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                            SUBSTITUTE SENATE BILL 5873

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State of Washington              52nd Legislature             1991 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators McDonald, Gaspard, Saling, Snyder, L. Smith, Johnson, Bauer, Rasmussen and Barr).

Read first time March 11, 1991.Providing insurance coverage for retired and disabled school district employees.

     AN ACT Relating to insurance coverage for retired and disabled school district employees; and adding a new section to chapter 28A.400 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 28A.400 RCW to read as follows:

     (1) Retired and disabled school district employees may continue their participation in any insurance plans and contracts after retirement or disablement.  The rates charged such retired or disabled employees for health care shall be developed from the same experience pool as active employees.  These retired or disabled employees shall bear the full cost of premiums required to provide the coverage.  The self-pay rates shall be established based on a separate rate for the employee, the spouse, and the children.  Rates for a retired or disabled employee, spouse, or child who is eligible for and who elects to apply for medicare shall be actuarially reduced to reflect the value of part A and part B of medicare.  Premiums for coverage under this section shall be deducted by the department of retirement systems from the monthly retirement benefit of the retired or disabled employee and transmitted by the department to the appropriate insurance carrier.

     (2) This section applies to:

     (a) School district employees who retire or are disabled after the effective date of this act;

     (b) School district employees who retired within the eighteen-month period ending on the effective date of this act; and

     (c) School district employees who retired more than eighteen months before the effective date of this act if they were covered by a school district's insurance plan on January 1, 1991.