§ 36-12-4 - Coverage of retired employees.
SECTION 36-12-4
§ 36-12-4 Coverage of retired employees.– (a) Retired employees who retire on or before September 30, 2008. Anyretired employee who retired on or before September 30, 2008 shall be entitledto be covered under §§ 36-12-1 – 36-12-5 for himself and herselfand, if he or she so desires, his or her dependents, upon agreeing to pay thetotal cost of his or her contract at the group rate for active state employees.Payments of any retired employee for coverage shall be deducted from his or herretirement allowance and remitted from time to time in payment for suchcontract. In addition, any retired employee who retired on or before September30, 2008 shall be permitted to purchase coverage for his or her dependents uponagreeing to pay the additional cost of the contract at the group rate foractive state employees. Payment for coverage for dependents shall be deductedfrom his or her retirement allowances and remitted as required in payment forthe contract.
(b) State employees who retire subsequent to July 1, 1989,and on or before September 30, 2008. Employees who retire subsequent toJuly 1, 1989, and on or before September 30, 2008, from active service of thestate, and who were employees of the state as determined by the retirementboard under § 36-8-1, shall be entitled to receive for himself or herselfa retiree health care insurance benefit as described in § 36-12-1 inaccordance with the following formula:
SEE THE BOOK FOR THE PROPER TABLE.
If the retired employee is receiving a subsidy on September30, 2008, the state will continue to pay the same subsidy share until theretiree attains age sixty-five (65).
When the retiree reaches that age which will qualify him orher for Medicare supplement the formula shall be:
SEE THE BOOK FOR THE PROPER TABLE.
(c) Retired employees who retire on or after October 1, 2008.Any retired employee who retires on or after October 1, 2008 shall be entitledto be covered under §§ 36-12-1 – 36-12-5 for himself and herselfand, if he or she so desires, his or her dependents, upon agreeing to pay thetotal cost of the contract in the plan in which he or she enrolls. Payments ofany retired employee for coverage shall be deducted from his or her retirementallowance and remitted from time to time in payment for such contract. Anyretired employee who retires on or after October 1, 2008, shall be permitted topurchase coverage for his or her dependents upon agreeing to pay the additionalcost of the contract at the group rate for the plan in which the dependent isenrolled. Payment for coverage for dependents shall be deducted from theretired employee's retirement allowances and remitted as required in paymentfor the contract. The Director of Administration shall develop and present tothe chairpersons of the House Finance Committee and the Senate FinanceCommittee by May 23, 2008 a retiree health plan option or options to be offeredto retirees eligible for state-sponsored medical coverage who are under agesixty-five (65) or are not eligible for Medicare. This plan will have a reducedbenefit level and will have an actuarially based premium cost not greater thanthe premium cost of the plan offered to the active state employee population.This new plan option will be available to employees retiring after September30, 2008, and their dependents.
(d) State employees who retire on or after October 1, 2008.Employees who retire on or after October 1, 2008 from active service of thestate, and who were employees of the state as determined by the retirementboard under § 36-8-1, and who have a minimum of twenty (20) years ofservice, and who are a minimum of fifty-nine (59) years of age, shall beentitled to receive for himself or herself a retiree health care insurancebenefit as described in § 36-12-1. The State will subsidize 80% of thecost of the health insurance plan for individual coverage in which the retiredstate employee is enrolled in. Payments of any retired employee for coverageshall be deducted from his or her retirement allowance and remitted from timeto time in payment for such contract.
(e) Retired employees, including retired teachers, who arenon-Medicare eligible and who reach the age of sixty-five (65) shall be allowedto continue to purchase group health care insurance benefits in the same manneras those provided to retired employees who have not reached the age ofsixty-five (65).