HB 5701

1	A bill to be entitled
2	An act relating to health insurance subsidies; amending s.
3	110.12312, F.S.; conforming provisions to changes made by
4	this act; amending s. 112.19, F.S.; revising eligibility
5	for certain health insurance subsidies for law
6	enforcement, correctional, and correctional probation
7	officers; amending s. 112.191, F.S.; revising eligibility
8	for certain health insurance subsidies for firefighters;
9	amending s. 112.363, F.S.; providing for the elimination
10	of retiree health insurance subsidies to certain new
11	retirees or beneficiaries; provides for the future repeal
12	of certain retiree health insurance subsidies; amending s.
13	121.051, F.S.; conforming provisions to changes made by
14	this act; revising the employer contribution for employees
15	in the State Community College System Optional Retirement
16	Program; amending ss. 121.052, 121.055, and 121.071, F.S.;
17	revising the employer retiree health insurance subsidy
18	contribution for participants in the Elected Officers'
19	Class, Senior Management Service Class, Regular Class,
20	Special Risk Class, and Special Risk Administrative
21	Support Class; providing for future repeal of specified
22	required employer contributions on behalf of each member
23	of the Elected Officers' Class, Senior Management Service
24	Class, Regular Class, Special Risk Class, and Special Risk
25	Administrative Support Class; amending s. 121.053, F.S.;
26	revising requirements for the earning of additional credit
27	toward the maximum health insurance subsidy for certain
28	members of the Elected Officers' Class; providing for
29	future repeal of provision relating to health insurance
30	subsidies; amending s. 121.091, F.S.; providing that
31	certain employees who have terminated participation in
32	DROP may not receive retiree health insurance subsidy
33	payments; amending s. 121.091, F.S.; providing for the
34	future repeal of certain provisions to conform to changes
35	made by this act; amending s. 121.122, F.S.; revising
36	requirements for the earning of additional credit toward
37	the maximum health insurance subsidy for certain members
38	of the Senior Management Service Class; amending s.
39	121.122, F.S.; providing for future repeal of certain
40	provisions to conform to changes made by this act;
41	amending s. 121.35, F.S.; providing for the transfer of
42	contributions for members in the State University Optional
43	Retirement Program to the Florida Retirement System Trust
44	Fund; revises the employer contribution for employees in
45	the State University Optional Retirement Program; revising
46	the employer contribution for participants in the optional
47	retirement program; providing for the future repeal of
48	subsection (18) of s. 121.4501, F.S., relating to the
49	Public Employee Optional Retirement Program retiree health
50	insurance subsidy; conforms cross-references; amending s.
51	121.571, F.S.; conforming provisions to changes made by
52	this act; amending s. 121.591, F.S.; conforming cross-
53	references; amending s. 121.76, F.S.; revising provisions
54	relating to contributions for Social Security and the
55	retiree health insurance subsidy; amending s. 1012.875,
56	F.S.; revises the employer contribution for employees in
57	the State Community College System Optional Retirement
58	Program; providing effective dates.
59
60	Be It Enacted by the Legislature of the State of Florida:
61
62	Section 1.  Section 110.12312, Florida Statutes, is amended
63	to read:
64	110.12312  Open enrollment period for retirees.-On or after
65	July 1, 1997, the Department of Management Services shall
66	provide for an open enrollment period for retired state
67	employees who want to obtain health insurance coverage under ss.
68	110.123 and 110.12315. The options offered during the open
69	enrollment period must provide the same health insurance
70	coverage as the coverage provided to active employees under the
71	same premium payment conditions in effect for covered retirees,
72	including eligibility for health insurance subsidy payments
73	under s. 112.363. A person who separates from employment
74	subsequent to May 1, 1988, but whose date of retirement occurs
75	on or after August 1, 1995, is eligible as of the first open
76	enrollment period occurring after July 1, 1997, with an
77	effective date of January 1, 1998, as long as the retiree's
78	enrollment remains in effect.
79	Section 2.  Paragraph (h) of subsection (2) of section
80	112.19, Florida Statutes, is amended to read:
81	112.19  Law enforcement, correctional, and correctional
82	probation officers; death benefits.-
83	(2)
84	(h)1.  Any employer who employs a full-time law
85	enforcement, correctional, or correctional probation officer
86	who, on or after January 1, 1995, suffers a catastrophic injury,
87	as defined in s. 440.02, Florida Statutes 2002, in the line of
88	duty shall pay the entire premium of the employer's health
89	insurance plan for the injured employee, the injured employee's
90	spouse, and for each dependent child of the injured employee
91	until the child reaches the age of majority or until the end of
92	the calendar year in which the child reaches the age of 25 if
93	the child continues to be dependent for support, or the child is
94	a full-time or part-time student and is dependent for support.
95	The term "health insurance plan" does not include supplemental
96	benefits that are not part of the basic group health insurance
97	plan. If the injured employee subsequently dies, the employer
98	shall continue to pay the entire health insurance premium for
99	the surviving spouse until remarried, and for the dependent
100	children, under the conditions outlined in this paragraph.
101	However:
102	a.  Health insurance benefits payable from any other source
103	shall reduce benefits payable under this section.
104	b.  It is unlawful for a person to willfully and knowingly
105	make, or cause to be made, or to assist, conspire with, or urge
106	another to make, or cause to be made, any false, fraudulent, or
107	misleading oral or written statement to obtain health insurance
108	coverage as provided under this paragraph. A person who violates
109	this sub-subparagraph commits a misdemeanor of the first degree,
110	punishable as provided in s. 775.082 or s. 775.083.
111	c.  In addition to any applicable criminal penalty, upon
112	conviction for a violation as described in sub-subparagraph b.,
113	a law enforcement, correctional, or correctional probation
114	officer or other beneficiary who receives or seeks to receive
115	health insurance benefits under this paragraph shall forfeit the
116	right to receive such health insurance benefits, and shall
117	reimburse the employer for all benefits paid due to the fraud or
118	other prohibited activity. For purposes of this sub-
119	subparagraph, "conviction" means a determination of guilt that
120	is the result of a plea or trial, regardless of whether
121	adjudication is withheld.
122	2.  In order for the officer, spouse, and dependent
123	children to be eligible for such insurance coverage, the injury
124	must have occurred as the result of the officer's response to
125	fresh pursuit, the officer's response to what is reasonably
126	believed to be an emergency, or an unlawful act perpetrated by
127	another. Except as otherwise provided herein, nothing in this
128	paragraph shall be construed to limit health insurance coverage
129	for which the officer, spouse, or dependent children may
130	otherwise be eligible, except that a person who qualifies under
131	this section shall not be eligible for the health insurance
132	subsidy provided under chapter 121, chapter 175, or chapter 185.
133	Section 3.  Paragraph (g) of subsection (2) of section
134	112.191, Florida Statutes, is amended to read:
135	112.191  Firefighters; death benefits.-
136	(2)
137	(g)1.  Any employer who employs a full-time firefighter
138	who, on or after January 1, 1995, suffers a catastrophic injury,
139	as defined in s. 440.02, Florida Statutes 2002, in the line of
140	duty shall pay the entire premium of the employer's health
141	insurance plan for the injured employee, the injured employee's
142	spouse, and for each dependent child of the injured employee
143	until the child reaches the age of majority or until the end of
144	the calendar year in which the child reaches the age of 25 if
145	the child continues to be dependent for support, or the child is
146	a full-time or part-time student and is dependent for support.
