Substitute House Bill No. 5033
Substitute House Bill No. 5033
PUBLIC ACT NO. 98-155
AN ACT CONCERNING HEALTH INSURANCE BENEFITS IN THE
TEACHERS' RETIREMENT SYSTEM.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. Section 10-183t of the general
statutes is repealed and the following is
substituted in lieu thereof:
(a) [The board may, upon written request of a
member who is receiving benefits from the system,
or the surviving spouse of a member who was
receiving such benefits at the time of his death,
and who is eligible for Medicare Part A, withhold
from such member's or surviving spouse's benefit
payment and pay on such member's or surviving
spouse's behalf, premiums on one or more group
health insurance plans, provided the board shall
not allow participation in any such plan by any
person who is not eligible for Medicare Part A.
The board shall pay for each such member or
surviving spouse twenty-five per cent of the
portion of the premium charged for individual
coverage under such plan or plans and twenty-five
per cent of any additional cost for his form of
coverage. The board shall pay for each such member
receiving a disability retirement allowance
pursuant to section 10-183aa forty-five per cent
of the portion of the premium charged for his
individual coverage under such plan or plans and
forty-five per cent of any additional cost for his
form of coverage.] THE BOARD SHALL OFFER ONE OR
MORE HEALTH BENEFIT PLANS TO ANY MEMBER RECEIVING
RETIREMENT BENEFITS OR A DISABILITY ALLOWANCE FROM
THE SYSTEM, AND TO THE SPOUSE OR SURVIVING SPOUSE
OF SUCH MEMBER, PROVIDED SUCH MEMBER, SPOUSE OR
SURVIVING SPOUSE IS ELIGIBLE FOR MEDICARE PART A
HOSPITAL INSURANCE. THE BOARD MAY OFFER ONE OR
MORE BASIC PLANS, AT NO COST, TO ANY SUCH MEMBER,
AND TO THE SPOUSE OR SURVIVING SPOUSE OF SUCH
MEMBER, AND ONE OR MORE OPTIONAL PLANS, PROVIDED
SUCH MEMBER, SPOUSE OR SURVIVING SPOUSE SHALL PAY
THE DIFFERENCE IN COST BETWEEN ANY SUCH BASIC
PLANS AND ANY SUCH OPTIONAL PLANS. THE BOARD SHALL
DESIGNATE THOSE PLANS WHICH ARE BASIC AND THOSE
PLANS WHICH ARE OPTIONAL FOR THE PURPOSE OF
DETERMINING SUCH COST AND THE AMOUNT TO BE CHARGED
OR WITHHELD FROM BENEFIT PAYMENTS FOR SUCH
OPTIONAL PLAN COVERAGE. The surviving spouse of a
member shall not be ineligible for participation
in any such plan solely because such spouse is not
receiving benefits from the system. ON AND AFTER
JULY 1, 1998, THE BOARD SHALL PAY THE FULL COST OF
HEALTH INSURANCE FOR ANY MEMBER, SPOUSE OR
SURVIVING SPOUSE PARTICIPATING IN A BASIC HEALTH
INSURANCE PLAN OFFERED PURSUANT TO THIS
SUBSECTION. WITH RESPECT TO ANY PERSON
PARTICIPATING IN ANY SUCH PLAN, THE STATE SHALL
APPROPRIATE TO THE BOARD TWENTY-FIVE PER CENT OF
THE COST OF SUCH BASIC PLAN OR PLANS, OR
TWENTY-FIVE PER CENT OF THE COST OF THE RATE IN
EFFECT DURING THE FISCAL YEAR ENDING JUNE 30,
1998, WHICHEVER IS GREATER.
(b) Any member who is receiving RETIREMENT
benefits OR A DISABILITY ALLOWANCE from the
system, or the spouse or surviving spouse of such
member, and who is not participating in Medicare
Part A HOSPITAL INSURANCE, may fully participate
in any or all group health insurance plans
maintained for active teachers by such member's
last employing board of education, or by the state
in the case of a member who was employed by the
state, upon payment to such board of education or
to the state, as applicable, by such member,
spouse or surviving spouse of the premium charged
for his form of coverage. [, and the state shall
not be required to allow participation in any such
plan by any such member, spouse or surviving
spouse participating in Medicare Part A.] Such
premium shall be no greater than that charged for
the same form of coverage for active teachers. THE
SURVIVING SPOUSE SHALL NOT BE INELIGIBLE FOR
PARTICIPATION IN ANY SUCH PLAN SOLELY BECAUSE SUCH
SPOUSE IS NOT RECEIVING BENEFITS FROM THE SYSTEM.
