Legislative Report #05-29

Report 05-29
August 19, 2005

LEGISLATURE TAKES A BREAK

The General Assembly operated on an abbreviated schedule this week after hectic activity on passage of the budget and marathon sessions to clear bills from committees at the end of last week. The Governor signed the 2005-07 state budget into law on Saturday.

There is a strong possibility that the General Assembly will adjourn by the end of next week. One remaining issue, Senate passage of the lottery bill that was approved earlier by the House, could delay adjournment.

As mentioned in last week's Legislative Report (#05-28), the retiree COLAs included in the approved budget are retroactive to July 1. The August pension checks will include the COLAs along with the retroactive payment for July.

BILLS APPROVED

The Senate gave approval to Senate Bill 837 on Saturday. This bill would change the vesting period for post-retirement coverage under the State Health Plan from the current 5 years of service to 10 years. The new vesting requirement applies to teachers and state employees who are first hired on and after October 1, 2005. Members of the General Assembly first taking office on and after October 1 also are subject to the new vesting rule.

The House received the bill on August 18. It has been referred to the House Committee on Health for consideration.

PLEASE NOTE THAT SENATE BILL 837 HAS NO IMPACT ON CURRENT STATE RETIREES OR ACTIVE EMPLOYEES HIRED PRIOR TO OCTOBER 1, 2005.  THE STATE HEALTH PLAN BENEFITS OF CURRENT RETIREES ARE NOT AFFECTED IN ANY WAY BY THIS BILL.