SF 104

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to retiree health insurance coverage; providing for the inclusion of
certain former University of Minnesota steam plant employees in the state
health insurance group; amending Minnesota Statutes 2006, section 43A.27,
subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 43A.27, subdivision 3, is amended to read:

Subd. 3.

Retired employees.

(a) A person may elect to purchase at personal
expense individual and dependent hospital, medical, and dental coverages if the person is:

(1) a retired employee of the state or an organization listed in subdivision 2 or
section 43A.24, subdivision 2, who, at separation of service:

(i) is immediately eligible to receive a retirement benefit under chapter 354B or an
annuity under a retirement program sponsored by the state or such organization of the state;

(ii) immediately meets the age and service requirements in section 352.115,
subdivision 1; and

(iii) has five years of service or meets the service requirement of the collective
bargaining agreement or plan, whichever is greater; or

(2) a retired employee of the state who is at least 50 years of age and has at least
15 years of state service.

(b) new text begin A person may elect, on July 1, 2007, or on the first day of the month occurring 18
months after the person terminates employment with Foster Wheeler Twin Cities, Inc.,
whichever is later, to purchase at personal expense individual and dependent hospital,
medical, and dental coverage if the person:
new text end

new text begin (1) was an employee of the University of Minnesota before July 1, 1992;
new text end

new text begin (2) was employed at the university heating plant facilities;
new text end

new text begin (3) was transferred to Foster Wheeler Twin Cities, Inc.; and
new text end

new text begin (4) continued in general state employees retirement plan coverage for employment
after June 30, 1992, under section 352.01, subdivision 2a, paragraph (a), clause (15).
new text end

new text begin (c) new text end The commissioner shall offer at least one plan which is actuarially equivalent to
those made available through collective bargaining agreements or plans established under
section 43A.18 to employees in positions equivalent to that from which retired.

deleted text begin (c) deleted text end new text begin (d) new text end A spouse of a person eligible under paragraph (a) new text begin or (b) new text end may purchase
the coverage listed in this subdivision if the spouse was a dependent under the retired
employee's coverage at the time of the retiree's death.

deleted text begin (d) deleted text end new text begin (e) new text end Coverages must be coordinated with relevant health insurance benefits
provided through the federally sponsored Medicare program. Until the retired employee
reaches age 65, the retired employee and dependents must be pooled in the same group
as active employees for purposes of establishing premiums and coverage for hospital,
medical, and dental insurance. Coverage for retired employees and their dependents may
not discriminate on the basis of evidence of insurability or preexisting conditions unless
identical conditions are imposed on active employees in the group that the employee left.
Appointing authorities shall provide notice to employees no later than the effective date of
their retirement of the right to exercise the option provided in this subdivision. The retired
employee must notify the commissioner or designee of the commissioner within 30 days
after the effective date of the retirement of intent to exercise this option.