_h5701__
HB 5701

1
A bill to be entitled
2An act relating to health insurance subsidies; amending s.
3110.12312, F.S.; conforming provisions to changes made by
4this act; amending s. 112.19, F.S.; revising eligibility
5for certain health insurance subsidies for law
6enforcement, correctional, and correctional probation
7officers; amending s. 112.191, F.S.; revising eligibility
8for certain health insurance subsidies for firefighters;
9amending s. 112.363, F.S.; providing for the elimination
10of retiree health insurance subsidies to certain new
11retirees or beneficiaries; provides for the future repeal
12of certain retiree health insurance subsidies; amending s.
13121.051, F.S.; conforming provisions to changes made by
14this act; revising the employer contribution for employees
15in the State Community College System Optional Retirement
16Program; amending ss. 121.052, 121.055, and 121.071, F.S.;
17revising the employer retiree health insurance subsidy
18contribution for participants in the Elected Officers'
19Class, Senior Management Service Class, Regular Class,
20Special Risk Class, and Special Risk Administrative
21Support Class; providing for future repeal of specified
22required employer contributions on behalf of each member
23of the Elected Officers' Class, Senior Management Service
24Class, Regular Class, Special Risk Class, and Special Risk
25Administrative Support Class; amending s. 121.053, F.S.;
26revising requirements for the earning of additional credit
27toward the maximum health insurance subsidy for certain
28members of the Elected Officers' Class; providing for
29future repeal of provision relating to health insurance
30subsidies; amending s. 121.091, F.S.; providing that
31certain employees who have terminated participation in
32DROP may not receive retiree health insurance subsidy
33payments; amending s. 121.091, F.S.; providing for the
34future repeal of certain provisions to conform to changes
35made by this act; amending s. 121.122, F.S.; revising
36requirements for the earning of additional credit toward
37the maximum health insurance subsidy for certain members
38of the Senior Management Service Class; amending s.
39121.122, F.S.; providing for future repeal of certain
40provisions to conform to changes made by this act;
41amending s. 121.35, F.S.; providing for the transfer of
42contributions for members in the State University Optional
43Retirement Program to the Florida Retirement System Trust
44Fund; revises the employer contribution for employees in
45the State University Optional Retirement Program; revising
46the employer contribution for participants in the optional
47retirement program; providing for the future repeal of
48subsection (18) of s. 121.4501, F.S., relating to the
49Public Employee Optional Retirement Program retiree health
50insurance subsidy; conforms cross-references; amending s.
51121.571, F.S.; conforming provisions to changes made by
52this act; amending s. 121.591, F.S.; conforming cross-
53references; amending s. 121.76, F.S.; revising provisions
54relating to contributions for Social Security and the
55retiree health insurance subsidy; amending s. 1012.875,
56F.S.; revises the employer contribution for employees in
57the State Community College System Optional Retirement
58Program; providing effective dates.
59
60Be It Enacted by the Legislature of the State of Florida:
61
62     Section 1.  Section 110.12312, Florida Statutes, is amended
63to read:
64     110.12312  Open enrollment period for retirees.-On or after
65July 1, 1997, the Department of Management Services shall
66provide for an open enrollment period for retired state
67employees who want to obtain health insurance coverage under ss.
68110.123 and 110.12315. The options offered during the open
69enrollment period must provide the same health insurance
70coverage as the coverage provided to active employees under the
71same premium payment conditions in effect for covered retirees,
72including eligibility for health insurance subsidy payments
73under s. 112.363. A person who separates from employment
74subsequent to May 1, 1988, but whose date of retirement occurs
75on or after August 1, 1995, is eligible as of the first open
76enrollment period occurring after July 1, 1997, with an
77effective date of January 1, 1998, as long as the retiree's
78enrollment remains in effect.
79     Section 2.  Paragraph (h) of subsection (2) of section
80112.19, Florida Statutes, is amended to read:
81     112.19  Law enforcement, correctional, and correctional
82probation officers; death benefits.-
83     (2)
84     (h)1.  Any employer who employs a full-time law
85enforcement, correctional, or correctional probation officer
86who, on or after January 1, 1995, suffers a catastrophic injury,
87as defined in s. 440.02, Florida Statutes 2002, in the line of
88duty shall pay the entire premium of the employer's health
89insurance plan for the injured employee, the injured employee's
90spouse, and for each dependent child of the injured employee
91until the child reaches the age of majority or until the end of
92the calendar year in which the child reaches the age of 25 if
93the child continues to be dependent for support, or the child is
94a full-time or part-time student and is dependent for support.
95The term "health insurance plan" does not include supplemental
96benefits that are not part of the basic group health insurance
97plan. If the injured employee subsequently dies, the employer
98shall continue to pay the entire health insurance premium for
99the surviving spouse until remarried, and for the dependent
100children, under the conditions outlined in this paragraph.
101However:
102     a.  Health insurance benefits payable from any other source
103shall reduce benefits payable under this section.
104     b.  It is unlawful for a person to willfully and knowingly
105make, or cause to be made, or to assist, conspire with, or urge
106another to make, or cause to be made, any false, fraudulent, or
107misleading oral or written statement to obtain health insurance
108coverage as provided under this paragraph. A person who violates
109this sub-subparagraph commits a misdemeanor of the first degree,
110punishable as provided in s. 775.082 or s. 775.083.
111     c.  In addition to any applicable criminal penalty, upon
112conviction for a violation as described in sub-subparagraph b.,
113a law enforcement, correctional, or correctional probation
114officer or other beneficiary who receives or seeks to receive
115health insurance benefits under this paragraph shall forfeit the
116right to receive such health insurance benefits, and shall
117reimburse the employer for all benefits paid due to the fraud or
118other prohibited activity. For purposes of this sub-
119subparagraph, "conviction" means a determination of guilt that
120is the result of a plea or trial, regardless of whether
121adjudication is withheld.
122     2.  In order for the officer, spouse, and dependent
123children to be eligible for such insurance coverage, the injury
124must have occurred as the result of the officer's response to
125fresh pursuit, the officer's response to what is reasonably
126believed to be an emergency, or an unlawful act perpetrated by
127another. Except as otherwise provided herein, nothing in this
128paragraph shall be construed to limit health insurance coverage
129for which the officer, spouse, or dependent children may
130otherwise be eligible, except that a person who qualifies under
131this section shall not be eligible for the health insurance
132subsidy provided under chapter 121, chapter 175, or chapter 185.
133     Section 3.  Paragraph (g) of subsection (2) of section
134112.191, 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
138who, on or after January 1, 1995, suffers a catastrophic injury,
139as defined in s. 440.02, Florida Statutes 2002, in the line of
140duty shall pay the entire premium of the employer's health
141insurance plan for the injured employee, the injured employee's
142spouse, and for each dependent child of the injured employee
143until the child reaches the age of majority or until the end of
144the calendar year in which the child reaches the age of 25 if
145the child continues to be dependent for support, or the child is
146a full-time or part-time student and is dependent for support.
147The term "health insurance plan" does not include supplemental
148benefits that are not part of the basic group health insurance
149plan. If the injured employee subsequently dies, the employer
150shall continue to pay the entire health insurance premium for
151the surviving spouse until remarried, and for the dependent
152children, under the conditions outlined in this paragraph.
153However:
154     a.  Health insurance benefits payable from any other source
155shall reduce benefits payable under this section.
156     b.  It is unlawful for a person to willfully and knowingly
157make, or cause to be made, or to assist, conspire with, or urge
158another to make, or cause to be made, any false, fraudulent, or
159misleading oral or written statement to obtain health insurance
160coverage as provided under this paragraph. A person who violates
161this sub-subparagraph commits a misdemeanor of the first degree,
162punishable as provided in s. 775.082 or s. 775.083.
163     c.  In addition to any applicable criminal penalty, upon
164conviction for a violation as described in sub-subparagraph b.,
165a firefighter or other beneficiary who receives or seeks to
166receive health insurance benefits under this paragraph shall
167forfeit the right to receive such health insurance benefits, and
168shall reimburse the employer for all benefits paid due to the
169fraud or other prohibited activity. For purposes of this sub-
170subparagraph, "conviction" means a determination of guilt that
171is the result of a plea or trial, regardless of whether
172adjudication is withheld.
173     2.  In order for the firefighter, spouse, and dependent
