KRS 21.427: Health insurance and benefits for recipients -- Premium reimbursement

plan -- Coordination with all state-administered retirement systems or plans.

(1) (a) The board of trustees of the Judicial Form Retirement System shall arrange by

appropriate contract or on a self-insured basis for a group hospital and medical

insurance plan for recipients of a retirement allowance from the Judicial

Retirement Plan, and their dependents. For recipients, or dependents, eligible

for Medicare coverage, the board shall provide Medicare supplement hospital

and medical insurance coverage. For recipients, or dependents, not eligible for

Medicare coverage, the board shall provide hospital and medical insurance

coverage comparable to that provided under the major state emplo yees' group

insurance, and the board may arrange for the recipients to be included in the

major state employees group. For recipients of a retirement allowance who are

not eligible for the same level of hospital and medical benefits as recipients

living in Kentucky, the board shall provide a medical insurance premium

reimbursement plan as described in subsection (3) of this section.

(b) For the purpose of this section, the "dependent" of a recipient means the

spouse or minor children, or both, of a recipien t who is a living former

member of the Judicial Retirement Plan, or the minor children of a deceased

former member whose surviving spouse is the recipient.

(2) (a) Depending upon the number of months of service credit upon which the

retirement allowance wa s based, and upon there having been at least forty -

eight (48) months of judicial service, all or a portion of the premium required

to provide hospital and medical benefits under this section shall be paid from

the judicial retirement fund, as follows:

Months of Judicial Service Percentage of Premium

240 or more 100%

180 to 239, inclusive 75%

120 to 179, inclusive 50%

48 to 119, inclusive 25%

This paragraph shall not apply to members who begin participating in the

Judicial Retirement Plan on or after January 1, 2014.

(b) For members who begin participating in the Judicial Retirement Plan on or

after January 1, 2014:

1. Participation in the health insurance coverage and benefits provided

under this section shall not be allowed until th e member has earned at

least one hundred eighty (180) months of service credited under KRS

21.345 to 21.580 or another state-administered retirement system.

2. A member who meets the minimum service requirements as provided by

subparagraph 1. of this paragraph shall be eligible for a monthly

insurance benefit upon retirement of ten dollars ($10) for each year of

service as a participating member of the Judicial Retirement Plan.

3. The minimum service required to participate in benefits as provided by

subparagraph 1. of this subparagraph shall be waived for a member who

is disabled in the line of duty as defined in KRS 61.621, and the member

shall be entitled to th e health benefits payable under this subsection as

though the member has twenty (20) years of service in the Judicial

Retirement Plan.

4. The minimum service required to participate in benefits as provided by

subparagraph 1. of this subparagraph shall be w aived for a member who

is killed in the line of duty as described in KRS 61.621, and the

member's spouse and eligible dependents shall be entitled to the health

benefits the member would have received if he or she had retired with

twenty (20) years of service in the Judicial Retirement Plan.

5. The monthly insurance benefit amount provided by this paragraph shall

be increased July 1 of each year by one and one-half percent (1.5%). The

increase shall be cumulative and shall continue to accrue after the

member's retirement for as long as a monthly insurance benefit is

payable to the retired member.

6. Under no circumstances shall the cost of coverage be paid for the

spouse, dependents, or beneficiaries of a member who began

participating in the Judicial Retirement Plan on or after January 1, 2014,

except as provided by subparagraph 4. of this paragraph.

(c) The health insurance payments provided by this subsection shall be made by

the fund only if the recipient agrees to pay the remaining, if any, amount of the

premium by deduction from his retirement allowance or by another method

equally insuring the payment by him.

(d) Notwithstanding any other statute to the contrary, any member with the

minimum number of months of judicial service required by paragraph (a) or

(b) of this subsection who is also eligible for benefits, or who is receiving

benefits from any retirement plan or system administered by the

Commonwealth shall be entitled to hospital and medical benefits as described

in paragraph (a) of this subsection except that the number of months of service

credit used in calculating the level of benefits shall be the sum of service

credited to the member in all the state -administered retirement systems or

plans.

1. Upon request of the member, the Judicial Retirem ent System shall

compute the member's combined service in all the state -administered

retirement systems or plans and calculate the portion of the member's

premium to be paid by the Judicial Retirement Plan, according to the

criteria established in paragraph (a) of this subsection. For members who

begin participating in the Judicial Retirement Plan prior to January 1,

2014, the state-administered retirement systems or plans shall pay to the

Judicial Retirement Plan the applicable percentage of the plan's cos t of

the retiree's hospital and medical premium which shall be equal to the

percentage of the member's number of months of service in the

applicable state-administered retirement systems or plans divided by his

total combined service. The amounts paid by a ll the state -administered

retirement systems or plans shall not be more than one hundred percent

(100%) of the premium amount adopted by the respective boards of

trustees.

2. A member who elects hospital and medical benefits under this

subsection shall los e any claim to insurance benefits under any of the

other state-administered retirement systems or plans.

(3) The board shall establish a medical insurance premium reimbursement plan for

recipients of a retirement allowance who are not eligible for the same level of

hospital and medical benefits as recipients living in Kentucky having the same

Medicare hospital and medical insurance eligibility status. An eligible recipient

shall file proof of payment for hospital and medical insurance premiums at the

retirement office. Reimbursement to eligible recipients shall be made on a quarterly

basis. The recipient shall be eligible for reimbursement of substantiated medical

insurance premiums for an amount not to exceed the total monthly contribution

determined by the board of trustees. The plan shall not be made available if all

recipients are eligible for the same level of coverage as recipients living in

Kentucky.

(4) Premiums paid for hospital and medical insurance procured under this section shall

be exempt from a ny premium tax which might otherwise be required under KRS

Chapter 136. The payment of premiums by the judicial retirement fund shall not

constitute income to the recipient. No commission shall be paid for hospital and

medical insurance procured under this section.