147	The term "health insurance plan" does not include supplemental
148	benefits that are not part of the basic group health insurance
149	plan. If the injured employee subsequently dies, the employer
150	shall continue to pay the entire health insurance premium for
151	the surviving spouse until remarried, and for the dependent
152	children, under the conditions outlined in this paragraph.
153	However:
154	a.  Health insurance benefits payable from any other source
155	shall reduce benefits payable under this section.
156	b.  It is unlawful for a person to willfully and knowingly
157	make, or cause to be made, or to assist, conspire with, or urge
158	another to make, or cause to be made, any false, fraudulent, or
159	misleading oral or written statement to obtain health insurance
160	coverage as provided under this paragraph. A person who violates
161	this sub-subparagraph commits a misdemeanor of the first degree,
162	punishable as provided in s. 775.082 or s. 775.083.
163	c.  In addition to any applicable criminal penalty, upon
164	conviction for a violation as described in sub-subparagraph b.,
165	a firefighter or other beneficiary who receives or seeks to
166	receive health insurance benefits under this paragraph shall
167	forfeit the right to receive such health insurance benefits, and
168	shall reimburse the employer for all benefits paid due to the
169	fraud or other prohibited activity. For purposes of this sub-
170	subparagraph, "conviction" means a determination of guilt that
171	is the result of a plea or trial, regardless of whether
172	adjudication is withheld.
173	2.  In order for the firefighter, spouse, and dependent
174	children to be eligible for such insurance coverage, the injury
175	must have occurred as the result of the firefighter's response
176	to what is reasonably believed to be an emergency involving the
177	protection of life or property, or an unlawful act perpetrated
178	by another. Except as otherwise provided herein, nothing in this
179	paragraph shall be construed to limit health insurance coverage
180	for which the firefighter, spouse, or dependent children may
181	otherwise be eligible, except that a person who qualifies for
182	benefits under this section shall not be eligible for the health
183	insurance subsidy provided under chapter 121, chapter 175, or
184	chapter 185.
185
186	Notwithstanding any provision of this section to the contrary,
187	the death benefits provided in paragraphs (b), (c), and (f)
188	shall also be applicable and paid in cases where a firefighter
189	received bodily injury prior to July 1, 1993, and subsequently
190	died on or after July 1, 1993, as a result of such in-line-of-
191	duty injury.
192	Section 4.  Paragraph (e) of subsection (2) and subsections
193	(3), (4), and (9) of section 112.363, Florida Statutes, are
194	amended, paragraph (g) is added to subsection (8) of that
195	section, and subsections (10) and (11) are added to that
196	section, to read:
197	112.363  Retiree health insurance subsidy.-
198	(2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE SUBSIDY.-
199	(e)  Participants in the Senior Management Service Optional
200	Annuity Program as provided in s. 121.055(6) and the State
201	University System Optional Retirement Program as provided in s.
202	121.35 shall not receive the retiree health insurance subsidy
203	provided in this section. The employer of such participant shall
204	pay the contributions required in subsection (8) to the annuity
205	program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
206	applicable, through June 30, 2010.
207	(3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.-
208	(a)  Beginning January 1, 1988, each eligible retiree or a
209	beneficiary who is a spouse or financial dependent thereof shall
210	receive a monthly retiree health insurance subsidy payment equal
211	to the number of years of creditable service, as defined in s.
212	121.021(17), completed at the time of retirement multiplied by
213	$1; however, no retiree may receive a subsidy payment of more
214	than $30 or less than $10.
215	(b)  Beginning January 1, 1989, each eligible retiree or a
216	beneficiary who is a spouse or financial dependent shall receive
217	a monthly retiree health insurance subsidy payment equal to the
218	number of years of creditable service, as defined in s.
219	121.021(17), completed at the time of retirement multiplied by
220	$2; however, no retiree may receive a subsidy payment of more
221	than $60 or less than $20.
222	(c)  Beginning January 1, 1991, each eligible retiree or a
223	beneficiary who is a spouse or financial dependent shall receive
224	a monthly retiree health insurance subsidy payment equal to the
225	number of years of creditable service, as defined in s.
226	121.021(17), completed at the time of retirement multiplied by
227	$3; however, no retiree may receive a subsidy payment of more
228	than $90 or less than $30.
229	(d)  Beginning January 1, 1999, each eligible retiree or,
230	if the retiree is deceased, his or her beneficiary who is
231	receiving a monthly benefit from such retiree's account and who
232	is a spouse, or a person who meets the definition of joint
233	annuitant in s. 121.021(28), shall receive a monthly retiree
234	health insurance subsidy payment equal to the number of years of
235	creditable service, as defined in s. 121.021(17), completed at
236	the time of retirement multiplied by $5; however, no eligible
237	retiree or such beneficiary may receive a subsidy payment of
238	more than $150 or less than $50. If there are multiple
239	beneficiaries, the total payment must not be greater than the
240	payment to which the retiree was entitled.
241	(e)1.  Beginning July 1, 2001, each eligible retiree of the
242	defined benefit program of the Florida Retirement System, or, if
243	the retiree is deceased, his or her beneficiary who is receiving
244	a monthly benefit from such retiree's account and who is a
245	spouse, or a person who meets the definition of joint annuitant
246	in s. 121.021(28), shall receive a monthly retiree health
247	insurance subsidy payment equal to the number of years of
248	creditable service, as defined in s. 121.021(17), completed at
249	the time of retirement multiplied by $5; however, no eligible
250	retiree or beneficiary may receive a subsidy payment of more
251	than $150 or less than $30. If there are multiple beneficiaries,
252	the total payment must not be greater than the payment to which
253	the retiree was entitled. The health insurance subsidy amount
254	payable to any person receiving the retiree health insurance
255	subsidy payment on July 1, 2001, shall not be reduced solely by
256	operation of this subparagraph.
257	2.  Beginning July 1, 2002, each eligible participant of
258	the Public Employee Optional Retirement Program of the Florida
259	Retirement System who has met the requirements of this section,
260	or, if the participant is deceased, his or her spouse who is the
261	participant's designated beneficiary, shall receive a monthly
262	retiree health insurance subsidy payment equal to the number of
263	years of creditable service, as provided in this subparagraph,
264	completed at the time of retirement, multiplied by $5; however,
265	no eligible retiree or beneficiary may receive a subsidy payment
266	of more than $150 or less than $30. For purposes of determining
267	a participant's creditable service used to calculate the health
268	insurance subsidy, a participant's years of service credit or
269	fraction thereof shall be based on the participant's work year
270	as defined in s. 121.021(54). Credit shall be awarded for a full
271	work year whenever health insurance subsidy contributions have
272	been made as required by law for each month in the participant's
273	work year. In addition, all years of creditable service retained
274	under the Florida Retirement System defined benefit program
275	shall be included as creditable service for purposes of this
276	section. Notwithstanding any other provision in this section to
277	the contrary, the spouse at the time of death shall be the
278	participant's beneficiary unless such participant has designated
279	a different beneficiary subsequent to the participant's most
280	recent marriage.
281
282	Notwithstanding any provision of this subsection, payments may
283	not be made to retirees who do not establish eligibility under
284	this section prior to July 1, 2010.
