ELECTED OFFICIALS’ RETIREMENT PLAN
2002 PROPOSED LEGISLATION

June 5, 2002

HB 2118  Retirement Benefits

This proposed bill would (1) increase the pension for a surviving spouse of a retiree from the current 75% of the member's pension to 80% of the member's pension, and increase currently existing pensions for surviving spouse's of active or inactive members who die before retirement from 75% to 80% of the member's computed pension, (2) provide a tax equity benefit allowance of a permanent 2 percent increase for members employed before Sept. 15, 1989 who retired on or after Nov 1, 2001.

Current Action:  Assigned House Retirement and Government Operations; Hearing 1/22/02, Held; Hearing 1/29/02 Passed; House COW approved with amendment # 3903 deleting from the bill the Elected Officials increases noted above.  

HB 2354 Deferred retirement option plans

This bill would provide for an optional deferred retirement plan (DROP), beginning July 1, 2003. A DROP program allows a member of the Plan to "freeze" his service and average annual salary as of the DROP election date for retirement calculation purposes. The member elects to have the retirement pension that would have been paid (if the member had retired) credited to a DROP account while he continues to work and draw a salary from the employer. The member and employer would no longer make contributions to the plan. The DROP account would be credited with interest during the DROP period. At the end of the DROP period, five years, the member would terminate employment, begin receiving his monthly pension amount at the rate calculated at the time of the DROP election, and recover the member's accumulated DROP account either as a lump sum amount or roll the money into a qualified retirement account. This program would terminate after 5 years.

Current Action:  Assigned House Retirement and Government Operations, hearing 1/23/02; Passed with amendment # 3146 2/5/02; Appropriations. 

HB 2558  Retirees; health insurance; enhanced subsidy

Statutory provisions for state retirees to be given enhanced subsidies for health insurance premiums are extended an additional year, until June 30, 2004.

Current Action:  Assigned House Retirement and Government Operations; Hearing 3/22/02; Passed with amendment; House COW approved with amendment # 3586 - 4/4/02; Ready for Senate; Referred to Senate Finance 04/10/02; withdrawn from Senate Finance 4/18/02; Senate Finance no action 4/22/02; assigned to Senate Rules 4/23/02; Senate COW approved 5/8/02; passed Senate 19-6, ready for governor 5/20/02. 6/4/02 - VETOED.

SB 1239  Retirees; health insurance; enhanced subsidy

Statutory provisions for state retirees to be given enhanced subsidies for health insurance premiums are extended an additional year, until June 30, 2004. Changes are also made to provisions for retirees' health insurance premium subsidies, including to expand the language in the definition of "nonservice area" (including retirees living out of the state) and to specify that certain enhanced subsidies are in addition to, as opposed to being an alternative to, an other subsidy schedule.

Current Action:  Referred to Senate Finance Committee; Hearing 3/25/02; Passed with amendment # 3409; Passed Senate 27-0, 4/4/02; Ready for House; Referred to House Retirement and Government Operations; Hearing 4/9/02; Passed with amendment; Passed House Appropriations 4/17/02. Integrated into HB 2558. Therefore, we will no longer be following this bill number.

SB 1241  Retirees; health insurance; subsidies

Changes are made to provisions for retirees' health insurance premium subsidies, including to expand the language in the definition of "nonservice area" and to specify that certain enhanced subsidies are in addition to, as opposed to being an alternative to, an other subsidy schedule.

Current Action:  Referred to Senate Finance Committee; Incorporated into SB 1239 as amendment # 3409.  Therefore, we will no longer be following this bill.

SB 1417  Retirement; Elected Official

The restriction on pension for an elected official who retires and then is elected again is lifted to a degree by providing that it applies only within a time period following the member's retirement that is less than one full term for that office. Retroactive to the start of 1997.

Current Action:  Referred to Senate Finance Committee; Hearing 3/18/02; Passed; Ready for floor action; Passed Senate 3/27/02; Referred to House Com-Econ. Passed 4/16/02; Amended into HB 2118 as Amendment #4529.  HB 2118 passed Senate 5/13/02; ready for House action on Senate amendments. HB 2118 Signed by Governor 6/4/02. Chap. 335, Laws 2002.