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
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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, [or] 1551.1022, or 1551.1023 is
  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, [or] 1551.102, or 1551.1023 but was not participating at
  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 [named in this chapter] based on the service of the deceased
  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 [named in this chapter] but
  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 [A] state contribution
  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 [Chapter 1551] or Chapter 1601 who:
                     (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.
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