ARIZONA STATE SENATE
Phoenix, Arizona
Increases the health care premium subsidy for members of the Arizona State Retirement System (ASRS), Public Safety Personnel Retirement System (PSPRS), Corrections Officer Retirement Plan (CORP) and Elected Officials’ Retirement Plan (EORP) in all geographic areas, and appropriates $524,000 from the state retirement fund to ASRS for administrative costs.
Background
Currently, the Legislature requires ASRS, PSPRS, CORP and EORP to pay a portion of a retired member’s health care premium. The subsidy amount differs between the four plans and whether the member, survivor or dependents are eligible for Medicare. These numbers have never been adjusted for ASRS, CORP or EORP since the inception of these respective subsidy amounts in 1988 and 1990. PSPRS amounts were last adjusted in 1994. The portion of the member’s health care premium that is not covered by the various plans is paid from the member’s retirement benefit or out of the member’s pocket.
A Joint Legislative Budget Committee (JLBC) fiscal note estimates a total fiscal impact of $10.6 million in FY 2003-2004, including $8.4 million from the state general fund and $2.2 million from other appropriated funds, before the bill was amended to eliminate a temporary rural health care subsidy.
1. Raises the monthly health care premium subsidy for members of ASRS, PSPRS, CORP and EORP choosing single coverage regardless of location as follows:
·
Up
to $150.00 for a retired or disabled member of ASRS who is not eligible for
Medicare
·
Up to $100 for a retired or disabled member who
is eligible for Medicare
2. Raises the monthly health care premium subsidy for members of ASRS, PSPRS, CORP and EORP choosing family coverage regardless of location as follows:
·
Up
to $260 if the retired or disabled member and one or more dependents are not
eligible for Medicare.
·
Up
to $170 if the retired or disabled member of ASRS and one ore more dependents
are eligible for Medicare.
·
Up
to $215 if the retired or disabled member of ASRS is not eligible for Medicare
and one or more dependents are eligible for Medicare or if the member is
eligible for Medicare and one or more dependents are not eligible for Medicare.
3. Applies subsidy increases to survivors.
4. Appropriates $524,000 from the state retirement fund to ASRS for administrative costs associated with this measure.
5. Makes technical and conforming changes.
6. Provides for a retroactive effective date of July 1, 2001.
Amendments
Adopted by Committee
1. Changes the definitions of a nonservice area to an area in which ASRS, the Department of Administration or any employer does not offer a health care services organization (also referred to as a health maintenance organization or HMO).
2. Appropriates $524,000 from the state retirement fund to ASRS to cover the administrative costs of implementing the proposed increases.
Amendments
Adopted by Committee of the Whole
1.
Eliminates
the temporary health care premium benefit increase for rural retirees of ASRS,
PSPRS, CORP and EORP.
2.
Lowers
the permanent health care premium benefit increases for retirees to all four
retirement systems.
Amendments Adopted by Conference Committee
Changes
the permanent health care premium benefit increase back to the amounts
specified in the House engrossed version of the bill.
APPROP 2/27/01 DP 15-0-0-1
FIN 4/9/01 DPA 8-0-0-0
3rd
Read 3/12/01 50-0-10-0 3rd Read 4/30/01 28-1-1-0
Final
Read 5/2/01 54-0-6-0 Final
Read 5/2/01
28-2-0-0
Signed
by Governor 5/8/01
Chapter
383
Prepared by Senate Staff
May 25, 2001