Bill Text: TX HB4026 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to authorizing certain retired public school employees to participate in the state employee group benefits program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-05-02 - Left pending in committee [HB4026 Detail]
Download: Texas-2019-HB4026-Introduced.html
86R13586 LED-D | ||
By: Dominguez | H.B. No. 4026 |
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relating to authorizing certain retired public school employees to | ||
participate in the state employee group benefits program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1551.003, Insurance Code, is amended by | ||
adding Subdivision (11-a) to read as follows: | ||
(11-a) "Retiree" has the meaning assigned by Section | ||
1575.004. | ||
SECTION 2. Subchapter C, Chapter 1551, Insurance Code, is | ||
amended by adding Section 1551.1023 to read as follows: | ||
Sec. 1551.1023. PARTICIPATION ELIGIBILITY: PUBLIC SCHOOL | ||
RETIREES. (a) Notwithstanding any other law, an individual who is | ||
eligible to participate in the group program under Chapter 1575 as a | ||
retiree is eligible to participate in the group benefits program | ||
under this chapter and is entitled to the same benefits as an | ||
annuitant eligible to participate in the group benefits program | ||
under Section 1551.102. | ||
(b) A retiree may elect to disenroll from the group program | ||
under Chapter 1575, if applicable, and enroll in the group benefits | ||
program under this chapter during an open enrollment period or any | ||
other period set by the board of trustees by rule. | ||
SECTION 3. Section 1551.151, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who | ||
is eligible to participate in the group benefits program under | ||
Section 1551.101, 1551.102, [ |
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entitled to secure for a dependent of the individual any group | ||
coverages provided under this chapter, as determined by the board | ||
of trustees and subject to the exceptions provided by this | ||
subchapter. | ||
SECTION 4. Sections 1551.155(a) and (c), Insurance Code, | ||
are amended to read as follows: | ||
(a) A surviving spouse of an individual who is eligible to | ||
participate in the group benefits program under Section 1551.101 or | ||
1551.102 and who is entitled to monthly benefits paid by a | ||
retirement system named in this chapter or a surviving spouse of an | ||
individual who is eligible to participate in the group benefits | ||
program under Section 1551.1023 may, following the death of the | ||
individual, elect to retain: | ||
(1) the spouse's authorized coverages; and | ||
(2) authorized coverages for any dependent of the | ||
spouse. | ||
(c) A person who is the surviving spouse of an individual | ||
described by Subsection (a) may secure group health coverage | ||
without evidence of the person's insurability if the individual was | ||
eligible to participate in the group benefits program under Section | ||
1551.101, [ |
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the time of the individual's death. | ||
SECTION 5. Sections 1551.156(a), (c), and (d), Insurance | ||
Code, are amended to read as follows: | ||
(a) A surviving dependent of an annuitant who was receiving | ||
monthly benefits paid by a retirement system named in this chapter | ||
or a surviving dependent of a retiree who is eligible to participate | ||
in the group benefits program under Section 1551.1023 may, | ||
following the death of the annuitant or retiree if there is not a | ||
surviving spouse, elect to retain any coverage previously secured | ||
by the annuitant or retiree until the dependent becomes ineligible | ||
for coverage for a reason other than the death of the member of the | ||
group. | ||
(c) A dependent who elects to retain coverage under this | ||
section and who is entitled to monthly benefits from a retirement | ||
system [ |
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annuitant or retiree must direct the retirement system to deduct | ||
required contributions for the coverage from the monthly benefits | ||
paid the surviving dependent by the retirement system. | ||
(d) A person who is a surviving dependent of an annuitant or | ||
retiree may secure group health coverage after the death of the | ||
annuitant or retiree without evidence of the person's insurability | ||
if the annuitant or retiree was eligible to participate in the group | ||
benefits program of a retirement system [ |
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was not participating at the time of the individual's death. | ||
SECTION 6. Subchapter G, Chapter 1551, Insurance Code, is | ||
amended by adding Section 1551.3051 to read as follows: | ||
Sec. 1551.3051. COST OF RETIREE COVERAGE. If the cost of | ||
the basic coverage and other coverages, if any, for an individual | ||
eligible to participate in the group benefits program under Section | ||
1551.1023 exceeds the amount of contributions from the Teacher | ||
Retirement System of Texas allocated to fund coverages, the state | ||
