PRINTER'S NO. 1812
No. 1206 Session of 2004
INTRODUCED BY WONDERLING, ORIE, WAGNER, COSTA, M. WHITE,
D. WHITE, STOUT, MUSTO, ERICKSON, RHOADES, C. WILLIAMS,
BOSCOLA, PIPPY, STACK, RAFFERTY, GREENLEAF AND KUKOVICH,
AUGUST 11, 2004
REFERRED TO FINANCE, AUGUST 11, 2004
AN ACT
1 Amending Title 24 (Education) of the Pennsylvania Consolidated
2 Statutes, further providing for the definition of "eligible
3 annuitants" and for health insurance premium assistance.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. The definition of "eligible annuitants" in
7 section 8102 of Title 24 of the Pennsylvania Consolidated
8 Statutes is amended to read:
9 § 8102. Definitions.
10 The following words and phrases when used in this part shall
11 have, unless the context clearly indicates otherwise, the
12 meanings given to them in this section:
13 * * *
14 "Eligible annuitants." All current and prospective
15 annuitants with 24 1/2 or more eligibility points and all
16 current and prospective disability annuitants. Beginning January
17 1, 1995, "eligible annuitants" shall include members with 15 or
1 more eligibility points who terminated or who terminate school
2 service on or after attaining superannuation retirement age and
3 who are annuitants with an effective date of retirement after
4 superannuation age. Beginning January 1, 2005, "eligible
5 annuitants" shall include members with 15 or more eligibility
6 points who are annuitants with an effective date of retirement
7 before superannuation age and who have attained 65 years of age.
8 * * *
9 Section 2. Section 8509 of Title 24 is amended to read:
10 § 8509. Health insurance premium assistance program.
11 (a) Contribution rate.--[Effective July 1, 1991, the
12 premium]
13 (1) Effective July 1, 1991, the premium assistance
14 contribution rate established in section 8328(f) (relating to
15 actuarial cost method) shall be sufficient to provide
16 reserves in the health insurance account as of June 30, 1992,
17 for the payment of premium assistance set forth in subsection
18 (b) during the fiscal year beginning July 1, 1992, for all
19 eligible annuitants who by that date elect to be
20 participating eligible annuitants and all additional eligible
21 annuitants who elect to be participating eligible annuitants
22 in the health insurance premium assistance program during the
23 fiscal year beginning July 1, 1992. For each fiscal year
24 beginning after July 1, 1991, the premium assistance
25 contribution rate shall be established to provide reserves
26 sufficient, when combined with unexpended amounts from the
27 reserves set aside the previous fiscal year for health
28 insurance assistance payments, to provide premium assistance
29 payments in the subsequent fiscal year for all participating
30 eligible annuitants. The board is authorized to expend an
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1 amount not to exceed 2% of the health insurance account each
2 year to pay for the direct expense of administering the
3 health insurance premium assistance program, which
4 expenditure may be included in the board's consideration when
5 it establishes the premium assistance contribution rate each
6 year.
7 (2) Effective January 1, 2005, the premium assistance
8 payments for annuitants under 65 years of age shall equal 28%
9 of the monthly premium amount charged by the health insurance
10 carrier approved by the board. Beginning at 65 years of age,
11 the premium assistance payments shall equal 65% of the
12 monthly premium amount charged by the health insurance
13 carrier approved by the board, plus 2% of the monthly premium
14 for each year after the annuitants attain 65 years of age,
15 but in no event shall the amount of premium assistance equal
16 more than 100% of the monthly premium amount. In determining
17 individual amounts of the premium assistance, the percentage
18 shall be applied to the lowest cost plan made available to
19 the annuitant by the health insurance carriers approved by
20 the board, but in no event shall the amount be less than that
21 provided during the previous plan year for annuitants 66
22 years of age or older. Increases in premium assistance
23 payments for annuitants over 65 years of age shall be
24 implemented at the beginning of the health insurance
25 carriers' contract year coincident with or next following the
26 annuitants' dates of birth.
27 (b) Amount of premium assistance.--Participating eligible
28 annuitants shall receive premium assistance payments as provided
29 in paragraphs (1) and (2). Such payments shall be made by the
30 board to the participating eligible annuitants for their payment
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1 directly to their approved insurance carriers. Such payments may
2 also be paid by the board, at the board's discretion, directly
3 to the participating eligible annuitants' approved insurance
4 carriers. The board shall have the right to verify the
5 application and receipt of the payments by the participating
6 eligible annuitants and their approved insurance carriers. The
7 premium assistance payments are as follows:
8 (1) Effective July 1, 1992, $55 per month or the actual
9 monthly premium, whichever is less.
10 (2) Effective January 1, 2002, $100 per month or the
11 actual monthly premium, whichever is less.
12 (c) Participating eligible annuitants.--An eligible
13 annuitant may elect to participate in the health insurance
14 premium assistance program by filing an election to be covered
15 by a health insurance carrier approved by the board and to
16 participate in the health insurance premium assistance program.
17 Participation in the health insurance premium assistance program
18 shall begin upon the effective date of the health insurance
19 coverage provided by a health insurance carrier approved by the
20 board, but in no event before the effective date of retirement.
21 Section 3. This act shall take effect in 60 days.
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