HB3309 Summary

• Increases employee and retiree contributions to health insurance by reducing state payments from 75% to 46% for Medicare-covered and certain non-Medicare-covered individuals under the Teachers' Retirement System and Community College health benefit programs.

• Creates a new contribution schedule for annuitants, survivors, and retired employees based on benefit points (age plus years of service) and annual pension income, ranging from 5% to 100% employee contribution rates depending on income level.

• Eliminates state health insurance contributions entirely for employees who first become employees on or after the effective date of this act (July 1, 2013).

• Modifies premium rate-setting methodology to include age, years of service, pension income, and insurance program type as factors in determining health insurance costs.

• Effective July 1, 2013, with changes directed to be implemented beginning in State fiscal year 2014.