BILL ANALYSIS

H.B. 2986

By: Phillips

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Last session the legislature began to increase the workload of county-run juvenile probation departments due to problems with the Texas Youth Commission. The juvenile probation system will continue to be asked to help mend a juvenile justice system that is struggling, and it is important that juvenile probation departments are supported in keeping the best and brightest employees working at the juvenile level.

Under current law, Texas provides adult probation officers in every county life, health, and accident benefit coverage both while employed and upon retirement, but provides no coverage to juvenile probation employees. In larger counties, juvenile probation officers are provided with county benefits, which allow juvenile probation departments to better compete for employees with adult probation departments, but smaller counties may not be able to provide similar benefits. Thus, it is difficult for juvenile probation departments in smaller counties that cannot extend county coverage to juvenile probation officers to compete for employees with adult probation departments that are able to offer state-provided coverage.

H.B. 2986 offers counties with the greatest need the ability to further compete for and retain juvenile probation department employees by providing state-funded life, health, and accident benefit coverage upon retirement to eligible juvenile probation officers in counties with populations of less than 150,000.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Employees Retirement System of Texas in SECTION 5 of this bill.

ANALYSIS

H.B. 2986 amends the Insurance Code to include in the purposes of the Employees Retirement System of Texas (ERS) the recognition of the service to the state by retired employees of juvenile probation departments located in counties with populations of less than 150,000 by extending to those retired employees the same life, accident, and health benefit coverages as those provided by ERS to retired state employees.

H.B. 2986 defines "retired employee of a juvenile probation department" and requires a retired employee of a juvenile probation department to be treated as an annuitant for purposes of the Texas Employees Group Benefits Act only as provided by these provisions, authorizes a retired employee to participate in the group benefits program administered by the ERS board of trustees, and limits participation to retired employees of juvenile probation departments in counties with populations of less than 150,000 as follows.

H.B. 2986 authorizes a retired employee who is, on August 31, 2009, employed by a juvenile probation department located in such a county to participate in the group benefits program if:

· the employee retires from the department on or after September 1, 2009, has at least 10 years of creditable service earned for service at one or more juvenile probation departments, and meets all the requirements for retirement benefits described by the Texas County and District Retirement System (TCDRS); and

· the juvenile probation department from which the employee retires does not provide retired employees access to a health benefit plan on or after the effective date of the employee's retirement or provides retired employees access to a health benefit plan on or after the effective date of the employee's retirement that provides coverage that is less comprehensive than the coverage provided to annuitants under the basic coverage for annuitants.

H.B. 2986 authorizes a retired employee of a juvenile probation department located in such a county who is not described above and who is employed by the department on or after September 1, 2009, to participate in the group benefits program if:

· the retired employee retires from the department on or after September 1, 2019, has at least 10 years of creditable service earned for service at one or more juvenile probation departments on or after September 1, 2009, and meets all the requirements for retirement benefits by the TCDRS; and

· the juvenile probation department from which the employee retires does not provide retired employee access to a health benefit plan on or after the effective date of the employee's retirement or provides retired employees access to a health benefit plan on or after the effective date of the employee's retirement that provides coverage that is less comprehensive than the coverage provided to annuitants under the basic coverage for annuitants.

H.B. 2986 makes a retired employee eligible to participate in the group benefits program under these provisions on application to the board of trustees and establishes that, on application, a retired employee is automatically covered by the basic coverage for annuitants unless the retired employee is expelled from the program. The bill makes a retired employee eligible to receive a state contribution for premiums to the same extent as an individual eligible to participate as an annuitant. The bill requires each participating retired employee to pay that portion of the cost of group coverage selected by the retired employee that exceeds the amount of the state contribution as well as contributions required from the retired employee in the manner prescribed by the ERS board of trustees.

H.B. 2986 requires a juvenile probation department located in a county with a population of less than 150,000, not later than June 1 of each year, to submit to the ERS board of trustees a good faith estimate of the number of retired employees and active employees employed on June 1 but expected to retire before the next June 1 who may elect to enroll in the group benefits program for the following fiscal year.

H.B. 2986 requires ERS to develop a plan for the extension of benefits under the group benefits program to eligible retired employees and to adopt rules necessary to implement the plan not later than September 1, 2010. The bill makes coverage added by these provisions effective September 1, 2010.

EFFECTIVE DATE

September 1, 2009.