110.2035 and
 1960  216.251, Florida Statutes, the applicable rules adopted by the
 1961  Department of Management Services, and negotiated collective
 1962  bargaining agreements.
 1963         (a) The Department of Corrections is authorized to award a
 1964  temporary special duties pay additive of up to 10 percent of the
 1965  employee’s base rate of pay for each certified correctional
 1966  officer (class code 8003); certified correctional officer
 1967  sergeant (class code 8005); certified correctional officer
 1968  lieutenant (class code 8011); and certified correctional officer
 1969  captain (class code 8013). For purposes of determining
 1970  eligibility for this special pay additive, the term “certified”
 1971  means the employee has obtained a correctional behavioral mental
 1972  health certification as provided through the American
 1973  Correctional Association. Such additive may be awarded only
 1974  during the time the certified officer is employed in an assigned
 1975  mental health unit post.
 1976         (b) The Department of Corrections is authorized to award a
 1977  one-time $1,000 hiring bonus to newly-hired correctional
 1978  officers (class code 8003) who are hired to fill positions at a
 1979  correctional institution that had a vacancy rate for such
 1980  positions of more than 10 percent for the preceding calendar
 1981  quarter. The bonus may not be awarded before the officer obtains
 1982  his or her correctional officer certification. Current employees
 1983  and former employees who have had a break in service with the
 1984  Department of Corrections of 31 days or less, are not eligible
 1985  for this bonus.
 1986         Section 18. The sums of $109,675,610 of recurring funds in
 1987  the General Revenue Fund and $73,389,000 of recurring funds from
 1988  trust funds are appropriated for the salary adjustments
 1989  authorized in section 17 of this act. The Office of Policy and
 1990  Budget in the Executive Office of the Governor, in consultation
 1991  with the Legislature, shall distribute the funds and budget
 1992  authority to the state agencies and the legislative and judicial
 1993  branches in accordance with chapter 216, Florida Statutes.
 1994         Section 19. Except as otherwise expressly provided in this
 1995  act and except for this section, which shall take effect upon
 1996  becoming a law, this act shall take effect July 1, 2017.
 1997  
 1998  ================= T I T L E  A M E N D M E N T ================
 1999  And the title is amended as follows:
 2000         Delete everything before the enacting clause
 2001  and insert:
 2002                        A bill to be entitled                      
 2003         An act relating to public employees; amending s.
 2004         110.123, F.S.; revising applicability of certain
 2005         definitions; defining the term “plan year”;
 2006         authorizing the state group insurance program to
 2007         include additional benefits; authorizing an employee
 2008         to use a specified portion of the state’s contribution
 2009         to purchase additional program benefits and
 2010         supplemental benefits under certain circumstances;
 2011         providing for the program to offer health plans in
 2012         specified benefit levels; requiring the Department of
 2013         Management Services to develop a plan for
 2014         implementation of the benefit levels; providing
 2015         reporting requirements; providing for expiration of
 2016         the implementation plan; creating s. 110.12303, F.S.;
 2017         authorizing additional benefits to be included in the
 2018         program; requiring the department to contract with at
 2019         least one entity that provides comprehensive pricing
 2020         and inclusive services for surgery and other medical
 2021         procedures; providing contract and reporting
 2022         requirements; requiring the department to contract
 2023         with an entity to provide enrollees with online
 2024         information on health care services and providers;
 2025         providing contract and reporting requirements;
 2026         creating s. 110.12304, F.S.; requiring that the
 2027         department procure an independent benefits consultant;
 2028         providing qualifications and duties of the independent
 2029         benefits consultant; providing reporting requirements;
 2030         requiring that the department, for informational
 2031         purposes only, calculate alternative premiums for
 2032         enrollees for the 2018 plan year; providing
 2033         requirements for the determination of premiums;
 2034         requiring the department to report alternative premium
 2035         rates to the Governor and the Legislature by a certain
 2036         date; requiring that the department determine and
 2037         recommend premiums for enrollees for the 2019 plan
 2038         year; providing requirements for the determination of
 2039         premiums; requiring premium rates to be consistent
 2040         with the total budgeted amount for the program in the
 2041         General Appropriations Act for the 2018-2019 fiscal
 2042         year; requiring the department to report premium rates
 2043         to the Governor and the Legislature by a certain date;
