Original Notice.

Preproposal statement of inquiry was filed as WSR 01-09-083.

Title of Rule: WAC 182-12-117 Eligible retirees.

Purpose: Amend WAC 182-12-117 to include Washington school employees retirement system plan 2, plan 3 and Washington public employees retirement system plan 3. Include greater detail that adds clarification to existing eligibility; modify participation by employees retiring under a state of Washington higher education retirement plan.

Statutory Authority for Adoption: Chapter 41.05 RCW.

Statute Being Implemented: RCW 41.05.160.

Summary: Clarify eligibility criteria for participation in PEBB sponsored retiree medical, dental and life coverage; include eligibility for the new Washington school employees retirement system plan 2, plan 3 and the new public employees retirement system plan 3; and fine-tune eligibility criteria for members of higher education retirement plans. Additional edits/rearrangement of text to better clarify language.

Name of Agency Personnel Responsible for Drafting and Implementation: Barbara Scott, Health Care Authority, 923-2642; and Enforcement: MaryAnne Lindeblad, Health Care Authority, 923-2640.

Name of Proponent: Health Care Authority, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Outlines eligibility criteria for participation in PEBB sponsored retiree medical, dental and life coverage.

Proposal Changes the Following Existing Rules: Includes eligibility for the new Washington school employees retirement system plan 2, plan 3 and the new public employees retirement system plan 3 and modifies eligibility criteria for members of higher education retirement plans.

No small business economic impact statement has been prepared under chapter 19.85 RCW. Not required. The Joint Administrative Rules Review Committee has not requested the filing of a small business economic impact statement, and there will be no cost to small businesses.

RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Lacey Community Center, 6729 Pacific Avenue S.E., Lacey, WA, on July 24, 2001, at 1:00 p.m.

Assistance for Persons with Disabilities: Contact Nikki Johnson by July 17, 2001, TDD (888) 923-5622, or (360) 923-2805.

Submit Written Comments to: Barbara Scott, PEBB Program, 676 Woodland Square Loop S.E., Building B, Olympia, WA 98504, fax (360) 923-2602, by July 24, 2001.

Date of Intended Adoption: July 25, 2001.

June 6, 2001

Melodie H. Bankers

Rules Coordinator

(a) Elects Medicare Parts A and B if the retiree, or covered dependents of a retiree, retired after July 1, 1991 and is eligible for Medicare; and

(b) Immediately begins receiving a monthly retirement income benefit from ((such)) one or more of the following retirement system((; or))s:

(i) Law enforcement officers and fire fighters retirement system plan 1 or 2;

(ii) Public employees retirement system plan 1 or 2;

(iii) School employees retirement system plan 2;

(iv) State judges/judicial retirement system;

(v) Teachers retirement system plan 1 or 2; and

(vi) Washington state patrol retirement system; or

(c) Is at least fifty-five with at least ten years service credit and a member of one of the following retirement systems:

(i) Public employees retirement system plan 3;

(ii) School employees retirement system plan 3; and

(iii) Teachers retirement system plan 3.

(d) Is a member of state of Washington higher education retirement plan, and is

(i) at least age fifty-five with at least ten years service; or

(ii) age sixty-two; or

(iii) immediately begins receiving a monthly retirement income benefit.

(((c))) (e) If not retiring under the public employees retirement system (((PERS))), would have been eligible for a monthly retirement income benefit because of age and years of service had the person been employed under the provisions of ((PERS)) public employees retirement system ((I)) 1 or ((PERS)) ((II)) 2 for the same period of employment; or

(((d))) (f) Is an elected official as defined under WAC 182-12-115(6) who has voluntarily or involuntarily left a public office, whether or not they receive a benefit from a state retirement system; or

(((e))) (g) Must have taken a lump-sum retirement benefit payment because their monthly benefit would have been under fifty dollars((.)); and

(h) Submits an application form to enroll or waive PEBB medical and dental coverage within sixty days after active employer or continuous Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage ends.

((Employees who are permanently and totally disabled and eligible for a deferred monthly retirement income benefit are likewise eligible, provided they apply for retiree coverage before their PEBB active employee coverage ends. Persons retiring who do not have waiver of premium coverage from any PEBB life insurance plan are eligible for retiree life insurance, subject to the same qualifications as for retiree medical coverage. With the exception of the Washington State Patrol, retirees and disabled employees are not eligible for an employer premium contribution. The Federal Civil Service Retirement System shall be considered a Washington state sponsored retirement system for Washington State University cooperative extension service employees who hold a federal civil service appointment and who are covered under the PEBB program at the time of retirement or disability.))

(2)(a) Eligible employees who participated in Public Employees Benefits Board (PEBB) sponsored life insurance are eligible for PEBB sponsored retiree life insurance if they apply to the health care authority within sixty days of the date their active PEBB life insurance terminates.

(b) Persons retiring who do not have waiver of premium coverage from any PEBB life insurance plan are eligible for retiree life insurance, subject to the same qualifications as for retiree medical coverage.

(((2))) (3) ((Retired and disabled school district and educational service district employees.)) The following retired and disabled school district and educational service district employees ((persons)) are eligible to participate in PEBB medical and dental plans only, provided they meet the enrollment criteria stated below and if eligible for Medicare, ((be)) are enrolled in Medicare Parts A and B:

(a) Persons receiving a retirement allowance under chapter 41.32 or 41.40 RCW as of September 30, 1993, and who enroll in PEBB plans not later than the end of the open enrollment period established by the authority for the plan year beginning January 1, 1995;

(((b) Persons who separate from employment with a school district or educational service district on or after October 1, 1993, and immediately upon separation begin to receive a retirement allowance or have taken a lump-sum payment because their benefit would be less than fifty dollars under chapter 41.32 or 41.40 RCW. Individuals in teachers' retirement system, TRS III, not receiving a monthly retirement allowance (defined benefit) must be at least age fifty-five with at least ten years of service at the time of separation. Such persons who retire on or after October 1, 1993, must elect PEBB coverage not later than the end of the open enrollment period established by the authority for the plan year beginning January 1, 1995, or sixty days following retirement whichever is later;))

(((c))) (b) Persons who separate from employment with a school district or educational service district due to a total and permanent disability, and are eligible to receive a deferred retirement allowance under chapter 41.32 or 41.40 RCW. Such persons must enroll in PEBB plans not later than the end of the open enrollment period established by the authority for the plan year beginning January 1, 1995, or sixty days following retirement, whichever is later.

(4) Employees who are permanently and totally disabled and eligible for a deferred monthly retirement income benefit are likewise eligible, provided they apply for retiree coverage before their PEBB active employee coverage ends.

(5) With the exception of the Washington State Patrol, retirees and disabled employees are not eligible for an employer premium contribution.

(6) The Federal Civil Service Retirement System shall be considered a Washington state sponsored retirement system for Washington State University cooperative extension service employees who hold a federal civil service appointment and who are covered under the PEBB program at the time of retirement or disability.

[Statutory Authority: RCW 41.05.160. 97-21-127, 182-12-117, filed 10/21/97, effective 11/21/97. Statutory Authority: Chapter 41.05 RCW. 96-08-043, 182-12-117, filed 3/29/96, effective 4/29/96.]

Washington State Code Reviser's Office