PRINTER'S NO. 1237

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1075 Session of 1985


        INTRODUCED BY COWELL, COHEN, MILLER, FISCHER, KOSINSKI, DALEY,
           HALUSKA, BELFANTI, RYBAK, MICHLOVIC, CALTAGIRONE, MARKOSEK,
           TRELLO, SEMMEL, FOX, AFFLERBACH, TIGUE, PETRONE, WOGAN,
           PRATT, OLIVER, REBER, DeLUCA, GEIST, PRESTON, PISTELLA,
           PETRARCA, TELEK, PERZEL, WIGGINS, OLASZ AND E. Z. TAYLOR,
           APRIL 30, 1985

        REFERRED TO COMMITTEE ON INSURANCE, APRIL 30, 1985

                                     AN ACT

     1  Amending Title 24 (Education) of the Pennsylvania Consolidated
     2     Statutes, adding provisions relating to medical insurance.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5     Section 1.  Title 24 of the Pennsylvania Consolidated
     6  Statutes is amended by adding a section to read:
     7  § 8313.  Eligibility for medical insurance contributions.
     8     An annuitant shall be eligible to receive contributions by
     9  the Commonwealth toward payment of medical, major medical and
    10  hospitalization insurance coverage in accordance with section
    11  8350 (relating to medical insurance contributions) if the
    12  annuitant:
    13         (1)  has attained age 65 and has five or more years of
    14     credited service;
    15         (2)  has 25 or more years of credited service; or
    16         (3)  is a disability annuitant.

     1     Section 2.  Section 8326 of Title 24 is amended by adding a
     2  subsection to read:
     3  § 8326.  Contributions by the Commonwealth.
     4     * * *
     5     (c)  Contributions for medical insurance coverage.--The
     6  Commonwealth shall make contributions to the fund on behalf of
     7  all annuitants eligible to receive medical insurance
     8  contributions in accordance with section 8313 (relating to
     9  eligibility for medical insurance contributions) in an amount
    10  certified by the board as necessary to fund the additional
    11  liabilities for payments as provided in section 8350 (relating
    12  to medical insurance contributions).
    13     Section 3.  Title 24 is amended by adding a section to read:
    14  § 8350.  Medical insurance contributions.
    15     An annuitant eligible to receive a contribution toward
    16  payment of medical, major medical and hospitalization insurance
    17  under section 8313 (relating to eligibility for medical
    18  insurance contributions) shall receive a $30 a month increase in
    19  his annuity paid by the Commonwealth as a contribution toward
    20  the cost of medical insurance.
    21     Section 4.  Section 8505(i) of Title 24 is amended to read:
    22  § 8505.  Duties of board regarding applications and elections of
    23             members.
    24     * * *
    25     (i)  Medical insurance coverage.--Upon receipt of
    26  notification from an insurance carrier approved by the board
    27  that an annuitant who has attained age 65 has elected medical,
    28  major medical, and hospitalization insurance coverage, the board
    29  shall deduct [from the annuity payments] the appropriate annual
    30  charges in equal monthly installments from the annuity payments
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     1  and any additional Commonwealth contributions for medical
     2  insurance coverage on behalf of the annuitant. Such deductions
     3  shall be transmitted to the insurance carrier.
     4     * * *
     5     Section 5.  The sum of $25,200,000, or as much thereof as may
     6  be necessary, is hereby appropriated from the General Fund into
     7  the Public School Employees' Retirement Fund to carry out the
     8  purposes of this act.
     9     Section 6.  This act shall take effect July 1, 1985, or
    10  immediately, whichever is later.














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