174children to be eligible for such insurance coverage, the injury
175must have occurred as the result of the firefighter's response
176to what is reasonably believed to be an emergency involving the
177protection of life or property, or an unlawful act perpetrated
178by another. Except as otherwise provided herein, nothing in this
179paragraph shall be construed to limit health insurance coverage
180for which the firefighter, spouse, or dependent children may
181otherwise be eligible, except that a person who qualifies for
182benefits under this section shall not be eligible for the health
183insurance subsidy provided under chapter 121, chapter 175, or
184chapter 185.
185
186Notwithstanding any provision of this section to the contrary,
187the death benefits provided in paragraphs (b), (c), and (f)
188shall also be applicable and paid in cases where a firefighter
189received bodily injury prior to July 1, 1993, and subsequently
190died on or after July 1, 1993, as a result of such in-line-of-
191duty injury.
192     Section 4.  Paragraph (e) of subsection (2) and subsections
193(3), (4), and (9) of section 112.363, Florida Statutes, are
194amended, paragraph (g) is added to subsection (8) of that
195section, and subsections (10) and (11) are added to that
196section, 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
200Annuity Program as provided in s. 121.055(6) and the State
201University System Optional Retirement Program as provided in s.
202121.35 shall not receive the retiree health insurance subsidy
203provided in this section. The employer of such participant shall
204pay the contributions required in subsection (8) to the annuity
205program provided in s. 121.055(6)(d) or s. 121.35(4)(a), as
206applicable, through June 30, 2010.
207     (3)  RETIREE HEALTH INSURANCE SUBSIDY AMOUNT.-
208     (a)  Beginning January 1, 1988, each eligible retiree or a
209beneficiary who is a spouse or financial dependent thereof shall
210receive a monthly retiree health insurance subsidy payment equal
211to the number of years of creditable service, as defined in s.
212121.021(17), completed at the time of retirement multiplied by
213$1; however, no retiree may receive a subsidy payment of more
214than $30 or less than $10.
215     (b)  Beginning January 1, 1989, each eligible retiree or a
216beneficiary who is a spouse or financial dependent shall receive
217a monthly retiree health insurance subsidy payment equal to the
218number of years of creditable service, as defined in s.
219121.021(17), completed at the time of retirement multiplied by
220$2; however, no retiree may receive a subsidy payment of more
221than $60 or less than $20.
222     (c)  Beginning January 1, 1991, each eligible retiree or a
223beneficiary who is a spouse or financial dependent shall receive
224a monthly retiree health insurance subsidy payment equal to the
225number of years of creditable service, as defined in s.
226121.021(17), completed at the time of retirement multiplied by
227$3; however, no retiree may receive a subsidy payment of more
228than $90 or less than $30.
229     (d)  Beginning January 1, 1999, each eligible retiree or,
230if the retiree is deceased, his or her beneficiary who is
231receiving a monthly benefit from such retiree's account and who
232is a spouse, or a person who meets the definition of joint
233annuitant in s. 121.021(28), shall receive a monthly retiree
234health insurance subsidy payment equal to the number of years of
235creditable service, as defined in s. 121.021(17), completed at
236the time of retirement multiplied by $5; however, no eligible
237retiree or such beneficiary may receive a subsidy payment of
238more than $150 or less than $50. If there are multiple
239beneficiaries, the total payment must not be greater than the
240payment to which the retiree was entitled.
241     (e)1.  Beginning July 1, 2001, each eligible retiree of the
242defined benefit program of the Florida Retirement System, or, if
243the retiree is deceased, his or her beneficiary who is receiving
244a monthly benefit from such retiree's account and who is a
245spouse, or a person who meets the definition of joint annuitant
246in s. 121.021(28), shall receive a monthly retiree health
247insurance subsidy payment equal to the number of years of
248creditable service, as defined in s. 121.021(17), completed at
249the time of retirement multiplied by $5; however, no eligible
250retiree or beneficiary may receive a subsidy payment of more
251than $150 or less than $30. If there are multiple beneficiaries,
252the total payment must not be greater than the payment to which
253the retiree was entitled. The health insurance subsidy amount
254payable to any person receiving the retiree health insurance
255subsidy payment on July 1, 2001, shall not be reduced solely by
256operation of this subparagraph.
257     2.  Beginning July 1, 2002, each eligible participant of
258the Public Employee Optional Retirement Program of the Florida
259Retirement System who has met the requirements of this section,
260or, if the participant is deceased, his or her spouse who is the
261participant's designated beneficiary, shall receive a monthly
262retiree health insurance subsidy payment equal to the number of
263years of creditable service, as provided in this subparagraph,
264completed at the time of retirement, multiplied by $5; however,
265no eligible retiree or beneficiary may receive a subsidy payment
266of more than $150 or less than $30. For purposes of determining
267a participant's creditable service used to calculate the health
268insurance subsidy, a participant's years of service credit or
269fraction thereof shall be based on the participant's work year
270as defined in s. 121.021(54). Credit shall be awarded for a full
271work year whenever health insurance subsidy contributions have
272been made as required by law for each month in the participant's
273work year. In addition, all years of creditable service retained
274under the Florida Retirement System defined benefit program
275shall be included as creditable service for purposes of this
276section. Notwithstanding any other provision in this section to
277the contrary, the spouse at the time of death shall be the
278participant's beneficiary unless such participant has designated
279a different beneficiary subsequent to the participant's most
280recent marriage.
281
282Notwithstanding any provision of this subsection, payments may
283not be made to retirees who do not establish eligibility under
284this section prior to July 1, 2010.
285     (4)  PAYMENT OF RETIREE HEALTH INSURANCE SUBSIDY.-Beginning
286January 1, 1988, through December 31, 2010, any monthly retiree
287health insurance subsidy amount due and payable under this
288section shall be paid to retired members by the Department of
289Management Services or under the direction and control of the
290department.
291     (8)  CONTRIBUTIONS.-For purposes of funding the insurance
292subsidy provided by this section:
293     (g)  Beginning July 1, 2010, the employer of each member of
294a state-administered plan shall contribute 0 percent of gross
295compensation for each pay period.
296
297Such contributions shall be submitted to the Department of
298Management Services and deposited in the Retiree Health
299Insurance Subsidy Trust Fund.
300     (9)  BENEFITS.-Except as provided in subsection (10),
301subsidy payments shall be payable under the retiree health
302insurance subsidy program only to participants in the program or
303their beneficiaries, beginning with the month the division
304receives certification of coverage for health insurance for the
305eligible retiree or beneficiary. If the division receives such
306certification at any time during the 6 months after retirement
307benefits commence, the retiree health insurance subsidy shall be
308paid retroactive to the effective retirement date. If, however,
309the division receives such certification 7 or more months after
310commencement of benefits, the retroactive retiree health
311insurance subsidy payment will cover a maximum of 6 months. Such
312subsidy payments shall not be subject to assignment, execution,
313or attachment or to any legal process whatsoever.
314     (10)  ELIMINATION OF RETIREE HEALTH INSURANCE SUBSIDY.-
315Effective July 1, 2010, eligibility for subsidy payments shall
316be closed to new retirees or beneficiaries and employer
317contributions to fund the subsidy shall terminate, all monthly
318subsidy payments shall terminate effective December 31, 2010,
319and any remaining assets shall be transferred to the Florida
320Retirement System Trust Fund, as follows:
321     (a)  Eligibility for subsidy payments through December 31,
3222010, shall be restricted to those retirees and beneficiaries
323who have established eligibility pursuant to subsection (2)
324prior to July 1, 2010. The division must receive certification
325of coverage for such retiree or beneficiary no later than
326October 29, 2010.
327     (b)  Beginning July 1, 2010, the employer of each member of
328a state-administered plan shall not pay contributions on gross
329compensation to the Retiree Health Insurance Subsidy Trust Fund
330for subsequent pay periods.
331     (c)  Monthly subsidy payments shall be paid to all eligible
332retirees and beneficiaries through December 31, 2010, at which
333time no further subsidy payments shall be made.
334     (d)  Any cash, securities, and other assets remaining in
335the Retiree Health Insurance Subsidy Trust Fund on June 30,
3362011, less any deductions specified in subsections (6) and (7),
337shall be transferred by the State Board of Administration to the
338Florida Retirement System Trust Fund. The amount so transferred
339shall be applied toward payment of any unfunded actuarial
340accrued liability in the Florida Retirement System Trust Fund.
341The State Board of Administration shall have the sole
342discretion, subject to its fiduciary duties under s. 215.47, to
