07 LC
14 9702S
The
Senate Appropriations Committee offered the following substitute to SB
172:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend provisions of the Official Code of Georgia Annotated relating to public
employee health care; to amend Subparts 1 and 2 of Part 6 of Article 17 of
Chapter 2 of Title 20 and Article 1 of Chapter 18 of Title 45 of the Official
Code of Georgia Annotated, relating to health insurance plans for teachers,
public school employees, and employees of the state, respectively, so as to
amend provisions relating to the health insurance funds; to provide for employer
and retiree contributions to the Georgia Retiree Health Benefit Fund; to amend
Article 6 of Chapter 18 of Title 45 of the Official Code of Georgia Annotated,
relating to the Georgia Retiree Health Benefit Fund, so as to affirm its trust
characteristics; to amend definitions; to provide powers and duties of the
board, department, and commissioner of community health; to clarify purposes of
the reserve; to provide for related matters; to provide an effective date; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Subpart
1 of Part 6 of Article 17 of Chapter 2 of Title 20 of the Official Code of
Georgia Annotated, relating to health insurance plans for teachers, is amended
by adding a new Code Section 20-2-898 to read as follows:
"20-2-898.
Notwithstanding
any other provisions of this subpart, the board shall deposit into the Georgia
Retiree Health Benefit Fund created by Code Section 45-18-101 the individual
contributions by retirees and the employer contributions respecting retirees
provided for by this subpart."
SECTION
2.
Said
Subpart 2 of Part 6 of Article 17 of Chapter 2 of Title 20 is further amended by
adding a new Code Section 20-2-926 to read as follows:
"20-2-926.
Notwithstanding
any other provisions of this subpart, the board shall deposit into the Georgia
Retiree Health Benefit Fund created by Code Section 45-18-101 the individual
contributions by retirees and the employer contributions respecting retirees
provided for by this subpart."
SECTION
3.
Article
1 of Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating
to the health insurance fund for public employees, is amended adding to a new
Code Section 45-18-21 to read as follows:
"45-18-21.
Notwithstanding
any other provisions of this article, the board shall deposit into the Georgia
Retiree Health Benefit Fund created by Code Section 45-18-101 the individual
contributions by retirees and the employer contributions respecting retirees
provided for by this article."
SECTION
4.
Article
6 of Chapter 18 of Title 45 of the Official Code of Georgia Annotated, relating
to the Georgia Retiree Health Benefit Fund, is amended by inserting a new
paragraph (9.1) in Code Section 45-18-100, relating to definitions, to read as
follows:
"(9.1)
'Commissioner' means the commissioner of community health."
SECTION
5.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising paragraph
(10) of Code Section 45-18-100, relating to definitions, as follows:
"(10)
'Covered health care expenses' means all actual health care expenses
paid
incurred
by the health plan
on behalf
of
with respect
to fund beneficiaries. Actual health care
expenses include claims
payments
incurred with
respect to
fund
beneficiaries and providers and premiums
paid
incurred with
respect to intermediary entities and
health care providers by the health plan."
SECTION
6.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising paragraph
(15) of Code Section 45-18-100, relating to definitions, as
follows:
"(15)
'Fund beneficiaries' means all persons receiving post-employment health care
benefits as
retirees or derivatively through retirees
through the health plan."
SECTION
7.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising Code Section
45-18-101, providing for the Georgia Retiree Health Benefit Fund, as
follows:
"45-18-101.
(a)
There is created the Georgia Retiree Health Benefit Fund to provide for the
employer
costs of retiree post-employment health insurance benefits.
The fund shall
be a trust fund of public funds; the board in its official capacity shall be the
fund´s trustee; and the commissioner in his or her official capacity shall
be its administrator.
(b)
The fund shall be available
and
dedicated without fiscal year limitations
for covered health care expenses and administration costs. All employer
and
retiree contributions, appropriations,
earnings, and reserves for the payment of obligations under this article shall
be
irrevocably
credited to such fund. The amounts remaining in such fund, if any, after such
health care expenses and administration costs have been paid shall be retained
in such fund as a special reserve for
adverse
fluctuation
covered health
care expenses and administration costs. The board shall determine the time and
amounts of distributions from the special reserve for covered health care
expenses and administration costs. All
assets of the fund
excluding
amounts identified in subsection (c) of this Code
section shall be used solely for the
payment of fund obligations and for no other purpose
and shall be
protected from creditors of the state and the
employers.
(c)
Any amount in the fund over actuarial liability for the costs of retiree
post-employment health insurance benefits is available for
appropriation."
SECTION
8.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising Code Section
45-18-102, relating to the responsibilities, duties, and powers of the
department, board, and commissioner of community health with regard to the
Georgia Retiree Health Benefit Fund, as follows:
"45-18-102.
(a)
Responsibility for the proper operation of the fund is vested in the
department.
(b)
The board shall adopt actuarial assumptions as it deems necessary and
prudent.
