Bill Summary – FastDemocracy

General Assembly                      Raised Bill No. 1082
      January Session, 2021                 LCO No. 5568
     Referred to Committee on APPROPRIATIONS
     Introduced by:
       (APP)
 AN ACT CONCERNING A RETIRED TEACHER ADVISORY COUNCIL,
 THE MEMBERSHIP OF AND TERM LIMITS FOR THE TEACHERS'
 RETIREMENT BOARD, A CAP ON CERTAIN PROFESSIONAL FEES
 PAID BY THE BOARD, AND MEDICARE SUPPLEMENTAL PLANS
 FOR RETIRED TEACHERS.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
      Section 1. (NEW) (Effective July 1, 2021) (a) There is established a
   Retired Teacher Advisory Council, which shall provide the Teachers'
   Retirement Board with input on all matters under the purview of the
   board that pertain to retired teachers. The advisory council shall include
   the following members, each appointed by the organization such
   member represents: (1) Two representing the Association of Retired
   Teachers of Connecticut; (2) two representing the CEA-Retired; (3) two
   representing the AFT-Retired; (4) two representing the Retired Teachers'
   Healthcare Advocates; and (5) one nonvoting member representing the
   Teachers' Retirement Board, who shall be a staff member of the board
   and who shall serve as the advisory council's liaison to the board. Each
   voting member shall be a retired teacher who is enrolled in a health
   benefit plan offered by the board. The advisory council shall elect a
   chairperson and secretary from among its members.
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    (b) The advisory council shall meet in advance of each meeting of the
 board and provide written recommendations to the board through the
 liaison to the board. A representative of such council shall be allowed to
 speak during the public comment portion of any meeting of the board.
    (c) The board shall provide the following to the advisory council: (1)
 Materials related to health benefit plans offered by the board, including,
 but not limited to, advance copies of open enrollment materials,
 documents related to coverages and evaluations that are used for the
 development of requests for proposals, evaluations of health benefit
 plans and financial reports of the board; (2) materials related to
 communication channels and practices between the board and retired
 members; (3) copies of any legislative proposals submitted by the board
 that might affect retired members or the retirement benefits of future
 retired members; and (4) any other materials or information that the
 board believes may benefit from review by the advisory council.
    Sec. 2. Subsection (a) of section 10-183l of the general statutes is
 repealed and the following is substituted in lieu thereof (Effective from
 passage):
    (a) (1) On and after July 1, 1991, the management of the system shall
 continue to be vested in the Teachers' Retirement Board, whose
 members shall include the Treasurer, the Secretary of the Office of Policy
 and Management and the Commissioner of Education, or their
 designees, who shall be voting members of the board, ex officio. (2) On
 or before June 15, 1985, and quadrennially thereafter, the members of
 the system shall elect from their number, in a manner prescribed by said
 board, two persons to serve as members of said board for terms of four
 years beginning July first following such election. Both of such persons
 shall be active teachers who shall be nominated by the members of the
 system who are not retired and elected by all the members of the system.
 On or before July 1, 1991, and quadrennially thereafter, the members of
 the system shall elect from their number, in a manner prescribed by said
 board, three persons to serve as members of said board for terms of four
 years beginning July first following such election. Two of such persons
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 shall be retired teachers who shall be nominated by the retired members
 of the system and elected by all the members of the system and one shall
 be an active teacher who shall be nominated by the members of the
 system who are not retired and elected by all the members of the system.
