Bill Text - HB1521 (2012)

Relative to retired state employees group insurance participation.


Revision: June 15, 2012, midnight

CHAPTER 175

HB 1521-FN – FINAL VERSION

1Feb2012… 0334h

17May2012… 2235EBA

2012 SESSION

12-2817

10/09

HOUSE BILL 1521-FN

AN ACT relative to retired state employees group insurance participation.

SPONSORS: Rep. Winter, Merr 3

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill clarifies the eligibility and participation of retired state employees and their beneficiaries in the state employees group insurance program.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

1Feb2012… 0334h

17May2012… 2235EBA

12-2817

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT relative to retired state employees group insurance participation.

Be it Enacted by the Senate and House of Representatives in General Court convened:

175:1 Retired State Employees; Medical and Surgical Benefits. Amend RSA 21-I:30 to read as follows:

21-I:30 Medical and Surgical Benefits.

I. The state shall pay a premium for each state employee and permanent temporary or permanent seasonal employee as defined in RSA 98-A:3 including spouse and minor, fully dependent children, if any, [and] toward group hospitalization, hospital medical care, surgical care and other medical benefits plan or a self-funded alternative, within the limits of the funds appropriated at each legislative session.

II. The state shall pay a premium for each Medicare-eligible retired employee, as defined in [paragraph II] paragraphs VI and VII of this section, and his or her spouse[, or retired employee’s beneficiary, only if an option was taken at the time of retirement and the employee is not now living] for their lifetimes, toward group hospitalization, hospital medical care, surgical care and other medical benefits plan or a self-funded alternative within the limits of the funds appropriated at each legislative session and providing any change in plan [or vendor] is approved by the fiscal committee of the general court prior to its adoption. [Funds appropriated for this purpose shall not be transferred or used for any other purpose.] Retired employees who are eligible for Medicare may voluntarily cease participation in plan benefits at any time and may reenroll without restriction.

III. The state shall pay a partial premium for each retiree receiving medical and surgical benefits provided under this section who is not eligible for Medicare. Pursuant to paragraph XIII, a portion of the premium shall be paid by each retiree. Retirees who are not eligible for Medicare may voluntarily cease participation in plan benefits at any time.

IV. Fully dependent minor children, children between the ages of 19 through 25 if full-time students, and any certifiably dependent child with a disability who is institutionalized or living in the household and being cared for by the qualified retired member, the member’s spouse, or the qualified surviving spouse, and whose certificate is on file, shall be eligible for this plan on payment of a premium as long as they are eligible for the plan benefit per the foregoing requirements. The amount of the premium shall be the full cost of the plan benefits as determined by the department of administrative services. Participants may voluntarily cease participation in plan benefits at any time.

V.(a) Retirees shall be responsible for verification of eligibility by standard acceptable documentation determined by the department of administrative services. Verification documentation shall be produced during a period of 60 days prior to retirement to 60 days after retirement. Failure to file subsequent changes in eligibility within 60 days of occurrence may result in the permanent cessation of plan benefits.

(b) If an unmarried retiree marries after retirement, the benefit plan shall be extended to the new spouse. Notwithstanding paragraph II, if a married retiree divorces after retirement, the divorced spouse shall no longer be eligible to participate in the benefit plan but shall be offered a federal COBRA benefit option.

[II.] VI. For the purposes of this section, “retired employee” means each group I state employee who:

(a)(1) Has at least 10 years of creditable service for the state if the employee’s service began prior to July 1, 2003 or 20 years of creditable service if the employee’s service began on or after July 1, 2003 and prior to July 1, 2011, and who also is at least 60 years of age at the time of retirement; or

(2) Has at least 20 years of creditable service if the employee’s service began on or after July 1, 2011, and who also is at least 60 years of age at the time of retirement, provided the employee shall not be eligible to receive benefits under this section until attaining 65 years of age; or

(b) Has at least 30 years of creditable service for the state at the time of retirement if the employee’s service began prior to July 1, 2011, regardless of the employee’s age; or

(c) Is but for the provisions of 1989, 376:10, otherwise eligible to receive medical and surgical benefits under this section notwithstanding subparagraphs (a) and (b), and paragraph IV, on June 30, 1989, and who retires between July 1, 1989, and June 30, 1994; or

(d) Dies or retires and is eligible for accidental death or accidental disability retirement benefits, regardless of the state employee’s age or number of years of creditable service; or

(e) Retires and is eligible for ordinary disability retirement benefits, regardless of the state employee’s age; or

(f) Dies and is eligible for ordinary death retirement benefits, if the state employee was eligible for service retirement at the time of his or her death, if the state employee had at least 10 years of creditable service for the state if the employee’s service began prior to July 1, 2003 or 20 years of creditable service if the employee’s service began on or after July 1, 2003.