343make cash or in-kind transfers from the Retiree Health Insurance
344Subsidy Trust Fund to the Florida Retirement System Trust Fund
345on or after July 1, 2011.
346     (e)  Employer adjustments for pay periods prior to July 1,
3472010, 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
350121.051, 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
354technical career centers sponsored by public community colleges,
355designated in s. 1000.21(3), who are members of the Regular
356Class of the Florida Retirement System and who comply with the
357criteria set forth in this paragraph and s. 1012.875 may, in
358lieu of participating in the Florida Retirement System, elect to
359withdraw from the system altogether and participate in the State
360Community College System Optional Retirement Program provided by
361the employing agency under s. 1012.875.
362     1.  Through June 30, 2001, the cost to the employer for
363such annuity equals the normal cost portion of the employer
364retirement contribution which would be required if the employee
365were a member of the Regular Class defined benefit program, plus
366the portion of the contribution rate required by s. 112.363(8)
367which would otherwise be assigned to the Retiree Health
368Insurance Subsidy Trust Fund. Effective July 1, 2001, through
369June 30, 2010, each employer shall contribute on behalf of each
370participant in the optional retirement program an amount equal
371to 10.43 percent of the participant's gross monthly
372compensation. Effective July 1, 2010, each employer shall
373contribute on behalf of each participant in the optional
374retirement program an amount equal to 9.49 percent of the
375participant's gross monthly compensation. The employer shall
376deduct an amount for the administration of the program. The
377employer shall contribute an additional amount to the Florida
378Retirement System Trust Fund equal to the unfunded actuarial
379accrued liability portion of the Regular Class contribution
380rate.
381     2.  The decision to participate in an optional retirement
382program is irrevocable as long as the employee holds a position
383eligible for participation, except as provided in subparagraph
3843. Any service creditable under the Florida Retirement System is
385retained after the member withdraws from the system; however,
386additional service credit in the system may not be earned while
387a member of the optional retirement program.
388     3.  An employee who has elected to participate in the
389optional retirement program shall have one opportunity, at the
390employee's discretion, to transfer from the optional retirement
391program to the defined benefit program of the Florida Retirement
392System or to the Public Employee Optional Retirement Program,
393subject to the terms of the applicable optional retirement
394program contracts.
395     a.  If the employee chooses to move to the Public Employee
396Optional Retirement Program, any contributions, interest, and
397earnings creditable to the employee under the State Community
398College System Optional Retirement Program are retained by the
399employee in the State Community College System Optional
400Retirement Program, and the applicable provisions of s.
401121.4501(4) govern the election.
402     b.  If the employee chooses to move to the defined benefit
403program of the Florida Retirement System, the employee shall
404receive service credit equal to his or her years of service
405under the State Community College System Optional Retirement
406Program.
407     (I)  The cost for such credit is the amount representing
408the present value of the employee's accumulated benefit
409obligation for the affected period of service. The cost shall be
410calculated as if the benefit commencement occurs on the first
411date the employee becomes eligible for unreduced benefits, using
412the discount rate and other relevant actuarial assumptions that
413were used to value the Florida Retirement System defined benefit
414plan liabilities in the most recent actuarial valuation. The
415calculation must include any service already maintained under
416the defined benefit plan in addition to the years under the
417State Community College System Optional Retirement Program. The
418present value of any service already maintained must be applied
419as a credit to total cost resulting from the calculation. The
420division shall ensure that the transfer sum is prepared using a
421formula and methodology certified by an enrolled actuary.
422     (II)  The employee must transfer from his or her State
423Community College System Optional Retirement Program account and
424from other employee moneys as necessary, a sum representing the
425present value of the employee's accumulated benefit obligation
426immediately following the time of such movement, determined
427assuming that attained service equals the sum of service in the
428defined benefit program and service in the State Community
429College System Optional Retirement Program.
430     4.  Participation in the optional retirement program is
431limited to employees who satisfy the following eligibility
432criteria:
433     a.  The employee must be otherwise eligible for membership
434or renewed membership in the Regular Class of the Florida
435Retirement System, as provided in s. 121.021(11) and (12) or s.
436121.122.
437     b.  The employee must be employed in a full-time position
438classified in the Accounting Manual for Florida's Public
439Community Colleges as:
440     (I)  Instructional; or
441     (II)  Executive Management, Instructional Management, or
442Institutional Management, if a community college determines that
443recruiting to fill a vacancy in the position is to be conducted
444in the national or regional market, and the duties and
445responsibilities of the position include the formulation,
446interpretation, or implementation of policies, or the
447performance of functions that are unique or specialized within
448higher education and that frequently support the mission of the
449community college.
450     c.  The employee must be employed in a position not
451included in the Senior Management Service Class of the Florida
452Retirement System, as described in s. 121.055.
453     5.  Participants in the program are subject to the same
454reemployment limitations, renewed membership provisions, and
455forfeiture provisions as are applicable to regular members of
456the Florida Retirement System under ss. 121.091(9), 121.122, and
457121.091(5), respectively. A participant who receives a program
458distribution funded by employer contributions shall be deemed to
459be retired from a state-administered retirement system if the
460participant is subsequently employed with an employer that
461participates in the Florida Retirement System.
462     6.  Eligible community college employees are compulsory
463members of the Florida Retirement System until, pursuant to s.
4641012.875, a written election to withdraw from the system and
465participate in the State Community College System Optional
466Retirement Program is filed with the program administrator and
467received by the division.
468     a.  A community college employee whose program eligibility
469results from initial employment must be enrolled in the State
470Community College System Optional Retirement Program retroactive
471to the first day of eligible employment. The employer retirement
472contributions paid through the month of the employee plan change
473shall be transferred to the community college to the employee's
474optional program account, and, effective the first day of the
475next month, the employer shall pay the applicable contributions
476based upon subparagraph 1.
477     b.  A community college employee whose program eligibility
478is due to the subsequent designation of the employee's position
479as one of those specified in subparagraph 4., or due to the
480employee's appointment, promotion, transfer, or reclassification
481to a position specified in subparagraph 4., must be enrolled in
482the program on the first day of the first full calendar month
483that such change in status becomes effective. The employer
484retirement contributions paid from the effective date through
485the month of the employee plan change must be transferred to the
486community college to the employee's optional program account,
487and, effective the first day of the next month, the employer
488shall pay the applicable contributions based upon subparagraph
4891.
490     7.  Effective July 1, 2003, through December 31, 2008, any
491participant of the State Community College System Optional
492Retirement Program who has service credit in the defined benefit
493plan of the Florida Retirement System for the period between his
494or her first eligibility to transfer from the defined benefit
495plan to the optional retirement program and the actual date of
496transfer may, during employment, transfer to the optional
497retirement program a sum representing the present value of the
498accumulated benefit obligation under the defined benefit
499retirement program for the period of service credit. Upon
500transfer, all service credit previously earned under the defined
501benefit program of the Florida Retirement System during this
502period is nullified for purposes of entitlement to a future
503benefit under the defined benefit program of the Florida
504Retirement System.
505     Section 6.  Paragraph (c) of subsection (7) of section
506121.052, 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
510contribution on behalf of each member of the Elected Officers'
511Class in terms of a percentage of the member's gross
512compensation. Such contribution constitutes the entire health
513insurance subsidy contribution with respect to each such member.
514A change in the contribution rate is effective with the first
515salary paid on or after the beginning date of the change. The
516retiree health insurance subsidy contribution rate is as
517follows:
518
 