285	(4)  PAYMENT OF RETIREE HEALTH INSURANCE SUBSIDY.-Beginning
286	January 1, 1988, through December 31, 2010, any monthly retiree
287	health insurance subsidy amount due and payable under this
288	section shall be paid to retired members by the Department of
289	Management Services or under the direction and control of the
290	department.
291	(8)  CONTRIBUTIONS.-For purposes of funding the insurance
292	subsidy provided by this section:
293	(g)  Beginning July 1, 2010, the employer of each member of
294	a state-administered plan shall contribute 0 percent of gross
295	compensation for each pay period.
296
297	Such contributions shall be submitted to the Department of
298	Management Services and deposited in the Retiree Health
299	Insurance Subsidy Trust Fund.
300	(9)  BENEFITS.-Except as provided in subsection (10),
301	subsidy payments shall be payable under the retiree health
302	insurance subsidy program only to participants in the program or
303	their beneficiaries, beginning with the month the division
304	receives certification of coverage for health insurance for the
305	eligible retiree or beneficiary. If the division receives such
306	certification at any time during the 6 months after retirement
307	benefits commence, the retiree health insurance subsidy shall be
308	paid retroactive to the effective retirement date. If, however,
309	the division receives such certification 7 or more months after
310	commencement of benefits, the retroactive retiree health
311	insurance subsidy payment will cover a maximum of 6 months. Such
312	subsidy payments shall not be subject to assignment, execution,
313	or attachment or to any legal process whatsoever.
314	(10)  ELIMINATION OF RETIREE HEALTH INSURANCE SUBSIDY.-
315	Effective July 1, 2010, eligibility for subsidy payments shall
316	be closed to new retirees or beneficiaries and employer
317	contributions to fund the subsidy shall terminate, all monthly
318	subsidy payments shall terminate effective December 31, 2010,
319	and any remaining assets shall be transferred to the Florida
320	Retirement System Trust Fund, as follows:
321	(a)  Eligibility for subsidy payments through December 31,
322	2010, shall be restricted to those retirees and beneficiaries
323	who have established eligibility pursuant to subsection (2)
324	prior to July 1, 2010. The division must receive certification
325	of coverage for such retiree or beneficiary no later than
326	October 29, 2010.
327	(b)  Beginning July 1, 2010, the employer of each member of
328	a state-administered plan shall not pay contributions on gross
329	compensation to the Retiree Health Insurance Subsidy Trust Fund
330	for subsequent pay periods.
331	(c)  Monthly subsidy payments shall be paid to all eligible
332	retirees and beneficiaries through December 31, 2010, at which
333	time no further subsidy payments shall be made.
334	(d)  Any cash, securities, and other assets remaining in
335	the Retiree Health Insurance Subsidy Trust Fund on June 30,
336	2011, less any deductions specified in subsections (6) and (7),
337	shall be transferred by the State Board of Administration to the
338	Florida Retirement System Trust Fund. The amount so transferred
339	shall be applied toward payment of any unfunded actuarial
340	accrued liability in the Florida Retirement System Trust Fund.
341	The State Board of Administration shall have the sole
342	discretion, subject to its fiduciary duties under s. 215.47, to
343	make cash or in-kind transfers from the Retiree Health Insurance
344	Subsidy Trust Fund to the Florida Retirement System Trust Fund
345	on or after July 1, 2011.
346	(e)  Employer adjustments for pay periods prior to July 1,
347	2010, shall be processed through December 31, 2010.
348	(11)  EXPIRATION.-This section expires June 30, 2011.
349	Section 5.  Paragraph (c) of subsection (2) of section
350	121.051, Florida Statutes, is amended to read:
351	121.051  Participation in the system.-
352	(2)  OPTIONAL PARTICIPATION.-
353	(c)  Employees of public community colleges or charter
354	technical career centers sponsored by public community colleges,
355	designated in s. 1000.21(3), who are members of the Regular
356	Class of the Florida Retirement System and who comply with the
357	criteria set forth in this paragraph and s. 1012.875 may, in
358	lieu of participating in the Florida Retirement System, elect to
359	withdraw from the system altogether and participate in the State
360	Community College System Optional Retirement Program provided by
361	the employing agency under s. 1012.875.
362	1.  Through June 30, 2001, the cost to the employer for
363	such annuity equals the normal cost portion of the employer
364	retirement contribution which would be required if the employee
365	were a member of the Regular Class defined benefit program, plus
366	the portion of the contribution rate required by s. 112.363(8)
367	which would otherwise be assigned to the Retiree Health
368	Insurance Subsidy Trust Fund. Effective July 1, 2001, through
369	June 30, 2010, each employer shall contribute on behalf of each
370	participant in the optional retirement program an amount equal
371	to 10.43 percent of the participant's gross monthly
372	compensation. Effective July 1, 2010, each employer shall
373	contribute on behalf of each participant in the optional
374	retirement program an amount equal to 9.49 percent of the
375	participant's gross monthly compensation. The employer shall
376	deduct an amount for the administration of the program. The
377	employer shall contribute an additional amount to the Florida
378	Retirement System Trust Fund equal to the unfunded actuarial
379	accrued liability portion of the Regular Class contribution
380	rate.
381	2.  The decision to participate in an optional retirement
382	program is irrevocable as long as the employee holds a position
383	eligible for participation, except as provided in subparagraph
384	3. Any service creditable under the Florida Retirement System is
385	retained after the member withdraws from the system; however,
386	additional service credit in the system may not be earned while
387	a member of the optional retirement program.
388	3.  An employee who has elected to participate in the
389	optional retirement program shall have one opportunity, at the
390	employee's discretion, to transfer from the optional retirement
391	program to the defined benefit program of the Florida Retirement
392	System or to the Public Employee Optional Retirement Program,
393	subject to the terms of the applicable optional retirement
394	program contracts.
395	a.  If the employee chooses to move to the Public Employee
396	Optional Retirement Program, any contributions, interest, and
397	earnings creditable to the employee under the State Community
398	College System Optional Retirement Program are retained by the
399	employee in the State Community College System Optional
400	Retirement Program, and the applicable provisions of s.
401	121.4501(4) govern the election.
402	b.  If the employee chooses to move to the defined benefit
403	program of the Florida Retirement System, the employee shall
404	receive service credit equal to his or her years of service
405	under the State Community College System Optional Retirement
406	Program.
407	(I)  The cost for such credit is the amount representing
408	the present value of the employee's accumulated benefit
409	obligation for the affected period of service. The cost shall be
410	calculated as if the benefit commencement occurs on the first
411	date the employee becomes eligible for unreduced benefits, using
412	the discount rate and other relevant actuarial assumptions that
413	were used to value the Florida Retirement System defined benefit
414	plan liabilities in the most recent actuarial valuation. The
415	calculation must include any service already maintained under
416	the defined benefit plan in addition to the years under the
417	State Community College System Optional Retirement Program. The
418	present value of any service already maintained must be applied
419	as a credit to total cost resulting from the calculation. The
420	division shall ensure that the transfer sum is prepared using a
421	formula and methodology certified by an enrolled actuary.
422	(II)  The employee must transfer from his or her State
423	Community College System Optional Retirement Program account and
424	from other employee moneys as necessary, a sum representing the
425	present value of the employee's accumulated benefit obligation
426	immediately following the time of such movement, determined
427	assuming that attained service equals the sum of service in the
428	defined benefit program and service in the State Community
429	College System Optional Retirement Program.
430	4.  Participation in the optional retirement program is
431	limited to employees who satisfy the following eligibility
432	criteria:
433	a.  The employee must be otherwise eligible for membership
434	or renewed membership in the Regular Class of the Florida
435	Retirement System, as provided in s. 121.021(11) and (12) or s.
436	121.122.