[II-a.] VII. For the purposes of this section, “retired employee” also means each group II state employee who:

(a) Retires if the employee’s state service began prior to July 1, 2010 or who retires with at least 20 years of creditable service for the state if the employee’s state service began on or after July 1, 2010; or

(b) Dies or retires and is eligible for accidental death or accidental disability retirement benefits, regardless of the state employee’s age or number of years of creditable service; or

(c) Retires and is eligible for ordinary disability retirement benefits, regardless of the state employee’s age; or

(d) Dies and is eligible for ordinary death retirement benefits, if the state employee was eligible for service retirement at the time of his or her death, if the state employee had at least 20 years of creditable service for the state if the employee’s state service began on or after July 1, 2010.

[III.] VIII. Any vested deferred state retiree may receive medical and surgical benefits under this section if the vested deferred state retiree is eligible. To be eligible, a group I vested deferred state retiree shall have at least 10 years of creditable service with the state if the employee’s service began prior to July 1, 2003 or 20 years of creditable service with the state if the employee’s service began on or after July 1, 2003 and a group II vested deferred state retiree shall have at least 20 years of creditable service with the state if the employee’s service with the state began on or after July 1, 2010. In addition, if the vested deferred state retiree is a member of group I, such retiree shall be at least 60 years of age to be eligible. If the vested deferred state retiree is a member of group II who is in vested status before January 1, 2012, such retiree shall not be eligible until 20 years from the date of becoming a member of group II and shall be at least 45 years of age, and any group II member who commenced service on or after July 1, 2011 shall not be eligible until 25 years from the date of becoming a member of group II and shall be at least 50 years of age, and group II members who have not attained vested status prior to January 1, 2012 shall be as provided in the transition provisions in RSA 100-A:5, II(d).

[IV.] IX. Each state employee who has at least 10 years of creditable service for the state if the employee’s service began prior to July 1, 2003 or 20 years of creditable service if the employee’s service began on or after July 1, 2003 and prior to July 1, 2011, and who elects to take a reduced service retirement allowance shall be defined as a “retired employee” for the purposes of being eligible to receive medical and surgical benefits under this section when the state employee reaches age 60.

[V.] X. No state employee who terminates his or her state service before he or she becomes eligible for retirement benefits as a “retired employee” as defined under paragraphs [II-IV] VI-IX shall be eligible for medical and surgical benefits under this section.

[VI.] XI. A state employee who commences service on or after July 1, 2011 and who is eligible for benefits under this section shall not receive such benefit until attaining age 52.5 if the state employee retired from group II service with the state or attaining age 65 if the state employee retired from group I service with the state.

[VII.] XII. As of January 2, 2012, the commissioner of administrative services is authorized to utilize managed care and/or cost containment techniques for the state of New Hampshire retiree health care program through the underlying insurer and any additional specialized managed care or cost containment vendors as necessary. The commissioner may offer financial incentives to encourage the use of lower cost facilities, providers, and services, if the financial incentives are proportionately lower than the savings generated. In addition, the commissioner may offer financial incentives to encourage the use of alternative therapies, treatments, services, providers, and facilities that demonstrate better outcomes including, but not limited to lower complication rates, lower readmission rates, lower rejection rates, lower mortality and morbidity rates, or lower infection rates based on widely and generally accepted measures of such performance.

[VIII.] XIII. The commissioner of administrative services shall invoice and collect from retired state employees under the age of 65 years receiving medical and surgical benefits provided under this section, who do not receive a retirement allowance as defined in RSA 100-A:1, XXII, the premium contribution amounts of 12.5 percent of the total monthly premium for each such retiree and 12.5 percent of the total monthly premium for each applicable spouse; provided that the charge to each household shall not exceed 12.5 percent of the total monthly premium for 2 plan participants. The commissioner of administrative services is also authorized to invoice and collect from such other participants contribution amounts as specified by law. Collected amounts shall be deposited in the employee and retiree benefit risk management fund. Failure to remit payment of the contribution amount in full within 30 days of billing shall be grounds for terminating benefits, effective from the beginning of the billing period. Reenrollment shall be dependent upon payment of any outstanding contribution or other amounts within 6 months of the termination date. If a participant fails to remit payment in full for participation within 30 days of billing, on the 30th day the participant shall be notified by certified mail, return receipt requested, that he or she shall remit payment to the department within 10 business days of receiving the letter or his or her benefits shall be terminated effective upon the 10th business day after receipt of the letter and that reenrollment shall be dependent upon payment of any outstanding contribution or other amount within 6 months of the termination date.

