KRS 6.577: Group hospital and medical insurance -- Employer's and recipients'

contributions -- Payment for dependents -- Exemption from premium taxation

-- Eligibility of members with required amount of legislative service.

(1) The board of trustees of the Judic ial Form Retirement System shall arrange by

appropriate contract or on a self -insured basis to provide a group hospital and

medical insurance plan for present and future recipients of a retirement allowance

from the Legislators' Retirement Plan. The board may authorize present and future

recipients of a retirement allowance from the Legislators' Retirement Plan who are

under age sixty -five (65) to be included in the state employees group for hospital

and medical insurance and shall provide benefits for reci pients equal to those

provided to state employees having the same Medicare hospital and medical

insurance eligibility status. For recipients of a retirement allowance who are not

eligible for the same level of hospital and medical benefits as recipients li ving in

Kentucky, the board shall provide a medical insurance premium reimbursement

plan as described in subsection (5) of this section.

(2) Each employer participating in the Legislators' Retirement Plan shall contribute to

the plan the amount necessary t o provide hospital and medical insurance as

provided for under this section. The employer contribution rate shall be developed

by appropriate actuarial method as a part of the determination of the total employer

contribution rate to the Legislators' Retirement Plan.

(3) (a) Depending on the months of service credit on which the retirement allowance

was based, provided that there are at least forty -eight (48) months, all or a

portion of the premium required to provide hospital and medical benefits

under this section shall be paid in full from the insurance fund established by

KRS 6.575 for all recipients of a retirement allowance from the Legislators'

Retirement Plan as follows:

Months of Service Percentage Paid

48 to 119, inclusive ` 25%

120 to 131, inclusive 50%

132 to 143, inclusive 55%

144 to 155, inclusive 60%

156 to 167, inclusive 65%

168 to 179, inclusive 70%

180 to 191, inclusive 75%

192 to 203, inclusive 80%

204 to 215, inclusive 85%

216 to 227, inclusive 90%

228 to 239, inclusive 95%

240 or more 100%

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

Legislators' Retirement Plan on or after January 1, 2014.

(b) For members who begin participating in the Legislators' 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 the member has earned at

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

6.500 to 6.577 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 Legislators' Retirement Plan.

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

subparagraph 1. of this paragraph 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 the health benefits payable under this subsection as

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

Retirement Plan.

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

subparagraph 1. of this paragraph shall be waived 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 Legislators' 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.

(c) The payments for health insuran ce provided by this subsection shall be made

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

from his monthly retirement allowance or by any other method equally

insuring payment by him. "Months of service" as used in this s ection shall not

include service added to determine disability benefits.

(4) Provided the member began participating in the Legislators' Retirement Plan prior

to January 1, 2014, the insurance fund shall pay the same percentage of the

premium for the spous e and dependents of a recipient, or the beneficiary of the

recipient, as the fund pays or paid for the member. No payment shall be made under

this section to a spouse, dependent, or beneficiary of a member who begins

participating in the Legislators' Retir ement Plan on or after January 1, 2014, except

as authorized by subsection (3)(b)4. of this section.

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

recipients of a retirement allowance who are not eligible for the same lev el 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 boa rd 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.

(6) Premiums paid for hospital and medical insurance coverage procured under

authority of this section shal l be exempt from any premium tax which might

otherwise be required under KRS Chapter 136. The payment of premiums by the

insurance fund shall not constitute taxable income to an insured recipient. No

commission shall be paid for hospital and medical insura nce procured under

authority of this section.

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

number of months of legislative service required by subsection (3) of this section

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 subsection (3) of this section, except that the

number of months of service credit used in calculatin g the level of benefits shall be

the sum of the service credited to the member in all the state -administered

retirement systems or plans.

(a) Upon request of the member, the Legislators' Retirement Plan shall compute

the member's combined service in all th e state -administered retirement

systems or plans, and calculate the portion of the member's premium to be

paid by the Legislators' Retirement Plan, according to the criteria established

in subsection (3) of this section. For members who begin participating in the

Legislators' Retirement Plan prior to January 1, 2014, the state -administered

retirement systems or plans shall pay to the Legislators' Retirement Plan the

applicable percentage of the plan's costs 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 system

divided by his total combined service. The amounts paid by all the state -

administered retirement systems or plans shall no t be more than one hundred

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

trustees.

(b) A member who elects hospital and medical benefits under this section shall

lose any claim to insurance benefits under any of the other state -administered

retirement systems or plans.