View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact
S1447aa....................................................by STATE AFFAIRS
GROUP INSURANCE - Amends existing law relating to the Department of
Administration and group insurance; to revise powers and duties of the
director of the Department of Administration regarding group insurance; to
provide for the creation of a Group Insurance Fund; to provide for
contributions on the basis of appropriated salaries; and to revise
provisions relating to the use of unused sick leave by the Idaho Public
Employee Retirement Board to pay certain premiums.
02/28 Senate intro - 1st rdg - to printing
02/29 Rpt prt - to Com/HuRes
03/12 Rpt out - to 14th Ord
03/17 Rpt out amen - to engros
Rpt engros - 1st rdg - to 2nd rdg as amen
03/18 2nd rdg - to 3rd rdg as amen
03/19 3rd rdg as amen - PASSED - 23-10-2
AYES -- Bair, Bastian, Cameron, Coiner, Corder, Darrington, Davis,
Fulcher, Geddes, Goedde, Hammond, Heinrich, Hill, Jorgenson, Little,
Lodge, McGee, McKague, McKenzie, Pearce, Richardson, Siddoway,
Stegner
NAYS -- Bilyeu, Broadsword, Burkett, Kelly, Keough, Langhorst,
Malepeai(Sagness), Schroeder, Stennett, Werk
Absent and excused -- Andreason, Gannon
Floor Sponsors - Coiner & Stegner
Title apvd - to House
03/20 House intro - 1st rdg - Held at Desk
04/01 Ref'd to St Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1447 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE DEPARTMENT OF ADMINISTRATION AND GROUP INSURANCE; AMENDING 3 SECTION 67-5761, IDAHO CODE, TO REVISE POWERS AND DUTIES OF THE DIRECTOR 4 OF THE DEPARTMENT OF ADMINISTRATION REGARDING GROUP INSURANCE; AMENDING 5 SECTION 67-5771, IDAHO CODE, TO PROVIDE FOR THE CREATION OF THE GROUP 6 INSURANCE FUND, TO PROVIDE FOR CORRECT STATUTORY CITATIONS AND TO PROVIDE 7 CORRECT TERMINOLOGY; AND AMENDING SECTION 67-5772, IDAHO CODE, TO PROVIDE 8 REFERENCE TO THE GROUP INSURANCE FUND, TO PROVIDE FOR CONTRIBUTIONS ON THE 9 BASIS OF APPROPRIATED SALARIES AND TO DELETE REFERENCE TO RULES. 10 Be It Enacted by the Legislature of the State of Idaho: 11 SECTION 1. That Section 67-5761, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 67-5761. POWERS AND DUTIES -- GROUP INSURANCE. (1) The director of the 14 department of administration shall:have the authority to:15 (a) Establish an advisory committee to be comprised of program partici- 16 pants from the executive, legislative and judicial branches of state gov- 17 ernment. The director of the department of administration, the director of 18 the department of health and welfare, and the director of the department 19 of insurance shall serve as ex officio members of the committee. The advi- 20 sory committee may include employee representatives. The director shall 21 consult with the advisory committee in the performance of those duties as 22 enumerated in subsection (2) of this section. 23 (b)Fix and pPromulgate rules for determining eligibility of active per- 24 sonnel, retired personnel and dependents of such active and retired per- 25 sonnel for participation in any group plans. 26 (c) Determine the nature and extent of needs for group life insurance, 27 group annuities, group disability insurance, and group health care service 28 coverages with respect to personnel, including elected or appointed offi- 29 cers and employees, of all offices, departments, divisions, boards, com- 30 missions, institutions, agencies and operations of the government of the 31 state of Idaho and retired personnel, the premiums or prepayments for 32 which are payable in whole or in part from funds of the state. 33 "Disability" insurance includes all personal accident, health, hospital, 34 surgical, and medical coverages, and "health care service" includes all 35 services rendered for maintenance of good health and diagnosis, relief, or 36 treatment of any injury, ailment, or bodily condition. 37 (d) Determine the types, terms, conditions, and amounts of group insur- 38 ance, group annuities, or group coverage by health care service organiza- 39 tions, as the case may be, required by such needs. 40 (e) Negotiate and contract for, and have placed or continued in effect 41 all such insurance and coverages as may reasonably be obtainable from 42 insurers and health care service organizations, as the case may be, duly 43 authorized to transact such business in this state. The director may nego- 2 1 tiate deductibles to any group plan or coverage. Alternatively, the direc- 2 tor may self-insure any insurance or coverage and may contract with any 3 insurance company or third party administrator duly authorized to transact 4 business in this state or administer such plan. 5 (f) Prepare or otherwise obtain and make available to all personnel 6 affected thereby, printed information concerning all such group plans cur- 7 rently in effect, together with the rules governing eligibility, payment 8 of premium or prepayment where applicable, claims procedures, and other 9 matters designed to facilitate utilization and administration of such 10 plans. 