Florida Senate - 2008 (NP) SB 2884

By Senator Saunders

37-02889-08 20082884__

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A bill to be entitled

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An act relating to Lee County; amending chapter 74-522,

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Laws of Florida, as amended; revising the qualifications

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for employment or reemployment as a classified employee of

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the Lee County Sheriff's Office; providing definitions;

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revising and providing provisions relating to the funding

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of civil service board and retirement health insurance

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benefits; providing membership qualifications for

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participation in the Lee County Sheriff's Office group

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health insurance plan; specifying payment and premium

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provisions of the plan; specifying to whom benefits may be

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payable; providing participation requirements for certain

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terminated employees prior to their receiving a retirement

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benefit; requiring the office to be a secondary payor to

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certain coverage held from previous or subsequent

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employers; providing schedule requirements for employer

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premiums; providing the effect of Medicare eligibility;

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providing for methods of premium payments; providing a

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limitation on the selection of continued insurance

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benefits; providing the effect in instances of the death

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of an insured retiree; providing applicability to all

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classified and unclassified members of the office;

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providing an effective date.

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

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     Section 1.  Subsection (6) of section 9 and section 15 of

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chapter 74-522, Laws of Florida, as amended by chapter 2007-320,

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Laws of Florida, are amended to read:

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     Section 9.  Qualifications for employment.--The minimum

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standards and qualifications for employment or reemployment as a

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classified employee of the office of the Sheriff of Lee County,

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shall be as follows:

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     (6)  All applicants having military service must submit a DD

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214 indicating that they have received no less than an their

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military service and discharge were under honorable discharge

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from any of the Armed Forces of the United States. Applicants

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honorably conditions. Persons discharged from military service

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for medical conditions or reasons must be able to perform all

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functions and essential tasks of the position for which they have

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applied are applying.

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     Section 15. Funding of civil service board and retirement

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health insurance benefits.--

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     (1) Funding; board operations.--It shall be and is hereby

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made the duty of the Sheriff of Lee County to provide annually in

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his or her budget, a sufficient sum of money to enable the board

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to properly carry out the purpose purposes of this act.

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     (2) Continued group insurance benefits and funding of

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retirement insurance.--Pursuant to section 112.0801, Florida

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Statutes, the Sheriff of Lee County is required to offer all

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retirees the option of continuing to participate in the agency's

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group health and hospitalization insurance plan. The premium for

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such continued insurance may be paid by the retiree or the

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employer.

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     (3) Definitions.--As used in this section, the term:

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     (a) "Eligible employee" means a classified or unclassified

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full-time member of the Lee County Sheriff's Office who fills a

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regularly budgeted position, participates in the Florida

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Retirement System, and meets the requirements of this section.

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     (b) "Employee premium" means the amount or portion of the

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health and hospitalization insurance premium payable by the

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employee or retiree expressed as a monthly dollar amount.

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     (c) "Employer premium" means the amount or portion of the

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health and hospitalization premium payable by the Lee County

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Sheriff's Office expressed as a monthly dollar amount.

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     (d) "Florida Retirement System" means the state-

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administered retirement system established for state and local

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government employees as defined in chapter 121, Florida Statutes.

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     (e) "Health insurance subsidy" means a monthly payment made

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to a retired Florida Retirement System member to assist in paying

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costs of health insurance as provided in section 112.363, Florida

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Statutes.

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     (f) "Lee County Sheriff's Office retirement health and

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hospitalization insurance plan" means the same health and

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hospitalization insurance plan and premium rates as are

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established for and offered to active members of the agency.

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     (g) "Premium" means the amount charged by the plan to

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provide individual or family health and hospitalization insurance

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coverage to active and retired members of the Lee County

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Sheriff's Office and their qualified dependents expressed as a

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monthly dollar amount. Premiums for retirees and qualified

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dependents shall not exceed premiums for active employees.

