78th Texas Legislature, Regular Session, House Bill 1, Chapter 1330 Page: 65 of 978
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W U
EMPLOYEES RETIREMENT SYSTEM
(Continued).
b. fifty percent of the total cost of health coverage for the spouses and dependent children of all
active and retired employees who enroll in coverage categories which include a spouse and/or
dependent children; and
c. the additional cost of providing a premium structure comparable to the.Children's Health
Insurance Program (CHIP) for dependent children of stat employees enrolled in the State
Kids Insurance Program (SKIP).
In no event shall the total amount of state contributions allocated to fund coverage in an optional
health plan exceed the actuarially determined total amount of state contributions that would be
required to fund basic health coverage for those active employees and retirees who have elected to
participate in that optional health plan.
During each fiscal year, the state's monthly contribution shall be determined by multiplying (1)
the per capita monthly contribution as certified herein by (2) the total number of full-time active
and retired employees enrolled for coverage during that month.
Each year, upon adoption of group insurance rates by the Board of Trustees. Employees
Retirement System must notify the Comptroller, the Legislative Budget Board, and the Governorm
of the per capita monthly contribution required in accordance with this rider for each full-time
active and retired employee enrolled for coverage during the fiscal year.
It is the intent of the Legislature that the Employees Retirement System control the cost of the
group insurance program by not providing rate increases to health care providers participating in
HealthSelect during the 2004-4)5 biennium.
In order to fund the Employees Retirement System (ERS) projected health plan costs for the
2004-05 biennium, the Legislature directs the Employees Retirement System to reduce total
health plan costs by $485.5 million in All Punds and $296.1 million in General Revenue through
benefit design changes made by the Employees Retiremenmt System based on the Legislature's
medical cost trend assumption of 9.75 percent per year. Benefit design changes will include an
option allowing participants to choose retail pharmacies for maintenance medications with the
participant paying the additional cost. It is the intent of the Legislature that the Employees
Retirement System achieve this reduction, to the extent possible, with the least impact on
participants. If more aggressive provider contracting and other cost-effective management
practices result in the actual costs of the program being less than projected for the 2004-03
biennium, the Employees Retirement System should consider restoring health program benefit
reductions o the extent possible.
6. Adminlstmtve Cost Provislion. Funds identified above in A.I.3, Judicial Retirement System -
Plan 1, include $120,000 in each fiscal year to reimburse the Employees Retirement System for
the cost of administering the Judicial Retirement Plan I.
7. AdmlnistraM Coat Provision. Funds identified above in A..4, Public Safety Benefits, include
$28,000 in each fiscal year to reimburie the Employees Retirement System for the cost of
administering the death benefits program for public safety personnel.
8. ee Benes tS i Arreigament Aemnt. There Is hereby appropriated to the Employees
Retirement System all funds transferred or deposited into the Excess Benefit Arrangement
Account established in the General Revenue Fund for the purpose of paying benefits as
authorized by Government Code ( 815.5072.
9. Transbr of Reioenet COtibuUin and Group Insumnce. Appropriations made in this and
other articles of this Act for Retirement and Group Insurance contributions shall be transferred by
each agency from the Employees Retirement System to the agency based on estimated amounts byA327-Contf--A
May 27. 2003
I-44
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Texas. Legislature. House of Representatives. 78th Texas Legislature, Regular Session, House Bill 1, Chapter 1330, legislative document, June 22, 2003; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth158047/m1/65/: accessed April 20, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.