 2044         providing an appropriation and authorizing positions;
 2045         amending s. 121.053, F.S.; authorizing renewed
 2046         membership in the Florida Retirement System for
 2047         retirees who are reemployed in a position eligible for
 2048         the Elected Officers’ Class under certain
 2049         circumstances; amending s. 121.055, F.S.; providing
 2050         for renewed membership in the retirement system for
 2051         retirees of the Senior Management Service Optional
 2052         Annuity Program who are reemployed on or after a
 2053         specified date; closing the Senior Management Service
 2054         Optional Annuity Program to new members after a
 2055         specified date; amending s. 121.091, F.S.; revising
 2056         criteria for eligibility of payment of death benefits
 2057         to the surviving children of a Special Risk Class
 2058         member killed in the line of duty under specified
 2059         circumstances; conforming a provision to changes made
 2060         by the act; amending s. 121.122, F.S.; requiring that
 2061         certain retirees who are reemployed on or after a
 2062         specified date be renewed members in the investment
 2063         plan; providing exceptions; specifying that creditable
 2064         service does not accrue for employment during a
 2065         specified period; prohibiting certain funds from being
 2066         paid into a renewed member’s investment plan account
 2067         for a specified period of employment; requiring the
 2068         renewed member to satisfy vesting requirements;
 2069         prohibiting a renewed member from receiving specified
 2070         disability benefits; specifying limitations and
 2071         requirements; requiring the employer and the retiree
 2072         to make applicable contributions to the renewed
 2073         member’s investment plan account; providing for the
 2074         transfer of contributions; authorizing a renewed
 2075         member to receive additional credit toward the health
 2076         insurance subsidy under certain circumstances;
 2077         prohibiting participation in the pension plan;
 2078         providing that a retiree reemployed on or after a
 2079         specified date in a regularly established position
 2080         eligible for the State University System Optional
 2081         Retirement Program or State Community College System
 2082         Optional Retirement Program is a renewed member of
 2083         that program; specifying limitations and requirements;
 2084         requiring the employer and the retiree to make
 2085         applicable contributions; amending s. 121.4501, F.S.;
 2086         revising definitions; revising a provision relating to
 2087         acknowledgement of an employee’s election to
 2088         participate in the investment plan; enrolling certain
 2089         employees in the pension plan from their date of hire
 2090         until they are automatically enrolled in the
 2091         investment plan or timely elect enrollment in the
 2092         pension plan; creating an exception for special risk
 2093         class members; conforming provisions to changes made
 2094         by the act; revising requirements related to the
 2095         education component; amending s. 121.591, F.S.;
 2096         authorizing payment of death benefits to the surviving
 2097         spouse or surviving children of a member in the
 2098         investment plan; establishing qualifications and
 2099         eligibility requirements for receipt of such benefits;
 2100         prescribing the method of calculating the benefit;
 2101         specifying circumstances under which benefit payments
 2102         are terminated; amending s. 121.5912, F.S.; revising a
 2103         provision regarding program qualification under the
 2104         Internal Revenue Code and rulemaking authority, to
 2105         conform to changes made by the act; amending s.
 2106         121.71, F.S.; revising required employer retirement
 2107         contribution rates for each membership class and
 2108         subclass of the Florida Retirement System; amending s.
 2109         121.735, F.S.; revising allocations to fund line-of
 2110         duty death benefits for investment plan members, to
 2111         conform to changes made by the act; declaring that the
 2112         act fulfills an important state interest; providing a
 2113         purpose and legislative intent with respect to
 2114         provisions governing salary and benefit adjustments
 2115         for specified state employees; providing for
 2116         compensation adjustments for specified law enforcement
 2117         personnel, the Department of Corrections, certain
 2118         judicial officers, commissioners, and designated
 2119         employees, and other state employees and officers;
 2120         authorizing the use of specified pay additives and
 2121         other incentive programs for the 2017-2018 fiscal
 2122         year; providing appropriations to fund the salary and
 2123         benefit adjustments; requiring the Office of Policy
 2124         and Budget in the Executive Office of the Governor, in
 2125         consultation with the Legislature, to distribute funds
 2126         and budget authority; providing effective dates.