Governor Files Bill to Change Retiree Health Insurance
Governor Patrick has filed a bill (House Bill 59) that could substantially change current state employees' retiree health insurance. The bill is currently in the Public Service Committee. NAGE will be meeting with the House chair of the committee, Aaron Michlewitz, as soon as possible.
We're asking members to call or email their legislators TODAY to urge them to reject this bill, which is based on recommendations made by the "Other (than pension) Post-Employment Benefits" Commission—or OPEB— Commission. (see links below)
To send an email to your state representative and state senator, click here.
To call your legislators, dial the State House switchboard at (617) 722-2000 and ask for your rep or senator by name. (Don't know who your legislators are? Go to www.wheredoivotema.com)
BACKGROUND
On January 11, the "Other (than pension) Post-Employment Benefits" Commission—or OPEB—submitted a report to a special legislative committee outlining recommendations for so-called reforms to state and municpal employees' retiree healthcare.
Gov. Patrick filed a bill (House Bill 59) based on this report. A summary of the changes proposed are below (note that "Future public employee retirees" refers to current employees who have not yet retired):
Years of Service w/Age Requirement
Future public employee retirees shall be required to complete 20 years of service and have reached the age of 60 (Group 1), 55 (Group 2), and 50 (Group 4).
PRO-RATING CONTRIBUTIONS
Future public employee retirees shall receive a health plan employer contribution based on a
pro-rated scale based on completed years of service upon retirement as follows:
| Years of Service | Employer's Share of Premium Contribution |
| 20 | 50% of Premium |
| 23-26 | 50% plus 1/3 of the difference between 50% and MAB* |
| 27-29 | 50% plus 2/3 of the difference between 50% and MAB* |
| 30-plus | 100% of Maximum Available Benefit |
*MAB—Maximum Available Benefit
EXAMPLE
Assume a current state employee is paying 20% of their premium, and the Commonwealth is paying 80% of the premium. (The MAB in this case would be 80%.)
| Years of Service | Employer's Share of Premium Contribution |
| 20 | 50% of Premium (Retiree pays 50%) |
| 23-26 | 60% of Premium (Retiree pays 40%) |
| 27-29 | 70% of Premium (Retiree pays 30%) |
| 30-plus | 80% of Premium (Retiree pays 20%) |
Exempted Employees and Retirees
The following current employees (and all currently retired employees) shall be exempt:
- Any current retired public employee.
- Any employee within 5 years of retirement age, by pension group who has completed 20 years of service.
Group 1-50 or older with 20 years of service
Group 2-45 or older with 20 years of service
Group 4-40 or older with 20 years of service - Any employee who is within 5 years of the current Medicare Eligible age (60) and within twelve months of vesting.
- All Accidental Disabilities
Partially Exempted Employees
The following employees would be partially exempt:
- Any current employee who is age 50 and has completed 15 years of service shall be eligible to receive a 50% premium contribution.
- Any current employee who is age 55 and has completed 10 years of service shall be eligible to receive a 50% premium contribution.
In the event these employees work beyond 20 years of service, pro-rating would prevail upon retirement.
Read a (printable) summary of the OPEB Commission report
Read the full OPEB Commission report