11 (g) Administer all such group plans on behalf of the insured, including 12 but not limited to: 13 (i) Enrollment and reporting to the insurer or health care service 14 organization of individuals eligible for coverage and covered under 15 particular policies or contracts, and termination of such enrollment 16 upon termination of eligibility; 17 (ii) Collection or payment of premiums or prepayments for such cov- 18 erage, policies and contracts and accounting for the same; 19 (iii) Establishment of reasonable procedures for handling claims 20 arising under such coverage, policies and contracts, and rendering 21 assistance to claimants, as may be required in the presentation and 22 consideration of claims; 23 (iv) Effectuation of changes in such coverage, policies and con- 24 tracts and renewal or termination thereof; 25 (v) Making and settlement of claims. 26 (2)Nothing herein shall be deemed to prohibit any such coverage, policy27or contract providing coverage also for dependents of personnel under terms28and conditions formulated and negotiated by the directorThe director shall 29 formulate and negotiate a plan or plans of health care service coverage which 30 includes eligible active personnel and their dependents. 31 (3) The director shall formulate and negotiate a plan or plans of health 32 care service coverage which includes eligible retired personnel and dependents 33eligible for a retirement benefit through the Idaho public employee retirement34system which benefit equals or exceeds the retiree medical insurance premium35in effect for that retiree at the date of retirement. Coverage for retired36personnel shall parallel the coverage provided to active state employees to37the extent necessary, and shall include a medicare credit for retirees who are38covered by medicare. Any increased cost on the health care plan for active39employees as a result of such coverage costs shall be paid for by the state40and by active state employees in equal shares. Retired personnel shall be41responsible for paying their own premiums for any plan of health care service42insurance coverage provided pursuant to this section. No coverage, policy or43contract which provides coverage or benefits for personnel, dependents of per-44sonnel, or retired personnel shall create any vested right or benefit for the45retired personnel in retiree group insurance coveragesbased on the following: 46 (a) Beginning July 1, 2008, the state shall pay one hundred fifty-five 47 dollars ($155) per eligible retired personnel per month toward such health 48 care service coverage. Retired personnel shall be responsible for paying 49 their own premiums for any plan of health care service coverage provided 50 pursuant to this section. 51 (b) Beginning January 1, 2009, retired personnel health care service cov- 52 erage shall not be available to any retired personnel who is or becomes 53 eligible for medicare. Dependent spouses of such medicare eligible retired 54 personnel who are not themselves medicare eligible, may access health care 55 service coverage until they become eligible for medicare. 3 1 (c) Any person who was eligible for health care service coverage as a 2 retired person prior to June 30, 2008, and who notifies the department of 3 administration prior to the date that he or she accepts coverage, remains 4 eligible for coverage subject to the conditions of subsection (3)(a) and 5 (b) of this section. 6 (d) Any active employee who retires from state service on or after July 7 1, 2008, is eligible for health care service coverage if he or she was 8 employed by or in service to an office, department, division, board, com- 9 mission, agency and operation of the government of the state of Idaho 10 until he or she is eligible for retirement; and is eligible for a retire- 11 ment benefit through a public employee retirement system based upon at 12 least 20,800 hours of credited state service, and who began employment on 13 or before June 30, 2008. 14 (e) Personnel, including elected or appointed officers and employees, of 15 all offices, departments, divisions, boards, commissions, agencies and 16 operations of the government of the state of Idaho, beginning service or 17 employment on or after July 1, 2008, shall be provided or be eligible for 18 any retired personnel health care service coverage if they have credited 19 state service of at least 20,800 hours before June 30, 2008, and subse- 20 quent to reemployment, election, or reappointment on or after July 1, 21 2008, accumulate an additional 6,240 continuous hours of credited state 22 service, and who are otherwise eligible for coverage. 23 (4) Nothing contained herein and no coverage, policy or contract which 24 provides coverage or benefits for active personnel, dependents of person- 25 nel, or retired personnel shall create any vested right or benefit for any 26 such individual in group insurance coverage. 27 SECTION 2. That Section 67-5771, Idaho Code, be, and the same is hereby 28 amended to read as follows: 29 67-5771. GROUP INSURANCEACCOUNTFUND CREATED -- ADMINISTRATION -- PER- 30 PETUAL APPROPRIATION. There is hereby established in theagency asset fund in31thestate treasury,a special account,the "Group InsuranceAccountFund," 32 which shall be administered exclusively for the purposes ofthis actsections 33 67-5760 through 67-5772, Idaho Code. Thisaccountfund shall consist of all 34 contributions collected pursuant tothis actsections 67-5760 though 67-5772, 35 Idaho Code, and all interest earned upon any moneys in theaccountfund. 