MS HB1416

Establishes a retirement medical benefits account administered by the Department of Finance and Administration to fund health care expenses for retired state employees, officers, and their spouses and dependents on a pretax basis.

Requires employers to make annual contributions to participant subaccounts based on age: $500 (under 30), $800 (30-39), $1,100 (40-49), and $1,400 (age 50+).

Provides additional one-time lump-sum contributions of $1,000 per year of service for employees with 15+ years or elected/appointed officers with 10+ years of service upon retirement.

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

Takes effect July 1, 2013, contingent on specific legislative appropriation to implement the health reimbursement arrangement.