437	b.  The employee must be employed in a full-time position
438	classified in the Accounting Manual for Florida's Public
439	Community Colleges as:
440	(I)  Instructional; or
441	(II)  Executive Management, Instructional Management, or
442	Institutional Management, if a community college determines that
443	recruiting to fill a vacancy in the position is to be conducted
444	in the national or regional market, and the duties and
445	responsibilities of the position include the formulation,
446	interpretation, or implementation of policies, or the
447	performance of functions that are unique or specialized within
448	higher education and that frequently support the mission of the
449	community college.
450	c.  The employee must be employed in a position not
451	included in the Senior Management Service Class of the Florida
452	Retirement System, as described in s. 121.055.
453	5.  Participants in the program are subject to the same
454	reemployment limitations, renewed membership provisions, and
455	forfeiture provisions as are applicable to regular members of
456	the Florida Retirement System under ss. 121.091(9), 121.122, and
457	121.091(5), respectively. A participant who receives a program
458	distribution funded by employer contributions shall be deemed to
459	be retired from a state-administered retirement system if the
460	participant is subsequently employed with an employer that
461	participates in the Florida Retirement System.
462	6.  Eligible community college employees are compulsory
463	members of the Florida Retirement System until, pursuant to s.
464	1012.875, a written election to withdraw from the system and
465	participate in the State Community College System Optional
466	Retirement Program is filed with the program administrator and
467	received by the division.
468	a.  A community college employee whose program eligibility
469	results from initial employment must be enrolled in the State
470	Community College System Optional Retirement Program retroactive
471	to the first day of eligible employment. The employer retirement
472	contributions paid through the month of the employee plan change
473	shall be transferred to the community college to the employee's
474	optional program account, and, effective the first day of the
475	next month, the employer shall pay the applicable contributions
476	based upon subparagraph 1.
477	b.  A community college employee whose program eligibility
478	is due to the subsequent designation of the employee's position
479	as one of those specified in subparagraph 4., or due to the
480	employee's appointment, promotion, transfer, or reclassification
481	to a position specified in subparagraph 4., must be enrolled in
482	the program on the first day of the first full calendar month
483	that such change in status becomes effective. The employer
484	retirement contributions paid from the effective date through
485	the month of the employee plan change must be transferred to the
486	community college to the employee's optional program account,
487	and, effective the first day of the next month, the employer
488	shall pay the applicable contributions based upon subparagraph
489	1.
490	7.  Effective July 1, 2003, through December 31, 2008, any
491	participant of the State Community College System Optional
492	Retirement Program who has service credit in the defined benefit
493	plan of the Florida Retirement System for the period between his
494	or her first eligibility to transfer from the defined benefit
495	plan to the optional retirement program and the actual date of
496	transfer may, during employment, transfer to the optional
497	retirement program a sum representing the present value of the
498	accumulated benefit obligation under the defined benefit
499	retirement program for the period of service credit. Upon
500	transfer, all service credit previously earned under the defined
501	benefit program of the Florida Retirement System during this
502	period is nullified for purposes of entitlement to a future
503	benefit under the defined benefit program of the Florida
504	Retirement System.
505	Section 6.  Paragraph (c) of subsection (7) of section
506	121.052, Florida Statutes, is amended to read:
507	121.052  Membership class of elected officers.-
508	(7)  CONTRIBUTIONS.-
509	(c)  The following table states the required employer
510	contribution on behalf of each member of the Elected Officers'
511	Class in terms of a percentage of the member's gross
512	compensation. Such contribution constitutes the entire health
513	insurance subsidy contribution with respect to each such member.
514	A change in the contribution rate is effective with the first
515	salary paid on or after the beginning date of the change. The
516	retiree health insurance subsidy contribution rate is as
517	follows:
518
	Dates of Contribution  Rate Changes ContributionRate
519
	October 1, 1987, through December 31, 1988 0.24%
520
	January 1, 1989, through December 31, 1993 0.48%
521
	January 1, 1994, through December 31, 1994 0.56%
522
	January 1, 1995, through June 30, 1998 0.66%
523
	July 1, 1998, through June 30, 2001 0.94%
524
	Effective July 1, 2001, through June 30, 2010 1.11%
525
	Effective July 1, 2010 0.00%
526
527
528	Such contributions and accompanying payroll data are due and
529	payable no later than the 5th working day of the month
530	immediately following the month during which the payroll period
531	ended and shall be deposited by the administrator in the Retiree
532	Health Insurance Subsidy Trust Fund.
533	Section 7.  Effective June 30, 2011, paragraph (c) of
534	subsection (7) of section 121.052, Florida Statutes, as amended
535	by this act, is repealed.
536	Section 8.  Subsection (5) of section 121.053, Florida
537	Statutes, is amended to read:
538	121.053  Participation in the Elected Officers' Class for
539	retired members.-
540	(5)  Any renewed member, as described in subsection (1) or
541	subsection (2), who is not receiving the maximum health
542	insurance subsidy provided in s. 112.363 and meets the
543	requirements of s. 112.363 is entitled to earn additional credit
544	toward the maximum health insurance subsidy. Any additional
545	subsidy due because of such additional credit may be received
546	only at the time of payment of the second career retirement
547	benefit. The total health insurance subsidy received from
548	initial and renewed membership may not exceed the maximum
549	allowed in s. 112.363.
550	Section 9.  Effective June 30, 2011, subsection (5) of
551	section 121.053, Florida Statutes, as amended by this act, is
552	repealed.
553	Section 10.  Paragraph (c) of subsection (3) and paragraph
554	(d) of subsection (6) of section 121.055, Florida Statutes, are
555	amended to read:
556	121.055  Senior Management Service Class.-There is hereby
557	established a separate class of membership within the Florida
558	Retirement System to be known as the "Senior Management Service
559	Class," which shall become effective February 1, 1987.
560	(3)
561	(c)  The following table states the required employer
562	contribution on behalf of each member of the Senior Management
563	Service Class in terms of a percentage of the member's gross
564	compensation. Such contribution constitutes the entire health
565	insurance subsidy contribution with respect to each such member.
566	A change in the contribution rate is effective with the first
567	salary paid on or after the beginning date of the change. The
568	retiree health insurance subsidy contribution rate is as
569	follows:
570
	Dates of Contribution  Rate Changes ContributionRate
571
572
	October 1, 1987, through December 31, 1988 0.24%
573
	January 1, 1989, through December 31, 1993 0.48%
574
	January 1, 1994, through December 31, 1994 0.56%
575
	January 1, 1995, through June 30, 1998 0.66%
576
	July 1, 1998, through June 30, 2001 0.94%
577
	Effective July 1, 2001, through June 30, 2010 1.11%
578
	Effective July 1, 2010 0.00%
579
580
581	Such contributions and accompanying payroll data are due and
582	payable no later than the 5th working day of the month
583	immediately following the month during which the payroll period
584	ended and shall be deposited by the administrator in the Retiree
585	Health Insurance Subsidy Trust Fund.
586	(6)
587	(d)  Contributions.-
588	1.  Through June 30, 2001, each employer shall contribute
589	on behalf of each participant in the Senior Management Service
590	Optional Annuity Program an amount equal to the normal cost
591	portion of the employer retirement contribution which would be
592	required if the participant were a Senior Management Service
593	Class member of the Florida Retirement System defined benefit
594	program, plus the portion of the contribution rate required in
595	s. 112.363(8) that would otherwise be assigned to the Retiree
596	Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
597	through June 30, 2010, each employer shall contribute on behalf
598	of each participant in the optional program an amount equal to
599	12.49 percent of the participant's gross monthly compensation.