36 SECTION 3. That Section 67-5772, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 67-5772. REMITTANCE OF CONTRIBUTIONS -- COLLECTION OF DELINQUENCIES. (1) 39 Between the first and twentieth day of each month, each employer, or, where 40 the employer's payroll is paid separately by departments, each department of 41 each employer, shall remit to thedirector of the department of administration42 group insurance fund all contributions required of it and its employees on 43 the basis of appropriated salaries paid by it during the previous month. These 44 remittances shall be accompanied by such reports as required byrules ofthe 45 director of the department of administration. 46 (2) If any employer shall fail or refuse to remit any such contributions 47 within thirty (30) days after the date due, the director of the department of 48 administration may certify to the state treasurer the fact of such failure or 49 refusal and the amount of the delinquent contribution or contributions, 50 together with a request that such amount be set over from funds of the delin- 51 quent employer to the credit of the group insurance fund. A copy of such cer- 4 1 tification and request shall be furnished the delinquent employer. 2 (3) Within ten (10) days after receipt of such request, the state con- 3 troller shall draw his warrant for payment of such amount out of moneys in the 4 state treasury allocated to the use of such employer during the current fiscal 5 year. If such moneys are not so available, the director of the department of 6 administration shall take any legal steps necessary to collect such amount.
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008Moved by Coiner Seconded by Cameron IN THE SENATE SENATE AMENDMENT TO S.B. NO. 1447 1 AMENDMENTS TO SECTION 1 2 On page 1 of the printed bill, in line 20, delete "may include employee 3 representatives" and insert: "mayshall include one (1) active and one (1) 4 retired employee representatives"; in line 22, delete "subsection (2)" and 5 insert: "subsections (2) and (3)"; on page 2, in line 32, following 6 "dependents" insert: ", and are jointly rated with the plan or plans provided 7 for in subsection (2) of this section."; in line 45, delete "based on the fol- 8 lowing:"; in line 55, following "medicare." insert: "The director has the 9 authority to make exceptions to the provisions of this paragraph (b)."; on 10 page 3, delete lines 1 through 13 and insert: 11 "(c) The Idaho department of administration shall work with select ven- 12 dors to develop products to meet the specific needs of the medicare eligi- 13 ble retirees and shall assist the retirees in transitioning to these prod- 14 ucts. 15 (d) Any person who is eligible for health care service coverage as a 16 retired person prior to June 30, 2008, remains eligible for coverage sub- 17 ject to the conditions of subsection (3)(a) and (b) of this section. 18 (e) Any active employee who retires from state service on or after July 19 1, 2008, is eligible for health care service coverage if he or she is 20 drawing a state retirement benefit and that benefit equals or exceeds the 21 retiree medical insurance premium in effect for that retiree at the date 22 of retirement, or is drawing a state retirement benefit and has at least 23 20,800 hours of credited state service, and who began employment on or 24 before June 30, 2008."; 25 and in line 14 delete "(e)" and insert: "(f)". 26 AMENDMENTS TO BILL 27 On page 4, following line 6, insert: 28 "SECTION 4. That Section 67-5333, Idaho Code, be, and the same is hereby 29 amended to read as follows: 30 67-5333. SICK LEAVE. (1) Sick leave shall be computed as follows: 31 (a) The rate per hour at which sick leave shall accrue to classified 32 officers and employees earning credited state service shall be at the rate 33 represented by the proportion 96/2080. Sick leave shall accrue without 34 limit, and shall be transferable from department to department. 35 (b) Sick leave shall not accrue to any officer or employee on any kind of 36 leave of absence without pay, suspension without pay or layoff. Sick leave 37 shall accrue while an officer or employee is on approved leave with pay, 38 on approved vacation leave, on approved military leave with pay, and on 39 approved sick leave, but not when compensatory time or earned administra- 2 1 tive leave is taken. 2 (c) All accrued sick leave shall be forfeited at the time of separation 3 from state service and no officer or employee shall be reimbursed for 4 accrued sick leave at the time of separation, except as provided in sub- 5 section (2) of this section. If such officer or employee returns to cred- 6 ited state service within three (3) years of such separation, all sick 7 leave credits accrued at the time of separation shall be reinstated, 8 except to the extent that unused sick leave was utilized for the purposes 9 specified in subsection (2) of this section. 