Bill Text: FL S1764 | 2010 | Regular Session | Introduced
Bill Title: Retiree Health Insurance Subsidy [WPSC]
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-04-30 - Died in Committee on Community Affairs [S1764 Detail]
Download: Florida-2010-S1764-Introduced.html
Florida Senate - 2010 SB 1764
By Senator Lawson
6-01370-10 20101764__
1 A bill to be entitled
2 An act relating to the retiree health insurance
3 subsidy; amending s. 112.363, F.S.; increasing the
4 minimum and maximum health insurance subsidies;
5 providing for a cost-of-living adjustment to the
6 subsidy; increasing the contribution paid by employers
7 of members in state-administered retirement plans;
8 providing legislative findings; providing an effective
9 date.
10
11 Be It Enacted by the Legislature of the State of Florida:
12
13 Section 1. Paragraph (e) of subsection (3) of section
14 112.363, Florida Statutes, is amended, paragraphs (f), (g), and
15 (h) are added to that subsection, and subsection (8) of that
16 section is amended, to read:
17 112.363 Retiree health insurance subsidy.—
18 (3) RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.—
19 (e)1. Beginning July 1, 2001, each eligible retiree of the
20 defined benefit program of the Florida Retirement System, or, if
21 the retiree is deceased, his or her beneficiary who is receiving
22 a monthly benefit from such retiree’s account and who is a
23 spouse, or a person who meets the definition of joint annuitant
24 in s. 121.021(28), shall receive a monthly retiree health
25 insurance subsidy payment equal to the number of years of
26 creditable service, as defined in s. 121.021(17), completed at
27 the time of retirement multiplied by $5; however, an no eligible
28 retiree or beneficiary may not receive a subsidy payment of more
29 than $150 or less than $30. If there are multiple beneficiaries,
30 the total payment may must not be greater than the payment to
31 which the retiree was entitled. The health insurance subsidy
32 amount payable to any person receiving the retiree health
33 insurance subsidy payment on July 1, 2001, may shall not be
34 reduced solely by operation of this subparagraph.
35 (f)2. Beginning July 1, 2002, each eligible participant of
36 the Public Employee Optional Retirement Program of the Florida
37 Retirement System who has met the requirements of this section,
38 or, if the participant is deceased, his or her spouse who is the
39 participant’s designated beneficiary, shall receive a monthly
40 retiree health insurance subsidy payment equal to the number of
41 years of creditable service, as defined in s. 121.021 provided
42 in this subparagraph, completed at the time of retirement,
43 multiplied by $5; however, an no eligible retiree or beneficiary
44 may not receive a subsidy payment of more than $150 or less than
45 $30. For purposes of determining a participant’s creditable
46 service used to calculate the health insurance subsidy, a
47 participant’s years of service credit or fraction thereof must
48 shall be based on the participant’s work year as defined in s.
49 121.021(54). Credit shall be awarded for a full work year
50 whenever health insurance subsidy contributions are have been
51 made as required by law for each month in the participant’s work
52 year. In addition, all years of creditable service retained
53 under the Florida Retirement System defined benefit program must
54 shall be included as creditable service for purposes of this
55 section. Notwithstanding any other provision in this section to
56 the contrary, the spouse at the time of death is shall be the
57 participant’s beneficiary unless such participant has designated
58 a different beneficiary after subsequent to the participant’s
59 most recent marriage.
60 (g) Beginning January 1, 2011:
61 1. Each eligible retiree of the defined benefit program of
62 the Florida Retirement System or, if the retiree is deceased,
63 his or her beneficiary who is receiving a monthly benefit from
64 the retiree’s account and who is a spouse or a person who meets
65 the definition of a joint annuitant in s. 121.021 shall receive
66 a monthly retiree health insurance subsidy payment equal to the
67 number of years of creditable service, as defined in s. 121.021,
68 completed at the time of retirement multiplied by $6; however,
69 an eligible retiree or beneficiary may not receive a subsidy
70 payment of more than $180 or less than $36. If there are
71 multiple beneficiaries, the total payment may not be greater
72 than the payment to which the retiree was entitled.
73 Notwithstanding any other provision in this section, the spouse
74 at the time of death is the participant’s beneficiary unless the
75 participant has designated a different beneficiary after the
76 participant’s most recent marriage. The health insurance subsidy
77 amount payable to any person receiving the retiree health
78 insurance subsidy payment on January 1, 2010, may not be reduced
79 solely by operation of this subparagraph.
