HB 1416 defines the parameters of an acceptable basic health insurance plan for TRS retirees and their dependents. One open enrollment period per year is required. In determining the allocation of total costs under this section, the state shall pay the same percentage of the cost of coverage for a retiree and a retiree's dependents under the basic plan as the state annually contributes for an annuitant and an annuitant's dependents covered by the basic coverage plan under Chapter 1551.  The balance of the cost of coverage under the basic plan for a retiree and a retiree's dependents under the basic plan shall be paid by active employees and public schools. The Teacher Retirement System of Texas shall set and hold the first open enrollment period not later than July 1, 2006.

The bill, if enacted, will have no actuarial effect because it does not propose to change the funding or obligations of any public retirement system.