10 (d) Sick leave shall be taken on a workday basis. Regularly scheduled 11 days off and officially designated holidays falling within a period of 12 sick leave shall not be counted against sick leave. Sick leave shall not 13 be taken in advance of being earned. 14 (e) In cases where absences for sick leave exceed three (3) consecutive 15 working days, the appointing authority may require verification by a phy- 16 sician or other authorized practitioner. 17 (f) If an absence for illness or injury extends beyond the sick leave 18 accrued to the credit of the officer or employee, the officer or employee 19 may be granted leave without pay. 20 (g) The administrator shall prescribe additional requirements for sick 21 leave for classified officers and employees on a part-time or irregular 22 schedule, for maintaining sick leave records, for funeral leave, and such 23 other applicable purposes as necessary. 24 (2) Unused sick leave may be used as follows: 25 (a) Upon separation from state employment by retirement in accordance 26 with chapter 13, title 59 or chapter 1, title 33, Idaho Code, an 27 employee's unused sick leave shall be determined based on accumulated sick 28 leave earned subsequent to July 1, 1976, and shall be reported by the 29 employer to the public employee retirement system. Upon separation from 30 state employment by retirement in accordance with chapter 20, title 1, 31 Idaho Code, an employee's unused sick leave shall be determined based on 32 accumulated sick leave earned subsequent to July 1, 2000, and shall be 33 reported by the employer to the public employee retirement system. A sum 34 equal to one-half (1/2), or the maximum amount allowed by paragraph (b) of 35 this subsection (2), whichever is the lesser, of the monetary value of 36 such unused sick leave, calculated at the rate of pay for such employee at 37 the time of retirement, as determined by the retirement board, shall be 38 transferred from the sick leave account provided by paragraph (c) of this 39 subsection (2) and shall be credited to such employee's retirement 40 account. Such sums shall be used by the Idaho public employee retirement 41 board to pay premiums, as permitted by and subject to applicable federal 42 tax laws and limits, for suchgrouphealth, dental, vision, long-term 43 care, prescription drug and life insurance programs as may be maintained 44 by the state, to the extent of the funds credited to the employee's 45 account pursuant to this section. Upon an employee's death, any unexpended 46 sums remaining in the account shall revert to the sick leave account. 47 (b) For the purposes of determining the monetary value of unused sick 48 leave, the maximum unused sick leave which may be considered, shall be: 49 (i) During the first ten thousand four hundred (10,400) hours of 50 credited state service, the maximum unused sick leave which may be 51 considered shall be four hundred twenty (420) hours; 52 (ii) During the second ten thousand four hundred (10,400) hours of 53 credited state service, the maximum unused sick leave which may be 54 considered shall be four hundred eighty (480) hours; 55 (iii) During the third ten thousand four hundred (10,400) hours of 3 1 credited state service, the maximum unused sick leave which may be 2 considered shall be five hundred forty (540) hours; and 3 (iv) Thereafter, the maximum unused sick leave which may be consid- 4 ered shall be six hundred (600) hours. 5 (c) Each employer in state government shall contribute to a sick leave 6 account maintained by the public employee retirement system in trust 7 exclusively for the purpose of the provisions of this section. The retire- 8 ment board shall serve as trustee of the trust and shall be indemnified to 9 the same extent as provided in section 59-1305, Idaho Code. Assets in the 10 trust shall not be assignable or subject to execution, garnishment or 11 attachment or to the operation of any bankruptcy or insolvency law. The 12 rate of such contribution each pay period shall consist of a percentage of 13 employees' salaries as determined by the board, and such rate shall remain 14 in effect until next determined by the board. Any excess balance in the 15 sick leave account shall be invested, and the earnings therefrom shall 16 accrue to the sick leave account except the amount required by the board 17 to defray administrative expenses. Assets of the trust may be commingled 18 for investment purposes with other assets managed by the retirement board. 19 All moneys payable to the sick leave account are hereby perpetually appro- 20 priated to the board, and shall not be included in its departmental bud- 21 get. The state insurance fund and public health districts shall be consid- 22 ered employers in state government for purposes of participation under 23 this section. 24 SECTION 5. An emergency existing therefor, which emergency is hereby 25 declared to exist, this act shall be in full force and effect on and after its 26 passage and approval.". 27 CORRECTIONS TO TITLE 28 On page 1, in line 7, delete "AND"; and in line 9, following "RULES" 29 insert: "; AMENDING SECTION 67-5333, IDAHO CODE, TO REVISE PROVISIONS RELATING 30 TO THE USE OF UNUSED SICK LEAVE BY THE IDAHO PUBLIC EMPLOYEE RETIREMENT BOARD 31 TO PAY CERTAIN PREMIUMS; AND DECLARING AN EMERGENCY".
