| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Appropriations Committee | |
HB 3027
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Participating in insurance plans and contracts by separated plan 2 members of certain retirement systems.
Sponsors: Representatives Cody, Fromhold, Conway, Crouse, Hurst, Simpson and Morrell; by request of Select Committee on Pension Policy.
Brief Summary of Bill |
|
|
Hearing Date: 2/6/08
Staff: David Pringle (786-7310).
Background:
The state Health Care Authority (HCA), through the Public Employee Benefits Board (PEBB),
provides medical benefits for retired employees of the state and participating
local governments. The PEBB coverage is also available to retired employees of the state, school
districts, and those local governments that purchase active employee benefits through the HCA.
The Legislature provides a subsidy for Medicare-eligible retirees that enroll in PEBB
plans.
Members of Plan 3 of the Public Employees' Retirement System (PERS), the Teachers'
Retirement System (TRS), and the School Employees' Retirement System (SERS) may elect to
retain their state employee health insurance upon separation from state employment, regardless of
whether they choose to retire from their plan and collect benefits at that time. In order to be
eligible for continued coverage, a separated employee must have at least 10 years of service and
be at least 55 years of age. Members of Plan 3 are first eligible to begin early retirement benefits
at age 55 with at least 10 years of service. Separated employees choosing to retain coverage are
required to pay the full cost of their insurance premiums.
Members of Plan 2 of PERS, TRS, and SERS may choose to retain employee health insurance
coverage when they separate from service only if they also retire at that time and begin to collect
their pension benefits at that time. Retiring Plan 2 members electing continued coverage must
pay the full cost of their insurance premiums. Members of Plan 2 are first eligible to begin early
retirement benefits at age 55 with at least 20 years of service.
Summary of Bill:
Members of PERS, TRS, and SERS Plan 2 may elect continued coverage under the state's
employee health benefits when they leave service whether or not they retire and begin to collect
pension benefits at that time. In order to be eligible for continued coverage without collecting a
retirement allowance, separating members must be at least 55 years old and have at least 20 years
of service credit.
Appropriation: None.
Fiscal Note: Preliminary available..
Effective Date: The bill takes effect on January 1, 2009.