HB 375

Abstract

This Act implements a recommendation from the December 31, 2023, Report of the Retiree Healthcare Benefits Advisory Subcommittee. Under this Act, the amount of the premium for a health-care insurance plan that this State will pay on behalf of eligible pensioners who were first employed as a regular officer or employee on or after January 1, 2025, and who are not subject to mandatory retirement, is changed as follows: 1. For eligible pensioners employed by the State for at least 15 years but less than 20 years at the time of retirement, 50% of the of the premium. 2. For eligible pensioners employed by the State for at least 20 years but less than 25 years at the time of retirement, 75% of the of the premium. 3. For eligible pensioners employed by the State for 25 or more years at the time of retirement, 100% of the of the premium. All other revisions to current law under this Act are technical changes to improve clarity and conform existing law to the standards of the Delaware Legislative Drafting Manual. These technical changes include the addition of new defined terms and the reorganization of existing law. In § 5201 of Title 29, this Act makes the following technical changes: 1. Revises the definitions of “eligible pensioner”, “plan”, and “regular officer or employee” to remove inconsistent language and align with each other and current law. 2. To avoid repeating phrases in § 5202 of Title 29, clarifies that only for purposes of the amount of the premium paid by the State for health-care insurance plans, the term “eligible pensioner” includes the eligible pensioner’s eligible spouse and dependents and defines the following terms: • “First employed” means the date when the eligible pensioner began work as a regular officer or employee. • “Mandatory retirement” means mandatory retirement for members of the State Police under § 8361 of Title 11. • “Maximum state share" means the amount of the premium that the State pays for a plan before the proration ratio is applied. • “Premium” means the total premium or subscription charge for a health-care insurance plan provided under Chapter 52 of Title 29. In § 5202 of Title 29, this Act makes technical changes to clarify current law regarding the amount of the premium for a health-care insurance plan that this State will pay on behalf of a regular officer or employee or an eligible pensioner by doing the following: 1. Creates the following terms: • “Proration ratio”, which means the percentage applied to the maximum state share. For eligible pensioners, the “proration ratio” is based on when the eligible pensioner was first employed and the number of years the eligible pensioner had been employed as a regular officer or employee at the time of retirement. • “Prorated state share”, which means the dollar amount that the State pays for a plan on behalf of a regular officer or employee or an eligible pensioner. The “prorated state share” is the product of multiplying the proration ratio with the maximum state share. 2. Revises subsection (a) to use the new terms defined under this Act. 3. Transfers the current provisions in paragraphs (b)(1) and (b)(2) that provide the maximum state share for eligible pensioners to subsection (a), so they are with the maximum state share for regular officers and employees. 4. Revises subsection (b) so that the proration ratio and how it is used to determine the prorated state share is explained in paragraph (b)(1) and the proration ratios are provided in paragraphs (b)(2) and (b)(3). • Paragraph (b)(2) lists all groups for whom the proration ratio is 100% because there are no deductions to the maximum state share. • Paragraph (b)(3) provides the proration ratios for eligible pensioners based on the date the eligible pensioner was first employed and years of employment as a regular officer or employee. These ratios clarify that for eligible pensioners who worked for less than the minimum number of years for the 50% proration ratio, the State does not pay anything towards the maximum state share.