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE BILL NO. 1447, As Amended BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO THE DEPARTMENT OF ADMINISTRATION AND GROUP INSURANCE; AMENDING 3 SECTION 67-5761, IDAHO CODE, TO REVISE POWERS AND DUTIES OF THE DIRECTOR 4 OF THE DEPARTMENT OF ADMINISTRATION REGARDING GROUP INSURANCE; AMENDING 5 SECTION 67-5771, IDAHO CODE, TO PROVIDE FOR THE CREATION OF THE GROUP 6 INSURANCE FUND, TO PROVIDE FOR CORRECT STATUTORY CITATIONS AND TO PROVIDE 7 CORRECT TERMINOLOGY; AMENDING SECTION 67-5772, IDAHO CODE, TO PROVIDE REF- 8 ERENCE TO THE GROUP INSURANCE FUND, TO PROVIDE FOR CONTRIBUTIONS ON THE 9 BASIS OF APPROPRIATED SALARIES AND TO DELETE REFERENCE TO RULES; AMENDING 10 SECTION 67-5333, IDAHO CODE, TO REVISE PROVISIONS RELATING TO THE USE OF 11 UNUSED SICK LEAVE BY THE IDAHO PUBLIC EMPLOYEE RETIREMENT BOARD TO PAY 12 CERTAIN PREMIUMS; AND DECLARING AN EMERGENCY. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 67-5761, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 67-5761. POWERS AND DUTIES -- GROUP INSURANCE. (1) The director of the 17 department of administration shall:have the authority to:18 (a) Establish an advisory committee to be comprised of program partici- 19 pants from the executive, legislative and judicial branches of state gov- 20 ernment. The director of the department of administration, the director of 21 the department of health and welfare, and the director of the department 22 of insurance shall serve as ex officio members of the committee. The advi- 23 sory committeemayshall include one (1) active and one (1) retired 24 employee representatives. The director shall consult with the advisory 25 committee in the performance of those duties as enumerated in subsections 26 (2) and (3) of this section. 27 (b)Fix and pPromulgate rules for determining eligibility of active per- 28 sonnel, retired personnel and dependents of such active and retired per- 29 sonnel for participation in any group plans. 30 (c) Determine the nature and extent of needs for group life insurance, 31 group annuities, group disability insurance, and group health care service 32 coverages with respect to personnel, including elected or appointed offi- 33 cers and employees, of all offices, departments, divisions, boards, com- 34 missions, institutions, agencies and operations of the government of the 35 state of Idaho and retired personnel, the premiums or prepayments for 36 which are payable in whole or in part from funds of the state. 37 "Disability" insurance includes all personal accident, health, hospital, 38 surgical, and medical coverages, and "health care service" includes all 39 services rendered for maintenance of good health and diagnosis, relief, or 40 treatment of any injury, ailment, or bodily condition. 41 (d) Determine the types, terms, conditions, and amounts of group insur- 42 ance, group annuities, or group coverage by health care service organiza- 43 tions, as the case may be, required by such needs. 2 1 (e) Negotiate and contract for, and have placed or continued in effect 2 all such insurance and coverages as may reasonably be obtainable from 3 insurers and health care service organizations, as the case may be, duly 4 authorized to transact such business in this state. The director may nego- 5 tiate deductibles to any group plan or coverage. Alternatively, the direc- 6 tor may self-insure any insurance or coverage and may contract with any 7 insurance company or third party administrator duly authorized to transact 8 business in this state or administer such plan. 9 (f) Prepare or otherwise obtain and make available to all personnel 10 affected thereby, printed information concerning all such group plans cur- 11 rently in effect, together with the rules governing eligibility, payment 12 of premium or prepayment where applicable, claims procedures, and other 13 matters designed to facilitate utilization and administration of such 14 plans. 15 (g) Administer all such group plans on behalf of the insured, including 16 but not limited to: 17 (i) Enrollment and reporting to the insurer or health care service 18 organization of individuals eligible for coverage and covered under 19 particular policies or contracts, and termination of such enrollment 20 upon termination of eligibility; 21 (ii) Collection or payment of premiums or prepayments for such cov- 22 erage, policies and contracts and accounting for the same; 23 (iii) Establishment of reasonable procedures for handling claims 24 arising under such coverage, policies and contracts, and rendering 25 assistance to claimants, as may be required in the presentation and 26 consideration of claims; 27 (iv) Effectuation of changes in such coverage, policies and con- 28 tracts and renewal or termination thereof; 29 (v) Making and settlement of claims. 30 (2)Nothing herein shall be deemed to prohibit any such coverage, policy31or contract providing coverage also for dependents of personnel under terms32and conditions formulated and negotiated by the directorThe director shall 33 formulate and negotiate a plan or plans of health care service coverage which 34 includes eligible active personnel and their dependents. 