HB969: HB969 Georgia State Employees Post-employment Health Benefit Fund; certain fund beneficiaries to not be disqualified from postretirement health benefits; provide

26 LC 52 1025S The House Committee on Retirement offers the following substitute to HB 969: A BILL TO BE ENTITLED AN ACT To amend Article 3 of Chapter 2 of Title 20 of the Official Cod e of Georgia Annotated,1 relating to local boards of education, to provide for local boa rds of education to designate2 board members who choose not to participate in certain coverage to be designated as benefits3 ineligible for purposes of federal regulations; to amend Part 2 of Article 1 of Chapter 18 of4 Title 45 of the Official Code of Georgia Annotated, relating to the Georgia State Employees5 Post-employment Health Benefit Fund, so as to provide for certain fund beneficiaries to not6 be disqualified from the provision of postretirement health benefits under the Georgia State7 Employees Post-employment Health Benefit Fund because of service as an elected member8 of a local board of education; to provide for definitions; to p rovide for options for certain9 retirees serving as elected members of local boards of education; to provide for the Board of10 Community Health to create and publish a consent form; to provide for rules and regulations;11 to provide for related matters; to provide for an effective date; to repeal conflicting laws; and12 for other purposes.13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:14 H. B. 969 (SUB) - 1 - 26 LC 52 1025S SECTION 1.15 Article 3 of Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to local16 boards of education, is amended by revising subsection (b) of Code Section 20-2-55, relating17 to per diem, insurance, and expenses, as follows:18 "(b)(1) A local board of education is authorized to provide gro up medical and dental19 insurance for its members who elect to participate. Such insur ance may be provided20 through a group policy secured by the local school district system, a group policy secured21 by several local school districts systems, a policy secured by an organization of local22 school boards, or in accordance with Code Section 45-18-5 providing for the inclusion23 of members of the local board of education and their spouses and dependents within any24 health insurance plan or plans established under Article 1 of Chapter 18 of Title 45. Such25 members may elect not to participate in any health insurance pl an or plans established26 under Article 1 of Chapter 18 of Title 45 by completing a conse nt form as provided in27 paragraph (4) of this subsection. It shall be the duty of the board to make the employer28 contributions required for the operation of such plan or plans. Except as provided in29 paragraph (3) of this subsection, a board providing such insurance shall pay no greater30 percentage of the cost of that insurance than the percentage of the cost paid as an31 employer contribution by the state for the health insurance pla n for state employees32 pursuant to Article 1 of Chapter 18 of Title 45. The remainder of such insurance costs33 shall be paid as an employee contribution by the board member. It shall be the duty of34 the board to deduct from the salary or other remuneration of qu alified members or35 otherwise collect such payment from the qualified members or dependents.36 (2) Taxes levied by or on behalf of a local board of education may be expended for37 employer contributions, but not employee contributions, required for insurance coverage38 of members of that board as provided in paragraph (1) of this subsection. Taxes levied39 by or on behalf of a local board of education also may be expen ded for contributions40 authorized in paragraph (3) of this subsection. Such expenditu res on behalf of any41 H. B. 969 (SUB) - 2 - 26 LC 52 1025S member may continue only as long as that member continues in of fice and makes any42 employee contribution required for such coverage. That member, and eligible dependents43 thereof, shall be ineligible for coverage pursuant to the provisions of paragraph (1) of this44 subsection upon such person's ceasing to serve as a member of a local board of education. 45 Such expenditures on behalf of any member in accordance with pa ragraph (3) of this46 subsection may continue only as long as that member continues in office and makes any47 contribution which is not t he result of the board of education' s decision to allow its48 members to participate in the health insurance plan. Expenditu res authorized by this49 Code section shall be in addition to, and not in lieu of, any salary, expense, per diem, or50 other compensation payable to that member of a local board of education.51 (3) If a board member is already a member of a health insuranc e plan established by52 Article 1 of Chapter 18 of Title 45 as a retired employee and t he result of the board of53 education's decision to allow its members to participate is to establish dual eligibility for54 a member and thus to increase the cost to such member of the state insurance plan, then55 the local board may pay any additional cost imposed on such member as a result of the56 local board's decision to allow its members to participate in coverage under paragraph (1)57 of this subsection.58 (4) If a board member is already a member of a health insuranc e plan established by59 Article 1 of Chapter 18 of Title 45 as a retired employee, such member may elect not to60 participate in the coverage under any health insurance plan or plans established under61 Article 1 of Chapter 18 of Title 45 offered by the board of education under paragraph (1)62 of this subsection by completing a consent form as provided in Code Section 45-18-29,63 and such local board shall designate such member as benefits ineligible for such plan for64 purposes of federal regulations."65 H. B. 969 (SUB) - 3 - 26 LC 52 1025S SECTION 2.66 Part 2 of Article 1 of Chapter 18 of Title 45 of the Official C ode of Georgia Annotated,67 relating to the Georgia State Employees Post-employment Health Benefit Fund, is amended68 by adding a new Code section to read as follows:69 "45-18-29.70 (a) As used in this Code section, the term:71 (1) 'Post-employment health plan' means the state employees' h ealth insurance plan72 established under Part 1 of this article available as a post-employment healthcare benefit73 for retirees.74 (2) 'Retiree' means a former state employee, former teacher, o r former public school75 employee who met the eligibility criteria when an active employ ee or was included by76 specific legislation and who receives a monthly benefit from a state retirement system.77 (3) 'State retirement system' means the Employees' Retirement System of Georgia,78 Georgia Legislative Retirement System, Teachers Retirement System of Georgia, Public79 School Employees Retirement System, Georgia Judicial Retirement System, or other80 local retirement system approved to participate in the post-employment health plan.81 (b) A retiree who would otherwise qualify as a fund beneficiary shall not be disqualified82 from participating in the post-employment health plan solely be cause of service as an83 elected member of a local board of education. Such retiree who is currently serving as or84 becomes an elected member of a local board of education may ref use to accept the85 coverage provided in subsection (b) of Code Section 20-2-55 by completing a consent form86 and, in doing so, shall remain a fund beneficiary and continue to receive his or her87 retirement allowance and any postretirement benefit adjustments for which he or she is88 eligible.89 (c) No later than July 1, 2026, the board shall develop and pu blish a consent form and90 promulgate any rules and regulations necessary to implement the provisions of this Code91 section."92 H. B. 969 (SUB) - 4 - 26 LC 52 1025S SECTION 3.93 This Act shall become effective upon its approval by the Governor or upon its becoming law94 without such approval.95 SECTION 4.96 All laws and parts of laws in conflict with this Act are repealed.97 H. B. 969 (SUB) - 5 -