------------------------------------------------------------------------------------------ ¦ REFERENCE TITLE: state retired employees; health insurance ¦ ------------------------------------------------------------------------------------------ ¦ ¦ ¦ ¦ ¦ ¦ ¦ State of Arizona ¦ ¦ House of Representatives ¦ ¦ Forty-fifth Legislature ¦ ¦ First Regular Session ¦ ¦ 2001 ¦ ------------------------------------------------------------------------------------------ ¦ HB 2255 ¦ ------------------------------------------------------------------------------------------ ¦ Introduced by ¦ ¦ Representatives Knaperek, Brimhall, Cooley, Allen, Blendu, Robson, Pearce, Senator ¦ ¦ Solomon: Representative Gray, Senator Petersen ¦ ------------------------------------------------------------------------------------------
AN ACT
AMENDING SECTIONS 38-783, 38-817, 38-857 AND 38-906, ARIZONA REVISED STATUTES; RELATING TO PUBLIC RETIREMENT SYSTEMS.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-783, Arizona Revised Statutes, is amended to read:
38-783. Retired members; dependents; health insurance; premium payment; separate account; definitions
A. Subject to subsection F of this section, the board shall pay from ASRS assets part of the single coverage premium of any group health and accident insurance for each retired or disabled member of ASRS if the member elects to participate in the coverage provided by ASRS or section 38-651.01 or elects to participate in any other health and accident insurance coverage provided or administered by an employer. The board shall pay:
1. Up to ninety-five ____________ dollars per month for a retired or
disabled member of ASRS who is not eligible for medicare and who has ten or more years of
credited service.
2. Up to sixty-five ____________ dollars per month for each retired or
disabled member of ASRS who is eligible for medicare and who has ten or more years of
credited service.
B. Subject to subsection F of this section, the board shall pay from ASRS assets part of the family coverage premium of any group health and accident insurance for a retired or disabled member of ASRS who elects family coverage and who otherwise qualifies for payment pursuant to subsection A of this section. Payment under this subsection is in the following amounts:
1. Up to one hundred seventy-five _____________ dollars per month if the
retired or disabled member of ASRS and one or more dependents are not eligible for
medicare.
2. Up to one hundred fifteen _____________ dollars per month if the
retired or disabled member of ASRS and one or more dependents are eligible for medicare.
3. Up to one hundred forty-five _____________ dollars per month if
either:
(a) The retired or disabled member of ASRS is not eligible for medicare and one or more dependents are eligible for medicare.
(b) The retired or disabled member of ASRS is eligible for medicare and one or more dependents are not eligible for medicare.
C. In addition each retired or disabled member of ASRS with less than ten years of credited service and a dependent of such a retired or disabled member who elects to participate in the coverage provided by ASRS or section 38-651.01 or who elects to participate in any other health and accident coverage provided or administered by an employer is entitled to receive a proportion of the full benefit prescribed by subsection A or B of this section according to the following schedule:
1. 9.0 to 9.9 years of credited service, ninety per cent.
2. 8.0 to 8.9 years of credited service, eighty per cent.
3. 7.0 to 7.9 years of credited service, seventy per cent.
4. 6.0 to 6.9 years of credited service, sixty per cent.
5. 5.0 to 5.9 years of credited service, fifty per cent.
6. Those with less than five years of credited service do not qualify for the benefit.
D. The board shall not pay more than the amount prescribed in subsection A or B
of this section or the applicable proportion prescribed in subsection C of this section
for a retired or disabled member of ASRS.
E. The board shall establish a separate account that consists of the benefits provided by this section. The board shall not use or divert any part of the corpus or income of the account for any purpose other than the provision of benefits under this section unless the liabilities of ASRS to provide the benefits are satisfied. If the liabilities of ASRS to provide the benefits described in this section are satisfied, the board shall return any amount remaining in the account to the employer.
F. Payment of the benefits provided by this section is subject to the following conditions:
1. The payment of the benefits is subordinate to the payment of retirement benefits payable by ASRS.
2. The total of contributions for the benefits and actual contributions for life insurance protection, if any, shall not exceed twenty-five per cent of the total actual employer and employee contributions to ASRS, less contributions to fund past service credits, after the day the account is established.