35 (3) The director shall formulate and negotiate a plan or plans of health 36 care service coverage which includes eligible retired personnel and 37 dependents, and are jointly rated with the plan or plans provided for in sub- 38 section (2) of this section.eligible for a retirement benefit through the39Idaho public employee retirement system which benefit equals or exceeds the40retiree medical insurance premium in effect for that retiree at the date of41retirement. Coverage for retired personnel shall parallel the coverage pro-42vided to active state employees to the extent necessary, and shall include a43medicare credit for retirees who are covered by medicare. Any increased cost44on the health care plan for active employees as a result of such coverage45costs shall be paid for by the state and by active state employees in equal46shares. Retired personnel shall be responsible for paying their own premiums47for any plan of health care service insurance coverage provided pursuant to48this section. No coverage, policy or contract which provides coverage or bene-49fits for personnel, dependents of personnel, or retired personnel shall create50any vested right or benefit for the retired personnel in retiree group insur-51ance coverages52 (a) Beginning July 1, 2008, the state shall pay one hundred fifty-five 53 dollars ($155) per eligible retired personnel per month toward such health 54 care service coverage. Retired personnel shall be responsible for paying 55 their own premiums for any plan of health care service coverage provided 3 1 pursuant to this section. 2 (b) Beginning January 1, 2009, retired personnel health care service cov- 3 erage shall not be available to any retired personnel who is or becomes 4 eligible for medicare. Dependent spouses of such medicare eligible retired 5 personnel who are not themselves medicare eligible, may access health care 6 service coverage until they become eligible for medicare. The director has 7 the authority to make exceptions to the provisions of this paragraph (b). 8 (c) The Idaho department of administration shall work with select vendors 9 to develop products to meet the specific needs of the medicare eligible 10 retirees and shall assist the retirees in transitioning to these products. 11 (d) Any person who is eligible for health care service coverage as a 12 retired person prior to June 30, 2008, remains eligible for coverage sub- 13 ject to the conditions of subsection (3)(a) and (b) of this section. 14 (e) Any active employee who retires from state service on or after July 15 1, 2008, is eligible for health care service coverage if he or she is 16 drawing a state retirement benefit and that benefit equals or exceeds the 17 retiree medical insurance premium in effect for that retiree at the date 18 of retirement, or is drawing a state retirement benefit and has at least 19 20,800 hours of credited state service, and who began employment on or 20 before June 30, 2008. 21 (f) Personnel, including elected or appointed officers and employees, of 22 all offices, departments, divisions, boards, commissions, agencies and 23 operations of the government of the state of Idaho, beginning service or 24 employment on or after July 1, 2008, shall be provided or be eligible for 25 any retired personnel health care service coverage if they have credited 26 state service of at least 20,800 hours before June 30, 2008, and subse- 27 quent to reemployment, election, or reappointment on or after July 1, 28 2008, accumulate an additional 6,240 continuous hours of credited state 29 service, and who are otherwise eligible for coverage. 30 (4) Nothing contained herein and no coverage, policy or contract which 31 provides coverage or benefits for active personnel, dependents of person- 32 nel, or retired personnel shall create any vested right or benefit for any 33 such individual in group insurance coverage. 34 SECTION 2. That Section 67-5771, Idaho Code, be, and the same is hereby 35 amended to read as follows: 36 67-5771. GROUP INSURANCEACCOUNTFUND CREATED -- ADMINISTRATION -- PER- 37 PETUAL APPROPRIATION. There is hereby established in theagency asset fund in38thestate treasury,a special account,the "Group InsuranceAccountFund," 39 which shall be administered exclusively for the purposes ofthis actsections 40 67-5760 through 67-5772, Idaho Code. Thisaccountfund shall consist of all 41 contributions collected pursuant tothis actsections 67-5760 though 67-5772, 42 Idaho Code, and all interest earned upon any moneys in theaccountfund. 43 SECTION 3. That Section 67-5772, Idaho Code, be, and the same is hereby 44 amended to read as follows: 45 67-5772. REMITTANCE OF CONTRIBUTIONS -- COLLECTION OF DELINQUENCIES. (1) 46 Between the first and twentieth day of each month, each employer, or, where 47 the employer's payroll is paid separately by departments, each department of 48 each employer, shall remit to thedirector of the department of administration49 group insurance fund all contributions required of it and its employees on 50 the basis of appropriated salaries paid by it during the previous month. These 51 remittances shall be accompanied by such reports as required byrules ofthe 4 1 director of the department of administration. 2 (2) If any employer shall fail or refuse to remit any such contributions 3 within thirty (30) days after the date due, the director of the department of 4 administration may certify to the state treasurer the fact of such failure or 5 refusal and the amount of the delinquent contribution or contributions, 6 together with a request that such amount be set over from funds of the delin- 7 quent employer to the credit of the group insurance fund. A copy of such cer- 8 tification and request shall be furnished the delinquent employer. 9 (3) Within ten (10) days after receipt of such request, the state con- 10 troller shall draw his warrant for payment of such amount out of moneys in the 11 state treasury allocated to the use of such employer during the current fiscal 12 year. If such moneys are not so available, the director of the department of 13 administration shall take any legal steps necessary to collect such amount. 14 SECTION 4. That Section 67-5333, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 67-5333. SICK LEAVE. (1) Sick leave shall be computed as follows: 17 (a) The rate per hour at which sick leave shall accrue to classified 18 officers and employees earning credited state service shall be at the rate 19 represented by the proportion 96/2080. Sick leave shall accrue without 20 limit, and shall be transferable from department to department. 