(c)
Reserved.
The board
shall determine the minimum annual required contribution rates sufficient to
maintain the fund in accordance with the state plan for other post-employment
benefits.
(d)
The board may adopt any rules and regulations that it finds necessary to
properly administer the fund.
(e)
The
department shall furnish reports to the board at each of the board´s
regularly scheduled meetings for the board´s review. The reports shall
contain the most recent information reasonably available to the department
reflecting the obligations of the fund, earnings on investments, and such other
information as the board deems necessary and
appropriate.
The board
shall adopt rules and regulations to account for employer contributions and
other assets separately and by each pension plan separately.
(f)
The commissioner
of
community health, as executive officer of
the board, shall employ such personnel as may be needed to carry out the
provisions of this article and such personnel shall be employees of the
Department of Community Health. The pro rata share of the costs of operating the
Department of Community Health in the manner prescribed by law shall be a part
of the administrative costs of the fund.
(g)
The department may employ or contract for the services of actuaries and other
professionals as required to carry out the duties established by this
article.
(h)
The department shall contract with the Division of Investment Services of the
Teachers Retirement System of Georgia and the Employees´ Retirement System
of Georgia for any necessary services with respect to fund
investments.
(i)
The department shall maintain all necessary records regarding the fund in
accordance with generally accepted accounting principles, as applicable to the
fund.
(j)
The department shall collect all moneys due to the fund and shall pay any
administrative expenses necessary and appropriate for the operation of the fund
from the fund.
(k)
The department shall prepare an annual report of fund activities
for the board,
the House Appropriations Committee, and the Senate Appropriations
Committee. Such reports shall include, but
not be limited to, audited financial statements.
The reports
shall contain the most recent information reasonably available to the department
reflecting the obligations of the fund, earnings on investments, and such other
information as the board deems necessary and appropriate. This report is due
September 30 and shall reflect activity on a state fiscal year
basis.
(l)
Notwithstanding any other provision of law to the contrary, the department shall
be entitled to any information that it deems necessary and appropriate from a
retirement system in order that the provisions of Code Section 45-18-103 may be
carried out."
SECTION
9.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising Code Section
45-18-104, relating to the control, investment, and regulation of conflicts of
interest of board members with regard to the Georgia Retiree Health Benefit
Fund, as follows:
"45-18-104
(a)
Subject to the
supervision of the board, the commissioner
The
department shall have control over the
fund established by this chapter. The obligations provided for in this chapter
and all administrative expenses shall be paid from the fund. The department may
expend moneys from the fund for any purpose authorized by this
chapter.
(b)
Subject to the
supervision of the board, the commissioner
The
department shall have full power to invest
and reinvest its assets, subject to all of the terms, conditions, limitations,
and restrictions imposed by Article 7 of Chapter 20 of Title 47, the 'Public
Retirement Systems Investment Authority Law.' Subject to such terms,
conditions, limitations, and restrictions, the
department
commissioner
shall have full power to hold, purchase, sell, assign, transfer, and dispose of
any securities and investments in which any of the moneys are invested,
including the proceeds of any investments and other moneys belonging to the
fund.
(c)
Except as otherwise provided in this chapter, no member of the board or employee
of the department shall have any personal interest in the gains or profits from
any investment made by the board or use the assets of the fund in any manner,
directly or indirectly, except to make such payments as may be authorized by the
board or by the commissioner
of
community health as the executive officer
of the board in accordance with this article."
SECTION
10.
Said
Article 6 of Chapter 18 of Title 45 is further amended by revising Code Section
45-18-105, relating to the determination of annual required contributions and
annual employer contribution rates with regard to the Georgia Retiree Health
Benefit Fund, as follows:
"45-18-105.
(a)
The board shall annually determine the minimum annual required contributions
sufficient to maintain the fund in an actuarially sound manner in accordance
with Governmental Accounting Standards Board Statement No. 43, or any subsequent
Governmental Accounting Standards Board statements that may be applicable to the
fund.
(b)
The
In addition to
the employer contributions required to be made to the fund for the health plan
as determined from fiscal year to fiscal year under Part 6 of Article 17 of
Chapter 2 of Title 20 and under Article 1 of this chapter,
the board may annually establish employer
contribution rates in accordance with the state plan for other post-employment
benefits.
(c)
It shall be the responsibility of state agencies to make contributions to the
fund, subject to appropriations, in accordance with the employer contribution
rate established by the board.
(c)(d)
It shall be the responsibility of
all
other employers to make contributions to
the fund in accordance with the employer contribution rates established by the
board in
addition to the employer contributions required to be made to the fund for the
health plan as determined from fiscal year to fiscal year under Part 6 of
Article 17 of Chapter 2 of Title 20 and Article 1 of this
chapter."
SECTION
11.
This
Act shall become effective July 1, 2007.
SECTION
12.
All
laws and parts of laws in conflict with this Act are repealed.