81R4624 KCR-F By: Phillips H.B. No. 2986 A BILL TO BE ENTITLED AN ACT relating to the participation of certain retired employees of juvenile probation departments in the group benefits plan for state employees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1551.002, Insurance Code, is amended to read as follows: Sec. 1551.002. PURPOSES. The purposes of this chapter are to: (1) provide uniformity in life, accident, and health benefit coverages for all state officers and employees and their dependents; (2) enable the state to attract and retain competent and able employees by providing employees and their dependents with life, accident, and health benefit coverages at least equal to those commonly provided in private industry; (3) foster, promote, and encourage employment by and service to the state as a career profession for individuals of high standards of competence and ability; (4) recognize and protect the state's investment in each permanent employee by promoting and preserving economic security and good health among employees and their dependents; (5) foster and develop high standards of employer-employee relationships between the state and its employees; (6) recognize the long and faithful service and dedication of state officers and employees and encourage them to remain in state service until eligible for retirement by providing health benefits for them and their dependents; [and] (7) recognize the service to the state by employees and retired employees of community supervision and corrections departments by extending to them and their dependents the same life, accident, and health benefit coverages as those provided under this chapter to state employees, retired state employees, and their dependents; and (8) recognize the service to the state by retired employees of juvenile probation departments who retire from departments located in counties with populations of less than 150,000 by extending to those retired employees the same life, accident, and health benefit coverages as those provided under this chapter to retired state employees. SECTION 2. Section 1551.111(c), Insurance Code, is amended to read as follows: (c) Except as provided by Section 1551.114 and 1551.115, participation in the group benefits program does not extend to: (1) the governing body of either system; (2) a municipality or subdivision participating in either system; or (3) a trustee, officer, or employee, or a dependent of a trustee, officer, or employee, of a participating municipality or subdivision. SECTION 3. Subchapter C, Chapter 1551, Insurance Code, is amended by adding Section 1551.115 to read as follows: Sec. 1551.115. PARTICIPATION BY RETIRED EMPLOYEES OF CERTAIN JUVENILE PROBATION DEPARTMENTS. (a) In this section, "retired employee of a juvenile probation department" means an employee of a department that is established under Chapter 142, Human Resources Code, located in a county with a population of less than 150,000 who retires from that department. (b) A retired employee of a juvenile probation department shall be treated as an annuitant for purposes of this chapter only as provided by this section. (c) A retired employee of a juvenile probation department may participate in the group benefits program administered by the board of trustees under this chapter. Participation under this section is limited to retired employees of juvenile probation departments who are described by Subsections (d) and (e). (d) For a retired employee of a juvenile probation department who is, on August 31, 2009, employed by a juvenile probation department located in a county with a population of less than 150,000, the retired employee may participate in the group benefits program if: (1) the retired employee: (A) retires from the juvenile probation department on or after September 1, 2009; (B) has at least 10 years of creditable service earned for service at one or more juvenile probation departments; and (C) meets all the requirements for retirement benefits prescribed by the Texas County and District Retirement System; and (2) the juvenile probation department from which the retired employee of a juvenile probation department retires: (A) does not provide retired employees access to a health benefit plan on or after the effective date of the employee's retirement; or (B) provides retired employees access to a health benefit plan on or after the effective date of the employee's retirement that provides coverage that is less comprehensive than the coverage provided to annuitants under the basic coverage for annuitants. (e) For a retired employee of a juvenile probation department located in a county with a population of less than 150,000 who is not described by Subsection (d) and who is employed by the department on or after September 1, 2009, the retired employee may participate in the group benefits program if: (1) the retired employee: (A) retires from the juvenile probation department on or after September 1, 2019; (B) has at least 10 years of creditable service earned for service at one or more juvenile probation departments on or after September 1, 2009; and (C) meets all the requirements for retirement benefits prescribed by the Texas County and District Retirement System; and (2) the juvenile probation department from which the retired employee of a juvenile probation department retires: (A) does not provide retired employees access to a health benefit plan on or after the effective date of the employee's retirement; or (B) provides retired employees access to a health benefit plan on or after the effective date of the employee's retirement that provides coverage that is less comprehensive than the coverage provided to annuitants under the basic coverage for annuitants. (f) A retired employee of a juvenile probation department is eligible to participate in the group benefits program under this section on application to the board of trustees. On application, a retired employee is automatically covered by the basic coverage for annuitants unless the retired employee is expelled from the program. (g) The retired employee is eligible to receive a state contribution under Subchapter G for premiums to the same extent as an individual eligible to participate as an annuitant under Section 1551.102. (h) Each participating retired employee of a juvenile probation department shall pay that portion of the cost of group coverage selected by the retired employee that exceeds the amount of the state contribution. The retired employee shall pay contributions required from the retired employee in the manner prescribed by the board of trustees. SECTION 4. Subchapter G, Chapter 1551, Insurance Code, is amended by adding Section 1551.325 to read as follows: Sec. 1551.325. REQUIRED REPORTS OF CERTAIN JUVENILE PROBATION DEPARTMENTS. Not later than June 1 of each year, a juvenile probation department located in a county with a population of less than 150,000 shall submit to the board of trustees a good faith estimate of the number of retired employees and active employees employed on June 1 but expected to retire before the next June 1 that may elect to enroll in the group benefits program for the following fiscal year. SECTION 5. (a) The Employees Retirement System of Texas shall develop a plan for the extension of benefits under the group benefits program to retired employees of juvenile probation departments eligible to participate in the group benefits program under Section 1551.115, Insurance Code, as added by this Act. The Employees Retirement System of Texas shall adopt rules necessary to implement this subsection not later than September 1, 2010. (b) Coverage under Section 1551.115, Insurance Code, as added by this Act, shall become effective September 1, 2010. SECTION 6. This Act takes effect September 1, 2009.