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BILL AS INTRODUCED 2007-2008

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H.400

Introduced by Representative Atkins of Winooski

Referred to Committee on

Date:

Subject:  State employees; retirement; group C; contribution rates; health insurance benefits

Statement of purpose:  This bill proposes to:  (1) increase the contribution rates for group C members; and (2) allow members of the group C plan with at least 20 years of creditable service to recapture health insurance benefits at the time their retirement benefits commence.

AN ACT RELATING TO RECAPTURE OF HEALTH INSURANCE BENEFITS BY GROUP C MEMBERS OF THE VERMONT STATE RETIREMENT SYSTEM

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

Sec. 1.  3 V.S.A. § 473(b)(2) is amended to read:

(2)  Contributions shall be made on and after the date of establishment at the rate of five percent of compensation except at a rate of 6.18 6.88 percent of compensation for each group C member unless such the member was a group C member on June 30, 1998 in which case contributions shall be at the rate of six percent of compensation for each such group C member who has elected not to have his or her compensation from the state be subject to Social Security withholding or at the rate of five percent of compensation if such the member elected to have compensation from the state subject to Social Security withholding and at the rate of 3.25 percent of compensation for each group F member.  In determining the amount earnable by a member in a payroll period, the retirement board may consider the annual or other periodic rate of earnable compensation payable to such member on the first day of the payroll period as continuing throughout such payroll period, and it may omit deduction from compensation for any period less than a full payroll period if an employee was not a member on the first day of the payroll period, and to facilitate the making of deductions it may modify the deduction required of any member by such an amount as, on an annual basis, shall not exceed one-tenth of one percent of the annual earnable compensation upon the basis of which such deduction is to be made.  Each of the amounts shall be deducted until the member retires or otherwise withdraws from service, and when deducted shall be paid into the annuity savings fund, and shall be credited to the individual account of the member from whose compensation the deduction was made.

Sec. 2.  3 V.S.A. § 479 is amended to read:

§ 479.  GROUP INSURANCE

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(b)  As of July 1, 2007, members of the group C plan who separate from service prior to being eligible for retirement benefits under this chapter, who have at least 20 years of creditable service, and who participated in the group medical benefit plan at the time of separation from service shall have a one‑time option at the time retirement benefits commence to participate in the group medical benefit plan provided by the state of Vermont for active state employees.  Premiums for the plan shall be prorated between the retired member and the retirement system pursuant to section 631 of this title.

(c)  Premiums for coverage of retired members of the group C plan and their dependents in the group medical benefit plan shall be prorated on the same basis as is provided for active employees by the current collective bargaining agreement for the nonmanagement unit.  The amounts designated as the state’s share of premium for the medical benefit plan and the total premium for group life insurance provided under subdivision (a)(2) of this section shall be paid by the fund as an operating expense in accordance with subsection 473(d) of this title.

(c)(d)  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.

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(d)(e)  As of January 1, 2007 and thereafter, upon retirement, members entitled to prorated group medical benefit plan premium payments from the retirement system under the terms of this section shall have a one-time option to reduce the percentage of premium payments from the retirement system during the member’s life, with the provision that the fund shall continue making an equal percentage of premium payments after the member’s death for the life of the dependent beneficiary nominated by the member under section 468 of this title, should such dependent beneficiary survive the member.  The retirement board, after consultation with its actuary, shall establish reduced premium payment percentages that are as cost neutral to the fund as possible.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us