HF 2029

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to state employment; authorizing the 
  1.3             commissioner of employee relations to administer a 
  1.4             postretirement health care account plan; amending 
  1.5             Minnesota Statutes 2000, section 43A.27, subdivision 3.
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 43A.27, 
  1.8   subdivision 3, is amended to read: 
  1.9      Subd. 3.  [RETIRED EMPLOYEES.] (a) A person may elect to 
  1.10  purchase at personal expense individual and dependent hospital, 
  1.11  medical, and dental coverages if the person is: 
  1.12     (1) a retired employee of the state or an organization 
  1.13  listed in subdivision 2 or section 43A.24, subdivision 2, who, 
  1.14  at separation of service: 
  1.15     (i) is immediately eligible to receive a retirement benefit 
  1.16  under chapter 354B or an annuity under a retirement program 
  1.17  sponsored by the state or such organization of the state; 
  1.18     (ii) immediately meets the age and service requirements in 
  1.19  section 352.115, subdivision 1; and 
  1.20     (iii) has five years of service or meets the service 
  1.21  requirement of the collective bargaining agreement or plan, 
  1.22  whichever is greater; or 
  1.23     (2) a retired employee of the state who is at least 50 
  1.24  years of age and has at least 15 years of state service.  
  1.25     (b) The commissioner shall offer at least one plan which is 
  2.1   actuarially equivalent to those made available through 
  2.2   collective bargaining agreements or plans established under 
  2.3   section 43A.18 to employees in positions equivalent to that from 
  2.4   which retired. 
  2.5      (c) A spouse of a person eligible under paragraph (a) may 
  2.6   purchase the coverage listed in this subdivision if the spouse 
  2.7   was a dependent under the retired employee's coverage at the 
  2.8   time of the retiree's death. 
  2.9      (d) Coverages must be coordinated with relevant health 
  2.10  insurance benefits provided through the federally sponsored 
  2.11  Medicare program.  Until the retired employee reaches age 65, 
  2.12  the retired employee and dependents must be pooled in the same 
  2.13  group as active employees for purposes of establishing premiums 
  2.14  and coverage for hospital, medical, and dental insurance.  
  2.15  Coverage for retired employees and their dependents may not 
  2.16  discriminate on the basis of evidence of insurability or 
  2.17  preexisting conditions unless identical conditions are imposed 
  2.18  on active employees in the group that the employee left.  
  2.19  Appointing authorities shall provide notice to employees no 
  2.20  later than the effective date of their retirement of the right 
  2.21  to exercise the option provided in this subdivision.  The 
  2.22  retired employee must notify the commissioner or designee of the 
  2.23  commissioner within 30 days after the effective date of the 
  2.24  retirement of intent to exercise this option. 
  2.25     (e) Notwithstanding any other provision of this chapter, 
  2.26  the commissioner may administer or arrange for the 
  2.27  administration of savings plans or accounts established to 
  2.28  prefund retiree health care, as determined through collective 
  2.29  bargaining, or through the commissioner's plan under section 
  2.30  43A.18, subdivision 2, or through the managerial plan under 
  2.31  section 43A.18, subdivision 3.  The commissioner may make 
  2.32  payments from the plans or accounts or reimburse eligible 
  2.33  retirees from the plans or accounts for health care costs. 
  2.34  Nothing in this paragraph authorizes the state to contribute to 
  2.35  the costs of retiree health care or to contribute to the costs 
  2.36  of administering the retiree health care plans or accounts.