ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: PSLE DPA/SE 12-0-0-3 | 3rd Read DPA 56-2-2-0

Senate: FIN DPA 6-1-0-0 | 3rd Read DPA 27-1-2-0

Final Pass: 57-0-3-0 | Chapter: 208

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2689: cancer insurance; public safety; retirees

NOW: cancer insurance; retirees; public safety

Sponsor: Representative Livingston, LD 28

Signed by the Governor

Overview

Outlines how to determine premium costs for individuals wanting to continue to receive coverage after retirement from the Public Safety Cancer Insurance Policy Program (Program).

History

Benefits under the Program that are expiring can be continued if specified criteria are met, it is requested to the Board of Trustees of the Public Safety Personnel Retirement System (Board) and the premium determined by the Board is paid. An individual who was receiving benefits from the Program before retirement and was diagnosed with cancer after retirement remains eligible for coverage for the total of either:

1)   five months for each accredited service year under the Public Safety Personnel Retirement System (PSPRS) or the Corrections Officer Retirement Plan; or 

2)   five months for each service year under the Public Safety Personnel Defined Contribution Retirement Plan (A.R.S. § 38-644).

The Program's benefit pays for the costs chosen by the Board gained during cancer treatment, including clinics in and out of the United States. The Board can provide additional coverage or exclusions based on the available monies in the Program account (A.R.S. § 38-645).

Provisions

1.   Specifies that eligible individuals may continue to receive benefits coverage if they pay the Board the cost of the premium paid by each employer. (Sec. 1)

2.   Allows an individual who did not receive covered benefits to continue to receive coverage by paying the premium. (Sec. 1)

3.   Removes the cancer diagnosis requirement for an eligible person to continue to receive coverage under the Program after retirement if specified criteria are met. (Sec. 1)

4.   Requires the Board, when determining the cost of the Program premium, to determine the cost to PSPRS for persons who elect to continue coverage and set an actuarially determined premium to cover the costs. (Sec. 1)

5.   Prohibits the Board from considering the balance, contributions or investment earnings of the Program account that are not associated with eligible individuals when determining the cost of the premium. (Sec. 1)

6.   Requires the annual premium, for a person who elects to continue coverage, to be deducted from their pension payment. (Sec. 1)

7.   Permits a person to discontinue coverage within 180 days after the payment is made. (Sec. 1)

8.   Specifies that a person who wishes to discontinue coverage is no longer eligible for coverage under the Program. (Sec. 1)

9.   Allows by January 1, 2027, individuals eligible for the Program who did not receive covered benefits after retirement to request to continue Program coverage. (Sec. 3)

10.  States that the PRPRS administrators are required to work with the PRPRS advisory committee and the PRPRS actuary to make recommendations to the Board about updates to the Program's documents to comply with changes in legislation. (Sec. 3)

11.  Extends the supplemental benefit plan for public safety employees who are injured while on duty. (Sec. 2)

12.  States that this Act becomes effective on January 1, 2026. (Sec. 4)

13.  Makes technical changes. (Sec. 1)

 

 

 

 

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                        HB 2689

Initials MT     Page 0 Signed by the Governor

 

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