HB 1558

HB 1558-FN-LOCAL - AS INTRODUCED

AN ACT relative to payment of group health insurance premiums for eligible retired members of the retirement system.

SPONSORS: Rep. Leishman, Hills 13

This bill provides for the payment by the retirement system of the cost of group health insurance for eligible retired employees of political subdivisions. The additional benefits are funded for the next 4 years.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to payment of group health insurance premiums for eligible retired members of the retirement system.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Medical Benefits; Payment; Financing; Political Subdivision Employees Added. Amend RSA 100-A:53-a and 53-b to read as follows:

100-A:53-a Payment by Retirement System; Group I Teachers and Political Subdivision Employees.

I. The New Hampshire retirement system shall pay the cost for permanent group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits, in the employer-sponsored plan provided for active employees of a retiree's former employer, subject to the provisions of this section, for the following persons:

(a) Any person, who has at least 20 years of creditable service as a group I teacher or political subdivision member if age 60 or older, or at least 30 years of creditable service as a group I teacher or political subdivision member if age 55-59, retired on or before July 1, 2004 as a group I teacher or political subdivision member of the New Hampshire retirement system on service or ordinary disability retirement, provided that such person shall be entitled to retirement on the basis of group I creditable service [~~without including any credit for service as a group I employee member of the retirement system~~], or any person retired on or before July 1, 2004, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 20 years of creditable service as a group I [~~teacher~~] member.

(c) The surviving spouse of a deceased retired group I teacher or political subdivision member who met the qualifications of [~~subparagraph~~] subparagraphs (a), (f) or (g) or of a deceased member who died while in service as a group I teacher or political subdivision member, provided that such surviving spouse was covered as the member's spouse in the employer-sponsored plan before the member's death and is entitled to a monthly allowance under RSA 100-A:8, 100-A:9, or 100-A:13.

(d) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member's spouse, or the qualified surviving spouse.

(e) The surviving spouse and children of a deceased group I teacher or political subdivision member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:

(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and

(2) Such surviving spouse shall cease to be qualified upon the remarriage of the surviving spouse; and

(3) No surviving spouse or child shall be qualified or continue to be qualified under this subparagraph while receiving or eligible to receive medical insurance or health care benefits from any employer-sponsored plan.

(f) Any person who has completed no less than 20 years of group I teacher or political subdivision creditable service, but who for reasons other than retirement or death ceased to be a group I teacher or political subdivision member prior to attaining the age of 60, and who, as of July 1, 2004, receives a vested deferred retirement allowance and who subsequently attains the age of 60.

(g) Any person who has completed no less than 20 years of group I teacher or political subdivision creditable service and who retired as a group I teacher or political subdivision member prior to age 60, and who subsequently attains the age of 60.

II. However, for the fiscal year beginning July 1, [~~1999~~] 2000, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under paragraph I who is not entitled to medicare benefits, and on account of each person qualified under paragraph I who is entitled to medicare benefits, shall be the same as the amount provided in RSA 100-A:52, II for group II retirees. As of July 1, [~~1999~~] 2000, and on each July 1 thereafter, the maximum amount payable by the retirement system as provided in this paragraph shall be increased by 8 percent, compounded on previous increases.

III. In the case of group I [~~teacher~~] members retired from employment by political subdivisions of the state[,] the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided by the former employer for qualified persons. If the cost of the premium for any eligible person under paragraph I shall exceed the maximum under paragraph II, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.

IV. There shall be no age limit to participate in the employer sponsored medical and health plan provided in paragraph I, and there shall be no physical examination or health statement required for such coverage, provided, however, that if an eligible retired group I teacher or political subdivision member of the retirement system fails to apply for such coverage within the time required by the insurance contract, the insurer may require satisfactory evidence of insurability as a condition for becoming insured.

V. Any group I teacher member retired before January 1, 2000, group I political subdivision member retired before January 1, 2001, or other eligible person under paragraph I, who would have been eligible for medical benefits under this section if this section had been in effect on the member's date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member's former employer and of receiving benefits under this section, provided that such eligible person shall apply to the employer for such benefits before January 1, 2002 if a teacher member or January 1, 2003 if a political subdivision member. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer's plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer's group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.

VI. The retirement system shall notify all group I teacher and political subdivision retirees and surviving spouse beneficiaries, who are currently drawing monthly allowances from the retirement system, of their possible right to re-join an active-employee medical insurance or health plan and to receive benefits under this section.

VII. Any person who is eligible to receive group insurance or other medical benefits under the provisions of this section, but who does not need and who declines such benefits because they would be duplicative of coverage under any employer-sponsored plan, shall nevertheless continue to be eligible and, upon ceasing to be eligible for the other coverage, shall be permitted to receive the benefits allowable under this section without any waiting period.

100-A:53-b Method of Financing; Group I Teachers and Group I Political Subdivision Employees.

I. The benefits provided under RSA 100-A:53-a shall be provided by a 401(h) subtrust of the New Hampshire retirement system. The 401(h) subtrust shall be funded by allocating 25 percent of future group I [~~teacher~~] employer contributions made for group I teachers or group I political subdivision employees in accordance with RSA 100-A:16 to the subtrust until such time as the benefits are fully funded. Thereafter the subtrust shall receive only that portion of each year's contribution as is necessary to keep the benefits fully funded.

II. All contributions made to the retirement system to provide medical benefits under RSA 100-A:53-a shall be maintained in a separate account, the 401(h) subtrust. All funds and accumulated interest shall not be used for or diverted to any purpose other than to provide said medical benefits. Similarly, none of the funds accumulated to provide the retirement benefits set forth in this chapter may be used or diverted to provide medical benefits under RSA 100-A:53-a. The funds, if any, providing medical benefits under RSA 100-A:53-a may be invested pursuant to the provisions of RSA 100-A:15.

I-a. It is the intent of the legislature that future group I teacher and political subdivision members eligible after July 1, 2004 shall be included under the provisions of RSA 100-A:53-a only if the total cost of such inclusion can be terminally funded from the special account established under RSA 100-A:16, II(h).

3 Funding. The sum of $1 is hereby transferred from the group I employee special account balance existing on June 30, 2000 for the purpose of funding RSA 100-A:53-a and 53-b as amended by section 1 of this act.

AN ACT relative to payment of group health insurance premiums for eligible retired members of the retirement system.

The Office of Legislative Budget Assistant is unable to complete a fiscal note for this bill as it is awaiting information from an agency.