Senate Bill sb0992c1

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    Florida Senate - 2005                            CS for SB 992

    By the Committee on Governmental Oversight and Productivity;
    and Senators Smith, Lynn and Lawson




    585-2342-05

  1                      A bill to be entitled

  2         An act relating to retirement; providing

  3         legislative intent; amending s. 121.091, F.S.;

  4         revising provisions relating to benefits

  5         payable for total and permanent disability for

  6         certain Special Risk Class members of the

  7         Florida Retirement System who are injured in

  8         the line of duty; providing for contribution

  9         rate increases to fund benefits provided in s.

10         121.091, F.S., as amended; directing the

11         Division of Statutory Revision to adjust

12         contribution rates set forth in s. 121.71,

13         F.S.; amending s. 112.363, F.S.; defining the

14         term "the member begins drawing retirement

15         benefits" for purposes of determining

16         eligibility for the subsidy; revising the

17         method of calculating the subsidy amount for

18         certain retirees and beneficiaries; providing

19         an effective date.

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21  Be It Enacted by the Legislature of the State of Florida:

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23         Section 1.  The Legislature declares that firefighters,

24  emergency medical technicians, paramedics, law enforcement

25  officers, correctional officers, and correctional probation

26  officers, as defined in this act, perform state and municipal

27  functions; that it is their duty to protect life and property

28  at their own risk and peril; that it is their duty to

29  continuously instruct school personnel, public officials, and

30  private citizens about safety; and that their activities are

31  vital to the public safety. Therefore, the Legislature

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    Florida Senate - 2005                            CS for SB 992
    585-2342-05




 1  declares that it is a proper and legitimate state purpose to

 2  provide a uniform retirement system for the benefit of

 3  firefighters, emergency medical technicians, paramedics, law

 4  enforcement officers, correctional officers, and correctional

 5  probation officers, as defined in this act, and intends, in

 6  implementing the provisions of Section 14, Article X of the

 7  State Constitution as they relate to municipal and special

 8  district pension trust fund systems and plans, that such

 9  retirement systems or plans be managed, administered,

10  operated, and funded in such manner as to maximize the

11  protection of pension trust funds. Pursuant to Section 18,

12  Article VII of the State Constitution, the Legislature

13  determines and declares that this act fulfills an important

14  state interest.

15         Section 2.  Paragraph (b) of subsection (4) of section

16  121.091, Florida Statutes, is amended to read:

17         121.091  Benefits payable under the system.--Benefits

18  may not be paid under this section unless the member has

19  terminated employment as provided in s. 121.021(39)(a) or

20  begun participation in the Deferred Retirement Option Program

21  as provided in subsection (13), and a proper application has

22  been filed in the manner prescribed by the department. The

23  department may cancel an application for retirement benefits

24  when the member or beneficiary fails to timely provide the

25  information and documents required by this chapter and the

26  department's rules. The department shall adopt rules

27  establishing procedures for application for retirement

28  benefits and for the cancellation of such application when the

29  required information or documents are not received.

30         (4)  DISABILITY RETIREMENT BENEFIT.--

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    Florida Senate - 2005                            CS for SB 992
    585-2342-05




 1         (b)  Total and permanent disability.--A member shall be

 2  considered totally and permanently disabled if, in the opinion

 3  of the administrator, he or she is prevented, by reason of a

 4  medically determinable physical or mental impairment, from

 5  rendering useful and efficient service as an officer or

 6  employee. A Special Risk Class member who is an officer as

 7  defined in s. 943.10(1), (2), or (3); a firefighter as defined

 8  in s. 633.30(1); an emergency medical technician as defined in

 9  s. 401.23(11); or a paramedic as defined in s. 401.23(17) who

10  is catastrophically injured as defined in s. 121.091(4) in the

11  line of duty shall be considered totally and permanently

12  disabled and unable to render useful and efficient service as

13  an officer, unless the administrator can provide documented

14  competent medical evidence that the officer is able to render

15  useful and efficient service as an officer. For purposes of

16  this subsection, the term "officer" includes law enforcement

17  officers, correctional officers, and correctional probation

18  officers as defined in s. 943.10(1), (2), and (3) and

19  firefighters, emergency medical technicians, and paramedics.

