HB6177 Summary

• Deletes defined terms for "New SERS annuitant," "New SURS annuitant," "New TRS State annuitant," and corresponding survivor categories, eliminating the 5% per year of service State contribution formula (capped at 100% with 20+ years of service) that applied to these groups.

• Establishes a new contribution schedule effective immediately upon enactment where annuitants, survivors, and retired employees contribute 5%-100% of health insurance costs based on benefit points (age plus years of service) and annual pension income, ranging from less than $15,000 to $125,000 or more.

• Changes State contribution methodology for health benefits to cover the remaining costs for most existing annuitants and survivors, but provides no State contribution for employees hired after the bill's effective date.

• Modifies TRS and community college benefit recipient health insurance cost-sharing, reducing State contributions from 75% to 60% for Medicare-covered individuals and establishing new contribution tiers for non-Medicare-covered recipients.

• Effective July 1, 2012.