HB 873

1
A bill to be entitled
2An act relating to the retiree health insurance subsidy;
3amending s. 112.363, F.S.; increasing the minimum and
4maximum health insurance subsidies; providing for a cost-
5of-living adjustment to the subsidy; increasing the
6contribution paid by employers of members in state-
7administered retirement plans; providing legislative
8findings; providing an effective date.
9
10Be It Enacted by the Legislature of the State of Florida:
11
12     Section 1.  Subsections (3) and (8) of section 112.363,
13Florida Statutes, are amended to read:
14     112.363  Retiree health insurance subsidy.--
15     (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.--
16     (a)  Beginning January 1, 1988, each eligible retiree or a
17beneficiary who is a spouse or financial dependent thereof shall
18receive a monthly retiree health insurance subsidy payment equal
19to the number of years of creditable service, as defined in s.
20121.021(17), completed at the time of retirement multiplied by
21$1; however, no retiree may receive a subsidy payment of more
22than $30 or less than $10.
23     (b)  Beginning January 1, 1989, each eligible retiree or a
24beneficiary who is a spouse or financial dependent shall receive
25a monthly retiree health insurance subsidy payment equal to the
26number of years of creditable service, as defined in s.
27121.021(17), completed at the time of retirement multiplied by
28$2; however, no retiree may receive a subsidy payment of more
29than $60 or less than $20.
30     (c)  Beginning January 1, 1991, each eligible retiree or a
31beneficiary who is a spouse or financial dependent shall receive
32a monthly retiree health insurance subsidy payment equal to the
33number of years of creditable service, as defined in s.
34121.021(17), completed at the time of retirement multiplied by
35$3; however, no retiree may receive a subsidy payment of more
36than $90 or less than $30.
37     (d)  Beginning January 1, 1999, each eligible retiree or,
38if the retiree is deceased, his or her beneficiary who is
39receiving a monthly benefit from such retiree's account and who
40is a spouse, or a person who meets the definition of joint
41annuitant in s. 121.021(28), shall receive a monthly retiree
42health insurance subsidy payment equal to the number of years of
43creditable service, as defined in s. 121.021(17), completed at
44the time of retirement multiplied by $5; however, no eligible
45retiree or such beneficiary may receive a subsidy payment of
46more than $150 or less than $50. If there are multiple
47beneficiaries, the total payment must not be greater than the
48payment to which the retiree was entitled.
49     (e)1.  Beginning July 1, 2001, each eligible retiree of the
50defined benefit program of the Florida Retirement System, or, if
51the retiree is deceased, his or her beneficiary who is receiving
52a monthly benefit from such retiree's account and who is a
53spouse, or a person who meets the definition of joint annuitant
54in s. 121.021(28), shall receive a monthly retiree health
55insurance subsidy payment equal to the number of years of
56creditable service, as defined in s. 121.021(17), completed at
57the time of retirement multiplied by $5; however, no eligible
58retiree or beneficiary may receive a subsidy payment of more
59than $150 or less than $30. If there are multiple beneficiaries,
60the total payment must not be greater than the payment to which
61the retiree was entitled. The health insurance subsidy amount
62payable to any person receiving the retiree health insurance
63subsidy payment on July 1, 2001, shall not be reduced solely by
64operation of this subparagraph.
65     2.  Beginning July 1, 2002, each eligible participant of
66the Public Employee Optional Retirement Program of the Florida
67Retirement System who has met the requirements of this section,
68or, if the participant is deceased, his or her spouse who is the
69participant's designated beneficiary, shall receive a monthly
70retiree health insurance subsidy payment equal to the number of
71years of creditable service, as provided in this subparagraph,
72completed at the time of retirement, multiplied by $5; however,
73no eligible retiree or beneficiary may receive a subsidy payment
74of more than $150 or less than $30. For purposes of determining
75a participant's creditable service used to calculate the health
76insurance subsidy, a participant's years of service credit or
77fraction thereof shall be based on the participant's work year
78as defined in s. 121.021(54). Credit shall be awarded for a full
79work year whenever health insurance subsidy contributions have
80been made as required by law for each month in the participant's
81work year. In addition, all years of creditable service retained
82under the Florida Retirement System defined benefit program
83shall be included as creditable service for purposes of this
84section. Notwithstanding any other provision in this section to
85the contrary, the spouse at the time of death shall be the
86participant's beneficiary unless such participant has designated
87a different beneficiary subsequent to the participant's most
88recent marriage.
89     (f)1.  Beginning January 1, 2009, each eligible retiree of
90the defined benefit program of the Florida Retirement System or,
91if the retiree is deceased, his or her beneficiary who is
92receiving a monthly benefit from such retiree's account and who
93is a spouse or a person who meets the definition of a joint
94annuitant in s. 121.021 shall receive a monthly retiree health
95insurance subsidy payment equal to the number of years of
96creditable service, as defined in s. 121.021, completed at the
97time of retirement multiplied by $6; however, an eligible
98retiree or beneficiary may not receive a subsidy payment of more
99than $180 or less than $36. If there are multiple beneficiaries,
100the total payment must not be greater than the payment to which
101the retiree was entitled. Notwithstanding any other provision in
102this section to the contrary, the spouse at the time of death
103shall be the participant's beneficiary unless such participant
104has designated a different beneficiary subsequent to the
105participant's most recent marriage. The health insurance subsidy
106amount payable to any person receiving the retiree health
107insurance subsidy payment on January 1, 2008, may not be reduced
108solely by operation of this subparagraph.
