Legislative Report #07-09

Report 07-09
March 23, 2007

SENATE BILL INTRODUCTIONS SURGE

Bills that were sent to the Bill Drafting Division by the March 13 deadline were formally introduced this week in the Senate. A total of 620 Senate bills were filed during the week.
Several of these address important retirement-related issues and are summarized below. Please give special attention to Senate Bill 1207.

Senate Bill 1207: State Health Plan Changes
(Primary Sponsor – Sen. Rand)

This bill proposes a number of substantive and technical changes to the State Health Plan. The most important provision changes the Indemnity Plan from noncontributory  coverage for employees and retirees (no monthly employee premiums) to a partially contributory basis. In other words, retirees who remain in the Indemnity Plan would pay a portion of the Plan’s cost through monthly premiums. The amount of the premium is not addressed in the bill. This provision (Section 11.(a) does not apply to the Health Plan PPO options.

We urge you to contact your State Senators and ask them to work to have this provision removed from the bill. Senate Bill 1207 has not yet been referred to a committee.

The bill also changes the State Health Plan year from the current October 1 to September 30 year to the January 1 – December 31 calendar year. This change becomes effective January 1, 2009. This would improve coordination of benefits between the Plan and Medicare for state retirees.

Senate Bill 1226: Retired Health Professionals Return to Work
(Primary Sponsor –Sen. Dalton)

The bill would allow retired local health department professional employees to return to work with a local health department after a 6-month separation from service without loss of retirement benefits and with no cap on earnings. The term “health professional” includes: health directors, nurses, medical specialists, nutritionists, dentists, dental assistants, health administrators, and environmental health specialists. Local health departments that re-employ retired professionals would be required to pay a Re-employed Health Care Professional Contribution equal to 11.7% of each re-employed retiree’s salary.

Senate Bill 1213: Amend Register of Deeds Supplemental Pension Plan
(Primary Sponsor – Sen. Rand)

This bill increases the maximum monthly benefit under the Supplemental Retirement Plan for County Registers of Deeds. The current maximum monthly benefit would be raised from $1,200 to $1,500 effective July 1, 2007.

HOUSE PENSIONS COMMITTEE MEETS

The House Pensions and Retirement Committee held the first meeting of this Session on Wednesday. The Committee gave a favorable report to the following four bills:

House Bill 8 which raises the maximum monthly benefit in the Firemen’s and Rescue Squad Workers’ Pension Fund to $167,

House Bill 283 which raises the maximum monthly benefit in the Firemen’s and Rescue Squad Worker’s Pension Fund to $175,

House Bill 72 which increases the maximum monthly benefit in the Firemen’s and Rescue Squad Workers’ Pension Fund to $170,

House Bill 328 which provides flexibility for the payment of Law Enforcement Officers’ Special Separation Allowance to conform to the regular payroll frequency of each governmental employer.

These bills will be re-referred to the House Committee on Appropriations.