Citations Affected: IC 5-10-8.
Synopsis: Health insurance for retired state police. Requires the state
police department to pay health insurance premiums for retired police
and civilian employees of the state police department who participate
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 and provides for contributions to the fund.
Effective: July 1, 2004.
December 2, 2003, read first time and referred to Committee on Pensions and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
SECTION 1. IC 5-10-8-6 IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: 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) Under this section, the state agencies listed in subsection (a)
department of natural resources may not pay as the employer portion
of benefits for any conservation officer employee or retiree, and the
excise police division of the alcohol and tobacco commission may
not pay as the employer portion of benefits for any excise police
employee or retiree, an amount greater than that paid for other state
employees for group insurance. health care coverage.
SECTION 2. IC 5-10-8-6.1 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 6.1. (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, 2004; or
(B) retires after March 31, 2004, 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 by the state police department 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 amounts contributed under IC 10-12-3-4 or
IC 10-12-4-4 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 6.2 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
one-half 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 one-half
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 each month to the state
police retiree health insurance fund established by section 6.2 of
this chapter one percent (1%) of the retired employee's monthly
pension benefit that is paid for service with the state police
department.
SECTION 3. IC 5-10-8-6.2 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2004]: Sec. 6.2. (a) The state police retiree health insurance fund
is established 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 6.1 of this chapter.
(b) The state police department shall administer the fund.
(c) The expenses of administering the fund shall be paid from
money in the fund.
(d) The fund consists of the following:
(1) Amounts contributed by active employees of the state
police department under section 6.1(e) of this chapter.
(2) Amounts contributed by retired employees of the state
police department under section 6.1(f) of this chapter.
(3) Interest earned on money in the fund.
(4) Amounts appropriated by the general assembly.
(e) 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. Interest that
accrues from these investments shall be deposited in the fund.
(f) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.