SB 3919

Abstract

Amends the State Employees Group Insurance Act of 1971. Requires, beginning on the effective date of the amendatory Act, retired employees, annuitants, and survivors to pay premiums in order to obtain coverage for themselves and any dependents under the program of group health benefits. Requires the Director to determine the amount of the premium to be paid by each retired employee, annuitant, and survivor, based upon a system that takes into account (i) points, which are calculated by summing the retiree's age when benefits commenced and his or her total years of service, and (ii) annual State pension income. Specifies that, with respect to any annuitant, retired employee, or survivor covered by a collective bargaining agreement in effect on the effective date of the amendatory Act and until that collective bargaining agreement terminates, the obligation of each retired employee, annuitant, and survivor to pay the required premium applies only to the extent that the obligation is consistent with any contractual obligations existing in any collective bargaining agreement in effect on the effective date of the amendatory Act. Allows the Director, upon the expiration of any collective bargaining agreement in effect on the effective date of the amendatory Act, to alter the schedule of premium contributions to ensure that 49% of the costs associated with the basic program of group health benefits are covered by participating retired employees, annuitants, and survivors. Defines "State pension income". Effective July 1, 2012.