HB 6066 Summary

• Employees hired on or after January 1, 2012 do not receive state-paid health insurance coverage premiums and instead receive employer matching contributions up to 2% of compensation to tax-deferred accounts.

• Existing employees as of December 31, 2011 may elect between January 3, 2012 and March 2, 2012 to opt out of state health coverage and receive tax-deferred account credits calculated using actuarial formulas based on service years and a $1,000 average monthly premium.

• Former employees with 10+ years of service reemployed between January 1, 2012 and January 1, 2014 have 60 days from rehire to elect the tax-deferred account option instead of state health coverage.

• Terminated employees receive lump-sum health reimbursement account credits ranging from $1,000 to $2,000 depending on age, service years, and employment status, with a $2,000 minimum for those making the election.

• Changes the interest discount rate assumption used in calculating actuarial present value from 8% to 5.4% annually for tax-deferred account contributions.