Dates of Contribution   Rate ChangesContribution Rate
519
 
October 1, 1987, through December 31, 19880.24%
520
 
January 1, 1989, through December 31, 19930.48%
521
 
January 1, 1994, through December 31, 19940.56%
522
 
January 1, 1995, through June 30, 19980.66%
523
 
July 1, 1998, through June 30, 20010.94%
524
 
Effective July 1, 2001, through June 30, 20101.11%
525
 
Effective July 1, 20100.00%
526
527
528Such contributions and accompanying payroll data are due and
529payable no later than the 5th working day of the month
530immediately following the month during which the payroll period
531ended and shall be deposited by the administrator in the Retiree
532Health Insurance Subsidy Trust Fund.
533     Section 7.  Effective June 30, 2011, paragraph (c) of
534subsection (7) of section 121.052, Florida Statutes, as amended
535by this act, is repealed.
536     Section 8.  Subsection (5) of section 121.053, Florida
537Statutes, is amended to read:
538     121.053  Participation in the Elected Officers' Class for
539retired members.-
540     (5)  Any renewed member, as described in subsection (1) or
541subsection (2), who is not receiving the maximum health
542insurance subsidy provided in s. 112.363 and meets the
543requirements of s. 112.363 is entitled to earn additional credit
544toward the maximum health insurance subsidy. Any additional
545subsidy due because of such additional credit may be received
546only at the time of payment of the second career retirement
547benefit. The total health insurance subsidy received from
548initial and renewed membership may not exceed the maximum
549allowed in s. 112.363.
550     Section 9.  Effective June 30, 2011, subsection (5) of
551section 121.053, Florida Statutes, as amended by this act, is
552repealed.
553     Section 10.  Paragraph (c) of subsection (3) and paragraph
554(d) of subsection (6) of section 121.055, Florida Statutes, are
555amended to read:
556     121.055  Senior Management Service Class.-There is hereby
557established a separate class of membership within the Florida
558Retirement System to be known as the "Senior Management Service
559Class," which shall become effective February 1, 1987.
560     (3)
561     (c)  The following table states the required employer
562contribution on behalf of each member of the Senior Management
563Service Class in terms of a percentage of the member's gross
564compensation. Such contribution constitutes the entire health
565insurance subsidy contribution with respect to each such member.
566A change in the contribution rate is effective with the first
567salary paid on or after the beginning date of the change. The
568retiree health insurance subsidy contribution rate is as
569follows:
570
 
