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H.889

AN ACT RELATING TO STATE EMPLOYEE RETIREE DENTAL BENEFITS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  3 V.S.A. § 479(c) is added to read:

(c)  After January 1, 2007, the state treasurer may offer and administer a dental benefit plan for retired members, beneficiaries, eligible dependents, and eligible retirees of special affiliated groups and the dependents of members of those groups who are eligible for coverage in the state employee group medical benefit plan.  The plan shall be separate and apart from any dental benefit plan offered to Vermont state employees.  The original plan of benefits, and any changes thereto, shall be determined by the state treasurer with due consideration of recommendations from the retired employees’ committee on insurance established in section 636 of this title.

(1)  For purposes of dental benefits, “retired members” shall include retired employees of the state who are receiving a retirement allowance from the Vermont state retirement system.  In addition, “retired members” shall include retired employees who are receiving a retirement allowance based upon their employment with the Vermont state employees’ association, the Vermont state employees’ credit union, and the Vermont council on the arts, as long as they were covered under a group dental plan as active employees on their retirement date, and:

(A)  they have at least 20 years’ service with that employer; or

(B)  have attained 62 years of age, and have at least 15 years’ service with that employer.

(2)  One hundred percent of the premiums for providing dental benefit coverage to retired members, beneficiaries, and eligible dependents shall be paid in full by retired members and beneficiaries and shall be deducted from each member’s retirement allowance each month.  Nothing in this subdivision creates a legal obligation on the part of the state to pay any portion of the premiums required to provide dental benefit coverage to retired members, dependents, beneficiaries, or other eligible participants.

(3)  Dependent eligibility shall be determined in the manner applied to determinations for coverage in the state employee medical benefit plan. 

(4)  Each retired member shall have a one-time option at the time of retirement to elect dental benefit plan coverage.  Once a retired member, beneficiary, or any other covered member of the dental benefit plan elects not to take coverage or drops coverage, he or she may not subsequently join the dental benefit plan.  Retired members and beneficiaries of members retired prior to December 31, 2006 shall have a one-time option to elect dental benefit plan coverage for themselves and their eligible dependents.  This election shall be made no later than December 31, 2006.

Sec 2.  3 V.S.A § 636(f) is added to read:

(f)  The committee shall recommend to the state treasurer the original plan of dental benefits for retired members and any subsequent changes to the plan.  The state treasurer shall be responsible for plan administration, including determining the plan administrator, determining plan benefits, determining eligibility, and setting premium rates.  The office of state treasurer shall be reimbursed from the premiums collected for the plan for any reasonable additional costs incurred for the administration and maintenance of the plan.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us