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     (h) "Qualified dependent" means the spouse or dependent

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child of a retiree who is entitled to continuing group health and

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hospitalization insurance benefits pursuant to section 112.0801,

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Florida Statutes, and the provisions of this section.

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     (i) "Retirement" means the act of terminating employment

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and becoming a retiree as defined in section 121.021(60) or

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section 121.4501(2)(j), Florida Statutes, and receiving a benefit

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from the Florida Retirement System.

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     (j) "Vested" or "vesting" means the guarantee that a member

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is eligible to receive a future retirement benefit as provided in

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section 121.021(45), Florida Statutes.

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     (4) Group health insurance; participation by retired

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employees with fewer than 15 years of service.--All persons who

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are retirees, as defined in section 121.021(60) or section

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121.4501(2)(j), Florida Statutes, from the Florida Retirement

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System and who terminate from the Lee County Sheriff's Office

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have the option, pursuant to section 112.0801, Florida Statutes,

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to continue to participate in the Lee County Sheriff's Office

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group health insurance plan. Retirees and qualified dependents

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shall be offered the same health and hospitalization insurance

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coverage as active employees at a cost of no more than the

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premium applicable to active employees. Participation in this

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plan is voluntary and all premiums for retirees and qualified

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dependents of retirees that have less than 15 years of service

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with the Lee County Sheriff's Office are employee premiums

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payable by the retiree or dependent. Retirees may also purchase,

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at their own expense, individual or family group dental insurance

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or vision insurance, or both, through the agency's group

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policies. Premiums may be adjusted annually based on actual

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qualified group costs to the Lee County Sheriff's Office.

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     (5) Retirement health insurance benefits for employees with

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15 or more years of service; employer premium

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payments.--Effective October 1, 1986, and thereafter, it is the

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duty of the Sheriff of Lee County to provide annually in his or

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her budget a sufficient sum of money to pay a portion percentage

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of the cost of the health and hospitalization insurance premiums

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for employees of members of the Lee County Sheriff's Office who

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retire from active service after having accumulated at least 15

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or more years of full-time, active creditable service with the

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office under the Florida Retirement System. Employer premiums The

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health insurance costs payable under this provision are limited

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to pursuant to this section include premiums for major medical

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and hospitalization insurance and, but do not include premiums

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for dental or vision insurance. Retirees may purchase, at their

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expense, individual or family group dental insurance or vision

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insurance, or both.

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     (6) Benefits payable under subsection (5).--Benefits

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payable under subsection (5) are only available to employees who

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retire from the Florida Retirement System and terminate

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employment after 15 or more years of service with the Lee County

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Sheriff's Office. A member of the Florida Retirement System

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employed prior to October 1, 2009, who has been a full-time

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member of the Lee County Sheriff's Office for the 10 years

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immediately preceding his or her retirement may claim up to 5

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years of previous service with another Florida Retirement System

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employer subject to verification by the Division of Retirement of

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the Department of Management Services to meet the 15-year

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requirement as provided for in subsection (5). Persons hired by

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the Lee County Sheriff's Office on or after October 1, 2009, are

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not eligible to claim additional years of service from previous

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Florida Retirement System employers to qualify for employer-paid

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health and hospitalization insurance benefits as provided for in

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subsection (5).

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     (7) Termination after 15 years of service but prior to

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receiving a retirement benefit.--If an employee terminates from

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the Lee County Sheriff's Office after accumulating 15 years or

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more of full-time service as outlined in subsection (6), but

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prior to receiving a retirement benefit from the Florida

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Retirement System, he or she may continue participating in the

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Lee County Sheriff's Office group health and hospitalization

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insurance plan by paying the full current group premium rate for

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individual or family coverage. Upon receiving written

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notification and documentation from the Florida Retirement System

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that the former employee has become a retiree of the Florida

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Retirement System, the Lee County Sheriff's Office shall begin to

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pay a portion of the retiree's, and dependents' if qualified,

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health and hospitalization insurance premium from the effective

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date of retirement. It is the retiree's responsibility to ensure

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that notification of retirement from the Florida Retirement

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System is made to the Lee County Sheriff's Office. No retroactive

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payments may be made due to the retiree's failure to timely

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notify the Lee County Sheriff's Office of his or her retirement.