Dates of Contribution   Rate ChangesContribution Rate
571
 

572
 
October 1, 1987, through December 31, 19880.24%
573
 
January 1, 1989, through December 31, 19930.48%
574
 
January 1, 1994, through December 31, 19940.56%
575
 
January 1, 1995, through June 30, 19980.66%
576
 
July 1, 1998, through June 30, 20010.94%
577
 
Effective July 1, 2001, through June 30, 20101.11%
578
 
Effective July 1, 20100.00%
579
580
581Such contributions and accompanying payroll data are due and
582payable no later than the 5th working day of the month
583immediately following the month during which the payroll period
584ended and shall be deposited by the administrator in the Retiree
585Health Insurance Subsidy Trust Fund.
586     (6)
587     (d)  Contributions.-
588     1.  Through June 30, 2001, each employer shall contribute
589on behalf of each participant in the Senior Management Service
590Optional Annuity Program an amount equal to the normal cost
591portion of the employer retirement contribution which would be
592required if the participant were a Senior Management Service
593Class member of the Florida Retirement System defined benefit
594program, plus the portion of the contribution rate required in
595s. 112.363(8) that would otherwise be assigned to the Retiree
596Health Insurance Subsidy Trust Fund. Effective July 1, 2001,
597through June 30, 2010, each employer shall contribute on behalf
598of each participant in the optional program an amount equal to
59912.49 percent of the participant's gross monthly compensation.
600Effective July 1, 2010, each employer shall contribute on behalf
601of each participant in the optional program an amount equal to
60211.55 percent of the participant's gross monthly compensation.
603The department shall deduct an amount approved by the
604Legislature to provide for the administration of this program.
605The payment of the contributions to the optional program which
606is required by this subparagraph for each participant shall be
607made by the employer to the department, which shall forward the
608contributions to the designated company or companies contracting
609for payment of benefits for the participant under the program.
610     2.  Each employer shall contribute on behalf of each
611participant in the Senior Management Service Optional Annuity
612Program an amount equal to the unfunded actuarial accrued
613liability portion of the employer contribution which would be
614required for members of the Senior Management Service Class in
615the Florida Retirement System. This contribution shall be paid
616to the department for transfer to the Florida Retirement System
617Trust Fund.
618     3.  An Optional Annuity Program Trust Fund shall be
619established in the State Treasury and administered by the
620department to make payments to provider companies on behalf of
621the optional annuity program participants, and to transfer the
622unfunded liability portion of the state optional annuity program
623contributions to the Florida Retirement System Trust Fund.
624     4.  Contributions required for social security by each
625employer and each participant, in the amount required for social
626security coverage as now or hereafter may be provided by the
627federal Social Security Act shall be maintained for each
628participant in the Senior Management Service retirement program
629and shall be in addition to the retirement contributions
630specified in this paragraph.
631     5.  Each participant in the Senior Management Service
632Optional Annuity Program may contribute by way of salary
633reduction or deduction a percentage amount of the participant's
634gross compensation not to exceed the percentage amount
635contributed by the employer to the optional annuity program.
636Payment of the participant's contributions shall be made by the
637employer to the department, which shall forward the
638contributions to the designated company or companies contracting
639for payment of benefits for the participant under the program.
640     Section 11.  Effective June 30, 2011, paragraph (c) of
641subsection (3) of section 121.055, Florida Statutes, as amended
642by this act, is repealed.
643     Section 12.  Subsection (4) of section 121.071, Florida
644Statutes, is amended to read:
645     121.071  Contributions.-Contributions to the system shall
646be made as follows:
647     (4)  The following table states the required employer
648contribution on behalf of each member of the Regular Class,
649Special Risk Class, or Special Risk Administrative Support Class
650in terms of a percentage of the member's gross compensation.
651Such contribution constitutes the entire health insurance
652subsidy contribution with respect to each such member. A change
653in the contribution rate is effective with the first salary paid
654on or after the beginning date of the change. The retiree health
655insurance subsidy contribution rate is as follows:
656
 
