Bill > H3847

This bill clarifies how healthcare premium contributions are handled for retired public employees who have service with multiple governmental units, meaning different public employers like cities, towns, or state agencies. Specifically, if a retired employee or their beneficiary receives a healthcare premium contribution from one governmental unit, and a portion of that retiree's creditable service (years of service that count towards retirement benefits) is from other governmental units, the initial governmental unit that made the contribution is to be reimbursed by those other governmental units. This reimbursement is for the portion of the premium contributions that corresponds to the percentage of the retiree's creditable service attributable to each of those other governmental units. However, a governmental unit is not required to reimburse if the retiree's creditable service with that unit is ten percent or less of their total creditable service. For calculation purposes, the other governmental units are assumed to contribute 50% of the cost of the retiree's healthcare plan from the prior fiscal year. Retirement boards are tasked with certifying and distributing information about creditable service for retirees with service from multiple governmental units who retired after January 1, 2011, and treasurers of the initial governmental unit can then notify other governmental units of the reimbursement amounts due, which must be paid promptly, or the initial governmental unit can take legal action to recover the funds. This reimbursement process does not apply if the retirement systems involved are the state employees' retirement system or the teachers' retirement system.