600	Effective July 1, 2010, each employer shall contribute on behalf
601	of each participant in the optional program an amount equal to
602	11.55 percent of the participant's gross monthly compensation.
603	The department shall deduct an amount approved by the
604	Legislature to provide for the administration of this program.
605	The payment of the contributions to the optional program which
606	is required by this subparagraph for each participant shall be
607	made by the employer to the department, which shall forward the
608	contributions to the designated company or companies contracting
609	for payment of benefits for the participant under the program.
610	2.  Each employer shall contribute on behalf of each
611	participant in the Senior Management Service Optional Annuity
612	Program an amount equal to the unfunded actuarial accrued
613	liability portion of the employer contribution which would be
614	required for members of the Senior Management Service Class in
615	the Florida Retirement System. This contribution shall be paid
616	to the department for transfer to the Florida Retirement System
617	Trust Fund.
618	3.  An Optional Annuity Program Trust Fund shall be
619	established in the State Treasury and administered by the
620	department to make payments to provider companies on behalf of
621	the optional annuity program participants, and to transfer the
622	unfunded liability portion of the state optional annuity program
623	contributions to the Florida Retirement System Trust Fund.
624	4.  Contributions required for social security by each
625	employer and each participant, in the amount required for social
626	security coverage as now or hereafter may be provided by the
627	federal Social Security Act shall be maintained for each
628	participant in the Senior Management Service retirement program
629	and shall be in addition to the retirement contributions
630	specified in this paragraph.
631	5.  Each participant in the Senior Management Service
632	Optional Annuity Program may contribute by way of salary
633	reduction or deduction a percentage amount of the participant's
634	gross compensation not to exceed the percentage amount
635	contributed by the employer to the optional annuity program.
636	Payment of the participant's contributions shall be made by the
637	employer to the department, which shall forward the
638	contributions to the designated company or companies contracting
639	for payment of benefits for the participant under the program.
640	Section 11.  Effective June 30, 2011, paragraph (c) of
641	subsection (3) of section 121.055, Florida Statutes, as amended
642	by this act, is repealed.
643	Section 12.  Subsection (4) of section 121.071, Florida
644	Statutes, is amended to read:
645	121.071  Contributions.-Contributions to the system shall
646	be made as follows:
647	(4)  The following table states the required employer
648	contribution on behalf of each member of the Regular Class,
649	Special Risk Class, or Special Risk Administrative Support Class
650	in terms of a percentage of the member's gross compensation.
651	Such contribution constitutes the entire health insurance
652	subsidy contribution with respect to each such member. A change
653	in the contribution rate is effective with the first salary paid
654	on or after the beginning date of the change. The retiree health
655	insurance subsidy contribution rate is as follows:
656
	Dates of Contribution  Rate Changes ContributionRate
657
	October 1, 1987, through December 31, 1988 0.24%
658
	January 1, 1989, through December 31, 1993 0.48%
659
	January 1, 1994, through December 31, 1994 0.56%
660
	January 1, 1995, through June 30, 1998 0.66%
661
	July 1, 1998, through June 30, 2001 0.94%
662
	Effective July 1, 2001, through June 30, 2010 1.11%
663
	Effective July 1, 2010 0.00%
664
665
666	Such contributions shall be deposited by the administrator in
667	the Retiree Health Insurance Subsidy Trust Fund.
668	Section 13.  Effective June 30, 2011, subsection (4) of
669	section 121.071, Florida Statutes, as amended by this act, is
670	repealed, subsections (5) and (6) of that section are renumbered
671	as subsections (4) and (5), respectively, and present subsection
672	(5) is amended to read:
673	121.071  Contributions.-Contributions to the system shall
674	be made as follows:
675	(4)(5)  Contributions made in accordance with subsections
676	(1), (2), and (3), and (4), and s. 121.71 shall be paid by the
677	employer into the system trust funds in accordance with rules
678	adopted by the administrator pursuant to chapter 120, except as
679	may be otherwise specified herein. Effective July 1, 2002,
680	contributions paid under subsection subsections (1) and (4) and
681	accompanying payroll data are due and payable no later than the
682	5th working day of the month immediately following the month
683	during which the payroll period ended.
684	Section 14.  Paragraph (f) of subsection (13) of section
685	121.091, Florida Statutes, is amended to read:
686	121.091  Benefits payable under the system.-Benefits may
687	not be paid under this section unless the member has terminated
688	employment as provided in s. 121.021(39)(a) or begun
689	participation in the Deferred Retirement Option Program as
690	provided in subsection (13), and a proper application has been
691	filed in the manner prescribed by the department. The department
692	may cancel an application for retirement benefits when the
693	member or beneficiary fails to timely provide the information
694	and documents required by this chapter and the department's
695	rules. The department shall adopt rules establishing procedures
696	for application for retirement benefits and for the cancellation
697	of such application when the required information or documents
698	are not received.
699	(13)  DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
700	subject to this section, the Deferred Retirement Option Program,
701	hereinafter referred to as DROP, is a program under which an
702	eligible member of the Florida Retirement System may elect to
703	participate, deferring receipt of retirement benefits while
704	continuing employment with his or her Florida Retirement System
705	employer. The deferred monthly benefits shall accrue in the
706	Florida Retirement System on behalf of the participant, plus
707	interest compounded monthly, for the specified period of the
708	DROP participation, as provided in paragraph (c). Upon
709	termination of employment, the participant shall receive the
710	total DROP benefits and begin to receive the previously
711	determined normal retirement benefits. Participation in the DROP
712	does not guarantee employment for the specified period of DROP.
713	Participation in DROP by an eligible member beyond the initial
714	60-month period as authorized in this subsection shall be on an
715	annual contractual basis for all participants.
716	(f)  Employees who have terminated participation in DROP on
717	or after June 1, 2010, may not receive retiree health insurance
718	subsidy payments. Retiree health insurance subsidy.-DROP
719	participants are not eligible to apply for the retiree health
720	insurance subsidy payments as provided in s. 112.363 until such
721	participants have terminated employment and participation in
722	DROP.
723	Section 15.  Effective June 30, 2011, paragraphs (c) and
724	(i) of subsection (13) of section 121.091, Florida Statutes, are
725	amended to read:
726	121.091  Benefits payable under the system.-Benefits may
727	not be paid under this section unless the member has terminated
728	employment as provided in s. 121.021(39)(a) or begun
729	participation in the Deferred Retirement Option Program as
730	provided in subsection (13), and a proper application has been
731	filed in the manner prescribed by the department. The department
732	may cancel an application for retirement benefits when the
733	member or beneficiary fails to timely provide the information
734	and documents required by this chapter and the department's
735	rules. The department shall adopt rules establishing procedures
736	for application for retirement benefits and for the cancellation
737	of such application when the required information or documents
738	are not received.