Dates of Contribution   Rate ChangesContribution Rate
657
 
October 1, 1987, through December 31, 19880.24%
658
 
January 1, 1989, through December 31, 19930.48%
659
 
January 1, 1994, through December 31, 19940.56%
660
 
January 1, 1995, through June 30, 19980.66%
661
 
July 1, 1998, through June 30, 20010.94%
662
 
Effective July 1, 2001, through June 30, 20101.11%
663
 
Effective July 1, 20100.00%
664
665
666Such contributions shall be deposited by the administrator in
667the Retiree Health Insurance Subsidy Trust Fund.
668     Section 13.  Effective June 30, 2011, subsection (4) of
669section 121.071, Florida Statutes, as amended by this act, is
670repealed, subsections (5) and (6) of that section are renumbered
671as subsections (4) and (5), respectively, and present subsection
672(5) is amended to read:
673     121.071  Contributions.-Contributions to the system shall
674be 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
677employer into the system trust funds in accordance with rules
678adopted by the administrator pursuant to chapter 120, except as
679may be otherwise specified herein. Effective July 1, 2002,
680contributions paid under subsection subsections (1) and (4) and
681accompanying payroll data are due and payable no later than the
6825th working day of the month immediately following the month
683during which the payroll period ended.
684     Section 14.  Paragraph (f) of subsection (13) of section
685121.091, Florida Statutes, is amended to read:
686     121.091  Benefits payable under the system.-Benefits may
687not be paid under this section unless the member has terminated
688employment as provided in s. 121.021(39)(a) or begun
689participation in the Deferred Retirement Option Program as
690provided in subsection (13), and a proper application has been
691filed in the manner prescribed by the department. The department
692may cancel an application for retirement benefits when the
693member or beneficiary fails to timely provide the information
694and documents required by this chapter and the department's
695rules. The department shall adopt rules establishing procedures
696for application for retirement benefits and for the cancellation
697of such application when the required information or documents
698are not received.
699     (13)  DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
700subject to this section, the Deferred Retirement Option Program,
701hereinafter referred to as DROP, is a program under which an
702eligible member of the Florida Retirement System may elect to
703participate, deferring receipt of retirement benefits while
704continuing employment with his or her Florida Retirement System
705employer. The deferred monthly benefits shall accrue in the
706Florida Retirement System on behalf of the participant, plus
707interest compounded monthly, for the specified period of the
708DROP participation, as provided in paragraph (c). Upon
709termination of employment, the participant shall receive the
710total DROP benefits and begin to receive the previously
711determined normal retirement benefits. Participation in the DROP
712does not guarantee employment for the specified period of DROP.
713Participation in DROP by an eligible member beyond the initial
71460-month period as authorized in this subsection shall be on an
715annual contractual basis for all participants.
716     (f)  Employees who have terminated participation in DROP on
717or after June 1, 2010, may not receive retiree health insurance
718subsidy payments. Retiree health insurance subsidy.-DROP
719participants are not eligible to apply for the retiree health
720insurance subsidy payments as provided in s. 112.363 until such
721participants have terminated employment and participation in
722DROP.
723     Section 15.  Effective June 30, 2011, paragraphs (c) and
724(i) of subsection (13) of section 121.091, Florida Statutes, are
725amended to read:
726     121.091  Benefits payable under the system.-Benefits may
727not be paid under this section unless the member has terminated
728employment as provided in s. 121.021(39)(a) or begun
729participation in the Deferred Retirement Option Program as
730provided in subsection (13), and a proper application has been
731filed in the manner prescribed by the department. The department
732may cancel an application for retirement benefits when the
733member or beneficiary fails to timely provide the information
734and documents required by this chapter and the department's
735rules. The department shall adopt rules establishing procedures
736for application for retirement benefits and for the cancellation
737of such application when the required information or documents
738are not received.
739     (13)  DEFERRED RETIREMENT OPTION PROGRAM.-In general, and
740subject to this section, the Deferred Retirement Option Program,
741hereinafter referred to as DROP, is a program under which an
742eligible member of the Florida Retirement System may elect to
743participate, deferring receipt of retirement benefits while
744continuing employment with his or her Florida Retirement System
745employer. The deferred monthly benefits shall accrue in the
746Florida Retirement System on behalf of the participant, plus
747interest compounded monthly, for the specified period of the
748DROP participation, as provided in paragraph (c). Upon
749termination of employment, the participant shall receive the
750total DROP benefits and begin to receive the previously
751determined normal retirement benefits. Participation in the DROP
752does not guarantee employment for the specified period of DROP.
753Participation in DROP by an eligible member beyond the initial
75460-month period as authorized in this subsection shall be on an
755annual contractual basis for all participants.
756     (c)  Benefits payable under DROP.-
757     1.  Effective on the date of DROP participation, the
758member's initial normal monthly benefit, including creditable
759service, optional form of payment, and average final
760compensation, and the effective date of retirement are fixed.
761The beneficiary established under the Florida Retirement System
762is the beneficiary eligible to receive any DROP benefits payable
763if the DROP participant dies before completing the period of
764DROP participation. If a joint annuitant predeceases the member,
765the member may name a beneficiary to receive accumulated DROP
766benefits payable. The retirement benefit, the annual cost of
767living adjustments provided in s. 121.101, and interest accrue
768monthly in the Florida Retirement System Trust Fund. The
769interest accrues at an effective annual rate of 6.5 percent
770compounded monthly, on the prior month's accumulated ending
771balance, up to the month of termination or death, except as
772provided in s. 121.053(6)(7).
773     2.  Each employee who elects to participate in DROP may
774elect to receive a lump-sum payment for accrued annual leave
775earned in accordance with agency policy upon beginning
776participation in DROP. The accumulated leave payment certified
777to the division upon commencement of DROP shall be included in
778the calculation of the member's average final compensation. The
779employee electing the lump-sum payment is not eligible to
780receive a second lump-sum payment upon termination, except to
781the extent the employee has earned additional annual leave
782which, combined with the original payment, does not exceed the
783maximum lump-sum payment allowed by the employing agency's
784policy or rules. An early lump-sum payment shall be based on the
785hourly wage of the employee at the time he or she begins
786participation in DROP. If the member elects to wait and receive
787a lump-sum payment upon termination of DROP and termination of
788employment with the employer, any accumulated leave payment made
789at that time may not be included in the member's retirement
790benefit, which was determined and fixed by law when the employee
791elected to participate in DROP.
792     3.  The effective date of DROP participation and the
793effective date of retirement of a DROP participant shall be the
794first day of the month selected by the member to begin
795participation in DROP, provided such date is properly
796established, with the written confirmation of the employer, and
797the approval of the division, on forms required by the division.
798     4.  Normal retirement benefits and any interest shall
799continue to accrue in DROP until the established termination
800date of DROP or until the participant terminates employment or
801dies prior to such date, except as provided in s. 121.053(6)(7).
802Although individual DROP accounts shall not be established, a
803separate accounting of each participant's accrued benefits under
804DROP shall be calculated and provided to participants.
805     5.  At the conclusion of the participant's DROP, the
806division shall distribute the participant's total accumulated
807DROP benefits, subject to the following:
808     a.  The division shall receive verification by the
809participant's employer or employers that the participant has
810terminated all employment relationships as provided in s.
811121.021(39).
812     b.  The terminated DROP participant or, if deceased, the
813participant's named beneficiary, shall elect on forms provided
814by the division to receive payment of the DROP benefits in
815accordance with one of the options listed below. If a
816participant or beneficiary fails to elect a method of payment
817within 60 days after termination of DROP, the division shall pay
818a lump sum as provided in sub-sub-subparagraph (I).
819     (I)  Lump sum.-All accrued DROP benefits, plus interest,
820less withholding taxes remitted to the Internal Revenue Service,
821shall be paid to the DROP participant or surviving beneficiary.
822     (II)  Direct rollover.-All accrued DROP benefits, plus
823interest, shall be paid from DROP directly to the custodian of
824an eligible retirement plan as defined in s. 402(c)(8)(B) of the
825Internal Revenue Code. However, in the case of an eligible
826rollover distribution to the surviving spouse of a deceased
827participant, an eligible retirement plan is an individual
