COMMITTEE SUBSTITUTE
FOR
H. B. 3043
(By Delegates White, Campbell, D. Poling and Shook)
(Originating in the Committee on Finance)
[March 26, 2009]
A BILL to amend and reenact §5-16-13 of the Code of West Virginia,
1931, as amended, relating to the prohibition of extended
coverage upon retirement based upon years of service for new
higher education employees beginning July 1, 2009.
Be it enacted by the Legislature of West Virginia:
That §5-16-13 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-13. Payment of costs by employer and employee; spouse and
dependent coverage; involuntary employee termination
coverage; conversion of annual leave and sick leave
authorized for health or retirement benefits;
authorization for retiree participation; continuation
of health insurance for surviving dependents of
deceased employees; requirement of new health plan,
limiting employer contribution.
(a)
Cost-sharing.-- The director shall provide under any
contract or contracts entered into under the provisions of this
article that the costs of any group hospital and surgical
insurance, group major medical insurance, group prescription drug
insurance, group life and accidental death insurance benefit plan
or plans shall be paid by the employer and employee.
(b)
Spouse and dependent coverage. -- Each employee is
entitled to have his or her spouse and dependents included in any
group hospital and surgical insurance, group major medical
insurance or group prescription drug insurance coverage to which
the employee is entitled to participate:
Provided, That the spouse
and dependent coverage is limited to excess or secondary coverage
for each spouse and dependent who has primary coverage from any
other source. For purposes of this section, the term "primary
coverage" means individual or group hospital and surgical insurance
coverage or individual or group major medical insurance coverage or
group prescription drug coverage in which the spouse or dependent
is the named insured or certificate holder. For the purposes of
this section, "dependent" means an eligible employee's unmarried
child or stepchild under the age of twenty-five if that child or
stepchild meets the definition of a "qualifying child" or a
"qualifying relative" in section 152 of the Internal Revenue Code.
The director may require proof regarding spouse and dependent
primary coverage and shall adopt rules governing the nature,
discontinuance and resumption of any employee's coverage for his or
her spouse and dependents.
(c)
Continuation after termination. -- If an employee
participating in the plan is terminated from employment
involuntarily or in reduction of work force, the employee's
insurance coverage provided under this article shall continue for
a period of three months at no additional cost to the employee and
the employer shall continue to contribute the employer's share of
plan premiums for the coverage. An employee discharged for
misconduct shall not be eligible for extended benefits under this
section. Coverage may be extended up to the maximum period of
three months, while administrative remedies contesting the charge
of misconduct are pursued. If the discharge for misconduct be
upheld, the full cost of the extended coverage shall be reimbursed
by the employee. If the employee is again employed or recalled to
active employment within twelve months of his or her prior
termination, he or she shall not be considered a new enrollee and
may not be required to again contribute his or her share of the
premium cost, if he or she had already fully contributed such share
during the prior period of employment.
(d)
Conversion of accrued annual and sick leave for extended
insurance coverage upon retirement for employees who elected to
participate in the plan before July, 1988. -- Except as otherwise
provided in subsection (g) of this section, when an employee
participating in the plan, who elected to participate in the plan
before July 1, 1988, is compelled or required by law to retire
before reaching the age of sixty-five, or when a participating
employee voluntarily retires as provided by law, that employee's accrued annual leave and sick leave, if any, shall be credited
toward an extension of the insurance coverage provided by this
article, according to the following formulae: The insurance
coverage for a retired employee shall continue one additional month
for every two days of annual leave or sick leave, or both, which
the employee had accrued as of the effective date of his or her
retirement. For a retired employee, his or her spouse and
dependents, the insurance coverage shall continue one additional
month for every three days of annual leave or sick leave, or both,
which the employee had accrued as of the effective date of his or
her retirement.
(e)
Conversion of accrued annual and sick leave for extended
insurance coverage upon retirement for employees who elected to
participate in the plan after June, 1988. --
Notwithstanding
subsection (d) of this section, and except as otherwise provided in
subsections (g) and (l) of this section when an employee
participating in the plan who elected to participate in the plan on
and after July 1, 1988, is compelled or required by law to retire
before reaching the age of sixty-five, or when the participating
employee voluntarily retires as provided by law, that employee's
annual leave or sick leave, if any, shall be credited toward one
half of the premium cost of the insurance provided by this article,
for periods and scope of coverage determined according to the
following formulae: (1) One additional month of single retiree
coverage for every two days of annual leave or sick leave, or both,
which the employee had accrued as of the effective date of his or her retirement; or (2) one additional month of coverage for a
retiree, his or her spouse and dependents for every three days of
annual leave or sick leave, or both, which the employee had accrued
as of the effective date of his or her retirement. The remaining
premium cost shall be borne by the retired employee if he or she
elects the coverage. For purposes of this subsection, an employee
who has been a participant under spouse or dependent coverage and
who reenters the plan within twelve months after termination of his
or her prior coverage shall be considered to have elected to
participate in the plan as of the date of commencement of the prior
coverage. For purposes of this subsection, an employee shall not
be considered a new employee after returning from extended
authorized leave on or after July 1, 1988.