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     (8) Retirement benefits from a previous or subsequent

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employer.--If a retiree, qualified under subsection (6) or

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subsection (7), is entitled to retirement health insurance

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benefits paid for by any previous or subsequent employer, the Lee

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County Sheriff's Office shall be a secondary payor to that

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coverage.

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     (9) Premium payments by the Lee County Sheriff's Office;

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employer premium.--The employer premium, the portion of a

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qualified retiree's health and hospitalization insurance premium

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payable by the Lee County Sheriff's Office, is dependent upon the

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retiree expressing a desire to participate in the Lee County

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Sheriff's Office group health and hospitalization plan and the

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following schedule:

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     (a) At 15 years of service the Lee County Sheriff's Office

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shall pay up to 75 percent of the portion of the retiree's health

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and hospitalization insurance premium that exceeds the amount of

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any health insurance subsidy paid to a retiree. For each full

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month of employment with the Lee County Sheriff's Office beyond

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15 years the Sheriff's Office shall pay an additional 0.416

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percent per month through 19 years and 11 months of service. The

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insured retiree may purchase, at his or her own expense, group

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coverage for a qualified spouse or dependents. Employee premium

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payments and payments for insurance coverage of dependents of the

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retiree are payable by the retiree.

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     (b) At 20 years of service and beyond, the Lee County

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Sheriff's Office shall pay up to 100 percent of the portion of

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the retiree's health and hospitalization insurance premium that

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exceeds the first $100 of any health insurance subsidy received

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by a retiree and in addition shall pay 50 percent of the health

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and hospitalization insurance premium for any qualified spouse or

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dependents of the retiree. Any employee premium payments and the

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balance of payments for dependents of the retiree are payable by

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the retiree or qualified dependent. Any increase or decrease to

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the health insurance subsidy by the state shall be factored into

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the provisions of this subsection.

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     (c) Premiums may be adjusted annually based on actual

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qualified group costs to the Lee County Sheriff's Office.

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     (10) Effect of Medicare eligibility.--At such time as a

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retiree or qualified dependent covered under this section becomes

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eligible for Medicare health insurance, it is his or her

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responsibility to enroll in and utilize his or her Medicare

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benefits to pay primary, secondary, or last payments to the

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extent stated under federal law. The Lee County Sheriff's Office

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shall treat an eligible retiree or qualified dependent as

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enrolled in Medicare parts A and B, regardless of actual

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enrollment, and base its payments on behalf of the retiree or

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qualified dependent as if the retiree or spouse has utilized his

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or her Medicare benefits.

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     (11) Method of premium payments.--Any employee premium

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payments or portions of employee premium payments due from the

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retiree must be made directly to the Lee County Sheriff's Office

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either by the retiree or by authorized deduction from his or her

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Florida Retirement System benefit payments.

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     (12) Limitation on selection of continued insurance

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benefits.--Retirement insurance benefits are only available to an

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employee at the time he or she retires from the Florida

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Retirement System, except as provided in subsection (7). All

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benefits must be applied for within 60 days of the employee's

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last physical day of employment. If an employee chooses not to

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receive any or all retirement benefits or fails to make a

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selection of benefits during this time period, he or she does not

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have the option to do so at a later date. Retirees receiving

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benefits may only add dependents at a later date if a qualifying

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event has occurred.

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     (13)(a) Death of insured retiree.--Upon the death of an

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insured retiree, his or her spouse or qualified dependents, or

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both, may continue to participate in any group health and

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hospitalization plan that was in force on them at the time of

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such death. The death of a retiree shall not be considered a

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qualifying event to add additional persons or modify existing

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insurance coverage. Premiums shall not be increased unless there

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is an overall increase in premiums for active employees.

