2025 -- S 0973

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LC002677

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     Introduced By: Senators Ciccone, Bissaillon, LaMountain, Felag, Tikoian, Burke, and
Appollonio

     Date Introduced: April 16, 2025

     Referred To: Senate Finance

     It is enacted by the General Assembly as follows:

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

Benefits" is hereby amended to read as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

receive for himself or herself non-Medicare-eligible a retiree healthcare insurance benefit as

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

     Years of Service Age at Retirement State's Share Employee's Share

10-15 60 50% 50%

16-22 60 70% 30%

23-27 60 80% 20%

28+ — 90% 10%

28+ 60 100% 0%

35+ any 100% 0%

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

to pay the same subsidy share until the retiree attains age sixty-five (65).

     Until December 31, 2013, when the state retiree reaches that age which will qualify him or

her for Medicare supplement, the formula shall be:

     Years of Service State's Share Employee's Share

10 – 15 50% 50%

16 – 19 70% 30%

20 – 27 90% 10%

28+ 100% 0%

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

in payment for such contract. Correctional officers as defined in § 28-9.7-3 and those members

described in § 36-10-9.2 who have a minimum of twenty-five (25) years of service, and who are a

minimum of fifty-five (55) years of age, shall be entitled to receive for themselves a non-Medicare-

eligible retiree health care insurance benefit as described in § 36-12-1.

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

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

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

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

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

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

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

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

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

of sixty-five (65).

     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

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

benefit.

     This act would take effect upon passage.

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