86R13586 LED-D
By: Dominguez H.B. No. 4026
A BILL TO BE ENTITLED
AN ACT
relating to authorizing certain retired public school employees to
participate in the state employee group benefits program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1551.003, Insurance Code, is amended by
adding Subdivision (11-a) to read as follows:
(11-a) "Retiree" has the meaning assigned by Section
1575.004.
SECTION 2. Subchapter C, Chapter 1551, Insurance Code, is
amended by adding Section 1551.1023 to read as follows:
Sec. 1551.1023. PARTICIPATION ELIGIBILITY: PUBLIC SCHOOL
RETIREES. (a) Notwithstanding any other law, an individual who is
eligible to participate in the group program under Chapter 1575 as a
retiree is eligible to participate in the group benefits program
under this chapter and is entitled to the same benefits as an
annuitant eligible to participate in the group benefits program
under Section 1551.102.
(b) A retiree may elect to disenroll from the group program
under Chapter 1575, if applicable, and enroll in the group benefits
program under this chapter during an open enrollment period or any
other period set by the board of trustees by rule.
SECTION 3. Section 1551.151, Insurance Code, is amended to
read as follows:
Sec. 1551.151. ENTITLEMENT TO COVERAGE. An individual who
is eligible to participate in the group benefits program under
Section 1551.101, 1551.102, [or] 1551.1022, or 1551.1023 is
entitled to secure for a dependent of the individual any group
coverages provided under this chapter, as determined by the board
of trustees and subject to the exceptions provided by this
subchapter.
SECTION 4. Sections 1551.155(a) and (c), Insurance Code,
are amended to read as follows:
(a) A surviving spouse of an individual who is eligible to
participate in the group benefits program under Section 1551.101 or
1551.102 and who is entitled to monthly benefits paid by a
retirement system named in this chapter or a surviving spouse of an
individual who is eligible to participate in the group benefits
program under Section 1551.1023 may, following the death of the
individual, elect to retain:
(1) the spouse's authorized coverages; and
(2) authorized coverages for any dependent of the
spouse.
(c) A person who is the surviving spouse of an individual
described by Subsection (a) may secure group health coverage
without evidence of the person's insurability if the individual was
eligible to participate in the group benefits program under Section
1551.101, [or] 1551.102, or 1551.1023 but was not participating at
the time of the individual's death.
SECTION 5. Sections 1551.156(a), (c), and (d), Insurance
Code, are amended to read as follows:
(a) A surviving dependent of an annuitant who was receiving
monthly benefits paid by a retirement system named in this chapter
or a surviving dependent of a retiree who is eligible to participate
in the group benefits program under Section 1551.1023 may,
following the death of the annuitant or retiree if there is not a
surviving spouse, elect to retain any coverage previously secured
by the annuitant or retiree until the dependent becomes ineligible
for coverage for a reason other than the death of the member of the
group.
(c) A dependent who elects to retain coverage under this
section and who is entitled to monthly benefits from a retirement
system [named in this chapter] based on the service of the deceased
annuitant or retiree must direct the retirement system to deduct
required contributions for the coverage from the monthly benefits
paid the surviving dependent by the retirement system.
(d) A person who is a surviving dependent of an annuitant or
retiree may secure group health coverage after the death of the
annuitant or retiree without evidence of the person's insurability
if the annuitant or retiree was eligible to participate in the group
benefits program of a retirement system [named in this chapter] but
was not participating at the time of the individual's death.
SECTION 6. Subchapter G, Chapter 1551, Insurance Code, is
amended by adding Section 1551.3051 to read as follows:
Sec. 1551.3051. COST OF RETIREE COVERAGE. If the cost of
the basic coverage and other coverages, if any, for an individual
eligible to participate in the group benefits program under Section
1551.1023 exceeds the amount of contributions from the Teacher
Retirement System of Texas allocated to fund coverages, the state
shall deduct from the retirement benefits of the participant an
amount sufficient to pay the cost of the coverages.
