Citations Affected:
IC 5-10-8.
Synopsis: Health insurance for retired state police. Provides that the
state police department must pay the premiums for health insurance
coverage for each retired police employee and each retired civilian
employee of the state police department who is participating in the state
police department's insurance plan. Establishes the state police retiree
health insurance fund to pay for the insurance coverage for retired
employees. Requires each active state police department employee to
pay a percentage of the employee's salary into the fund. Requires each
retired state police department employee participating in the insurance
plan to contribute to the fund each month an amount equal to 1% of the
retired employee's monthly pension benefit.
Effective: July 1, 2002.
January 7, 2002, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning state
police, civil defense and military affairs.
SECTION 1.
IC 5-10-8-6
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2002]: Sec. 6. (a) The state police department,
conservation officers of the department of natural resources, and the
state excise police may establish common and unified plans of
self-insurance for their employees, including retired employees, as
separate entities of state government. These plans may be administered
by a private agency, business firm, limited liability company, or
corporation.
(b) The state agencies listed in subsection (a) conservation officers
of the department of natural resources and the state excise police
may not pay as the employer portion of benefits for any employee or
retiree an amount greater than that paid for other state employees for
group insurance.
SECTION 2.
IC 5-10-8-6.2
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 6.2. (a) The plan of self-insurance established by the
state police department under section 6 of this chapter must
provide health care coverage to each retired police employee and
each retired civilian employee of the state police department who:
(1) is receiving retirement benefits;
(2) either:
(A) is participating in the state police department's
self-insurance plan on June 30, 2002; or
(B) retires after March 31, 2002, and elects, not more than
ninety (90) days after the employee's retirement date, to
participate in the state police department's self-insurance
plan; and
(3) makes the contribution required by subsection (f).
(b) Except as otherwise provided in this section, the health care
coverage provided to retired employees under this section must be
equivalent to the health care coverage provided under the
self-insurance plan to active employees of the state police
department.
(c) The state police department shall pay the employer's share
of the premium for health care coverage provided to retired
employees under this section and, except for the contribution
required under subsection (f), the state police department shall also
pay the retired employee's share of the premium.
(d) A retired employee who is eligible under this section for
health insurance coverage under the plan of self-insurance
established under section 6 of this chapter may elect to have the
retired employee's spouse and eligible dependents covered under
the self-insurance plan. However, the retired employee must pay
the premiums established by the self-insurance plan for coverage
of the retired employee's spouse and eligible dependents.
(e) In addition to any amounts contributed under
IC 10-1-2.2-4
or
IC 10-1-2.3-4
to the state police pension trust fund, each active
police employee and active civilian employee of the state police
department shall contribute to the state police retiree health
insurance fund established by section 6.4 of this chapter, by
monthly deduction, the following percentage of the employee's
wages (excluding payments for overtime and determined without
regard to any salary reduction agreement established under
Section 125 of the Internal Revenue Code):
(1) An employee who has been employed for less than six (6)
years shall contribute one and twenty-five hundredths percent
(1.25%) of the employee's wages.
(2) An employee who has been employed for at least six (6)
years but less than eleven (11) years shall contribute one and
five-tenths percent (1.5%) of the employee's wages.
(3) An employee who has been employed for at least eleven
(11) years but less than sixteen (16) years shall contribute one
and seventy-five hundredths percent (1.75%) of the
employee's wages.
(4) An employee who has been employed for at least sixteen
(16) years but less than twenty-one (21) years shall contribute
two and twenty-five hundredths percent (2.25%) of the
employee's wages.
(5) An employee who has been employed for at least
twenty-one (21) years shall contribute two and five-tenths
percent (2.5%) of the employee's wages.
However, if the employee does not elect to participate in the state
police department's self-insurance plan after the employee begins
receiving retirement benefits, the employee is entitled to a refund
of the contributions made by the employee under this section.
(f) A retired employee who is participating in the self-insurance
plan under this section must contribute to the state police retiree
health insurance fund established under section 6.4 of this chapter
each month an amount equal to one percent (1%) of the retired
employee's monthly pension benefit that is paid for service with the
state police department.
SECTION 3.
IC 5-10-8-6.4
IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2002]: Sec. 6.4. (a) The state police retiree health insurance fund
is established. Money in the fund shall be used by the state police
department to pay the costs of funding health insurance coverage
provided to retired police employees and retired civilian employees
of the state police department under section 6.2 of this chapter.
(b) The state police department shall administer the fund.
(c) The fund consists of the following:
(1) Amounts contributed by active employees of the state
police department under section 6.2(e) of this chapter.
(2) Amounts contributed by retired employees of the state
police department under section 6.2(f) of this chapter.
(3) Interest earned on money in the fund.
(4) Amounts appropriated by the general assembly.
(d) The treasurer of state shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.