NO PERSON SHALL BE INELIGIBLE FOR PARTICIPATION IN
SUCH PLANS FOR FAILURE TO ENROLL IN SUCH PLANS AT
THE TIME THE MEMBER'S RETIREMENT BENEFIT OR
DISABILITY ALLOWANCE BECAME EFFECTIVE. Nothing in
this subsection shall be construed to impair or
alter the provisions of any collective bargaining
agreement relating to the payment by a board of
education of group health insurance premiums on
behalf of any member receiving benefits from the
system. [If any member who was covered by a health
insurance plan maintained by the state elects to
participate in a health insurance plan maintained
by a board of education, notice of the termination
of coverage by the municipality for nonpayment of
a premium shall be sent to the state Teachers'
Retirement Board thirty days prior to such
termination.] PRIOR TO THE CANCELLATION OF
COVERAGE FOR ANY MEMBER, SPOUSE OR SURVIVING
SPOUSE FOR FAILURE TO PAY THE REQUIRED PREMIUMS OR
COST DUE, THE BOARD OF EDUCATION OR THE STATE, IF
APPLICABLE, SHALL NOTIFY THE TEACHERS' RETIREMENT
BOARD OF ITS INTENTION TO CANCEL SUCH COVERAGE AT
LEAST THIRTY DAYS PRIOR TO THE DATE OF
CANCELLATION. ABSENT ANY CONTRACTUAL PROVISIONS TO
THE CONTRARY, THE PAYMENTS MADE PURSUANT TO
SUBSECTION (c) OF THIS SECTION SHALL BE FIRST
APPLIED TO ANY COST BORNE BY THE MEMBER, SPOUSE OR
SURVIVING SPOUSE PARTICIPATING IN ANY SUCH PLAN.
As used in this subsection, "last employing board
of education" means the board of education with
which such member filed his initial application
for retirement, AND "HEALTH INSURANCE PLANS" MEANS
HOSPITAL, MEDICAL, MAJOR MEDICAL, DENTAL,
PRESCRIPTION DRUG OR AUDITORY BENEFIT PLANS THAT
ARE AVAILABLE TO ACTIVE TEACHERS.
(c) [On and after June 1, 1990, the board
shall pay on behalf of each member or surviving
spouse participating in one or more health
insurance plans pursuant to subsection (a) of this
section, one hundred per cent of the portion of
the premium charged for individual coverage under
such plan or plans and one hundred per cent of any
additional cost for his form of coverage. On and
after June 1, 1990, the board shall pay to each
board of education, on behalf of any member or the
spouse or surviving spouse of such member
participating in any health insurance plans
pursuant to subsection (b) of this section, an
amount equal to the amount of the payment which
the Teachers' Retirement Board would make on
behalf of such member, spouse or surviving spouse
for his individual coverage and his form of
coverage pursuant to this subsection if such
member, spouse or surviving spouse were eligible
for participation in one or more plans pursuant to
subsection (a).] ON AND AFTER JULY 1, 1998, THE
BOARD SHALL PAY AN AMOUNT EQUAL TO THE COST OF A
BASIC HEALTH INSURANCE PLAN TO THE BOARD OF
EDUCATION OR TO THE STATE, IF APPLICABLE, ON
BEHALF OF ANY MEMBER WHO IS RECEIVING RETIREMENT
BENEFITS OR A DISABILITY ALLOWANCE FROM THE
SYSTEM, OR THE SPOUSE OR SURVIVING SPOUSE OF SUCH
MEMBER, WHO IS PARTICIPATING IN A HEALTH INSURANCE
PLAN MAINTAINED BY A BOARD OF EDUCATION OR BY THE
STATE, IF APPLICABLE. SUCH PAYMENT SHALL NOT BE
LESS THAN THE RATE WHICH WAS IN EFFECT DURING THE
FISCAL YEAR ENDING JUNE 30, 1998, AND SHALL NOT
EXCEED THE ACTUAL COST OF SUCH INSURANCE. WITH
RESPECT TO ANY PERSON PARTICIPATING IN ANY SUCH
PLAN PURSUANT TO SUBSECTION (b) OF THIS SECTION,
THE STATE SHALL APPROPRIATE TO THE BOARD
TWENTY-FIVE PER CENT OF THE COST OF SUCH BASIC
PLAN OR PLANS, OR TWENTY-FIVE PER CENT OF THE COST
OF THE RATE IN EFFECT DURING THE FISCAL YEAR
ENDING JUNE 30, 1998, WHICHEVER IS GREATER. No
payment to a board of education pursuant to this
subsection may be used to reduce the amount of any
premium payment on behalf of any such member,
spouse or surviving spouse made by such board
pursuant to any agreement in effect on July 1,
1990.
(d) The Treasurer shall establish a separate
retired teachers' health insurance premium account
within the Teachers' Retirement Fund. Commencing
July 1, 1989, and annually thereafter all one per
cent contributions withheld under this chapter in
excess of five hundred thousand dollars shall,
upon deposit in the Teachers' Retirement Fund, be
credited to such account. Interest derived from
the investment of funds in the account shall be
credited to the account. Funds in the account
shall be used for payments to boards of education
pursuant to subsection (c) of this section and for
payment of premiums on behalf of members or
surviving spouses of members participating in one
or more health insurance plans pursuant to
subsection (a) of this section in an amount equal
to the difference between the amount paid pursuant
to said subsection (a) and the amount paid
pursuant to subsection (c) of this section. If,
during any fiscal year, there are insufficient
funds in the account for the purposes of all such
payments, the General Assembly shall appropriate
sufficient funds to the account for such purpose.
Sec. 2. This act shall take effect July 1,
1998.
Approved June 4, 1998