SLS 12RS-1262 ORIGINAL
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 672
BY SENATOR ERDEY
GROUP BENEFITS PROGRAM. Provides for employer share of retiree insurance
premiums. (7/1/12)
AN ACT1
To amend and reenact R.S. 42:851(E)(1)(d), relative to group health insurance for2
elementary and secondary school teachers; to provide for premium allocation; to3
provide for an effective date; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 42:851(E)(1)(d) is hereby amended and reenacted to read as follows:6
ยง851. Authority for employee benefit programs; payroll deduction for payment of7
premiums8
* * *9
E. (1) Notwithstanding any other provision of this Part to the contrary, for10
any person who is an active employee as defined by R.S. 42:808 and who does not11
participate in the Office of Group Benefits program provided by this Part before12
January 1, 2002, but subsequently enrolls in the program, or for any person who is13
hired on or after January 1, 2002, who meets the definition of employee as provided14
by R.S. 42:808 the state contribution of the total premium shall, upon retirement, be:15
* * *16
(d)Seventy-five percent for:17 SB NO. 672
SLS 12RS-1262 ORIGINAL
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(i) those Those persons with twenty or more years of participation in the1
Office of Group Benefits program before retirement.2
(ii) Any person who on June 1, 2012, has twenty-three years of service3
as an elementary or secondary school teacher, the last nineteen of which were4
with the same employer.5
Section 2. This Act shall become effective on July 1, 2012; if vetoed by the governor6
and subsequently approved by the legislature, this Act shall become effective on July 1,7
2012, or on the day following such approval by the legislature, whichever is later.8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Laura Gail Sullivan.
DIGEST
Present law provides that the state of Louisiana, through the Office of Group Benefits and
each of its governmental and administrative subdivisions, departments, or agencies of the
executive, legislative, or judicial branches, and the governing boards and authorities of each
state university, college, or public elementary and secondary school system in this state are
authorized to provide health and accident insurance to employees and retirees through
employee benefit programs. Provides that payment of the employee's share of the premiums
for such insurance may be accomplished through payroll deductions.
Proposed law retains present law.
Present law provides a schedule for determining the employer share of an employee's
premium in retirement for any employee who did not participate in the Office of Group
Benefits program provided by present law before January 1, 2002, as follows:
1. 19% for those persons with fewer than 10 years of participation.
2. 38% for those persons with at least 10 years but fewer than 15 years of participation.
3. 56% for those persons with at least 15 years but fewer than 20 years of participation.
4. 75% for those persons with 20 or more years of participation.
Present law further provides for exceptions to this schedule for certain persons.
Proposed law retains present law and provides an employer share of 75% of the premium
upon retirement of any person who on June 1, 2012, has 23 years of service as a primary or
secondary school teacher, the last 19 of which were with the same employer.
Effective July 1, 2012.
(Amends R.S. 42:851(E)(1)(d))