828retirement account or an individual retirement annuity as
829described in s. 402(c)(9) of the Internal Revenue Code.
830     (III)  Partial lump sum.-A portion of the accrued DROP
831benefits shall be paid to DROP participant or surviving spouse,
832less withholding taxes remitted to the Internal Revenue Service,
833and the remaining DROP benefits must be transferred directly to
834the custodian of an eligible retirement plan as defined in s.
835402(c)(8)(B) of the Internal Revenue Code. However, in the case
836of an eligible rollover distribution to the surviving spouse of
837a deceased participant, an eligible retirement plan is an
838individual retirement account or an individual retirement
839annuity as described in s. 402(c)(9) of the Internal Revenue
840Code. The proportions must be specified by the DROP participant
841or surviving beneficiary.
842     c.  The form of payment selected by the DROP participant or
843surviving beneficiary must comply with the minimum distribution
844requirements of the Internal Revenue Code.
845     d.  A DROP participant who fails to terminate all
846employment relationships as provided in s. 121.021(39) shall be
847deemed as not retired, and the DROP election is null and void.
848Florida Retirement System membership shall be reestablished
849retroactively to the date of the commencement of DROP, and each
850employer with whom the participant continues employment must pay
851to the Florida Retirement System Trust Fund the difference
852between the DROP contributions paid in paragraph (i) and the
853contributions required for the applicable Florida Retirement
854System class of membership during the period the member
855participated in DROP, plus 6.5 percent interest compounded
856annually.
857     6.  The retirement benefits of any DROP participant who
858terminates all employment relationships as provided in s.
859121.021(39) but is reemployed in violation of the reemployment
860provisions of subsection (9) shall be suspended during those
861months in which the retiree is in violation. Any retiree in
862violation of this subparagraph and any employer that employs or
863appoints such person without notifying the Division of
864Retirement to suspend retirement benefits are jointly and
865severally liable for any benefits paid during the reemployment
866limitation period. The employer must have a written statement
867from the retiree that he or she is not retired from a state-
868administered retirement system. Any retirement benefits received
869by a retiree while employed in violation of the reemployment
870limitations must be repaid to the Florida Retirement System
871Trust Fund, and his or her retirement benefits shall remain
872suspended until payment is made. Benefits suspended beyond the
873end of the reemployment limitation period apply toward repayment
874of benefits received in violation of the reemployment
875limitation.
876     7.  The accrued benefits of any DROP participant, and any
877contributions accumulated under the program, are not subject to
878assignment, execution, attachment, or any legal process
879whatsoever, except for qualified domestic relations orders by a
880court of competent jurisdiction, income deduction orders as
881provided in s. 61.1301, and federal income tax levies.
882     8.  DROP participants are not eligible for disability
883retirement benefits as provided in subsection (4).
884     (i)  Contributions.-
885     1.  All employers paying the salary of a DROP participant
886filling a regularly established position shall contribute 8.0
887percent of such participant's gross compensation for the period
888of July 1, 2002, through June 30, 2003, and the percentage of
889such compensation required by s. 121.71 thereafter, which shall
890constitute the entire employer DROP contribution with respect to
891such participant. Such contributions, payable to the Florida
892Retirement System Trust Fund in the same manner as required in
893s. 121.071, must be made as appropriate for each pay period and
894are in addition to contributions required for social security
895and the Retiree Health Insurance Subsidy Trust Fund. Such
896employer and, social security, and health insurance subsidy
897contributions are not included in DROP.
898     2.  The employer shall, in addition to subparagraph 1.,
899also withhold one-half of the entire social security
900contribution required for the participant. Contributions for
901social security by each participant and each employer, in the
902amount required for social security coverage as provided by the
903federal Social Security Act, are in addition to contributions
904specified in subparagraph 1.
905     3.  All employers paying the salary of a DROP participant
906filling a regularly established position shall contribute the
907percent of such participant's gross compensation required in s.
908121.071(4), which constitutes the employer's health insurance
909subsidy contribution with respect to such participant. Such
910contributions must be deposited by the administrator in the
911Retiree Health Insurance Subsidy Trust Fund.
912     Section 16.  Paragraph (h) of subsection (1) of section
913121.122, 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,
9161991, through June 30, 2010, any retiree of a state-administered
917retirement system who is initially reemployed in a regularly
918established position with a covered employer, including an
919elective public office that does not qualify for the Elected
920Officer's Class, shall be enrolled as a compulsory member of the
921Regular Class of the Florida Retirement System. Effective July
9221, 1997, through June 30, 2010, any retiree of a state-
923administered retirement system who is initially reemployed in a
924position included in the Senior Management Service Class shall
925be enrolled as a compulsory member of the Senior Management
926Service Class of the Florida Retirement System as provided in s.
927121.055. A retiree is entitled to receive an additional
928retirement benefit, subject to the following conditions:
929     (h)  A renewed member who is not receiving the maximum
930health insurance subsidy provided in s. 112.363 and meets the
931requirements of s. 112.363 is entitled to earn additional credit
932toward the maximum health insurance subsidy. Any additional
933subsidy due because of such additional credit may be received
934only at the time of payment of the second career retirement
935benefit. The total health insurance subsidy received by a
936retiree receiving benefits from initial and renewed membership
937may not exceed the maximum allowed in s. 112.363.
938     Section 17.  Effective June 30, 2011, paragraph (h) of
939subsection (1) of section 121.122, Florida Statutes, as amended
940by this act, is repealed, and paragraph (d) of subsection (1) of
941that section is amended to read:
942     121.122  Renewed membership in system.-
943     (1)  Except as provided in s. 121.053, effective July 1,
9441991, through June 30, 2010, any retiree of a state-administered
945retirement system who is initially reemployed in a regularly
946established position with a covered employer, including an
947elective public office that does not qualify for the Elected
948Officer's Class, shall be enrolled as a compulsory member of the
949Regular Class of the Florida Retirement System. Effective July
9501, 1997, through June 30, 2010, any retiree of a state-
951administered retirement system who is initially reemployed in a
952position included in the Senior Management Service Class shall
953be enrolled as a compulsory member of the Senior Management
954Service Class of the Florida Retirement System as provided in s.
955121.055. A retiree is entitled to receive an additional
956retirement benefit, subject to the following conditions:
957     (d)  Upon renewed membership or reemployment of a retiree,
958the employer of such member shall pay the applicable employer
959contributions as required by ss. 112.363, 121.71, 121.74, and
960121.76.
961     Section 18.  Paragraph (c) of subsection (3) and paragraph
962(a) of subsection (4) of section 121.35, Florida Statutes, are
963amended to read:
964     121.35  Optional retirement program for the State
965University System.-
966     (3)  ELECTION OF OPTIONAL PROGRAM.-
967     (c)  Any employee who becomes eligible to participate in
968the optional retirement program on or after January 1, 1993,
969shall be a compulsory participant of the program unless such
970employee elects membership in the Florida Retirement System.
971Such election shall be made in writing and filed with the
972personnel officer of the employer. Any eligible employee who
973fails to make such election within the prescribed time period
974shall be deemed to have elected to participate in the optional
975retirement program.
976     1.  Any employee whose optional retirement program
977eligibility results from initial employment shall be enrolled in
978the program at the commencement of employment. If, within 90
979days after commencement of employment, the employee elects
980membership in the Florida Retirement System, such membership
981shall be effective retroactive to the date of commencement of
982employment.
983     2.  Any employee whose optional retirement program
984eligibility results from a change in status due to the
985subsequent designation of the employee's position as one of
986those specified in paragraph (2)(a) or due to the employee's
987appointment, promotion, transfer, or reclassification to a
988position specified in paragraph (2)(a) shall be enrolled in the
989optional retirement program upon such change in status and shall
990be notified by the employer of such action. If, within 90 days
991after the date of such notification, the employee elects to
992retain membership in the Florida Retirement System, such
993continuation of membership shall be retroactive to the date of
994the change in status.
995     3.  Notwithstanding the provisions of this paragraph,
996effective July 1, 1997, any employee who is eligible to
997participate in the Optional Retirement Program and who fails to
998execute a contract with one of the approved companies and to