739	(13)  DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
740	subject to this section, the Deferred Retirement Option Program,
741	hereinafter referred to as DROP, is a program under which an
742	eligible member of the Florida Retirement System may elect to
743	participate, deferring receipt of retirement benefits while
744	continuing employment with his or her Florida Retirement System
745	employer. The deferred monthly benefits shall accrue in the
746	Florida Retirement System on behalf of the participant, plus
747	interest compounded monthly, for the specified period of the
748	DROP participation, as provided in paragraph (c). Upon
749	termination of employment, the participant shall receive the
750	total DROP benefits and begin to receive the previously
751	determined normal retirement benefits. Participation in the DROP
752	does not guarantee employment for the specified period of DROP.
753	Participation in DROP by an eligible member beyond the initial
754	60-month period as authorized in this subsection shall be on an
755	annual contractual basis for all participants.
756	(c)  Benefits payable under DROP.-
757	1.  Effective on the date of DROP participation, the
758	member's initial normal monthly benefit, including creditable
759	service, optional form of payment, and average final
760	compensation, and the effective date of retirement are fixed.
761	The beneficiary established under the Florida Retirement System
762	is the beneficiary eligible to receive any DROP benefits payable
763	if the DROP participant dies before completing the period of
764	DROP participation. If a joint annuitant predeceases the member,
765	the member may name a beneficiary to receive accumulated DROP
766	benefits payable. The retirement benefit, the annual cost of
767	living adjustments provided in s. 121.101, and interest accrue
768	monthly in the Florida Retirement System Trust Fund. The
769	interest accrues at an effective annual rate of 6.5 percent
770	compounded monthly, on the prior month's accumulated ending
771	balance, up to the month of termination or death, except as
772	provided in s. 121.053(6)(7).
773	2.  Each employee who elects to participate in DROP may
774	elect to receive a lump-sum payment for accrued annual leave
775	earned in accordance with agency policy upon beginning
776	participation in DROP. The accumulated leave payment certified
777	to the division upon commencement of DROP shall be included in
778	the calculation of the member's average final compensation. The
779	employee electing the lump-sum payment is not eligible to
780	receive a second lump-sum payment upon termination, except to
781	the extent the employee has earned additional annual leave
782	which, combined with the original payment, does not exceed the
783	maximum lump-sum payment allowed by the employing agency's
784	policy or rules. An early lump-sum payment shall be based on the
785	hourly wage of the employee at the time he or she begins
786	participation in DROP. If the member elects to wait and receive
787	a lump-sum payment upon termination of DROP and termination of
788	employment with the employer, any accumulated leave payment made
789	at that time may not be included in the member's retirement
790	benefit, which was determined and fixed by law when the employee
791	elected to participate in DROP.
792	3.  The effective date of DROP participation and the
793	effective date of retirement of a DROP participant shall be the
794	first day of the month selected by the member to begin
795	participation in DROP, provided such date is properly
796	established, with the written confirmation of the employer, and
797	the approval of the division, on forms required by the division.
798	4.  Normal retirement benefits and any interest shall
799	continue to accrue in DROP until the established termination
800	date of DROP or until the participant terminates employment or
801	dies prior to such date, except as provided in s. 121.053(6)(7).
802	Although individual DROP accounts shall not be established, a
803	separate accounting of each participant's accrued benefits under
804	DROP shall be calculated and provided to participants.
805	5.  At the conclusion of the participant's DROP, the
806	division shall distribute the participant's total accumulated
807	DROP benefits, subject to the following:
808	a.  The division shall receive verification by the
809	participant's employer or employers that the participant has
810	terminated all employment relationships as provided in s.
811	121.021(39).
812	b.  The terminated DROP participant or, if deceased, the
813	participant's named beneficiary, shall elect on forms provided
814	by the division to receive payment of the DROP benefits in
815	accordance with one of the options listed below. If a
816	participant or beneficiary fails to elect a method of payment
817	within 60 days after termination of DROP, the division shall pay
818	a lump sum as provided in sub-sub-subparagraph (I).
819	(I)  Lump sum.-All accrued DROP benefits, plus interest,
820	less withholding taxes remitted to the Internal Revenue Service,
821	shall be paid to the DROP participant or surviving beneficiary.
822	(II)  Direct rollover.-All accrued DROP benefits, plus
823	interest, shall be paid from DROP directly to the custodian of
824	an eligible retirement plan as defined in s. 402(c)(8)(B) of the
825	Internal Revenue Code. However, in the case of an eligible
826	rollover distribution to the surviving spouse of a deceased
827	participant, an eligible retirement plan is an individual
828	retirement account or an individual retirement annuity as
829	described in s. 402(c)(9) of the Internal Revenue Code.
830	(III)  Partial lump sum.-A portion of the accrued DROP
831	benefits shall be paid to DROP participant or surviving spouse,
832	less withholding taxes remitted to the Internal Revenue Service,
833	and the remaining DROP benefits must be transferred directly to
834	the custodian of an eligible retirement plan as defined in s.
835	402(c)(8)(B) of the Internal Revenue Code. However, in the case
836	of an eligible rollover distribution to the surviving spouse of
837	a deceased participant, an eligible retirement plan is an
838	individual retirement account or an individual retirement
839	annuity as described in s. 402(c)(9) of the Internal Revenue
840	Code. The proportions must be specified by the DROP participant
841	or surviving beneficiary.
842	c.  The form of payment selected by the DROP participant or
843	surviving beneficiary must comply with the minimum distribution
844	requirements of the Internal Revenue Code.
845	d.  A DROP participant who fails to terminate all
846	employment relationships as provided in s. 121.021(39) shall be
847	deemed as not retired, and the DROP election is null and void.
848	Florida Retirement System membership shall be reestablished
849	retroactively to the date of the commencement of DROP, and each
850	employer with whom the participant continues employment must pay
851	to the Florida Retirement System Trust Fund the difference
852	between the DROP contributions paid in paragraph (i) and the
853	contributions required for the applicable Florida Retirement
854	System class of membership during the period the member
855	participated in DROP, plus 6.5 percent interest compounded
856	annually.
857	6.  The retirement benefits of any DROP participant who
858	terminates all employment relationships as provided in s.
859	121.021(39) but is reemployed in violation of the reemployment
860	provisions of subsection (9) shall be suspended during those
861	months in which the retiree is in violation. Any retiree in
862	violation of this subparagraph and any employer that employs or
863	appoints such person without notifying the Division of
864	Retirement to suspend retirement benefits are jointly and
865	severally liable for any benefits paid during the reemployment
866	limitation period. The employer must have a written statement
867	from the retiree that he or she is not retired from a state-
868	administered retirement system. Any retirement benefits received
869	by a retiree while employed in violation of the reemployment
870	limitations must be repaid to the Florida Retirement System
871	Trust Fund, and his or her retirement benefits shall remain
872	suspended until payment is made. Benefits suspended beyond the
873	end of the reemployment limitation period apply toward repayment
874	of benefits received in violation of the reemployment
875	limitation.
876	7.  The accrued benefits of any DROP participant, and any
877	contributions accumulated under the program, are not subject to
878	assignment, execution, attachment, or any legal process
879	whatsoever, except for qualified domestic relations orders by a
880	court of competent jurisdiction, income deduction orders as
881	provided in s. 61.1301, and federal income tax levies.
882	8.  DROP participants are not eligible for disability
883	retirement benefits as provided in subsection (4).
