MS HB385

Establishes a retirement medical benefits account administered by the Department of Finance and Administration for state employees, elected officers, and appointed officers to fund health-related expenses after retirement on a pretax basis.

Requires employers to make annual contributions to participant subaccounts based on age, ranging from $500 for those under 30 to $1,400 for those age 50 and older.

Provides an additional one-time lump sum contribution equal to years of service multiplied by $1,000 for participants with at least 15 years of service (or 10 years for elected/appointed officers) who are eligible for retirement.

Allows retired participants and their spouses and dependents to use subaccount balances to pay health insurance premiums and other health care expenses; surviving spouses and dependents may use amounts the same way.

Requires legislative appropriation to implement the account and mandates annual financial review by the State Auditor; takes effect July 1, 2010.