The bill amends the State Police Retirement Act of 1986, specifically section 42a, to update provisions regarding health insurance coverage and employer contributions for members who join after June 9, 2012. It stipulates that these members will not receive health insurance coverage premiums from the retirement system; instead, their employers are required to make matching contributions to the Tier 2 plan, initially set at 2% of the member's compensation, which will increase to 4% starting from the effective date of the amendment. Additionally, members can contribute up to 2% of their compensation to their Tier 2 accounts, with the possibility of making further contributions as allowed by the department and the internal revenue code.

The bill also outlines vesting provisions for employer contributions to Tier 2 accounts and specifies that contributions must begin with the first payday after employment and end upon termination. For members with at least 10 years of service at their first termination, the employer is required to provide a $2,000 credit to a health reimbursement account. Furthermore, it addresses the treatment of former members who are reemployed after June 10, 2012, and mandates the retirement system to establish a method for implementing these changes in compliance with relevant agreements and regulations.

Statutes affected:
House Introduced Bill: 38.1642