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SENATE FLOOR VERSION
April 5, 2021
AS AMENDED
ENGROSSED HOUSE
BILL NO. 2824 By: Sneed of the House
and
Quinn of the Senate
An Act relating to state government; amending 74 O.S.
2011, Section 1316.2, as last amended by Section 3,
Chapter 419, O.S.L. 2014 (74 O.S. Supp. 2020, Section
1316.2), which relates to the Oklahoma Employees
Insurance and Benefits Act; allowing for certain
payments by a qualified benefits administrator; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2011, Section 1316.2, as
last amended by Section 3, Chapter 419, O.S.L. 2014 (74 O.S. Supp.
2020, Section 1316.2), is amended to read as follows:
Section 1316.2. A. Any employee, other than an education
employee, who retires pursuant to the provisions of the Oklahoma
Public Employees Retirement System or who has a vested benefit
pursuant to the provisions of the Oklahoma Public Employees
Retirement System may c ontinue in force the health and dental
insurance benefits au thorized by the provisions of the Oklahoma
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Employees Insurance and Benefits Act, or other employer insurance
benefits if the employer does not participate in the plans offered
by the Office of Man agement and Enterprise Services, if such
election to continue in force is made within thirty (30) days from
the date of termination of service. Except as otherwise provided
for in Section 840-2.27I of this title and subsection H of this
section, health and dental insurance coverage may not be reinstated
at a later time if the election to continue in force is declined.
Vested employees other than education employees who have terminated
service and are not receiving benefits and effective July 1, 1996,
nonvested persons who have terminated service with more than eig ht
(8) years of participating service with a participating employer,
who within thirty (30) days from the date of termination of service
elect to continue such coverage, shall pay the full cost of the
insurance premium at the rate and pursuant to the terms and
conditions established by the Office. Provided also, any employee
other than an education employee who commences employment with a
participating employer on or after September 1, 1991, who t erminates
service with such employer on or after July 1, 199 6, but who
otherwise has insufficient years of service to retire or terminate
service with a vested benefit pursuant to the provisions of the
Oklahoma Public Employees Retirement System or to elec t to continue
coverage as a nonvested employee as provided i n this section, but
who, immediately prior to employment with the participating
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employer, was covered as a dependent on the health and dental
insurance policy of a spouse who was an active employe e other than
an education employee, may count as part of his or her credited
service for the purpose of determining eligibility to elect to
continue coverage under this section, the time during which the
terminating employee was covered as such a dependent .
B. 1. Health insurance benefit plans offered pursuant to this
section shall include:
a. indemnity plans offered through the Office,
b. managed care plans offered as alternatives to the
indemnity plans offered through the Office,
c. Medicare supplements offered pursuant to the Oklahoma
Employees Insurance and Be nefits Act,
d. Medicare risk-sharing contracts offered as
alternatives to the Medicare supplements offered
through the Office. All Medicare risk -sharing
contracts shall be subject to a risk adjus tment
factor, based on generally accepted actuarial
principles for adverse selection which may occur, and
e. for the Oklahoma Public Employee Employees Retirement
System, other employer -provided health insurance
benefit plans if the employer does not parti cipate in
the plans offered pursuant to the Oklahoma Employe es
Insurance and Benefits Act.
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2. Health insurance benefit plans offered pursuant to this
section shall provide prescription drug benefits, except for plans
designed pursuant to the Medicare Pres cription Drug Improvement and
Modernization Act of 2003, for which provision of prescription drug
benefits is optional, and except for plans offered pursuant to
subparagraph e of paragraph 1 of this subsection.
C. 1. Designated public retirement systems shall contribute a
monthly amount towards the health insuran ce premium of certain
individuals receiving benefits from the public retirement system as
follows:
a. a retired employee, other than an education employee
or an employee who participates in the de fined
contribution system administered by the Oklahoma
Public Employees Retirement System on or after
November 1, 2015, who is receiving benefits from the
Oklahoma Public Employees Retirement System after
September 30, 1988, shall have One Hundred Five
Dollars ($105.00), or the premium rate of the health
insurance benefit plan, whichever is less, paid by the
Oklahoma Public Employees Retirement System to the
Board or, other insurance carrier , or other qualified
benefits administrator of the employer if the employer
does not participate in the plans offered by the
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Office in the manner specified in subsection G of this
section,
b. a retired employee or surviving spouse other than an
education employee who is receiving benefits from the
Oklahoma Law Enforcement Retirement System after
September 30, 1988, is under sixty -five (65) years of
age and is not otherwise eligible for Medicare shall
have the premium rate for the health insurance benefit
plan or One Hundred Five Dollars ($105.00), whichever
is less, paid by the Oklahoma Law Enforcement
Retirement System to the Offi ce in the manner
specified in subsection G of this section,
c. a retired employee other than an education employee
who is receiving benefits from the Oklahoma Law
Enforcement Retirement System aft er September 30,
1988, is sixty-five (65) years of age or ol der or who
is under sixty-five (65) years of age and is eligible
for Medicare shall have One Hundred Five Dollars
($105.00), or the premium rate of the health insurance
benefit plan, whichever is less, paid by the Oklahoma
Law Enforcement Retirement System to the Office in the
manner specified in subsection G of this section, and
d. a retired employee other than an education employee
who is receiving benefits from the Uniform Retirement
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System for Justices and Judges after September 30,
1988, shall have One Hundred Five Dollars ($105.00),
or the premium rate of the health insurance plan,
whichever is less, paid by the Uniform Retirement
System for Justices and Judges to the Office in the
manner specified in subsection G of this section.