884	(i)  Contributions.-
885	1.  All employers paying the salary of a DROP participant
886	filling a regularly established position shall contribute 8.0
887	percent of such participant's gross compensation for the period
888	of July 1, 2002, through June 30, 2003, and the percentage of
889	such compensation required by s. 121.71 thereafter, which shall
890	constitute the entire employer DROP contribution with respect to
891	such participant. Such contributions, payable to the Florida
892	Retirement System Trust Fund in the same manner as required in
893	s. 121.071, must be made as appropriate for each pay period and
894	are in addition to contributions required for social security
895	and the Retiree Health Insurance Subsidy Trust Fund. Such
896	employer and, social security, and health insurance subsidy
897	contributions are not included in DROP.
898	2.  The employer shall, in addition to subparagraph 1.,
899	also withhold one-half of the entire social security
900	contribution required for the participant. Contributions for
901	social security by each participant and each employer, in the
902	amount required for social security coverage as provided by the
903	federal Social Security Act, are in addition to contributions
904	specified in subparagraph 1.
905	3.  All employers paying the salary of a DROP participant
906	filling a regularly established position shall contribute the
907	percent of such participant's gross compensation required in s.
908	121.071(4), which constitutes the employer's health insurance
909	subsidy contribution with respect to such participant. Such
910	contributions must be deposited by the administrator in the
911	Retiree Health Insurance Subsidy Trust Fund.
912	Section 16.  Paragraph (h) of subsection (1) of section
913	121.122, Florida Statutes, is amended to read:
914	121.122  Renewed membership in system.-
915	(1)  Except as provided in s. 121.053, effective July 1,
916	1991, through June 30, 2010, any retiree of a state-administered
917	retirement system who is initially reemployed in a regularly
918	established position with a covered employer, including an
919	elective public office that does not qualify for the Elected
920	Officer's Class, shall be enrolled as a compulsory member of the
921	Regular Class of the Florida Retirement System. Effective July
922	1, 1997, through June 30, 2010, any retiree of a state-
923	administered retirement system who is initially reemployed in a
924	position included in the Senior Management Service Class shall
925	be enrolled as a compulsory member of the Senior Management
926	Service Class of the Florida Retirement System as provided in s.
927	121.055. A retiree is entitled to receive an additional
928	retirement benefit, subject to the following conditions:
929	(h)  A renewed member who is not receiving the maximum
930	health insurance subsidy provided in s. 112.363 and meets the
931	requirements of s. 112.363 is entitled to earn additional credit
932	toward the maximum health insurance subsidy. Any additional
933	subsidy due because of such additional credit may be received
934	only at the time of payment of the second career retirement
935	benefit. The total health insurance subsidy received by a
936	retiree receiving benefits from initial and renewed membership
937	may not exceed the maximum allowed in s. 112.363.
938	Section 17.  Effective June 30, 2011, paragraph (h) of
939	subsection (1) of section 121.122, Florida Statutes, as amended
940	by this act, is repealed, and paragraph (d) of subsection (1) of
941	that section is amended to read:
942	121.122  Renewed membership in system.-
943	(1)  Except as provided in s. 121.053, effective July 1,
944	1991, through June 30, 2010, any retiree of a state-administered
945	retirement system who is initially reemployed in a regularly
946	established position with a covered employer, including an
947	elective public office that does not qualify for the Elected
948	Officer's Class, shall be enrolled as a compulsory member of the
949	Regular Class of the Florida Retirement System. Effective July
950	1, 1997, through June 30, 2010, any retiree of a state-
951	administered retirement system who is initially reemployed in a
952	position included in the Senior Management Service Class shall
953	be enrolled as a compulsory member of the Senior Management
954	Service Class of the Florida Retirement System as provided in s.
955	121.055. A retiree is entitled to receive an additional
956	retirement benefit, subject to the following conditions:
957	(d)  Upon renewed membership or reemployment of a retiree,
958	the employer of such member shall pay the applicable employer
959	contributions as required by ss. 112.363, 121.71, 121.74, and
960	121.76.
961	Section 18.  Paragraph (c) of subsection (3) and paragraph
962	(a) of subsection (4) of section 121.35, Florida Statutes, are
963	amended to read:
964	121.35  Optional retirement program for the State
965	University System.-
966	(3)  ELECTION OF OPTIONAL PROGRAM.-
967	(c)  Any employee who becomes eligible to participate in
968	the optional retirement program on or after January 1, 1993,
969	shall be a compulsory participant of the program unless such
970	employee elects membership in the Florida Retirement System.
971	Such election shall be made in writing and filed with the
972	personnel officer of the employer. Any eligible employee who
973	fails to make such election within the prescribed time period
974	shall be deemed to have elected to participate in the optional
975	retirement program.
976	1.  Any employee whose optional retirement program
977	eligibility results from initial employment shall be enrolled in
978	the program at the commencement of employment. If, within 90
979	days after commencement of employment, the employee elects
980	membership in the Florida Retirement System, such membership
981	shall be effective retroactive to the date of commencement of
982	employment.
983	2.  Any employee whose optional retirement program
984	eligibility results from a change in status due to the
985	subsequent designation of the employee's position as one of
986	those specified in paragraph (2)(a) or due to the employee's
987	appointment, promotion, transfer, or reclassification to a
988	position specified in paragraph (2)(a) shall be enrolled in the
989	optional retirement program upon such change in status and shall
990	be notified by the employer of such action. If, within 90 days
991	after the date of such notification, the employee elects to
992	retain membership in the Florida Retirement System, such
993	continuation of membership shall be retroactive to the date of
994	the change in status.
995	3.  Notwithstanding the provisions of this paragraph,
996	effective July 1, 1997, any employee who is eligible to
997	participate in the Optional Retirement Program and who fails to
998	execute a contract with one of the approved companies and to
999	notify the department in writing as provided in subsection (4)
1000	within 90 days after the date of eligibility shall be deemed to
1001	have elected membership in the Florida Retirement System, except
1002	as provided in s. 121.051(1)(a). This provision shall also apply
1003	to any employee who terminates employment in an eligible
1004	position before executing the required annuity contract and
1005	notifying the department. Such membership shall be retroactive
1006	to the date of eligibility, and all appropriate contributions
1007	shall be transferred to the Florida Retirement System Trust Fund
1008	and the Health Insurance Subsidy Trust Fund through June 30,
1009	2010. Effective July 1, 2010, such membership shall be
1010	retroactive to the date of eligibility, and all appropriate
1011	contributions shall be transferred to the Florida Retirement
1012	System Trust Fund.
1013	(4)  CONTRIBUTIONS.-
1014	(a)  Through June 30, 2001, each employer shall contribute
1015	on behalf of each participant in the optional retirement program
1016	an amount equal to the normal cost portion of the employer
1017	retirement contribution which would be required if the
1018	participant were a regular member of the Florida Retirement
1019	System defined benefit program, plus the portion of the
1020	contribution rate required in s. 112.363(8) that would otherwise
1021	be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1022	Effective July 1, 2001, through June 30, 2010, each employer
1023	shall contribute on behalf of each participant in the optional
1024	program an amount equal to 10.43 percent of the participant's
1025	gross monthly compensation. Effective July 1, 2010, each
1026	employer shall contribute on behalf of each participant in the
1027	optional program an amount equal to 9.49 percent of the
1028	participant's gross monthly compensation. The department shall
1029	deduct an amount approved by the Legislature to provide for the
1030	administration of this program. The payment of the contributions
1031	to the optional program which is required by this paragraph for
1032	each participant shall be made by the employer to the
1033	department, which shall forward the contributions to the
1034	designated company or companies contracting for payment of
1035	benefits for the participant under the program. However, such
1036	contributions paid on behalf of an employee described in
1037	paragraph (3)(c) shall not be forwarded to a company and shall
1038	not begin to accrue interest until the employee has executed a
1039	contract and notified the department.
