Bill Text

Bill Information

Add To My Favorites | print page

SB-191 Teachers’ retirement and health benefits.(2001-2002)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
SB191:v98#DOCUMENT

Amended  IN  Senate  March 13, 2001

CALIFORNIA LEGISLATURE— 2001–2002 REGULAR SESSION

Senate Bill
No. 191


Introduced  by  Senator Karnette

February 08, 2001


An act to add Section Sections 25951 and 25952 to, and to add and repeal Sections Section 25004.5 and 25951 of, the Education Code, relating to state teachers’ benefits.


LEGISLATIVE COUNSEL'S DIGEST


SB 191, as amended, Karnette. Teachers’ retirement and health benefits.
Existing law establishes the Defined Benefit Supplement Program for members of the Defined Benefit Program of the State Teachers’ Retirement Plan and provides that specified member contributions shall be credited to the member’s account, together with interest and earnings, and the balance in that account shall determine the amount of the member’s benefit under the program upon retirement.
This bill would direct the Teacher’s Teachers’ Retirement Board to credit specified amounts, which would vary depending upon the member’s years of credited service, to each member’s account under the program on the first day of each year the. The authorization for this program those credits would be inoperative July 1, 2001 2011.
Existing law establishes the Teachers’ Health Benefits Fund, a continuously appropriated special fund, for the purpose of carrying into effect the provisions of the Teachers’ Retirement Law relating to health care benefits. Existing law provides that, commencing July 1, 2001, the State Teachers’ Retirement System shall pay Medicare Part A premiums for retired members who meet specified criteria.
This bill would establish the Teachers’ Medicare Benefit Supplemental Program for specified active and retired members of the Defined Benefit Program, which program would, beginning July 1, 2002, pay Medicare Part B premiums, as specified. The bill would also direct the Teachers’ Retirement Board to establish nominal accounts for active and retired members of the Defined Benefit Program who retired on or before December 31, 2000, to make specified annual credits to those accounts, and to disburse funds from the Teachers’ Health Benefits Fund, up to the balance in the member’s account and according to procedures adopted by the board, to pay specified health care premiums of those active members, after retirement, and retired members. The provisions of the bill relating to active members would be repealed effective January 1, 2011.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 25004.5 is added to the Education Code, to read:

25004.5.
 (a) Commencing January 1, 2002, the board shall annually credit to each member’s Defined Benefit Supplement account an amount specified in the following schedule based upon the member’s credited years of service on July 1 of the prior year. For purposes of this section only, a member’s years of credited service shall be increased to the next highest whole integer for any member who has more than 75 percent of a credited year of service on July 1.
Years of Credited Service
Amount of Credit to
Member’s Account
 5
$ 5,000
10
$ 5,000
15
$ 5,000
20
$ 500
21
$ 1,000
22
$ 1,500
23
$ 2,000
24
$ 2,500
25
$ 5,000
26
$ 3,000
27
$ 3,500
28
$ 4,000 
29
$ 4,500
30
$10,000
31
$ 5,000
32
$ 6,000
33
$ 7,000
34
$ 8,000
35
$20,000
36 or more
$10,000
(b) This section shall become inoperative on July 1, 2011, and, as of January 1, 2012, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2012, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 2.

 Section 25951 is added to the Education Code, to read:
25951.

(a)Commencing January 1, 2002, the board shall establish a supplemental health insurance account, as a nominal account, for each member of the Defined Benefit Program employed by an employer, and shall annually credit the sum of five hundred dollars ($500) to that account. Interest shall accrue on the supplemental health insurance accounts at an annual rate determined by the board. The balance of credits in a member’s account at the time of the member’s retirement shall determine the amount of disbursements from the Teachers’ Health Benefits Fund to which the member is entitled pursuant to subdivision (b). The member shall not have a right or claim to any specific assets of the account or fund.

(b)Upon retirement for service or disability under the Defined Benefit Program, a member shall be entitled to disbursements from the Teachers’ Health Benefits Fund, in an aggregate amount not to exceed the balance of credits in his or her supplemental health insurance account, solely for the purpose of paying premiums for the member’s long-term care, and health, vision, and dental insurance, or any of them, including premiums for Medicare Part B.

(c)All rights or claims of a member under this section shall cease upon the death of the member or upon his or her termination of membership in the system for any reason.

(d)The board shall develop procedures for processing claims for disbursements under this section.

(e)This section shall remain in effect only until January 1, 2012, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2012, deletes or extends that date.

25951.
 (a) All members of the Defined Benefit Program, active or retired, who are age 55 years or older on January 1, 2002, shall be eligible for the Teachers’ Medicare Benefit Supplemental Program established pursuant to this section.
(b) The program shall pay the costs of Medicare Part B for any member described in subdivision (a). Those payments shall commence July 1, 2002, with respect to those eligible members who are 65 years of age or older on that date and, with respect to all other eligible members, those payments shall commence on the date that the member becomes eligible to receive Medicare Part B.
(c) The board may establish regulations as necessary to implement the program.

SEC. 3.

 Section 25952 is added to the Education Code, to read:

25952.
 (a) Commencing January 1, 2002, the board shall establish a supplemental health insurance account, as a nominal account, for each member of the Defined Benefit Program who retired for service or disability on or before December 31, 2001 2000. The board shall annually make credits to those accounts as provided in subdivision (b). Interest shall accrue on the supplemental health insurance accounts at an annual rate determined by the board. The balance of credits in a retired member’s account under this section shall determine the amount of disbursements from the Teachers’ Health Benefits Fund to which the retired member is entitled pursuant to subdivision (c). The retired member shall not have a right or claim to any specific assets of the account or fund.
(b) Commencing on January 1, 2002, the board shall annually credit the sum of six hundred dollars ($600) to each retired member’s supplemental health insurance account under this section. The amount credited to each account shall be increased each year, commencing in 2003, by the percentage increase, if any, from the prior year in the premiums charged for Medicare Part B.
(c) A retired member under this section shall be entitled to disbursements from the Teachers’ Health Benefits Fund, in an aggregate amount not to exceed the balance of credits in his or her supplemental health insurance account, solely for the purpose of paying premiums for the retired member’s long-term care, and health, vision, and dental insurance, or any of them, including premiums for Medicare Part B.
(d) All rights or claims of a retired member under this section shall cease upon the death of the member.
(e) The board shall develop procedures for processing claims for disbursements under this section.