2. Premium payments made pursuant to this section shall be made
subject to the following conditions:
a. the health plan shall be authorized by the provisions
of the Oklahoma Employees Insurance and Benefits Act,
except that if an employer from which an employee
retired or with a vested benefit pursuant to the
provisions of the Oklahoma Public Employees Retirement
System does not participate in the plans authorized by
the provisions of the Oklahoma Employees Insurance and
Benefits Act, the health plan will be the health
insurance benefits of the employer from which the
individual retired or vested,
b. for plans offered by the Oklahoma Employees Insurance
and Benefits Act, the amount to be paid shall be
determined pursuant to the provisions of this
subsection and shall first be a pplied in whole or in
part to the prescription drug coverage premium. Any
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remaining amount shall be applied toward the medical
coverage premium,
c. for all plans, if the amount paid by the public
retirement system does not cover the full cost of the
elected coverage, the individual shall pay the
remaining premium amount, and
d. payment shall be made by the retirement systems in the
manner specified under subsection G of this section.
D. For any member of the Oklahoma Law Enforcement Retirement
System killed in the line of duty, whether the member was killed in
the line of duty prior to May 18, 2005, or on or after May 18, 2005,
or if the member was on a disability leave status at the time of
death, the surviving spouse or dependents of such deceased member of
the Oklahoma Law Enforcement Retirement System may elect to continue
or commence health and dental insurance benefits, provided the
dependents pay the full cost of such insurance, and for deat hs
occurring on or after July 1, 2002, such election is made within
thirty (30) days of the date of death. The eligibility for the
benefits shall terminate for the surviving children when the
children cease to qualify as dependents.
E. Effective July 1, 2004, a retired member of the Oklahoma Law
Enforcement Retirement System who retired from the System by means
of a personal and traumatic injury of a catastrophic nature and in
the line of duty and any surviving spouse of such retired member and
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any surviving spouse of a member who was killed in the line of duty
shall have one hundred percent (100%) of the retired member's or
surviving spouse's health care premium cost, whether the member or
surviving spouse elects coverage under the Medicare supplement or
Medicare risk-sharing contract, paid by the Oklahoma Law Enf orcement
Retirement System to the Office in the manner specified in
subsection H of this section. For plans offered by the Office, such
contributions will first be applied in whole or in part to the
prescription drug coverage premium, if any.
F. Dependents of a deceased employee who was on active work
status or on a disability leave at the time of death or of a
participating retardant or of any person who has elected to receive
a vested benefit under the Oklahoma Public Employees Retirement
System, the Uniform Retirement System for Justices and Judges or the
Oklahoma Law Enforcement Retirement System may continue the health
and dental insurance benefits in force, provided the dependents pay
the full cost of such insurance and they were covered as eligible
dependents at the time of such death and such election is made
within thirty (30) days of date of death. The eligibility for the
benefits shall terminate for the surviving children when the
children cease to qualify as dependents.
G. The amounts required to be paid by the Oklahoma Public
Employees Retirement System, the Uniform Retirement System for
Justices and Judges and the Oklahoma Law Enforcement Retirement
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System pursuant to this section sh all be forwarded no later than the
tenth day of each month f ollowing the month for which payment is due
by the Oklahoma Public Employees Retirement System Board of Trustees
or the Oklahoma Law Enforcement Retirement Board to the Office for
deposit in the Health, Dental and Life Insurance Reserve Fund or to
another insurance carrier, or other qualified benefits administrator
of the employer as provided for in subsection H of Section 1315 of
this title.
H. Upon retirement from employment of the Board of Rege nts of
the University of Oklahoma, any person who was or is employed at the
George Nigh Rehabilitation Institute and who transferred employment
pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any
person who was employed at the Medical Techno logy and Research
Authority and who transferred employment pursuant to Secti on 7068 of
this title, and any person who is a member of the Oklahoma Law
Enforcement Retirement System pursuant to the authority of Section
2-314 of Title 47 of the Oklahoma Statu tes may participate in the
benefits authorized by the provisions of the Okla homa Employees
Insurance and Benefits Act for retired participants, including
health, dental and life insurance benefits, if such election to
participate is made within thirty (30) days from the date of
termination of service. Life insurance benefits for any such person
who transferred employment shall not exceed the coverage the person
had at the time of such transfer. Retirees who transferred
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employment and who participate pursu ant to this paragraph shall pay
the premium for elected benefits less any am ounts paid by a state
retirement system pursuant to this section.
SECTION 2. This act shall become effective November 1, 2021.
COMMITTEE REPORT BY: COMMITTEE ON RE TIREMENT AND INSURANCE
April 5, 2021 - DO PASS AS AMENDED