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HB 5: "An Act relating to major medical insurance coverage under the Public Employees' Retirement System of Alaska for certain surviving spouses and dependent children of peace officers and firefighters; and providing for an effective date."

00                              HOUSE BILL NO. 5                                                                           
01 "An Act relating to major medical insurance coverage under the Public Employees'                                        
02 Retirement System of Alaska for certain surviving spouses and dependent children of                                     
03 peace officers and firefighters; and providing for an effective date."                                                  
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 39.30.400(b) is amended to read:                                                                   
06            (b)  Upon application of an eligible person, the administrator shall reimburse to                            
07       the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d).                           
08       Reimbursement is limited to the medical expenses of                                                               
09                 (1)  an eligible member, the spouse of an eligible member, and the                                      
10       dependent children of an eligible member; [OR]                                                                    
11                 (2)  a surviving spouse and the dependent children of an eligible                                       
12       member dependent on the surviving spouse; or                                                                  
13                 (3)  an eligible member's dependent children if the member dies                                     
14       and there is no surviving spouse.                                                                             
01    * Sec. 2. AS 39.35.535(a) is amended to read:                                                                      
02            (a)  Except as provided in (d) of this section, the following persons are entitled                           
03       to major medical insurance coverage under this section:                                                           
04                 (1)  for employees first hired before July 1, 1986,                                                     
05                      (A)  an employee who is receiving a monthly benefit from the                                       
06            plan and who has elected coverage;                                                                           
07                      (B)  the spouse and dependent children of the employee                                             
08            described in (A) of this paragraph;                                                                          
09                      (C)  the surviving spouse of a deceased employee who is                                            
10            receiving a monthly benefit from the plan and who has elected coverage;                                      
11 (D)  the dependent children of a deceased employee who are                                                              
12            dependent on the surviving spouse described in (C) of this paragraph;                                        
13                 (2)  for members first hired on or after July 1, 1986,                                                  
14 (A)  an employee who is receiving a monthly benefit from the                                                            
15            plan and who has elected coverage for the employee;                                                          
16 (B)  the spouse of the employee described in (A) of this                                                                
17            paragraph if the employee elected coverage for the spouse;                                                   
18 (C)  the dependent children of the employee described in (A) of                                                         
19            this paragraph if the employee elected coverage for the dependent children;                                  
20 (D)  the surviving spouse of a deceased employee who is                                                                 
21            receiving a monthly benefit from the plan and who has elected coverage;                                      
22 (E)  the dependent children of a deceased employee who are                                                              
23 dependent on the surviving spouse described in (D) of this paragraph if the                                             
24            surviving spouse has elected coverage for the dependent children;                                        
25                 (3)  for deceased members who were peace officers or firefighters,                                  
26 (A)  the dependent children of the deceased member who                                                              
27 are eligible to receive a pension benefit under AS 39.35.430 and for whom                                           
28            coverage has been elected;                                                                               
29 (B)  the surviving spouse of the deceased member who has                                                            
30 elected coverage and is eligible to receive a pension benefit under                                                 
31            AS 39.35.430.                                                                                            
01    * Sec. 3. AS 39.35.535(c) is amended to read:                                                                      
02            (c)  A benefit recipient may elect major medical insurance coverage in                                       
03       accordance with regulations and under the following conditions:                                                   
04                 (1)  a person, other than a disabled member or a disabled member who                                    
05       is appointed to normal retirement, must pay an amount equal to the full monthly group                             
06       premium for retiree major medical insurance coverage if the person is                                             
07                      (A)  younger than 60 years of age and has less than                                                
08                           (i)  25 years of credited service as a peace officer under                                    
09                 AS 39.35.360 and 39.35.370; or                                                                          
10 (ii)  30 years of credited service under AS 39.35.360 and                                                               
11                 39.35.370 that is not service as a peace officer; or                                                    
12                      (B)  of any age and has less than 10 years of credited service;                                    
13 (2)  a person is not required to make premium payments for retiree                                                      
14       major medical coverage if the person                                                                              
15                      (A)  is a disabled member;                                                                         
16 (B)  is a disabled member who is appointed to normal                                                                    
17            retirement;                                                                                                  
18 (C)  is 60 years of age or older and has at least 10 years of                                                           
19            credited service; [OR]                                                                                       
20                      (D)  has at least                                                                                  
21 (i)  25 years of credited service as a peace officer under                                                              
22                 AS 39.35.360 and 39.35.370; or                                                                          
23 (ii)  30 years of credited service under AS 39.35.360 and                                                               
24                 39.35.370 not as a peace officer; or                                                                
25                      (E)  is receiving a benefit under (a)(3) of this section.                                      
