This bill proposes several updates to the current statutes governing the Public Safety Personnel Retirement System's (PSPRS) Cancer Insurance Program (CIP). Specifically, it allows the PSPRS Board to use up to 10 percent of the total claims paid, averaged over the previous five years, for administrative costs, rather than the previously capped amount based on the total monies deposited in the Public Safety CIP Account. Additionally, the bill excludes the costs of processing claims from the administrative cost cap and removes the provision that allowed the Board to use a percentage of the most recent year's deposits if no funds were deposited in a given year. The year-end date for calculating the cap will also be changed from July 31 to June 30.
Furthermore, the bill clarifies that the program's income and coverage are intended to be excluded from gross income for federal tax purposes, and it mandates that employers participating in the program pay the premiums for their employees, including these amounts as wages subject to federal and state taxes. These changes aim to streamline the administration of the CIP and ensure compliance with tax regulations while providing necessary benefits to public safety personnel.
Statutes affected: Introduced Version: 38-643
House Engrossed Version: 38-643
Chaptered Version: 38-643