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     (b) In the event that a current classified employee of the

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Lee County Sheriff's Office dies or becomes totally and

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permanently disabled while carrying out the duties of his or her

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office but does not qualify for benefits under section 112.19,

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Florida Statutes, the employee shall be considered retired from

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the Lee County Sheriff's Office at the date of such death or

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total and permanent disability. This retirement shall qualify the

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employee and his or her surviving qualified dependents to be

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insured according to current Sheriff's Office policy and under

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this section provided that the employee meets all requirements

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contained in this section as to length of service and selection

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of benefits.

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     (14) Participation of classified and unclassified

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members.--This section shall apply to all classified and

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unclassified members of the Lee County Sheriff's Office alike,

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provided that they meet all eligibility requirements found in

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this section. When a retiree receiving this health insurance

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benefit becomes eligible for Medicare, his or her health coverage

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will convert to the Medicare Supplement health insurance.

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     (a) In order to receive this benefit, the retiree must have

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served with the Lee County Sheriff's Office for the 10 years

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immediately preceding his or her retirement. The retiree may

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claim up to 5 years of creditable service earned while in the

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employ of another member agency within the Florida Retirement

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System. The Lee County Sheriff's Office shall verify all years of

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creditable service claimed through the Division of Retirement of

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the Department of Administration.

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     (b) If an employee retires from the Lee County Sheriff's

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Office after at least 10 years of service with the department,

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but before reaching retirement age, and has participated in the

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Florida Retirement System for at least 15 years, he or she may

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pay his and her or his and her dependent's health insurance costs

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until he or she begins to receive retirement benefits under the

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Florida Retirement System. The Lee County Sheriff's Office shall

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begin to pay a percentage of the employee's health insurance

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costs when he or she begins to receive such retirement benefits.

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The retiree shall give the sheriff's office written notice of the

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date of payment of his or her initial retirement benefit. The Lee

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County Sheriff's Office shall verify this date through the

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Division of Retirement of the Department of Administration.

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     (c) The Lee County Sheriff's Office shall base the

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percentage of a retiree's health insurance costs it will pay upon

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the number of years of creditable service that the retiree has

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accumulated in the Florida Retirement System. Fifteen years of

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creditable service entitles the retiree to have 75 percent of his

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or her health insurance premiums paid by the sheriff's office.

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The sheriff's office shall pay an additional 5 percent of the

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insurance premiums for each year of service in excess of 15 years

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until reaching a maximum of 100 percent of the premium at 20

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years of service. The Lee County Sheriff's Office shall pay an

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additional one-twelfth of 1 percent of the premium for each month

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served until the full 100 percent is paid.

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     (d) If an employee has health insurance coverage through a

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previous employer, the Lee County Sheriff's Office will be the

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secondary payor.

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     (e) If an employee receives a retiree health insurance

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subsidy from the state, the Lee County Sheriff's Office shall

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reduce the amount it pays of the employee's health insurance

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premiums by the amount of the subsidy.

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     (f) The Lee County Sheriff's Office shall pay for the

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health insurance coverage of the retiree and 50 percent of his or

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her dependents' health insurance coverage only if the retiree's

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health insurance is paid at 100 percent of the premium at 20

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years of service. A retiree who obtains benefits without

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attaining 20 years of service may pay for the health insurance of

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his or her dependents. Upon a retiree's death, his or her spouse

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may continue the health insurance coverage previously provided by

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the retiree. Premiums must be paid to the Lee County Sheriff's

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Office.

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     (g) This retiree health insurance benefit is only available

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to an employee when he or she retires. If the employee does not

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elect to receive the insurance benefit upon retiring, he or she

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does not have the option of receiving the benefit at a later

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date.

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     Section 2.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.