26    * Sec. 4. AS 39.35.870(c) is repealed and reenacted to read:                                                       
27 (c)  The following persons are eligible to elect medical benefits under                                                 
28       AS 39.35.880:                                                                                                     
29                 (1)  a member who is eligible for retirement under (a) of this section;                                 
30 (2)  a member's surviving spouse if the member had retired or was                                                       
31       eligible for retirement and medical benefits at the time of the member's death;                                   
01                 (3)  a deceased member's surviving spouse, if the deceased member                                       
02       was a peace officer or firefighter, the deceased member's surviving spouse is eligible                            
03       to receive a benefit under AS 39.35.892; and                                                                      
04                 (4)  a deceased member's dependent children if the deceased member                                      
05       was a peace officer or firefighter and the deceased member's surviving spouse or                                  
06       dependent children are eligible to receive a benefit under AS 39.35.892.                                          
07    * Sec. 5. AS 39.35.870(d) is amended to read:                                                                      
08            (d)  A person [MEMBERS] shall apply for retirement and medical benefits on                               
09       the forms and in the manner prescribed by the administrator.                                                      
10    * Sec. 6. AS 39.35.870(g) is repealed and reenacted to read:                                                       
11 (g)  If an eligible person elects not to participate in the retiree major medical                                       
12 insurance plan, the election becomes irrevocable upon application for retirement and                                    
13       medical benefits or when the person reaches 70 1/2 years of age, whichever is later.                              
14    * Sec. 7. AS 39.35.870 is amended by adding a new subsection to read:                                              
15 (h)  Notwithstanding cessation of benefits under AS 39.35.892(b), medical                                               
16 benefits for a survivor under (c)(3) and (4) of this section shall be paid until the last                               
17       day of the month in which there is no surviving spouse and no dependent child.                                    
18    * Sec. 8. AS 39.35.880(b) is repealed and reenacted to read:                                                       
19 (b)  Retiree major medical insurance plan coverage elected by a person who is                                           
20       eligible under AS 39.35.870(c) covers                                                                             
21 (1)  the member, the spouse of the eligible member, and the dependent                                                   
22       children of the eligible member if the member is the elector;                                                     
23 (2)  the surviving spouse and the dependent children of the eligible                                                    
24 member who are dependent on the surviving spouse if the surviving spouse is the                                         
25       elector;                                                                                                          
26 (3)  the dependent child if the dependent child, or a person authorized                                                 
27       to act on behalf of the dependent child, is the elector.                                                          
28    * Sec. 9. AS 39.35.880(d) is amended to read:                                                                      
29 (d)  Major medical insurance coverage takes effect on the first day of the                                              
30 month following the date of the administrator's approval of the election and stops                                      
31 when the person who elects coverage is no longer eligible to receive coverage                                       
01       [DIES] or fails to make a required premium payment.                                                               
02    * Sec. 10. AS 39.35.880(g) is amended to read:                                                                     
03            (g)  The cost of premiums for retiree major medical insurance coverage for an                                
04       eligible person [MEMBER OR SURVIVING SPOUSE] who is                                                           
05                 (1)  not eligible for Medicare is an amount equal to the full monthly                                   
06       group premiums for retiree major medical insurance coverage;                                                      
07                 (2)  eligible for Medicare is the following percentage of the premium                                   
08       amounts established for retirees who are eligible for Medicare:                                                   
09                      (A)  30 percent if the member had 10 or more, but less than 15,                                    
10            years of service;                                                                                            
11 (B)  25 percent if the member had 15 or more, but less than 20,                                                         
12            years of service;                                                                                            
13 (C)  20 percent if the member had 20 or more, but less than 25,                                                         
14            years of service;                                                                                            
15 (D)  15 percent if the member had 25 or more, but less than 30,                                                         
16            years of service;                                                                                            
17                      (E)  10 percent if the member had 30 or more years of service.                                     
18    * Sec. 11. AS 39.35.880 is amended by adding a new subsection to read:                                             
19 (l)  Notwithstanding (g) of this section, a person who is eligible for major                                            
20 medical insurance coverage under AS 39.35.870(c)(3) or (4) is not required to pay                                       
21       premiums under (g)(1) of this section.                                                                            
22    * Sec. 12. AS 39.35.894 is amended to read:                                                                        
23 Sec. 39.35.894. Premiums for retiree major medical insurance coverage                                                 
24 upon termination of disability benefits or survivor's pension. The premium for                                        
25 retiree major medical insurance coverage payable by an employee whose disability                                        
26 benefit is terminated under AS 39.35.890(g) or by an eligible survivor whose survivor                                   
27 pension is terminated under AS 39.35.890(k) [OR 39.35.892(e)] when the employee                                         
28 would have been eligible for normal retirement if the employee had survived shall be                                    
29 determined under AS 39.35.880(g)(2) as if the employee or survivor were eligible for                                    
30       Medicare.                                                                                                         
31    * Sec. 13. AS 39.35.880(c) is repealed.                                                                            
01    * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03 TRANSITION: REGULATIONS. (a) The Department of Administration may adopt                                                 
04 regulations necessary to implement this Act. Regulations adopted by the Department of                                   
05 Administration under this Act relate to the internal management of a state agency and are not                           
06 subject to AS 44.62 (Administrative Procedure Act) under AS 39.30.160 and AS 39.35.005.                                 
07       (b)  Regulations adopted under this section may not take effect before the effective                              
08 date of the law being implemented by the regulation.                                                                    
09    * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to                         
10 read:                                                                                                                   
11       RETROACTIVITY. Sections 1 - 13 of this Act are retroactive to January 1, 2013.                                    
12    * Sec. 16. Section 14 of this Act takes effect immediately under AS 01.10.070(c).                                  
13    * Sec. 17. Except as provided in sec. 16 of this Act, this Act takes effect January 1, 2018.