 (3) On or before July 1, 2011, and quadrennially thereafter, the members
 of the system shall elect from their number, in a manner prescribed by
 said board, one person to serve as a member of said board for a term of
 four years beginning July first following such election. Such person shall
 be an active teacher who shall be nominated by the members of the
 system who are not retired, elected by all the members of the system
 and a member of an exclusive representative of a teachers' bargaining
 unit that is not represented by the members of the board elected under
 subdivision (2) of this subsection. (4) On or before July 1, 2021, and
 quadrennially thereafter, the members of the system shall elect from
 their number, in a manner prescribed by said board, one person to serve
 as a member of said board for a term of four years beginning July first
 following such election. Such person shall be a retired teacher who is
 (A) a member of an organization composed exclusively of retired
 teachers that is not otherwise represented on the board, and (B) an
 enrollee of a health benefit plan offered by the board. Such person shall
 be nominated and elected by the retired members of the system. (5) If a
 vacancy occurs in the positions filled by the members of the system who
 are not retired, said board shall elect a member of the system who is not
 retired to fill the unexpired portion of the term. If a vacancy occurs in
 the positions filled by the retired members of the system, said board
 shall elect a retired member of the system to fill the unexpired portion
 of the term. The Governor shall appoint five public members to said
 board in accordance with the provisions of section 4-9a, one of whom
 shall be the mayor, first selectman or chief elected official of a
 municipality. On and after the effective date of this section, the
 Governor shall fill the next vacant position on the board that is
 appointed by the Governor with a person who is the mayor, first
 selectman or chief elected official of a municipality. The members of the
 board shall serve without compensation, but shall be reimbursed for any
 expenditures or loss of salary or wages which they incur through service
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 on the board. No elected member of the board shall serve for more than
 twelve years, whether consecutively or nonconsecutively, except if a
 member completes a twelfth year during a term, such member may
 complete such term. All decisions of the board shall require the approval
 of six members of the board or a majority of the members who are
 present, whichever is greater.
    Sec. 3. Section 10-183t of the general statutes is repealed and the
 following is substituted in lieu thereof (Effective July 1, 2021):
    (a) The [retirement] board shall offer one or more health benefit plans
 to: Any member receiving retirement benefits or a disability allowance
 from the system; the spouse or surviving spouse of such member, and a
 disabled dependent of such member if there is no spouse or surviving
 spouse, provided such member, spouse, surviving spouse, or disabled
 dependent is participating in Medicare Part A hospital insurance and
 Medicare Part B medical insurance. The board may offer one or more
 basic plans, the cost of which to any such member, spouse, surviving
 spouse or disabled dependent shall be one-third of the basic plan's
 premium equivalent, and one or more optional plans, provided such
 member, spouse, surviving spouse or disabled dependent shall pay one-
 third of the basic plan's premium equivalent plus the difference in cost
 between any such basic plans and any such optional plans. The board
 shall designate those plans which are basic and those plans which are
 optional for the purpose of determining such cost and the amount to be
 charged or withheld from benefit payments for such plans. In addition
 to any such basic and optional plans, the board shall offer a Medicare
 supplemental plan, which shall provide coverage substantially equal to
 or better than such basic and optional plans and include coverage
 consistent with all state insurance mandates. The surviving spouse of a
 member, or a disabled dependent of a member if there is no surviving
 spouse, shall not be ineligible for participation in any such plan solely
 because such surviving spouse or disabled dependent is not receiving
 benefits from the system. With respect to any person participating in
 any such plan, the state shall appropriate to the board one-third of the
 cost of such basic plan or plans, or one-third of the cost of the rate in
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 effect during the fiscal year ending June 30, 1998, whichever is greater.
 On and after July 1, 2012, federal reimbursements received by the
 [retirement] board under the retiree drug subsidy provisions of
 Medicare Part D shall be used to offset amounts appropriated by the
 state to the board pursuant to this subsection.
    (b) Any member who is receiving retirement benefits or a disability
 allowance from the system, the spouse or surviving spouse of such
 member, or a disabled dependent of such member if there is no spouse
 or surviving spouse, and who is not participating in Medicare Part A
 hospital insurance and Medicare Part B medical insurance, may fully
 participate in any or all group health insurance plans maintained for
 active teachers by such member's last employing board of education, or
 by the state in the case of a member who was employed by the state,
 upon payment to such board of education or to the state, as applicable,
 by such member, spouse, surviving spouse or disabled dependent, of
 the premium charged for his form of coverage. Such premium shall be
 no greater than that charged for the same form of coverage for active
 teachers. The spouse, surviving spouse or disabled dependent shall not
 be ineligible for participation in any such plan solely because such
 spouse, surviving spouse or disabled dependent is not receiving
 benefits from the system. No person shall be ineligible for participation
 in such plans for failure to enroll in such plans at the time the member's
 retirement benefit or disability allowance became effective. Nothing in
 this subsection shall be construed to impair or alter the provisions of any
 collective bargaining agreement relating to the payment by a board of
 education of group health insurance premiums on behalf of any
 member receiving benefits from the system. Prior to the cancellation of
 coverage for any member, spouse, surviving spouse or disabled
 dependent for failure to pay the required premiums or cost due, the
 board of education or the state, if applicable, shall notify the Teachers'
 Retirement Board of its intention to cancel such coverage at least thirty
 days prior to the date of cancellation. Absent any contractual provisions
 to the contrary, the payments made pursuant to subsection (c) of this
 section shall be first applied to any cost borne by the member, spouse,
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 surviving spouse or disabled dependent participating in any such plan.
