SF 1031

Introduction - 79th Legislature (1995 - 1996)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act
  1.2             relating to retirement; requiring certain notices to 
  1.3             be sent to retired state employees before terminating 
  1.4             insurance coverage; requiring the Minnesota state 
  1.5             retirement system to permit deduction of certain 
  1.6             insurance payments from retirement benefits; amending 
  1.7             Minnesota Statutes 1994, sections 43A.23, by adding a 
  1.8             subdivision; and 352.15, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1994, section 43A.23, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 4.  [NOTICE TO RETIRED EMPLOYEES.] A contract with an 
  1.13  insurance carrier must require the carrier to send a reminder 
  1.14  notice before terminating health or dental coverage, due to 
  1.15  failure to pay premiums, provided to a retired person who began 
  1.16  receiving health or dental coverage pursuant to section 43A.27, 
  1.17  subdivision 3 or 4.  The notice must state that a premium 
  1.18  payment is overdue, and must tell the person that coverage will 
  1.19  be terminated unless the premium is paid by a specified date.  
  1.20  The notice must be sent at least 30 days before coverage is 
  1.21  terminated.  The commissioner must require the administrator of 
  1.22  a self-insured state employee plan that includes retired state 
  1.23  employees pursuant to section 43A.27, subdivision 3 or 4, to 
  1.24  give a similar notice before terminating coverage. 
  1.25     Sec. 2.  Minnesota Statutes 1994, section 352.15, 
  1.26  subdivision 3, is amended to read: 
  1.27     Subd. 3.  [DEDUCTING HEALTH INSURANCE PREMIUMS.] The 
  2.1   board may must direct, at its discretion the request of a 
  2.2   retiree, the deduction of a retiree's health or dental insurance 
  2.3   premiums and transfer of the amounts to a health or dental 
  2.4   insurance carrier covering state employees.  The insurance 
  2.5   carrier must certify that the retired employee has signed an 
  2.6   authorization for the deduction and provide a computer readable 
  2.7   roster of covered retirees and amounts.  The health or dental 
  2.8   insurance carrier must refund deductions withheld from a 
  2.9   retiree's check in error directly to the retiree.  The board 
  2.10  shall require the insurance carrier to reimburse the fund for 
  2.11  the administrative expense of withholding the premium amounts.  
  2.12  The insurance carrier shall assume liability for any failure of 
  2.13  the system to properly withhold the premium amounts. 
  2.14     Sec. 3.  [EFFECTIVE DATE.] 
  2.15     Section 1 is effective the day following final enactment, 
  2.16  and applies to a contract negotiated after that date.  Section 2 
  2.17  is effective January 1, 1996.