78R6047 DLF-D
By: Rose H.B. No. 3224
A BILL TO BE ENTITLED
AN ACT
relating to participation by certain county officers, employees,
and retired officers and employees and their dependents in the
state employees group benefits program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 1551, Insurance Code, as
effective June 1, 2003, is amended by adding Section 1551.114 to
read as follows:
Sec. 1551.114. PARTICIPATION BY CERTAIN COUNTIES. (a) This
section applies only to a county that has a population of less than
250,000.
(b) Subject to Subsection (k), a county subject to this
section may participate in the group benefits program. To
participate under this section, the county:
(1) must offer coverage under the program to all
county officers, employees, and retired officers and employees; and
(2) may not offer a health benefit plan for its
officers, employees, and retired officers and employees as an
alternative to the plan offered by the program.
(c) Participation under this section is limited to:
(1) active officers and employees of a county;
(2) retired officers and employees of a county who:
(A) have been employed by one or more counties
for a total of at least 10 years of creditable service; and
(B) meet all the requirements for retirement
benefits prescribed by the Texas County and District Retirement
System; and
(3) eligible dependents of the active officers and
employees and retired officers and employees described by
Subdivisions (1) and (2).
(d) Except as provided by this section, a county officer,
employee, or retired officer or employee and the eligible
dependents of the officer, employee, or retired officer or
employee:
(1) are entitled to participate in the group coverage
plans established by the board of trustees under the group benefits
program in the same manner as other employees, annuitants, and
dependents under the program; and
(2) may be expelled from the program under Subchapter
H.
(e) Each officer and each full-time active employee of a
participating county is automatically covered by the basic coverage
for employees unless the officer or employee specifically waives
coverage or unless the officer or employee is expelled from the
program. Each part-time active employee of a participating county
is eligible to participate in the group benefits program on
application in the manner provided by the board of trustees, unless
the employee has been expelled from the program. Each
participating county shall notify each of its part-time employees
of the employee's eligibility for participation.
(f) An active officer or employee described by Subsection
(e) is not eligible to receive a state contribution under
Subchapter G for premiums. Each participating county is
responsible for payment of the contributions for each of the
county's participating active officers and employees and the
officers' and employees' dependents that the state would make under
Subchapter G if the officers and employees were state employees.
Each covered officer or employee shall pay that portion of the cost
of group coverages selected by the officer or employee that exceeds
the amount of county contributions.
(g) A retired officer or employee is eligible to participate
in the group benefits program on application to the board of
trustees. On application, a retired officer or employee is
automatically covered by the basic coverage for annuitants unless
the retired officer or employee specifically waives coverage or
unless the retired officer or employee is expelled from the
program. A retired officer or employee is not eligible to receive a
state contribution under Subchapter G for premiums. Each
participating county is responsible for payment of the
contributions for each of the county's retired officers and
employees and the retired officers' and employees' participating
dependents that the state would make under Subchapter G if the
retired officers and employees were retired state employees. Each
participating retired officer or employee shall pay that portion of
the cost of group coverage selected by the retired officer or
employee that exceeds the amount of county contributions. The
retired officer or employee shall pay contributions required from
the retired officer or employee in the manner prescribed by the
board of trustees. Each participating county shall notify each of
its retired officers and employees of the eligibility for
participation and the costs associated with participation.
(h) All contributions received under this section from
participating counties, active officers and employees of
participating counties, and retired officers and employees of
participating counties for basic, optional, and voluntary
coverages under the group benefits program shall be paid into the
employees life, accident, and health insurance and benefits fund
and shall be used by the board of trustees to provide those
coverages as provided by this chapter.
(i) In determining the contributions to be paid for
coverages under this section, the board of trustees shall include
an amount necessary to reimburse the Employees Retirement System of
Texas for the cost of administering this section in accordance with
Section 1551.401(d).
(j) A county that elects to participate in the group
benefits program must notify the board of trustees in the time and
manner required by the board of trustees.
(k) The board of trustees may decline to accept a county for
participation in the group benefits program if the board determines
that participation by the county will have an adverse actuarial
impact on the group benefits program.
(l) A county that has elected to participate in the group
benefits program may not withdraw from participation.
(m) A county is an employer for purposes of this chapter
only to the extent authorized by this section.
SECTION 2. Section 1551.101, Insurance Code, as effective
June 1, 2003, is amended by adding Subsection (f) to read as
follows:
(f) A county officer or employee is an employee for purposes
of this chapter only to the extent authorized by Section 1551.114.
SECTION 3. Section 1551.102, Insurance Code, as effective
June 1, 2003, is amended by adding Subsection (h) to read as
follows:
(h) A retired county officer or employee is an annuitant for
purposes of this chapter only to the extent authorized by Section
1551.114.
SECTION 4. Section 1551.111(c), Insurance Code, as
effective June 1, 2003, is amended to read as follows:
(c) Participation under this section in the group benefits
program does not extend to:
(1) the governing body of either system;
(2) a municipality or subdivision participating in
either system; or
(3) a trustee, officer, or employee, or a dependent of
a trustee, officer, or employee, of a participating municipality or
subdivision.
SECTION 5. The board of trustees of the Employees
Retirement System of Texas is not required to make the group
benefits program available to specified counties, as required by
Section 1551.114, Insurance Code, as added by this Act, before
September 1, 2004.
SECTION 6. This Act takes effect September 1, 2003.