Download Zipped Introduced WordPerfect HB0485.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 485

             1     

LEGISLATORS HEALTH PLAN

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Eric K. Hutchings

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Public Employees' Benefit and Insurance Program Act by
             10      amending health benefits offered to governors and legislators.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires that a health reimbursement arrangement benefit is the health benefit
             14      offered to new governors and legislators after July 1, 2008;
             15          .    allows existing legislators and the current governor to have the option to chose a
             16      health reimbursement arrangement benefit;
             17          .    requires the Public Employees Health Program to offer a federally qualified health
             18      reimbursement arrangement benefit for governors and legislators;
             19          .    provides that contributions to the health reimbursement arrangement benefit shall be
             20      made by the state; and
             21          .    makes technical changes.
             22      Monies Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          This bill takes effect on July 1, 2008.
             26      Utah Code Sections Affected:
             27      AMENDS:


             28          49-20-404, as renumbered and amended by Laws of Utah 2002, Chapter 250
             29      ENACTS:
             30          49-20-411, Utah Code Annotated 1953
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 49-20-404 is amended to read:
             34           49-20-404. Governors' and legislative benefit -- Post-retirement health insurance.
             35          (1) The state shall pay the percentage described in Subsection (3) of the cost of
             36      providing paid-up group health coverage policy for members and their surviving spouses
             37      covered under Chapter 19, Utah Governors' and Legislators' Retirement Act who:
             38          (a) were covered under the Utah Governors' and Legislators' Retirement Plan prior to
             39      July 1, 2008;
             40          [(a)] (b) retire after January 1, 1998;
             41          [(b)] (c) are at least 62 but less than 65 years of age;
             42          [(c)] (d) elect to receive and apply for this benefit to the program; and
             43          [(d)] (e) are active members at the time of retirement or have retired and continued
             44      coverage with the program until the date of eligibility for the benefit under this Subsection (1).
             45          (2) The state shall pay the percentage described in Subsection (3) of the cost of
             46      providing Medicare supplemental coverage for members and their surviving spouses covered
             47      under Chapter 19, Utah Governors' and Legislators' Retirement Act who:
             48          (a) were covered under the Utah Governors' and Legislators' Retirement Plan prior to
             49      July 1, 2008;
             50          [(a)] (b) retire after January 1, 1998;
             51          [(b)] (c) are at least 65 years of age; and
             52          [(c)] (d) elect to receive and apply for this benefit to the program.
             53          (3) The following percentages apply to the benefit described in Subsections (1) and (2):
             54          (a) 100% if the member has accrued 10 or more years of service credit;
             55          (b) 80% if the member has accrued 8 or more years of service credit;
             56          (c) 60% if the member has accrued 6 or more years of service credit; and
             57          (d) 40% if the member has accrued 4 or more years of service credit.
             58          (4) In lieu of the benefit provided under Subsections (1) and (2), the state shall pay an


             59      amount equal to the cost of providing the benefit for each member qualified under Subsections
             60      (1)(b) through (e) or Subsections (2)(b) through (d) into a health reimbursement account under
             61      Section 49-20-411 :
             62          (a) as the post-retirement health benefit available to governors and legislators who
             63      initially enter office on or after July 1, 2008; and
             64          (b) as an alterative post-retirement health benefit under this section available to
             65      governors and legislators who were in office prior to July 1, 2008.
             66          Section 2. Section 49-20-411 is enacted to read:
             67          49-20-411. Governor's and Legislative Health Reimbursement Arrangement
             68      benefit -- Contributions -- Vesting.
             69          (1) (a) In addition to other employee benefit plans offered under this part, the office
             70      shall offer a federally qualified health reimbursement arrangement:
             71          (i) as the health benefit available to governors and legislators who initially enter office
             72      on or after July 1, 2008; and
             73          (ii) as an optional health benefit available only to governors and legislators who were
             74      in office prior to July 1, 2008.
             75          (b) The provisions and limitations of the health reimbursement arrangement shall be
             76      determined by the office in accordance with federal requirements and limitations.
             77          (2) The office shall set the amount of the contribution to the health reimbursement
             78      arrangement so that the cost paid by the state for the benefit is actuarially neutral with the plan
             79      with the highest enrollment of state employees that is paid by the state to its employees based
             80      on federal requirements limitations.
             81          (3) Contributions to the health reimbursement arrangement shall be made by the state.
             82          (4) The contributions shall vest immediately to the account or the number.
             83          Section 3. Effective date.
             84          This bill takes effect on July 1, 2008.




Legislative Review Note
    as of 2-14-08 2:01 PM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]