SECTION 7. Section 1551.310, Insurance Code, is amended to
read as follows:
Sec. 1551.310. STATE CONTRIBUTION REQUIRED. (a) The state
shall contribute to the cost of each participant's group coverages,
including dependents' group coverages, the amounts appropriated
for the coverages in the General Appropriations Act.
(b) The Teacher Retirement System of Texas shall transfer to
the board of trustees the amount of contributions under Section
1575.2011 for retirees who elect to participate in the group health
benefits plan under this chapter. Notwithstanding any other
provision of this subchapter, money transferred to the board of
trustees under this subsection and money paid under Section
1551.3051 is the only money that may be used to pay the cost of
retiree coverage.
SECTION 8. Section 1551.314, Insurance Code, is amended to
read as follows:
Sec. 1551.314. CERTAIN STATE CONTRIBUTIONS PROHIBITED.
Except as provided by Section 1551.310(b), a [A] state contribution
may not be:
(1) made for coverages under this chapter selected by
an individual who receives a state contribution for coverages under
a group benefits program provided by another state health plan or by
an institution of higher education, as defined by Section 61.003,
Education Code; or
(2) made for or used to pay a tobacco user premium
differential assessed under Section 1551.3075.
SECTION 9. Section 1575.004(a), Insurance Code, is amended
to read as follows:
(a) In this chapter, "retiree" means:
(1) an individual not eligible for coverage under a
plan provided under Section 1551.101, 1551.102, 1551.1021, or
1551.1022 [Chapter 1551] or Chapter 1601 who:
(A) has taken a service retirement under the
Teacher Retirement System of Texas after September 1, 2005, with at
least 10 years of service credit in the system, which may include up
to five years of military service credit, but which may not include
any other service credit purchased for equivalent or special
service credit, and either:
(i) the sum of the retiree's age and years
of service credit in the retirement system equals or exceeds 80 at
the time of retirement, regardless of whether the retiree had a
reduction in the retirement annuity for early age; or
(ii) the retiree has 30 or more years of
service credit in the retirement system at the time of retirement;
(B) has taken a service retirement under the
Teacher Retirement System of Texas after September 1, 2004, but on
or before August 31, 2005, and on September 1, 2005, either:
(i) meets the requirements for eligibility
for the group program for coverage as a retiree as those
requirements existed on August 31, 2004;
(ii) meets the requirements of Paragraph
(A); or
(iii) is enrolled in the group program and
was enrolled in the group program on August 31, 2005; or
(C) has taken a service retirement under the
Teacher Retirement System of Texas on or before August 31, 2004, and
who is enrolled in the group program on August 31, 2005;
(2) an individual who:
(A) has taken a disability retirement under the
Teacher Retirement System of Texas; and
(B) is entitled to receive monthly benefits from
the Teacher Retirement System of Texas; or
(3) an individual who:
(A) has taken a disability retirement under the
Teacher Retirement System of Texas;
(B) has at least 10 years of service credit in the
Teacher Retirement System of Texas on the date of disability
retirement, as determined under Section 824.304, Government Code;
and
(C) is not entitled to receive monthly benefits
from the Teacher Retirement System of Texas because those benefits
have been suspended in accordance with Section 824.310, Government
Code.
SECTION 10. Subchapter E, Chapter 1575, Insurance Code, is
amended by adding Section 1575.2011 to read as follows:
Sec. 1575.2011. TRANSFER OF CONTRIBUTIONS FOR CERTAIN
RETIRED PUBLIC SCHOOL EMPLOYEES. Notwithstanding Section
1575.206, the trustee shall transfer to the Employees Retirement
System of Texas contributions made under Section 1575.201 on behalf
of a retiree who elects to participate in the group benefits program
under Chapter 1551 and other amounts contributed under this
subchapter that would otherwise be allocable to the coverage for
the retiree in accordance with Section 1551.310.
SECTION 11. Not later than December 1, 2019, the board of
trustees of the Employees Retirement System of Texas shall adopt
rules necessary to implement the changes in law made by this Act.
SECTION 12. This Act takes effect September 1, 2019.