SB 5781 - DIGEST

Declares that a "retired local government employee" means: (1) Persons who separated from employment with a county, municipality, or other political subdivision of the state and are receiving a retirement allowance under chapter 41.40 RCW as of July 1, 2005;

(2) Persons who separate from employment with a county, municipality, or other political subdivision of the state on or after July 1, 2005, and immediately upon separation receive a retirement allowance under chapter 41.40 RCW; or

(3) Members of the public employees' retirement system plan 3 as defined in chapter 41.40 RCW who are at least fifty-five years of age and who have at least ten years of service credit in the public employees' retirement system and who separate from employment with a county, municipality, or other political subdivision of the state on or after July 1, 2005, and immediately upon separation elect to continue health insurance coverage with their employer or coverage provided by the public employees' benefits board.

Requires that, in a manner prescribed by the state health care authority, counties, municipalities, and other political subdivisions shall remit to the health care authority for deposit in the public employees' and retirees' insurance account established in RCW 41.05.120 an amount established by the public employees' benefits board.

Declares that the remittance requirements specified in this act shall not apply to employees of a county, municipality, or other political subdivision who receive insurance benefits through contracts with the health care authority.

Provides that the health care authority has the authority to establish a remittance amount that will cover the cost of premium subsidies for nonmedicare and medicare retirees and administrative costs related to their coverage.