XIV. The department of administrative services shall provide a summary of the provisions of this section for inclusion in any pre- or post-retirement counseling, whether verbal or written.

XV. Funds appropriated for the purposes of this section shall not be transferred or used for any other purpose.

175:2 Reference Corrected; Retirement System Employees. Amend RSA 100-A:14, V to read as follows:

V. The board of trustees shall have the full power to employ and compensate such employees on such terms as may be necessary as charges upon the funds of the retirement system, and establish personnel policies without regard to any personnel or civil service law or personnel or civil service rule of the state. The employees of the retirement system shall not be classified employees of the state within the meaning of RSA 21-I:49. Notwithstanding, any individual employed by the retirement system whose employment calls for 30 hours or more work in a normal calendar week, and whose position is anticipated to have a duration of 6 months or more, shall be entitled to elect to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state. Upon election by such individual, the retirement system shall pay from its funds the state’s share of such benefits. Any remaining costs of health, dental, and life insurance benefits which an individual elects to receive pursuant to this paragraph, shall be withheld from such individual’s salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon employment by the retirement system. It may also engage such actuarial, medical, and like services as may be required to transact the business of the system. The compensation for such special services, and all other expenses of the board necessary, hereto, shall be paid at such rates and in such amounts as the board shall approve. Service as an employee of the retirement system shall be creditable service for purposes of RSA [21-I:30, II] 21-I:30. Any retirement system employee who transfers, without a break in service, to a state classified service position shall transfer all the days of sick leave credit and annual leave credit that the retirement system employee has accumulated pursuant to this section. At the time of such a transfer, the employee shall immediately begin to accrue annual and sick leave as granted at the time of the transfer by the receiving agency according to the employee’s continuous years worked.

175:3 Reference Corrected; Retirement System. Amend RSA 100-A:54, III to read as follows:

III. The retirement system shall deduct from the monthly retirement allowance of retired state employees under the age of 65 years receiving medical and surgical benefits provided pursuant to RSA 21-I:30, the premium contribution amounts of 12.5 percent of the total monthly premium for each such retiree and 12.5 percent of the total monthly premium for each applicable spouse; provided that the charge to each household shall not exceed 12.5 percent of the total monthly premium for 2 plan participants. The department of administrative services shall provide information as to the total monthly premium cost for each participant to the retirement system for purposes of calculating this deduction. Deducted amounts, which shall be in addition to and notwithstanding any amounts payable by the retirement system pursuant to RSA 100-A:52, RSA 100-A:52-a, and RSA 100-A:52-b, shall be deposited in the employee and retiree benefit risk management fund. In the event the retiree’s monthly allowance is insufficient to cover the certified contribution amount, the retirement system shall so notify the department of administrative services, which shall invoice and collect from the retiree the remaining contribution amount. Failure to remit payment of the contribution amount in full within 30 days of billing shall be grounds for terminating benefits, effective from the beginning of the billing period. Reenrollment shall be dependent upon payment of any outstanding contribution or other amounts within 6 months of the termination date. The department of administrative services shall provide notice of the termination of benefits as provided in RSA [21-I:30, VIII] 21-I:30, XIII.

175:4 Reference Corrected; Community Development Finance Authority. Amend RSA 162-L:19 to read as follows:

162-L:19 Status of State Employees. Classified employees of the office of energy and planning responsible for administration of the community development block grant program shall be transferred to the community development finance authority. Any person employed in such a position at the time of the transfer shall be deemed an employee of the authority. Any individual transferred from the office of energy and planning to the authority shall be entitled to continue to receive such health, dental, life insurance, deferred compensation, and retirement benefits as are afforded to classified employees of the state. Service as an employee of the authority shall be creditable service for purposes of RSA [21-I:30, II] 21-I:30. Employees of the authority, however, shall not be classified employees of the state of New Hampshire within the meaning of RSA 21-I:49 but employees at will of the authority. The authority shall pay from its revenues the state share of such benefits. Any remaining costs of health, dental, life insurance, deferred compensation, and retirement benefits which an individual elects to receive pursuant to this section, shall be withheld from such individual’s salary as a payroll deduction. Written notice of the availability of these benefit options shall be provided to each individual upon transfer to the authority.

175:5 Reference Corrected; Judicial Employees. Amend RSA 490:29, IV to read as follows:

IV. All full-time nonjudicial employees who have prior service as a full-time court employee of a county or municipality prior to January 1, 1984 may include such full-time court service in the calculation of creditable service as a state employee under RSA [21-I:30, II(b)] 21-I:30, VI(b).

175:6 Effective Date. This act shall take effect July 1, 2012.

Approved: June 11, 2012

Effective Date: July 1, 2012