1040	Section 19.  Effective June 30, 2011, subsection (18) of
1041	section 121.4501, Florida Statutes, is repealed, subsections
1042	(19) through (22) of that section are renumbered as subsections
1043	(18) through (21), respectively, and paragraph (h) of subsection
1044	(2) of that section is amended to read:
1045	121.4501  Public Employee Optional Retirement Program.-
1046	(2)  DEFINITIONS.-As used in this part, the term:
1047	(h)  "Participant" means an eligible employee who elects to
1048	participate in the Public Employee Optional Retirement Program
1049	and enrolls in such optional program as provided in subsection
1050	(4) or a terminated Deferred Retirement Option Program
1051	participant as described in subsection (20) (21).
1052	Section 20.  Effective June 30, 2011, subsection (3) of
1053	section 121.571, Florida Statutes, is amended to read:
1054	121.571  Contributions.-Contributions to the Public
1055	Employee Optional Retirement Program shall be made as follows:
1056	(3)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
1057	RETIREE HEALTH INSURANCE SUBSIDY.-Contributions required under
1058	this section shall be in addition to employer and member
1059	contributions required for social security and the Retiree
1060	Health Insurance Subsidy Trust Fund as provided in ss. 112.363,
1061	121.052, 121.055, and 121.071, as appropriate.
1062	Section 21.  Paragraphs (a) and (b) of subsection (3) of
1063	section 121.591, Florida Statutes, are amended to read:
1064	121.591  Benefits payable under the Public Employee
1065	Optional Retirement Program of the Florida Retirement System.-
1066	Benefits may not be paid under this section unless the member
1067	has terminated employment as provided in s. 121.021(39)(a) or is
1068	deceased and a proper application has been filed in the manner
1069	prescribed by the state board or the department. The state board
1070	or department, as appropriate, may cancel an application for
1071	retirement benefits when the member or beneficiary fails to
1072	timely provide the information and documents required by this
1073	chapter and the rules of the state board and department. In
1074	accordance with their respective responsibilities as provided
1075	herein, the State Board of Administration and the Department of
1076	Management Services shall adopt rules establishing procedures
1077	for application for retirement benefits and for the cancellation
1078	of such application when the required information or documents
1079	are not received. The State Board of Administration and the
1080	Department of Management Services, as appropriate, are
1081	authorized to cash out a de minimis account of a participant who
1082	has been terminated from Florida Retirement System covered
1083	employment for a minimum of 6 calendar months. A de minimis
1084	account is an account containing employer contributions and
1085	accumulated earnings of not more than $5,000 made under the
1086	provisions of this chapter. Such cash-out must either be a
1087	complete lump-sum liquidation of the account balance, subject to
1088	the provisions of the Internal Revenue Code, or a lump-sum
1089	direct rollover distribution paid directly to the custodian of
1090	an eligible retirement plan, as defined by the Internal Revenue
1091	Code, on behalf of the participant. If any financial instrument
1092	issued for the payment of retirement benefits under this section
1093	is not presented for payment within 180 days after the last day
1094	of the month in which it was originally issued, the third-party
1095	administrator or other duly authorized agent of the State Board
1096	of Administration shall cancel the instrument and credit the
1097	amount of the instrument to the suspense account of the Public
1098	Employee Optional Retirement Program Trust Fund authorized under
1099	s. 121.4501(6). Any such amounts transferred to the suspense
1100	account are payable upon a proper application, not to include
1101	earnings thereon, as provided in this section, within 10 years
1102	after the last day of the month in which the instrument was
1103	originally issued, after which time such amounts and any
1104	earnings thereon shall be forfeited. Any such forfeited amounts
1105	are assets of the Public Employee Optional Retirement Program
1106	Trust Fund and are not subject to the provisions of chapter 717.
1107	(3)  DEATH BENEFITS.-Under the Public Employee Optional
1108	Retirement Program:
1109	(a)  Survivor benefits shall be payable in accordance with
1110	the following terms and conditions:
1111	1.  To the extent vested, benefits shall be payable only to
1112	a participant's beneficiary or beneficiaries as designated by
1113	the participant as provided in s. 121.4501(19)(20).
1114	2.  Benefits shall be paid by the third-party administrator
1115	or designated approved providers in accordance with the law, the
1116	contracts, and any applicable board rule or policy.
1117	3.  To receive benefits under this subsection, the
1118	participant must be deceased.
1119	(b)  In the event of a participant's death, all vested
1120	accumulations as described in s. 121.4501(6), less withholding
1121	taxes remitted to the Internal Revenue Service, shall be
1122	distributed, as provided in paragraph (c) or as described in s.
1123	121.4501(19)(20), as if the participant retired on the date of
1124	death. No other death benefits shall be available for survivors
1125	of participants under the Public Employee Optional Retirement
1126	Program, except for such benefits, or coverage for such
1127	benefits, as are otherwise provided by law or are separately
1128	afforded by the employer, at the employer's discretion.
1129	Section 22.  Section 121.76, Florida Statutes, is amended
1130	to read:
1131	121.76  Contributions for social security and for retiree
1132	health insurance subsidy.-Contributions required under this part
1133	for social security shall be made or deducted, as may be
1134	appropriate, for each pay period and are in addition to employer
1135	and member contributions required for social security and the
1136	Retiree Health Insurance Subsidy Trust Fund as provided under
1137	parts I and II of this chapter.
1138	Section 23.  Paragraph (a) of subsection (4) of section
1139	1012.875, Florida Statutes, is amended to read:
1140	1012.875  State Community College System Optional
1141	Retirement Program.-Each community college may implement an
1142	optional retirement program, if such program is established
1143	therefor pursuant to s. 1001.64(20), under which annuity or
1144	other contracts providing retirement and death benefits may be
1145	purchased by, and on behalf of, eligible employees who
1146	participate in the program, in accordance with s. 403(b) of the
1147	Internal Revenue Code. Except as otherwise provided herein, this
1148	retirement program, which shall be known as the State Community
1149	College System Optional Retirement Program, may be implemented
1150	and administered only by an individual community college or by a
1151	consortium of community colleges.
1152	(4)(a)  Each college must contribute on behalf of each
1153	program participant an amount equal to 10.43 percent of the
1154	participant's gross monthly compensation through June 30, 2010.
1155	Effective July 1, 2010, each college must contribute on behalf
1156	of each program participant an amount equal to 9.49 percent of
1157	the participant's gross monthly compensation. The college shall
1158	deduct an amount approved by the district board of trustees of
1159	the college to provide for the administration of the optional
1160	retirement program. Payment of this contribution must be made
1161	either directly by the college or through the program
1162	administrator to the designated company contracting for payment
1163	of benefits to the program participant.
1164	Section 24.  Except as otherwise expressly provided in this
1165	act, this act shall take effect July 1, 2010.

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