3. The board shall deposit the benefits provided by this section in the account.
4. The contributions by the employer to the account shall be reasonable and ascertainable.
G. For the purposes of this section:
1. "Account" means the separate account established pursuant to subsection E of this section.
2. "Credited service" includes prior service.
3. "Prior service" means service for this state or a political subdivision of this state before membership in the defined contribution program administered by ASRS.
Sec. 2. Section 38-817, Arizona Revised Statutes, is amended to read:
38-817. Group health and accident coverage for retired members; payment
A. The fund manager shall pay from the assets of the fund part of the single
coverage premium of any group health and accident insurance in the amount of up to
sixty dollars per month for a EACH retired member or survivor of the elected
officials' retirement plan who receives a pension if the retiree RETIRED MEMBER
had eight or more years of credited service under the plan. In order to qualify for
payment pursuant to this subsection, the retired member or survivor shall elect single
coverage and shall elect to participate in the coverage provided in section 38-651.01 or
38-782 or elect to participate in any other health and accident insurance provided or
administered by a participating employer of the elected officials' retirement plan.
THE FUND MANAGER SHALL PAY UP TO:
1. ___________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE PLAN WHO IS NOT ELIGIBLE FOR MEDICARE.
2. ____________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE PLAN WHO IS ELIGIBLE FOR MEDICARE.
B. The fund manager shall pay from the assets of the fund part of the family
coverage premium of any group health and accident insurance in the amount of up to
eighty-five dollars each month for a benefit recipient who elects family coverage and
who otherwise qualifies for payment pursuant to subsection A of this section. THE FUND
MANAGER SHALL PAY UP TO:
1. ____________ DOLLARS PER MONTH IF THE RETIRED MEMBER OR SURVIVOR OF THE PLAN AND ONE OR MORE DEPENDENTS ARE NOT ELIGIBLE FOR MEDICARE.
2. ____________ DOLLARS PER MONTH IF THE RETIRED MEMBER OR SURVIVOR OF THE PLAN AND ONE OR MORE DEPENDENTS ARE ELIGIBLE FOR MEDICARE.
3. ____________ DOLLARS PER MONTH IF EITHER:
(a) THE RETIRED MEMBER OR SURVIVOR OF THE PLAN IS NOT ELIGIBLE FOR MEDICARE AND ONE OR MORE DEPENDENTS ARE ELIGIBLE FOR MEDICARE.
(b) THE RETIRED MEMBER OR SURVIVOR OF THE PLAN IS ELIGIBLE FOR MEDICARE AND ONE OR MORE DEPENDENTS ARE NOT ELIGIBLE FOR MEDICARE.
C. Each retired member or survivor of the plan with less than eight years of credited service and a dependent of such a retired member or survivor who participates in the coverage provided by section 38-651.01 or 38-782 or who participates in any other health and accident insurance coverage provided or administered by a participating employer of the plan is entitled to receive a proportion of the full benefit prescribed by subsection A or B of this section according to the following schedule:
1. 7.0 to 7.9 years of credited service, ninety per cent.
2. 6.0 to 6.9 years of credited service, seventy-five per cent.
3. 5.0 to 5.9 years of credited service, sixty per cent.
4. Those with less than five years of credited service do not qualify for the benefit.
D. The fund manager shall not pay more than eighty-five dollars each month or the
applicable proportion prescribed in subsection C of THE AMOUNT PRESCRIBED IN this
section for a benefit recipient as a member or survivor of the plan.
Sec. 3. Section 38-857, Arizona Revised Statutes, is amended to read:
38-857. Group health and accident coverage for retired members; payment
A. The fund manager of the public safety personnel retirement system shall pay part
of the single coverage premium of any group health and accident insurance in the amount
of up to eighty-two dollars fifty cents per month for a EACH retired member
or survivor of the system who receives a pension and WHO has elected to participate
in the coverage provided by section 38-651.01 or 38-782 or who participates in any
other health and accident insurance COVERAGE provided or administered by a
participating employer of the system. THE FUND MANAGER SHALL PAY UP TO:
1. ____________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE SYSTEM WHO IS NOT ELIGIBLE FOR MEDICARE.
