Legislative Report #05-12

Report 05-12
April 22, 2005

NO SENATE BUDGET YET

Informal discussions on the state budget for 2005-07 continued this week among members of the State Senate leadership. There are indications that the Senate version of the budget will be austere, with significant reductions in public education and human services programs.

The House of Representatives reached the deadline for introduction of public bills that do not deal with appropriations or taxation on Wednesday, April 20. Two bills affecting the retirement system and the State Health plan were among the more than 200 bills filed at the deadline.

LEGISLATION INTRODUCED THIS WEEK

House Bill 1352: State Health Plan Vesting Changes (primary sponsor: Reps. LaRoque and Clary)
This bill would replace the current 5-year vesting threshold for teachers and state employees to qualify for State Health Plan coverage upon retirement at no premium with a graduated schedule. The proposed new vesting schedule follows.

Years of Service                   % of Premium Paid by State
5 yrs., but less than 10 yrs.                 25%
10 yrs., but less than 15                        50%
15 yrs., but less than 20                        75%
20 or more years                                   100%

This proposal would apply to state employees and teachers hired on or after October 1, 2005. It would not have any impact on State Health Plan benefits for current state retirees or employees hired prior to October 1.

House Bill 1237: Change Local Governmental Retirement Board (primary sponsor: Rep. Tucker)
The bill proposes to change the composition of the Board of Trustees for the Local Governmental Employees' Retirement System by adding 4 new members. The new positions would include: one county manager, one city manager, one active local governmental employee, and one retired local governmental employee.

The other members of the local board would include: 7 members of the Board of Trustees of the Teachers' and State Employees' Retirement System, the State Treasurer, the Superintendent of Public Instruction, two members appointed by the General Assembly, three members appointed by the Governor, a mayor or city governing board member, a county commissioner, and a local law enforcement officer.

HOUSE PENSION COMMITTEE ACTION

The House Pensions and Retirement Committee considered three bills on Wednesday. These bills are summarized below.

House Bill 405: Purchase Military Service/Retirement
The bill allows both active and retired members of the state and local retirement systems who have 5 or more years of service to purchase military service time. The bill was approved and will be considered by the full House next week.

House Bill 447: LEO Creditable Service/Workers' Comp.
The bill allows local law enforcement officers to purchase service time for periods during which they were on approved leaves of absence and receiving Workers' Compensation benefits. The bill was approved and re-referred to the Appropriations Committee.

House Bill 784: Creditable Service/Workers' Comp.
This bill is similar to House Bill 447 reported above but it applies to all local governmental employees. The bill was approved and sent to the Appropriations Committee.