999notify the department in writing as provided in subsection (4)
1000within 90 days after the date of eligibility shall be deemed to
1001have elected membership in the Florida Retirement System, except
1002as provided in s. 121.051(1)(a). This provision shall also apply
1003to any employee who terminates employment in an eligible
1004position before executing the required annuity contract and
1005notifying the department. Such membership shall be retroactive
1006to the date of eligibility, and all appropriate contributions
1007shall be transferred to the Florida Retirement System Trust Fund
1008and the Health Insurance Subsidy Trust Fund through June 30,
10092010. Effective July 1, 2010, such membership shall be
1010retroactive to the date of eligibility, and all appropriate
1011contributions shall be transferred to the Florida Retirement
1012System Trust Fund.
1013     (4)  CONTRIBUTIONS.-
1014     (a)  Through June 30, 2001, each employer shall contribute
1015on behalf of each participant in the optional retirement program
1016an amount equal to the normal cost portion of the employer
1017retirement contribution which would be required if the
1018participant were a regular member of the Florida Retirement
1019System defined benefit program, plus the portion of the
1020contribution rate required in s. 112.363(8) that would otherwise
1021be assigned to the Retiree Health Insurance Subsidy Trust Fund.
1022Effective July 1, 2001, through June 30, 2010, each employer
1023shall contribute on behalf of each participant in the optional
1024program an amount equal to 10.43 percent of the participant's
1025gross monthly compensation. Effective July 1, 2010, each
1026employer shall contribute on behalf of each participant in the
1027optional program an amount equal to 9.49 percent of the
1028participant's gross monthly compensation. The department shall
1029deduct an amount approved by the Legislature to provide for the
1030administration of this program. The payment of the contributions
1031to the optional program which is required by this paragraph for
1032each participant shall be made by the employer to the
1033department, which shall forward the contributions to the
1034designated company or companies contracting for payment of
1035benefits for the participant under the program. However, such
1036contributions paid on behalf of an employee described in
1037paragraph (3)(c) shall not be forwarded to a company and shall
1038not begin to accrue interest until the employee has executed a
1039contract and notified the department.
1040     Section 19.  Effective June 30, 2011, subsection (18) of
1041section 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
1048participate in the Public Employee Optional Retirement Program
1049and enrolls in such optional program as provided in subsection
1050(4) or a terminated Deferred Retirement Option Program
1051participant as described in subsection (20) (21).
1052     Section 20.  Effective June 30, 2011, subsection (3) of
1053section 121.571, Florida Statutes, is amended to read:
1054     121.571  Contributions.-Contributions to the Public
1055Employee Optional Retirement Program shall be made as follows:
1056     (3)  CONTRIBUTIONS FOR SOCIAL SECURITY COVERAGE AND FOR
1057RETIREE HEALTH INSURANCE SUBSIDY.-Contributions required under
1058this section shall be in addition to employer and member
1059contributions required for social security and the Retiree
1060Health Insurance Subsidy Trust Fund as provided in ss. 112.363,
1061121.052, 121.055, and 121.071, as appropriate.
1062     Section 21.  Paragraphs (a) and (b) of subsection (3) of
1063section 121.591, Florida Statutes, are amended to read:
1064     121.591  Benefits payable under the Public Employee
1065Optional Retirement Program of the Florida Retirement System.-
1066Benefits may not be paid under this section unless the member
1067has terminated employment as provided in s. 121.021(39)(a) or is
1068deceased and a proper application has been filed in the manner
1069prescribed by the state board or the department. The state board
1070or department, as appropriate, may cancel an application for
1071retirement benefits when the member or beneficiary fails to
1072timely provide the information and documents required by this
1073chapter and the rules of the state board and department. In
1074accordance with their respective responsibilities as provided
1075herein, the State Board of Administration and the Department of
1076Management Services shall adopt rules establishing procedures
1077for application for retirement benefits and for the cancellation
1078of such application when the required information or documents
1079are not received. The State Board of Administration and the
1080Department of Management Services, as appropriate, are
1081authorized to cash out a de minimis account of a participant who
1082has been terminated from Florida Retirement System covered
1083employment for a minimum of 6 calendar months. A de minimis
1084account is an account containing employer contributions and
1085accumulated earnings of not more than $5,000 made under the
1086provisions of this chapter. Such cash-out must either be a
1087complete lump-sum liquidation of the account balance, subject to
1088the provisions of the Internal Revenue Code, or a lump-sum
1089direct rollover distribution paid directly to the custodian of
1090an eligible retirement plan, as defined by the Internal Revenue
1091Code, on behalf of the participant. If any financial instrument
1092issued for the payment of retirement benefits under this section
1093is not presented for payment within 180 days after the last day
1094of the month in which it was originally issued, the third-party
1095administrator or other duly authorized agent of the State Board
1096of Administration shall cancel the instrument and credit the
1097amount of the instrument to the suspense account of the Public
1098Employee Optional Retirement Program Trust Fund authorized under
1099s. 121.4501(6). Any such amounts transferred to the suspense
1100account are payable upon a proper application, not to include
1101earnings thereon, as provided in this section, within 10 years
1102after the last day of the month in which the instrument was
1103originally issued, after which time such amounts and any
1104earnings thereon shall be forfeited. Any such forfeited amounts
1105are assets of the Public Employee Optional Retirement Program
1106Trust Fund and are not subject to the provisions of chapter 717.
1107     (3)  DEATH BENEFITS.-Under the Public Employee Optional
1108Retirement Program:
1109     (a)  Survivor benefits shall be payable in accordance with
1110the following terms and conditions:
1111     1.  To the extent vested, benefits shall be payable only to
1112a participant's beneficiary or beneficiaries as designated by
1113the participant as provided in s. 121.4501(19)(20).
1114     2.  Benefits shall be paid by the third-party administrator
1115or designated approved providers in accordance with the law, the
1116contracts, and any applicable board rule or policy.
1117     3.  To receive benefits under this subsection, the
1118participant must be deceased.
1119     (b)  In the event of a participant's death, all vested
1120accumulations as described in s. 121.4501(6), less withholding
1121taxes remitted to the Internal Revenue Service, shall be
1122distributed, as provided in paragraph (c) or as described in s.
1123121.4501(19)(20), as if the participant retired on the date of
1124death. No other death benefits shall be available for survivors
1125of participants under the Public Employee Optional Retirement
1126Program, except for such benefits, or coverage for such
1127benefits, as are otherwise provided by law or are separately
1128afforded by the employer, at the employer's discretion.
1129     Section 22.  Section 121.76, Florida Statutes, is amended
1130to read:
1131     121.76  Contributions for social security and for retiree
1132health insurance subsidy.-Contributions required under this part
1133for social security shall be made or deducted, as may be
1134appropriate, for each pay period and are in addition to employer
1135and member contributions required for social security and the
1136Retiree Health Insurance Subsidy Trust Fund as provided under
1137parts I and II of this chapter.
1138     Section 23.  Paragraph (a) of subsection (4) of section
11391012.875, Florida Statutes, is amended to read:
1140     1012.875  State Community College System Optional
1141Retirement Program.-Each community college may implement an
1142optional retirement program, if such program is established
1143therefor pursuant to s. 1001.64(20), under which annuity or
1144other contracts providing retirement and death benefits may be
1145purchased by, and on behalf of, eligible employees who
1146participate in the program, in accordance with s. 403(b) of the
1147Internal Revenue Code. Except as otherwise provided herein, this
1148retirement program, which shall be known as the State Community
1149College System Optional Retirement Program, may be implemented
1150and administered only by an individual community college or by a
1151consortium of community colleges.
1152     (4)(a)  Each college must contribute on behalf of each
1153program participant an amount equal to 10.43 percent of the
1154participant's gross monthly compensation through June 30, 2010.
1155Effective July 1, 2010, each college must contribute on behalf
1156of each program participant an amount equal to 9.49 percent of
1157the participant's gross monthly compensation. The college shall
1158deduct an amount approved by the district board of trustees of
1159the college to provide for the administration of the optional
1160retirement program. Payment of this contribution must be made
1161either directly by the college or through the program
1162administrator to the designated company contracting for payment
1163of benefits to the program participant.
1164     Section 24.  Except as otherwise expressly provided in this
1165act, this act shall take effect July 1, 2010.


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

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