HB 6033 Summary

• Amends the Public School Employees Retirement Act to establish a medical benefit account within the retirement system's health benefits reserve, effective upon IRS approval.

• Allows eligible members (those who became members before September 4, 2012) to voluntarily contribute to the medical benefit account beginning January 1, 2013, with employer pickup options available.

• Contributions to the medical benefit account are limited to 1/3 of retirement allowance contributions and are maintained in individual subaccounts; medical benefits are paid from these subaccounts until exhausted.

• Provides eligible retirees and their health benefit dependents with postretirement medical benefits including premiums for state health plans, group health plan coverage, and reimbursement for qualified medical expenses from their subaccount balances.

• Allows eligible members to alternatively elect to contribute to a health reimbursement account under the Public Employee Retirement Health Care Funding Act instead of the medical benefit account.