2. ____________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE SYSTEM WHO IS ELIGIBLE FOR MEDICARE.
B. The fund manager of the system shall pay from assets of the fund part of the
family coverage premium of any group health and accident insurance in an amount of up
to one hundred thirty dollars each month for a benefit recipient who elects family
coverage and otherwise qualifies for payment pursuant to subsection A of this section.
THE FUND MANAGER SHALL PAY UP TO:
1. ____________ DOLLARS PER MONTH IF THE RETIRED MEMBER OR SURVIVOR OF THE SYSTEM AND ONE OR MORE DEPENDENTS ARE NOT ELIGIBLE FOR MEDICARE.
2. ____________ DOLLARS PER MONTH IF THE RETIRED MEMBER OR SURVIVOR OF THE SYSTEM AND ONE OR MORE DEPENDENTS ARE ELIGIBLE FOR MEDICARE.
3. ____________ DOLLARS PER MONTH IF EITHER:
(a) THE RETIRED MEMBER OR SURVIVOR OF THE SYSTEM IS NOT ELIGIBLE FOR MEDICARE AND ONE OR MORE DEPENDENTS ARE ELIGIBLE FOR MEDICARE.
(b) THE RETIRED MEMBER OR SURVIVOR OF THE SYSTEM IS ELIGIBLE FOR MEDICARE AND ONE OR MORE DEPENDENTS ARE NOT ELIGIBLE FOR MEDICARE.
C. The fund manager shall not pay from assets of the fund more than one
hundred thirty dollars each month pursuant to THE AMOUNT PRESCRIBED IN this
section for a benefit recipient as a member or survivor of the system.
D. This section does not apply to a retired member or survivor of the system who is reemployed by this state or a political subdivision of this state and who participates in coverage provided by this state or a political subdivision of this state as an active employee.
Sec. 4. Section 38-906, Arizona Revised Statutes, is amended to read:
38-906. Group health and accident coverage for retired members; payment
A. The fund manager shall pay from the assets of the fund part of the single
coverage premium of any group health and accident insurance in the amount of up to
ninety-five dollars per month for each retired member or survivor of the plan who is
receiving benefits, who is not eligible for medicare and who elects single coverage and
up to sixty-five dollars per month for each retired member or survivor of the plan who is
receiving benefits, who is eligible for medicare and who elects single coverage. In order
to qualify for the benefits provided in this section, the retired member or survivor
must RECEIVES A PENSION AND WHO HAS ELECTED TO participate in coverage provided
by section 38-651.01 or 38-782 or participate in any other health and accident
insurance coverage provided or administered by a participating employer in the plan.
THE FUND MANAGER SHALL PAY UP TO:
1. _____________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE PLAN WHO IS NOT ELIGIBLE FOR MEDICARE.
2. _____________ DOLLARS PER MONTH FOR EACH RETIRED MEMBER OR SURVIVOR OF THE PLAN WHO IS ELIGIBLE FOR MEDICARE.
B. The fund manager shall pay from the assets of the fund part of the family coverage premium of any group health and accident insurance for each retired member or survivor of the plan who elects family coverage and who otherwise qualifies for payment pursuant to subsection A of this section. Payment under this subsection is in the following amounts:
1. Up to one hundred seventy-five _____________ dollars each PER
month if the retired member or survivor OF THE PLAN and dependent ONE OR
MORE DEPENDENTS are not eligible for medicare.
2. Up to one hundred fifteen _____________ dollars each PER
month if the retired member or survivor OF THE PLAN and dependent ONE OR
MORE DEPENDENTS are both eligible for medicare.
3. Up to one hundred forty-five _____________ dollars PER MONTH if
either:
(a) The retired member or survivor OF THE PLAN is not eligible for medicare
and the dependent is ONE OR MORE DEPENDENTS ARE eligible for medicare.
(b) The retired member or survivor OF THE PLAN is eligible for medicare and
the dependent is ONE OR MORE DEPENDENTS ARE not eligible for medicare.
C. The fund manager shall not pay more than the amount prescribed in subsection A
or B of this section for a benefit recipient as a member or survivor of the plan.
Sec. 5. Effective date
This act is effective from and after December 31, 2001.