S.B. 16

1

HEALTH INSURANCE COVERAGE RESTRICTIONS ON
2 RETIRED GOVERNORS AND LEGISLATORS
3 2013 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Todd Weiler
6 House Sponsor: Don L. Ipson
7
8 LONG TITLE
9 Committee Note:
10 The Retirement and Independent Entities Interim Committee recommended this bill.
11 General Description:
12 This bill modifies the Utah State Retirement and Insurance Benefit Act by amending
13 postretirement health coverage provisions for governors and legislators.
14 Highlighted Provisions:
15 This bill:
16 . clarifies that only service as a governor or legislator qualifies a recipient for
17 governor's and legislator's group health coverage or Medicare supplemental
18 coverage;
19 . provides that only service as a governor or legislator that began before July 1, 2013,
20 qualifies a recipient for Medicare supplemental coverage; and
21 . makes technical changes.
22 Money Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 49-20-404, as last amended by Laws of Utah 2012, Chapters 298 and 376
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 49-20-404 is amended to read:
32 49-20-404. Governors' and legislative paid-up group health coverage benefit --
33 Limitations -- Medicare supplemental coverage -- Spouse coverage -- Limitations.
34 (1) (a) [The] Except as provided under Subsection (1)(b), the state shall pay the
35 percentage of the cost of providing paid-up group health coverage under Subsection (3) for
36 members and their surviving spouses covered under Chapter 19, Utah Governors' and
37 Legislators' Retirement Act, or [except as provided under Subsection (1)(b),] governors and
38 legislators, as defined in Section 49-19-102 , and their surviving spouses covered under Chapter
39 22, New Public Employees' Tier II Contributory Retirement Act, who:
40 (i) retire after January 1, 1998;
41 (ii) are at least 62 but less than 65 years of age;
42 (iii) elect to receive and apply for this benefit to the program; and
43 (iv) are active members at the time of retirement or have continued coverage with the
44 program until the date of eligibility for the benefit under this Subsection (1).
45 (b) A governor or a legislator who begins service as a governor or legislator on or after
46 January 1, 2012, and a surviving spouse of the governor or the legislator who begins service as
47 a governor or legislator on or after January 1, 2012, is not eligible for the benefit provided
48 under this Subsection (1).
49 (2) The state shall pay the percentage of the cost of providing Medicare supplemental
50 coverage under Subsection (3) for members and their surviving spouses covered under Chapter
51 19, Utah Governors' and Legislators' Retirement Act who:
52 (a) began service as a governor or legislator before July 1, 2013;
53 [(a)] (b) retire after January 1, 1998;
54 [(b)] (c) are at least 65 years of age; and
55 [(c)] (d) elect to receive and apply for this benefit to the program.
56 (3) The following percentages apply to the benefit described in Subsections (1)(a) and
57 (2):
58 (a) 100% if the member has accrued 10 or more years of service credit;

59 (b) 80% if the member has accrued 8 or more years of service credit;
60 (c) 60% if the member has accrued 6 or more years of service credit; and
61 (d) 40% if the member has accrued 4 or more years of service credit.




Legislative Review Note
as of 11-14-12 12:55 PM

Office of Legislative Research and General Counsel

[Bill Documents]