21 (b) Sick leave shall not accrue to any officer or employee on any kind of 22 leave of absence without pay, suspension without pay or layoff. Sick leave 23 shall accrue while an officer or employee is on approved leave with pay, 24 on approved vacation leave, on approved military leave with pay, and on 25 approved sick leave, but not when compensatory time or earned administra- 26 tive leave is taken. 27 (c) All accrued sick leave shall be forfeited at the time of separation 28 from state service and no officer or employee shall be reimbursed for 29 accrued sick leave at the time of separation, except as provided in sub- 30 section (2) of this section. If such officer or employee returns to cred- 31 ited state service within three (3) years of such separation, all sick 32 leave credits accrued at the time of separation shall be reinstated, 33 except to the extent that unused sick leave was utilized for the purposes 34 specified in subsection (2) of this section. 35 (d) Sick leave shall be taken on a workday basis. Regularly scheduled 36 days off and officially designated holidays falling within a period of 37 sick leave shall not be counted against sick leave. Sick leave shall not 38 be taken in advance of being earned. 39 (e) In cases where absences for sick leave exceed three (3) consecutive 40 working days, the appointing authority may require verification by a phy- 41 sician or other authorized practitioner. 42 (f) If an absence for illness or injury extends beyond the sick leave 43 accrued to the credit of the officer or employee, the officer or employee 44 may be granted leave without pay. 45 (g) The administrator shall prescribe additional requirements for sick 46 leave for classified officers and employees on a part-time or irregular 47 schedule, for maintaining sick leave records, for funeral leave, and such 48 other applicable purposes as necessary. 49 (2) Unused sick leave may be used as follows: 50 (a) Upon separation from state employment by retirement in accordance 51 with chapter 13, title 59 or chapter 1, title 33, Idaho Code, an 52 employee's unused sick leave shall be determined based on accumulated sick 53 leave earned subsequent to July 1, 1976, and shall be reported by the 5 1 employer to the public employee retirement system. Upon separation from 2 state employment by retirement in accordance with chapter 20, title 1, 3 Idaho Code, an employee's unused sick leave shall be determined based on 4 accumulated sick leave earned subsequent to July 1, 2000, and shall be 5 reported by the employer to the public employee retirement system. A sum 6 equal to one-half (1/2), or the maximum amount allowed by paragraph (b) of 7 this subsection (2), whichever is the lesser, of the monetary value of 8 such unused sick leave, calculated at the rate of pay for such employee at 9 the time of retirement, as determined by the retirement board, shall be 10 transferred from the sick leave account provided by paragraph (c) of this 11 subsection (2) and shall be credited to such employee's retirement 12 account. Such sums shall be used by the Idaho public employee retirement 13 board to pay premiums, as permitted by and subject to applicable federal 14 tax laws and limits, for suchgrouphealth, dental, vision, long-term 15 care, prescription drug and life insurance programs as may be maintained 16 by the state, to the extent of the funds credited to the employee's 17 account pursuant to this section. Upon an employee's death, any unexpended 18 sums remaining in the account shall revert to the sick leave account. 19 (b) For the purposes of determining the monetary value of unused sick 20 leave, the maximum unused sick leave which may be considered, shall be: 21 (i) During the first ten thousand four hundred (10,400) hours of 22 credited state service, the maximum unused sick leave which may be 23 considered shall be four hundred twenty (420) hours; 24 (ii) During the second ten thousand four hundred (10,400) hours of 25 credited state service, the maximum unused sick leave which may be 26 considered shall be four hundred eighty (480) hours; 27 (iii) During the third ten thousand four hundred (10,400) hours of 28 credited state service, the maximum unused sick leave which may be 29 considered shall be five hundred forty (540) hours; and 30 (iv) Thereafter, the maximum unused sick leave which may be consid- 31 ered shall be six hundred (600) hours. 32 (c) Each employer in state government shall contribute to a sick leave 33 account maintained by the public employee retirement system in trust 34 exclusively for the purpose of the provisions of this section. The retire- 35 ment board shall serve as trustee of the trust and shall be indemnified to 36 the same extent as provided in section 59-1305, Idaho Code. Assets in the 37 trust shall not be assignable or subject to execution, garnishment or 38 attachment or to the operation of any bankruptcy or insolvency law. The 39 rate of such contribution each pay period shall consist of a percentage of 40 employees' salaries as determined by the board, and such rate shall remain 41 in effect until next determined by the board. Any excess balance in the 42 sick leave account shall be invested, and the earnings therefrom shall 43 accrue to the sick leave account except the amount required by the board 44 to defray administrative expenses. Assets of the trust may be commingled 45 for investment purposes with other assets managed by the retirement board. 46 All moneys payable to the sick leave account are hereby perpetually appro- 47 priated to the board, and shall not be included in its departmental bud- 48 get. The state insurance fund and public health districts shall be consid- 49 ered employers in state government for purposes of participation under 50 this section. 51 SECTION 5. An emergency existing therefor, which emergency is hereby 52 declared to exist, this act shall be in full force and effect on and after its 53 passage and approval.
