HOUSE DOCKET, NO. 3264        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2321

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Ronald Mariano

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to future public retiree healthcare benefits.

_______________

PETITION OF:

HOUSE DOCKET, NO. 3264        FILED ON: 1/18/2019

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2321

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2567 OF 2017-2018.]

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninety-First General Court
(2019-2020)

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An Act relative to future public retiree healthcare benefits.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Section 8 of said chapter 32A, as appearing in the 2016 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following five paragraphs:-

For policies of group life insurance and accidental death and dismemberment insurance, and group health insurance purchased by the commission in accordance with sections 4, 5 and 10C on behalf of active employees and retired employees who were hired before January 1, 2020 and their dependents, the commonwealth shall contribute not less than 75 per cent of the total monthly premium or rate applicable to said coverages, except, that upon approval by way of an annual, or more frequent appropriation act, the commonwealth may contribute more than seventy-five per cent but less than the entire total monthly premium or rate.

For policies of group life insurance and accidental death and dismemberment insurance, and group health insurance purchased by the commission in accordance with sections 4, 5 and 10C on behalf of retired employees who are hired on or after January 1, 2020 and their dependents, the commonwealth shall contribute not less than 50 per cent of the total monthly premium or rate applicable to said coverages and these retirees on behalf of themselves or themselves and their dependents shall contribute the remaining 50 per cent of the total monthly premium or rate. For purposes herein, “maximum available benefit” shall mean the lowest percentage of the total monthly premium or rate being paid by the commonwealth on behalf of retired employees who were hired before January 1, 2020. The commonwealth shall contribute an increased amount of the total monthly premium or applicable rate on behalf of retired employees who were hired on or after January 1, 2020 according to the following schedule:

(a)With a minimum of 10 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate.

(b)With a minimum of 15 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate, plus 1/3 of the difference between 50 per cent and the maximum available benefit.

(c)With a minimum of 23 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate, plus 2/3 of the difference between 50 per cent and the maximum available benefit.

(d)With a minimum of 30 years of creditable services, the maximum available benefit.

Retired employees who are hired on or after January 1, 2020 and receiving an ordinary disability retirement under section 6 of chapter 32 or an accidental disability retirement under section 7 of chapter 32 shall be eligible for the maximum available benefit.

Retired employees who are hired on or after January 1, 2020 shall contribute, on behalf of themselves or themselves and their dependents, the remaining share of the total monthly premium or rate, except, that upon approval by way of an annual, or more frequent appropriation act, the commonwealth may contribute more than the percentage indicated above, but less than the entire total monthly premium or rate.

For purposes of this chapter, the percent of monthly premium or rate contributed by a retired employee, at any time, will not be higher that the percent of monthly premium or rate contributed upon retirement.

SECTION 2. Paragraph (d) of section 10C of said chapter 32A, as so appearing, is hereby amended by striking out, in lines 74 to 75 the words “fifty per cent of the premium for such insurance, and the commonwealth shall make primary payment of the remaining fifty per cent” and inserting in place thereof the following words:- the appropriate per cent of the premium of such insurance, and the commonwealth shall make primary payment of the remaining share.

SECTION 3. Section 11 of chapter 32A of the General Laws, as so appearing, is hereby amended by striking out in lines 6 and 7 the words "until the remarriage of said surviving spouse".

SECTION 4. Section 11 of said chapter 32A, as so appearing, is hereby amended by striking out, in lines 13 to 14, the words “contributes, pursuant to section eight, on behalf of retired employees,” and inserting in place thereof the following words:- had contributed on behalf of the deceased employee or retiree as of the date of death, but for the surviving spouse of a deceased retiree who died before January 1, 2020, the commonwealth shall contribute 90 per cent of the cost of the monthly premium or rate applicable to the coverage.

SECTION 5. Section 9 of said chapter 32B, as so appearing, is hereby amended by inserting, after the first paragraph, the following 4 paragraphs:-

Notwithstanding the first paragraph of this section, for policies of group health insurance purchased by the appropriate public authority in accordance with this chapter, the governmental unit, on behalf of retired employees who are hired on or after January 1, 2020 and their dependents, shall contribute no less than 50 per cent of the total monthly premium or rate applicable to said insurance coverage and the qualified retirees on behalf of themselves or themselves and their dependents shall contribute the remaining 50 per cent of the total monthly premium or rate. For purposes of this section, “maximum available benefit” shall mean the percentage of the total monthly premium or rate paid by the governmental unit to qualified retirees with a minimum of 30 years of creditable service. The governmental unit shall contribute an increased amount of the total monthly premium or applicable rate on behalf of retired employees who were hired on or after January 1, 2020 according to the following schedule:

(a)With a minimum of 10 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate.

(b)With a minimum of 15 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate, plus 1/3 of the difference between 50 per cent and the maximum available benefit.

(c)With a minimum of 23 years of creditable service, a minimum of 50 per cent of the total monthly premium or applicable rate, plus 2/3 of the difference between 50 per cent and the maximum available benefit.

(d)With a minimum of 30 years of creditable services, the maximum available benefit.

Retired employees who are hired on or after January 1, 2020 and receiving an ordinary disability retirement under section 6 of chapter 32 or an accidental disability retirement under section 7 of chapter 32 shall be eligible for the maximum available benefit.

Retired employees who are hired on or after January 1, 2020 shall contribute, on behalf of themselves or themselves and their dependents, the remaining share of the total monthly premium or rate, except, that upon approval by way of an annual, or more frequent appropriation act, the governmental unit may contribute more than the percentage indicated above, but less than the entire total monthly premium or rate.

In the event that the governmental unit approves an increase in the percent of the premium to be contributed by its retired employees, the percent of premium being paid by a retired employee at that time will not be increased to the higher percent.

SECTION 6.  Section 9B of chapter 32B of the General Laws, as so appearing, is hereby further amended by striking out in lines 4 and 5 the words ",until the remarriage or death of said surviving spouse".

SECTION 7. Section 9B of chapter 32B of the General Laws, as appearing, is hereby amended by striking out in lines 9 and 10 the words “the entire cost of such premium without any contribution by the governmental unit” and inserting in place thereof the following words: - one-half the cost of such premiums  with one-half the cost of such premiums paid by the governmental unit.

SECTION 8. Section 9D of said chapter 32, as so appearing, is hereby repealed.

SECTION 9. Section 9E of chapter 32B of the General Laws, as appearing in the 2016 Official Edition, is amended by inserting at the end of line 27 the following words:- ; provided, however, that In the event that the governmental unit approves an increase in the percent of the premium to be contributed by its retired employees, the percent of premium being paid by a retired employee at that time will not be increased to the higher percent.

SECTION 10.  The provisions in sections 3 and 6 of this act shall apply to surviving spouses of a deceased employee or retired employee, who remarried prior to the effective date of this act and whose insurance coverage, upon remarriage, was terminated under chapters 32A or 32B of the General Laws.

SECTION 11.  The provisions in sections 3 and 6 of this act shall be prospective from the effective date of this act and shall not entitle any surviving spouse of a deceased employee or retired employee to any retroactive insurance coverage.