20         Section 3.  Effective July 1, 2005, in order to fund

21  the benefits provided in section 121.091, Florida Statutes, as

22  amended by this act:

23         (1)  The contribution rate that applies to the Special

24  Risk Class of the defined benefit program of the Florida

25  Retirement System shall be increased by 0.03 percentage

26  points.

27         (2)  The contribution rate that applies to the Special

28  Risk Administrative Support Class of the defined benefit

29  program of the Florida Retirement System shall be increased by

30  0.20 percentage points.

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    Florida Senate - 2005                            CS for SB 992
    585-2342-05




 1  These increases shall be in addition to all other changes to

 2  such contribution rates which may be enacted into law to take

 3  effect on that date. The Division of Statutory Revision is

 4  directed to adjust accordingly the contribution rates set

 5  forth in section 121.71, Florida Statutes.

 6         Section 4.  Paragraph (b) of subsection (2) of section

 7  112.363, Florida Statutes, is amended, and paragraph (f) is

 8  added to subsection (3) of that section, to read:

 9         112.363  Retiree health insurance subsidy.--

10         (2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

11  SUBSIDY.--

12         (b)  For purposes of this section, a person is deemed

13  retired from a state-administered retirement system when he or

14  she terminates employment with all employers participating in

15  the Florida Retirement System as described in s. 121.021(39)

16  and:

17         1.  For a participant of the Public Employee Optional

18  Retirement Program established under part II of chapter 121,

19  the participant meets the age or service requirements to

20  qualify for normal retirement as set forth in s. 121.021(29).

21         2.  For a member of the Florida Retirement System

22  defined benefit program, or any employee who maintains

23  creditable service under both the defined benefit program and

24  the Public Employee Optional Retirement Program, the member

25  begins drawing retirement benefits from the defined benefit

26  program of the Florida Retirement System. As used in this

27  subparagraph, the term "the member begins drawing retirement

28  benefits" means that the retired member has received his or

29  her monthly retirement benefit at a place of his or her

30  choosing.

31         (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--

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    Florida Senate - 2005                            CS for SB 992
    585-2342-05




 1         (f)  Beginning January 1, 2006, each eligible retiree

 2  of the defined benefit program of the Florida Retirement

 3  System or, if the retiree is deceased, his or her beneficiary

 4  who is receiving a monthly benefit from such retiree's account

 5  and who is a spouse, or a person who meets the definition of

 6  joint annuitant in s. 121.021(28), shall receive a monthly

 7  retiree health insurance subsidy payment equal to the number

 8  of years of creditable service, as defined in s. 121.021(17),

 9  completed at the time of retirement, in addition to a maximum

10  of 60 months the retiree participated in DROP, multiplied by

11  $5; however, no eligible retiree or beneficiary may receive a

12  subsidy payment of more than $150 or less than $30. If there

13  are multiple beneficiaries, the total payment must not be

14  greater than the payment to which the retiree was entitled.

15  The health insurance subsidy amount payable to any person

16  receiving the retiree health insurance subsidy payment on July

17  1, 2001, may not be reduced solely by operation of this

18  paragraph.

19         Section 5.  This act shall take effect January 1, 2006.

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    Florida Senate - 2005                            CS for SB 992
    585-2342-05




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 992

 3                                 

 4  Modifies directory language to create a new subsection.

 5  Changes effective date to January 1, 2006.

 6  Provides an important state interest clause.

 7  Provides that certain officers in the special risk class who
    are catastrophically injured in the line of duty be considered
 8  totally and permanently disabled and unable to render useful
    and efficient service, unless the administrator can provide
 9  documented competent medical evidence that the officer is able
    to render useful and efficient service as an officer.
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    Increases the contribution rate that applies to the Special
11  Risk Class of the defined benefit program of the FRS by 0.03
    percentage points and the contribution rate that applies to
12  the Special Risk Administrative Support Class of the defined
    benefit program of the FRS by 0.20 percentage points.
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