2017 -- S 0639

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC OFFICERS AND EMPLOYEES -- INSURANCE BENEFITS

     Introduced By: Senators Ciccone, Raptakis, Lombardi, Doyle, and McCaffrey

     Date Introduced: March 29, 2017

     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 section 36-8-1, shall be

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

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

     Years of Age Employee's

Service at Retirement State's Share 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% 0%

      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

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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 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

health care 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 §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 health care

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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