STATEMENT OF PURPOSE
RS18008
This legislation makes changes to state law regarding
eligibility and management of health insurance for active
employees and retirees of state service. It clarifies that
the Department of Administration shall establish an advisory
committee comprising members from all three branches of
government, and includes as ex-officio (nonvoting) members
the director of the state Department of Health and Welfare,
the director of the Department of Insurance, and the
director of the Department of Administration. The advisory
committee shall also include an active and retired state
employee.
This bill requires the Department of Administration to
promulgate rules determining eligibility for health
insurance benefits. It also directs the director of the
Department of Administration to develop a plan, or plans
that include active employees and retirees and their
dependents and provides for joint rating for active
employees, retirees, and their dependents.
This legislation changes the eligibility for access to and
defines the state's contribution to any state-sponsored
health insurance plan or plans for retirees and their
dependents. Beginning July 1, 2008, each eligible retiree
shall receive $155 each month or $1,860 per year toward
their premiums for health insurance.
Any retiree who is currently eligible (whether or not they
are on the state plan) will remain so until they become
eligible for Medicare. Beginning on January 1, 2009,
retired personnel health care coverage will not be available
to retirees and their spouses if they are both eligible for
Medicare. A spouse will be eligible for the monthly subsidy
if the retiree becomes eligible for Medicare first and until
the spouse also becomes eligible for Medicare. The director
of the Department of Administration may make exceptions to
this provision of law if he determines it to be in the best
interest of the retiree or their dependents. The Department
of Administration is also directed to work with vendors to
develop products to meet the needs of the Medicare eligible
retirees and shall assist the retirees in transitioning to
these products.
In the future an employee will be eligible for health care
coverage when they retire if they meet the following
conditions:
1. Were an active employee on or before June 30, 2008;
and,
2. Are eligible for a retirement benefit from a public
employee retirement service or a retirement
service for educators with at least 20,800 hours
of credited state service; and,
3. Retire directly from state service.
Persons with previous state employment intending to obtain
coverage under the state-sponsored plan after retirement
from another employer will no longer be able to do so.
Finally, any employees or elected officials rehired,
reelected, or reappointed on or after July 1, 2008, will be
eligible for retiree coverage if they had at least ten years
of previously credited state service before June 30, 2008,
accumulate an additional three years of credited state
service, and are otherwise eligible.
Section 2 of this bill makes technical corrections to code
citations references to the Group Insurance Fund.
Section 4 of this bill removes the limitation on the use of
the sick leave benefit accrued by state employees from just
group plans to also include individual health plans.
FISCAL NOTE
The bill reduces the liability to the General Fund by
$4,579,000 by freezing the retiree subsidy, and avoids the
requirement to fund an additional $5,760,000 to the reserves
from the General Fund on behalf of retirees and their
dependents.
Passage of this legislation will also slow the growth of the
state's estimated GASB liability and will eventually begin
reducing that liability. Current GASB liabilities are
estimated at $442 million. This bill reduces that liability
to approximately $136 million. It is anticipated that if
such changes are not made, the State of Idaho's liability
will climb to over $800 million by 2016.
Contact Persons:
Senator Charles Coiner
Senator Joe Stegner
Representative Ken Roberts
Phone: 332-1333
STATEMENT OF PURPOSE/FISCAL NOTE S1447aa
REPRINT REPRINT REPRINT REPRINT REPRINT