109     2.  Beginning January 1, 2009, each eligible participant of
110the Public Employee Optional Retirement Program of the Florida
111Retirement System who has met the requirements of this section
112or, if the participant is deceased, his or her spouse who is the
113participant's designated beneficiary shall receive a monthly
114retiree health insurance subsidy payment equal to the number of
115years of creditable service, as provided in this subparagraph,
116completed at the time of retirement multiplied by $6; however,
117an eligible retiree or beneficiary may not receive a subsidy
118payment of more than $180 or less than $36. For purposes of
119determining a participant's creditable service used to calculate
120the health insurance subsidy, a participant's years of service
121credit or fraction thereof shall be based on the participant's
122work year as defined in s. 121.021. Credit shall be awarded for
123a full work year whenever health insurance subsidy contributions
124have been made as required by law for each month in the
125participant's work year. In addition, all years of creditable
126service retained under the Florida Retirement System defined
127benefit program shall be included as creditable service for
128purposes of this section. Notwithstanding any other provision in
129this section to the contrary, the spouse at the time of death
130shall be the participant's beneficiary unless such participant
131has designated a different beneficiary subsequent to the
132participant's most recent marriage.
133     (g)1.  Beginning January 1, 2010, each eligible retiree of
134the defined benefit program of the Florida Retirement System or,
135if the retiree is deceased, his or her beneficiary who is
136receiving a monthly benefit from such retiree's account and who
137is a spouse or a person who meets the definition of a joint
138annuitant in s. 121.021 shall receive a monthly retiree health
139insurance subsidy payment equal to the number of years of
140creditable service, as defined in s. 121.021, completed at the
141time of retirement multiplied by $7; however, an eligible
142retiree or beneficiary may not receive a subsidy payment of more
143than $210 or less than $42. If there are multiple beneficiaries,
144the total payment must not be greater than the payment to which
145the retiree was entitled. Notwithstanding any other provision in
146this section to the contrary, the spouse at the time of death
147shall be the participant's beneficiary unless such participant
148has designated a different beneficiary subsequent to the
149participant's most recent marriage. The health insurance subsidy
150amount payable to any person receiving the retiree health
151insurance subsidy payment on January 1, 2008, may not be reduced
152solely by operation of this subparagraph.
153     2.  Beginning January 1, 2010, each eligible participant of
154the Public Employee Optional Retirement Program of the Florida
155Retirement System who has met the requirements of this section
156or, if the participant is deceased, his or her spouse who is the
157participant's designated beneficiary shall receive a monthly
158retiree health insurance subsidy payment equal to the number of
159years of creditable service, as provided in this subparagraph,
160completed at the time of retirement multiplied by $7; however,
161an eligible retiree or beneficiary may not receive a subsidy
162payment of more than $210 or less than $42. For purposes of
163determining a participant's creditable service used to calculate
164the health insurance subsidy, a participant's years of service
165credit or fraction thereof shall be based on the participant's
166work year as defined in s. 121.021. Credit shall be awarded for
167a full work year whenever health insurance subsidy contributions
168have been made as required by law for each month in the
169participant's work year. In addition, all years of creditable
170service retained under the Florida Retirement System defined
171benefit program shall be included as creditable service for
172purposes of this section. Notwithstanding any other provision in
173this section to the contrary, the spouse at the time of death
174shall be the participant's beneficiary unless such participant
175has designated a different beneficiary subsequent to the
176participant's most recent marriage.
177     (8)  CONTRIBUTIONS.--For purposes of funding the insurance
178subsidy provided by this section:
179     (a)  Beginning October 1, 1987, the employer of each member
180of a state-administered retirement plan shall contribute 0.24
181percent of gross compensation each pay period.
182     (b)  Beginning January 1, 1989, the employer of each member
183of a state-administered retirement plan shall contribute 0.48
184percent of gross compensation each pay period.
185     (c)  Beginning January 1, 1994, the employer of each member
186of a state-administered retirement plan shall contribute 0.56
187percent of gross compensation each pay period.
188     (d)  Beginning January 1, 1995, the employer of each member
189of a state-administered retirement plan shall contribute 0.66
190percent of gross compensation each pay period.
191     (e)  Beginning July 1, 1998, the employer of each member of
192a state-administered retirement plan shall contribute 0.94
193percent of gross compensation each pay period.
194     (f)  Beginning July 1, 2001, the employer of each member of
195a state-administered retirement plan shall contribute 1.11
196percent of gross compensation each pay period.
197     (g)  Beginning January 1, 2009, the employer of each member
198of a state-administered retirement plan shall contribute 1.75
199percent of gross compensation each pay period.
200
201Such contributions shall be submitted to the Department of
202Management Services and deposited in the Retiree Health
203Insurance Subsidy Trust Fund.
204     Section 2.  The Legislature finds that a proper and
205legitimate state purpose is served when employees and retirees
206of the state and of its political subdivisions, and the
207dependents, survivors, and beneficiaries of such employees and
208retirees, are extended the basic protections afforded by
209governmental retirement systems that provide fair and adequate
210benefits that are managed, administered, and funded in an
211actuarially sound manner, as required by s. 14, Art. X of the
212State Constitution and part VII of chapter 112, Florida
213Statutes. Therefore, the Legislature determines and declares
214that this act fulfills an important state interest.
215     Section 3.  This act shall take effect upon becoming a law.


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