shall deduct from the retirement benefits of the participant an | ||
amount sufficient to pay the cost of the coverages. | ||
SECTION 7. Section 1551.310, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1551.310. STATE CONTRIBUTION REQUIRED. (a) The state | ||
shall contribute to the cost of each participant's group coverages, | ||
including dependents' group coverages, the amounts appropriated | ||
for the coverages in the General Appropriations Act. | ||
(b) The Teacher Retirement System of Texas shall transfer to | ||
the board of trustees the amount of contributions under Section | ||
1575.2011 for retirees who elect to participate in the group health | ||
benefits plan under this chapter. Notwithstanding any other | ||
provision of this subchapter, money transferred to the board of | ||
trustees under this subsection and money paid under Section | ||
1551.3051 is the only money that may be used to pay the cost of | ||
retiree coverage. | ||
SECTION 8. Section 1551.314, Insurance Code, is amended to | ||
read as follows: | ||
Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED. | ||
Except as provided by Section 1551.310(b), a [ |
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may not be: | ||
(1) made for coverages under this chapter selected by | ||
an individual who receives a state contribution for coverages under | ||
a group benefits program provided by another state health plan or by | ||
an institution of higher education, as defined by Section 61.003, | ||
Education Code; or | ||
(2) made for or used to pay a tobacco user premium | ||
differential assessed under Section 1551.3075. | ||
SECTION 9. Section 1575.004(a), Insurance Code, is amended | ||
to read as follows: | ||
(a) In this chapter, "retiree" means: | ||
(1) an individual not eligible for coverage under a | ||
plan provided under Section 1551.101, 1551.102, 1551.1021, or | ||
1551.1022 [ |
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(A) has taken a service retirement under the | ||
Teacher Retirement System of Texas after September 1, 2005, with at | ||
least 10 years of service credit in the system, which may include up | ||
to five years of military service credit, but which may not include | ||
any other service credit purchased for equivalent or special | ||
service credit, and either: | ||
(i) the sum of the retiree's age and years | ||
of service credit in the retirement system equals or exceeds 80 at | ||
the time of retirement, regardless of whether the retiree had a | ||
reduction in the retirement annuity for early age; or | ||
(ii) the retiree has 30 or more years of | ||
service credit in the retirement system at the time of retirement; | ||
(B) has taken a service retirement under the | ||
Teacher Retirement System of Texas after September 1, 2004, but on | ||
or before August 31, 2005, and on September 1, 2005, either: | ||
(i) meets the requirements for eligibility | ||
for the group program for coverage as a retiree as those | ||
requirements existed on August 31, 2004; | ||
(ii) meets the requirements of Paragraph | ||
(A); or | ||
(iii) is enrolled in the group program and | ||
was enrolled in the group program on August 31, 2005; or | ||
(C) has taken a service retirement under the | ||
Teacher Retirement System of Texas on or before August 31, 2004, and | ||
who is enrolled in the group program on August 31, 2005; | ||
(2) an individual who: | ||
(A) has taken a disability retirement under the | ||
Teacher Retirement System of Texas; and | ||
(B) is entitled to receive monthly benefits from | ||
the Teacher Retirement System of Texas; or | ||
(3) an individual who: | ||
(A) has taken a disability retirement under the | ||
Teacher Retirement System of Texas; | ||
(B) has at least 10 years of service credit in the | ||
Teacher Retirement System of Texas on the date of disability | ||
retirement, as determined under Section 824.304, Government Code; | ||
and | ||
(C) is not entitled to receive monthly benefits | ||
from the Teacher Retirement System of Texas because those benefits | ||
have been suspended in accordance with Section 824.310, Government | ||
Code. | ||
SECTION 10. Subchapter E, Chapter 1575, Insurance Code, is | ||
amended by adding Section 1575.2011 to read as follows: | ||
Sec. 1575.2011. TRANSFER OF CONTRIBUTIONS FOR CERTAIN | ||
RETIRED PUBLIC SCHOOL EMPLOYEES. Notwithstanding Section | ||
1575.206, the trustee shall transfer to the Employees Retirement | ||
System of Texas contributions made under Section 1575.201 on behalf | ||
of a retiree who elects to participate in the group benefits program | ||
under Chapter 1551 and other amounts contributed under this | ||
subchapter that would otherwise be allocable to the coverage for | ||
the retiree in accordance with Section 1551.310. | ||
SECTION 11. Not later than December 1, 2019, the board of | ||
trustees of the Employees Retirement System of Texas shall adopt | ||
rules necessary to implement the changes in law made by this Act. | ||
SECTION 12. This Act takes effect September 1, 2019. |