2022 -- H 7629

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LC004950

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     

     Introduced By: Representatives Craven, Vella-Wilkinson, and Caldwell

     Date Introduced: March 02, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 36-12-4 of the General Laws in Chapter 36-12 entitled "Insurance

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Benefits" is hereby amended to read as follows:

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     36-12-4. Coverage of Non-Medicare-eligible retired employees.

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     (a) Non-Medicare-eligible retired employees who retired on or before September 30, 2008.

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Any retired employee who retired on or before September 30, 2008 shall be entitled, until attaining

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Medicare eligibility, to be covered under §§ 36-12-1 -- 36-12-5 for himself and herself and, if he

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or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost

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of his or her contract at the group rate for active state employees. Payments of any non-Medicare-

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eligible retired employee for coverage shall be deducted from his or her retirement allowance and

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remitted from time to time in payment for such contract. In addition, any retired employee who

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retired on or before September 30, 2008 shall be permitted to purchase coverage for his or her non-

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Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group

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rate for active state employees. Payment for coverage for these dependents shall be deducted from

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his or her retirement allowances and remitted as required in payment for the contract.

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     (b) Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or

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before September 30, 2008. Non-Medicare-eligible state retirees who retired subsequent to July 1,

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1989, and on or before September 30, 2008, from active service of the state, and who were

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employees of the state as determined by the retirement board under section 36-8-1, shall be entitled

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to receive for himself or herself non-Medicare-eligible a retiree health care insurance benefit as

 

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described in section 36-12-1 in accordance with the following formula:

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     Years of Age Employee's

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Service at Retirement State's Share Share

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10-15 60 50% 50%

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16-22 60 70% 30%

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23-27 60 80% 20%

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28+ -- 90% 10%

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28+ 60 100% 0%

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35+ any 100% 0%

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     If the retired employee is receiving a subsidy on September 30, 2008, the state will continue

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to pay the same subsidy share until the retiree attains age sixty-five (65). Until December 31, 2013,

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when the state retiree reaches that age which will qualify him or her for Medicare supplement, the

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formula shall be:

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     Years of Service State's Share Employee's Share

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10 - 15 50% 50%

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16 - 19 70% 30%

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20 - 27 90% 0%

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      28+ 100% 0%

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     (c) Non-Medicare-eligible retired employees who retire on or after October 1, 2008. Any

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retired employee who retires on or after October 1, 2008 shall be entitled, until attaining Medicare

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eligibility, to be covered under §§ 36-12-1 -- 36-12-5 for himself and herself and, if he or she so

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desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of the

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contract in the plan in which he or she enrolls. Payments of any non-Medicare-eligible retired

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employee for coverage shall be deducted from his or her retirement allowance and remitted from

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time to time in payment for such contract. Any retired employee who retires on or after October 1,

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2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon

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agreeing to pay the additional cost of the contract at the group rate for the plan in which the

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dependent is enrolled. Payment for coverage for dependents shall be deducted from the retired

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employee's retirement allowances and remitted as required in payment for the contract. The

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Director of Administration shall develop and present to the chairpersons of the House Finance

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Committee and the Senate Finance Committee by May 23, 2008 a retiree health plan option or

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options to be offered to retirees eligible for state-sponsored medical coverage who are under age

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sixty-five (65) or are not eligible for Medicare. This plan will have a reduced benefit level and will

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have an actuarially based premium cost not greater than the premium cost of the plan offered to the

 

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active state employee population. This new plan option will be available to employees retiring after

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September 30, 2008, and their dependents.

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     (d) Non-Medicare-eligible state retirees who retire on or after October 1, 2008. Non-

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Medicare-eligible state retirees who retire on or after October 1, 2008 from active service of the

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state, and who were employees of the state as determined by the retirement board under § 36-8-1,

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and who have a minimum of twenty (20) years of service, and who are a minimum of fifty-nine

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(59) years of age, shall be entitled to receive for himself or herself a non-Medicare-eligible retiree

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health care insurance benefit as described in § 36-12-1. The state will subsidize 80% of the cost of

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the health insurance plan for individual coverage in which the state retiree is enrolled in. Payments

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for coverage shall be deducted from his or her retirement allowance and remitted from time to time

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in payment for such contract. Correctional officers as defined in §36-10-9.2 who have a minimum

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of twenty-five (25) years of service, and who are a minimum of fifty-five (55) years of age, shall

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be entitled to receive for themselves a non-Medicare-eligible retiree health care insurance benefit

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as described in §36-12-1.

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     (e) Medicare-eligible state retirees who retire on or after October 1, 2008. Until December

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31, 2013, the state shall subsidize eighty percent (80%) of the cost of the Medicare-eligible health

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insurance plan for individual coverage in which the state retiree is enrolled, provided the employee

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retired on or after October 1, 2008; has a minimum of twenty (20) years of service; and is a

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minimum of fifty-nine (59) years of age. Payments for coverage shall be deducted from his or her

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retirement allowance and remitted from time to time in payment for such health insurance plan.

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     (f) Retired employees, including retired teachers, who are non-Medicare-eligible and who

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reach the age of sixty-five (65) shall be allowed to continue to purchase group health care insurance

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benefits in the same manner as those provided to retired employees who have not reached the age

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of sixty-five (65).

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

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     This act would entitle correctional officers with twenty-five (25) years of service and who

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are at least fifty-five (55) years of age to a non-Medicare-eligible retiree health care insurance

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benefit.

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     This act would take effect upon passage.

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