 As used in this subsection, "last employing board of education" means
 the board of education by which such member was employed when
 such member filed his initial application for retirement, and "health
 insurance plans" means hospital, medical, major medical, dental,
 prescription drug or auditory benefit plans that are available to active
 teachers.
    (c) (1) On and after July 1, 2000, the board shall pay a subsidy equal
 to the subsidy paid in the fiscal year ending June 30, 2000, to the board
 of education or to the state, if applicable, on behalf of any member who
 is receiving retirement benefits or a disability allowance from the
 system, the spouse of such member, the surviving spouse of such
 member, or a disabled dependent of such member if there is no spouse
 or surviving spouse, who is participating in a health insurance plan
 maintained by a board of education or by the state, if applicable. Such
 payment shall not exceed the actual cost of such insurance.
    (2) With respect to any person participating in any such plan
 pursuant to subsection (b) of this section, the state shall appropriate to
 the board one-third of the cost of the subsidy, except that, for the fiscal
 year ending June 30, 2013, the state shall appropriate twenty-five per
 cent of the cost of the subsidy. On and after July 1, 2018, for the fiscal
 year ending June 30, 2019, and for each fiscal year thereafter, fifty per
 cent of the total amount appropriated by the state in each such fiscal
 year for the state's share of the cost of such subsidies shall be paid to the
 board on or before July first of such fiscal year, and the remaining fifty
 per cent of such total amount shall be paid to the board on or before
 December first of such fiscal year.
    (3) No payment to a board of education pursuant to this subsection
 may be used to reduce the amount of any premium payment on behalf
 of any such member, spouse, surviving spouse, or disabled dependent,
 made by such board pursuant to any agreement in effect on July 1, 1990.
 On and after July 1, 2012, the board shall pay a subsidy of two hundred
 twenty dollars per month on behalf of the member, spouse or the
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 surviving spouse of such member who: (A) Has attained the normal
 retirement age to participate in Medicare, (B) is not eligible for Medicare
 Part A without cost, and (C) contributes at least two hundred twenty
 dollars per month towards his or her medical and prescription drug
 plan provided by the board of education.
    (d) The Treasurer shall establish a separate retired teachers' health
 insurance premium account within the Teachers' Retirement Fund.
 Commencing July 1, 1989, and annually thereafter all health benefit plan
 contributions withheld under this chapter in excess of five hundred
 thousand dollars shall, upon deposit in the Teachers' Retirement Fund,
 be credited to such account. Interest derived from the investment of
 funds in the account shall be credited to the account. Funds in the
 account shall be used for (1) payments to boards of education pursuant
 to subsection (c) of this section and for payment of premiums on behalf
 of members, spouses of members, surviving spouses of members or
 disabled dependents of members participating in one or more health
 insurance plans pursuant to subsection (a) of this section in an amount
 equal to the difference between the amount paid pursuant to subsection
 (a) of this section and the amount paid pursuant to subsection (c) of this
 section, and (2) payments of not more than one hundred fifty thousand
 dollars in any fiscal year for [professional] health care consultation fees
 associated with the administration of the health benefit plans offered
 pursuant to this section. Not later than August first, annually, the
 Teachers' Retirement Board shall report to all members in written form,
 and also in electronic form to each member for whom the board has an
 electronic mail address on file, a detailed accounting of payments made
 for professional fees during the previous fiscal year. If, during any fiscal
 year, there are insufficient funds in the account for the purposes of all
 such payments, the General Assembly shall appropriate sufficient funds
 to the account for such purpose.
       This act shall take effect as follows and shall amend the following
       sections:
       Section 1     July 1, 2021                 New section
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 Sec. 2              from passage                           10-183l(a)
 Sec. 3              July 1, 2021                           10-183t
Statement of Purpose:
To (1) establish a Retired Teacher Advisory Council for the Teachers'
Retirement Board; (2) require that an additional retired teacher be added
to the board's membership; (3) institute term limits for board members;
(4) cap the amount of certain professional fees paid by the board; and
(5) require that the board offer a Medicare supplemental plan to retired
teachers.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
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