To repeal section 169.590, RSMo 1994, relating to the public school retirement system, and to enact two new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI,

AS FOLLOWS:

Section A. Section 169.590, RSMo 1994, is repealed and two new sections enacted in lieu thereof, to be known as sections 169.571 and 169.590, to read as follows:

169.571. 1. Any person currently employed full time, who by virtue of an election under section 104.342, RSMo, chooses to remain a member of the public school retirement system of Missouri and who has at least twenty-five years of creditable service and who subsequently becomes employed full time in a position which would otherwise be covered by the Missouri state employees' retirement system, may elect to remain in the public school retirement system of Missouri.

2. The required member and employer contributions to fund service accrued under the public school retirement system of Missouri shall be paid from appropriations to the institution by which the member is employed.

169.590. 1. Any insurance contract or plan, including a noninsurance health benefit program, which provides group health insurance or benefits for employees who are members of any retirement system established pursuant to this chapter shall contain provisions that permit:

(1) Any employee who retires, [or who has retired,] and is receiving [or is eligible to receive] retirement benefits under this chapter to remain or become a member of the group, including a noninsurance health benefit program, and to receive benefits at the same rate as all other members of the group;

(2) The spouse or surviving spouse of any employee to remain or become a member of the group, including a noninsurance health benefit program, so long as such spouse is receiving [or is eligible to receive] retirement benefits under this chapter; [and]

(3) The children or children who survive any employee to remain or become members of the group, including a noninsurance health benefit program, so long as they are receiving [or are eligible to receive] retirement benefits under this chapter; and

(4) Any employee who terminates employment and is entitled to receive a retirement benefit from any retirement system established under this chapter so long as the person elects to continue coverage within thirty-one days following the date on which the eligible person ceases to be an employee. Such eligible person may not later elect to be covered under this section.

2. The plan or contract may provide a different level of coverage for any person electing to remain or become a member of an eligible group, including a noninsurance health benefit program, as provided in subsection 1 of this section if such person is eligible for medicare under the federal Health Insurance for the Aged Act, 42 USC 1395, as amended.

3. A person electing to become or remain a member of a group, including a noninsurance health benefit program, under subsection 1 of this section shall pay the premium for such coverage, including the premium for any covered dependents.

4. School districts entering into a contract with an insurance company which provides group health insurance or benefits for employees, including provisions for a noninsurance health benefit program, shall specify that such contract provides coverage for persons who have retired, their spouses and unmarried dependent children and that the enrollment period for such coverage shall be clearly stated for a period of time of not less than thirty days. Those persons who retired prior to August 28, 1992, shall have one year from that date to qualify for the coverage provided. [Those persons who retire after August 28, 1992, shall have one year from the date of retirement to qualify for the coverage provided.]

5. School districts failing to comply with the provisions of this section shall have deducted from the state aid due such school district an amount equal to the premium for group health insurance, including a noninsurance health benefit program, for those persons denied the benefits required under the provisions of this section.

6. As used in this section, the term "noninsurance health benefit program" includes all group health plans or programs providing coverage on an expense-incurred basis, group service or indemnity type contracts issued by a nonprofit corporation, and all self-insured group health benefit plans or programs, of any type or description.