(f)
Increased retirement benefits for retired employees with
accrued annual and sick leave. -- In the alternative to the
extension of insurance coverage through premium payment provided in
subsections (d) and (e) of this section, the accrued annual leave
and sick leave of an employee participating in the plan may be
applied, on the basis of two days retirement service credit for
each one day of accrued annual and sick leave, toward an increase
in the employee's retirement benefits with those days constituting
additional credited service in computation of the benefits under
any state retirement system. However, the additional credited
service shall not be used in meeting initial eligibility for
retirement criteria, but only as additional service credited in
excess thereof.
"(g)
(1) Conversion of accrued annual and sick leave for
Extended insurance coverage based on years of teaching service
upon retirement for certain higher education employees. -- Except
as otherwise provided in subsection (l) of this section, when an
employee, who is a higher education full-time faculty member
employed on an annual contract basis other than for twelve months,
is compelled or required by law to retire before reaching the age
of sixty-five, or when such a participating employee voluntarily
retires as provided by law, that employee's insurance coverage, as
provided by this article, shall be extended according to the
following formulae: The insurance coverage for a retired higher
education full-time faculty member, formerly employed on an annual
contract basis other than for twelve months, shall continue beyond
the effective date of his or her retirement one additional year for
each three and one-third years of teaching service, as determined
by uniform guidelines established by the University of West
Virginia Board of Trustees and the board of directors of the state
college system, for individual coverage, or one additional year for
each five years of teaching service for "family" coverage.
(2) Prohibition of extended coverage upon retirement based on
years of teaching service for new higher education employees who
elect to participate in the plan beginning July 1, 2009. --
Notwithstanding the provisions of subdivision (1) of this
subsection, any higher education employee hired on or after July 1,
2009, who elects to participate in the plan may not apply accrued years of teaching service toward the cost of premiums for extended
insurance coverage upon his or her retirement.
(h) Any employee who retired prior to April 21, 1972, and who
also otherwise meets the conditions of the "retired employee"
definition in section two of this article, shall be eligible for
insurance coverage under the same terms and provisions of this
article. The retired employee's premium contribution for any such
coverage shall be established by the finance board.
(i)
Retiree participation. -- All retirees under the
provisions of this article, including those defined in section two
of this article; those retiring prior to April 21, 1972; and those
hereafter retiring are eligible to obtain health insurance
coverage. The retired employee's premium contribution for the
coverage shall be established by the finance board.
(j)
Surviving spouse and dependent participation. --
A
surviving spouse and dependents of a deceased employee, who was
either an active or retired employee participating in the plan just
prior to his or her death, are entitled to be included in any group
insurance coverage provided under this article to which the
deceased employee was entitled, and the spouse and dependents shall
bear the premium cost of the insurance coverage. The finance board
shall establish the premium cost of the coverage.
(k) Elected officials. -- In construing the provisions of this
section or any other provisions of this code, the Legislature
declares that it is not now nor has it ever been the Legislature's
intent that elected public officials be provided any sick leave, annual leave or personal leave, and the enactment of this section
is based upon the fact and assumption that no statutory or inherent
authority exists extending sick leave, annual leave or personal
leave to elected public officials and the very nature of those
positions preclude the arising or accumulation of any leave, so as
to be thereafter usable as premium paying credits for which the
officials may claim extended insurance benefits.
(l)
Participation of certain former employees. -- An employee,
eligible for coverage under the provisions of this article who has
twenty years of service with any agency or entity participating in
the public employees insurance program or who has been covered by
the public employees insurance program for twenty years may, upon
leaving employment with a participating agency or entity, continue
to be covered by the program if the employee pays one hundred and
five percent of the cost of retiree coverage:
Provided, That the
employee shall elect to continue coverage under this subsection
within two years of the date the employment with a participating
agency or entity is terminated.
(m)
Prohibition on conversion of accrued annual and sick leave
for extended coverage upon retirement for new employees who elect
to participate in the plan after June, 2001. -- Any employee hired
on or after July 1, 2001, who elects to participate in the plan may
not apply accrued annual or sick leave toward the cost of premiums
for extended insurance coverage upon his or her retirement. This
prohibition does not apply to the conversion of accrued annual or
sick leave for increased retirement benefits, as authorized by this section
: Provided, That any person who has participated in the
plan prior to July 1, 2001, is not a new employee for purposes of
this subsection if he or she becomes reemployed with an employer
participating in the plan within two years following his or her
separation from employment and he or she elects to participate in
the plan upon his or her reemployment.
Email
Webmaster | © 2024 West Virginia Legislature **
