00 HOUSE BILL NO. 23 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.