80 2. Each eligible participant of the Public Employee
81 Optional Retirement Program of the Florida Retirement System who
82 has met the requirements of this section or, if the participant
83 is deceased, his or her spouse who is the participant’s
84 designated beneficiary shall receive a monthly retiree health
85 insurance subsidy equal to the number of years of creditable
86 service completed at the time of retirement multiplied by $6;
87 however, an eligible retiree or beneficiary may not receive a
88 subsidy payment of more than $180 or less than $36. For purposes
89 of determining a participant’s creditable service under this
90 subparagraph, a participant’s years of service credit or
91 fraction thereof must be based on the participant’s work year as
92 defined in s. 121.021. Credit shall be awarded for a full work
93 year whenever health insurance subsidy contributions are made
94 for each month in the participant’s work year. In addition, all
95 years of creditable service retained under the Florida
96 Retirement System defined benefit program must be included as
97 creditable service for purposes of this section. Notwithstanding
98 any other provision in this section, the spouse at the time of
99 death is the participant’s beneficiary unless the participant
100 has designated a different beneficiary after the participant’s
101 most recent marriage.
102 (h) Beginning January 1, 2012:
103 1. Each eligible retiree of the defined benefit program of
104 the Florida Retirement System or, if the retiree is deceased,
105 his or her beneficiary who is receiving a monthly benefit from
106 the retiree’s account and who is a spouse or a person who meets
107 the definition of a joint annuitant in s. 121.021 shall receive
108 a monthly retiree health insurance subsidy payment equal to the
109 number of years of creditable service, as defined in s. 121.021,
110 completed at the time of retirement multiplied by $7; however,
111 an eligible retiree or beneficiary may not receive a subsidy
112 payment of more than $210 or less than $42. If there are
113 multiple beneficiaries, the total payment may not be greater
114 than the payment to which the retiree was entitled.
115 Notwithstanding any other provision in this section, the spouse
116 at the time of death is the participant’s beneficiary unless the
117 participant has designated a different beneficiary after the
118 participant’s most recent marriage. The health insurance subsidy
119 amount payable to any person receiving the retiree health
120 insurance subsidy payment on January 1, 2010, may not be reduced
121 solely by operation of this subparagraph.
122 2. Each eligible participant of the Public Employee
123 Optional Retirement Program of the Florida Retirement System who
124 has met the requirements of this section or, if the participant
125 is deceased, his or her spouse who is the participant’s
126 designated beneficiary shall receive a monthly retiree health
127 insurance subsidy equal to the number of years of creditable
128 service, as defined in s. 121.021, completed at the time of
129 retirement multiplied by $7; however, an eligible retiree or
130 beneficiary may not receive a subsidy payment of more than $210
131 or less than $42. For purposes of determining a participant’s
132 creditable service, a participant’s years of service credit or
133 fraction thereof must be based on the participant’s work year as
134 defined in s. 121.021. Credit shall be awarded for a full work
135 year whenever health insurance subsidy contributions are made
136 for each month in the participant’s work year. In addition, all
137 years of creditable service retained under the Florida
138 Retirement System defined benefit program must be included as
139 creditable service for purposes of this section. Notwithstanding
140 any other provision in this section, the spouse at the time of
141 death is the participant’s beneficiary unless the participant
142 has designated a different beneficiary after the participant’s
143 most recent marriage.
144 (8) CONTRIBUTIONS.—For purposes of funding the insurance
145 subsidy provided by this section:
146 (a) Beginning October 1, 1987, the employer of each member
147 of a state-administered retirement plan shall contribute 0.24
148 percent of gross compensation each pay period.
149 (b) Beginning January 1, 1989, the employer of each member
150 of a state-administered retirement plan shall contribute 0.48
151 percent of gross compensation each pay period.
152 (c) Beginning January 1, 1994, the employer of each member
153 of a state-administered retirement plan shall contribute 0.56
154 percent of gross compensation each pay period.
155 (d) Beginning January 1, 1995, the employer of each member
156 of a state-administered retirement plan shall contribute 0.66
157 percent of gross compensation each pay period.
158 (e) Beginning July 1, 1998, the employer of each member of
159 a state-administered retirement plan shall contribute 0.94
160 percent of gross compensation each pay period.
161 (f) Beginning July 1, 2001, the employer of each member of
162 a state-administered plan shall contribute 1.11 percent of gross
163 compensation each pay period.
164 (g) Beginning January 1, 2011, the employer of each member
165 of a state-administered retirement plan shall contribute 1.75
166 percent of gross compensation each pay period.
167
168 Such contributions shall be submitted to the Department of
169 Management Services and deposited in the Retiree Health
170 Insurance Subsidy Trust Fund.
171 Section 2. The Legislature finds that a proper and
172 legitimate state purpose is served when employees and retirees
173 of the state and the dependents, survivors, and beneficiaries of
174 such employees and retirees are extended the basic protections
175 afforded by governmental retirement systems. These persons must
176 be provided benefits that are fair and adequate and that are
177 managed, administered, and funded in a sound actuarial manner,
178 as required by Section 14, Article X of the State Constitution
179 and part VII of chapter 112, Florida Statutes. Therefore, the
180 Legislature determines and declares that this act fulfills an
181 important state interest.
182 Section 3. This act shall take effect July 1, 2010.
