The following bills received favorable reports in the Senate Committee on Pensions and Retirement & Aging.
Senate Bill 32: Fire and Rescue Pension Election
The bill clarifies procedures for termination of membership and refund requests in the Firemen's and Rescue Squad Workers' Pension Fund. Also, the bill states that delinquency in monthly contributions by members does not result in automatic termination of membership.
Senate Bill 32 was approved by the Committee, passed 2nd and 3rd readings on the Senate floor, and was sent to the House where it was assigned to the Rules Committee.
House Bill 710: Retirement Systems Technical Corrections
This bill amends the laws governing the state retirement systems with regard to counting of sick leave in calculating creditable service, designation of survivors under the various survivorship options, and clarification of application for disability retirement. The bill does not affect the benefits of current retirees. House Bill 710 received a favorable report and has been placed on the calendar for Senate floor action on June 8.
The House Pensions and Retirement Committee approved several bills this week. A summary of Committee actions is presented below.
House Bill 59: Retired School Professionals Return to Work
This bill extends the re-employment exemption that currently is available to retired public school teachers to retired school guidance counselors and school media specialists. The exemption, which would “sunset” on June 30, 2006, allows the designated retired educators to be re-employed in the public schools after a 6-month separation from service at full salary and with no loss of pension benefits.
The Committee approved a substitute for the original bill to require school systems that re-employ retired educators to pay an 11.7% contribution to the Teachers and State Employees Retirement System. The employer contribution may be paid with local funds or with salary funds of the re-employed educators.
The Committee Substitute for HB 59 received a favorable report and was re-referred to the House Appropriations Committee. It is not subject to the cross-over deadline.
House Bill 1653: Mandatory COLA for TSERS Retirees
This bill, which would require that retired teachers and state employees receive an annual Cost-Of-Living Adjustment equal to the rate of inflation as determined by the Consumer Price Index, was scheduled for consideration by the Committee on June 1. However, it was withdrawn from the agenda due to drafting errors. Since this bill also would require approval by the Appropriations Committee, it is not subject to cross-over deadline.
House Bill 1524: Competitive Selection/ Supplemental Insurance
This bill formalizes the process through which the Department of State Treasurer invites proposals and selects providers for supplemental insurance plans that are made available to retired governmental employees. The bill received a favorable report, was approved by the House, and sent to the Senate.
The Senate Select Committee on Employee Hospital and Medical Benefits met on May 31 and approved Senate Bill 751: State Health Plan Options. This bill authorizes the State Health Plan to establish an optional prepaid hospital and medical benefits program (PPO) for state employees, retirees, and their dependents. The PPO would not be subject to certain benefits and cost-sharing requirements that apply to the State Health Plan.
The bill was approved by the full Senate on June 1 and sent to the House. The bill has been assigned to the House Committee on Health.
