HB 817 -- HIGHWAY AND TRANSPORTATION EMPLOYEES' AND HIGHWAY
PATROL RETIREMENT SYSTEM

Currently, members of the Highway and Transportation Employees'
and Highway Patrol Retirement System who are receiving long-term
disability benefits or disability benefits for injury in the
line of duty are permitted to continue on disability when they
reach normal retirement age or may retire at any time after
reaching normal retirement age.  The bill deletes those
provisions and specifies that members who retire while receiving
such disability benefits will receive the greater of the normal
annuity or the minimum annuity as if actively employed until
normal retirement age and as if their compensation had been
their rate of pay immediately preceding the date of disability.
A provision that made members receiving disability benefits
before August 28, 1995, eligible to receive such benefits in
accordance with prior eligibility requirements is extended to
cover employees receiving such benefits before August 28, 1997.

HB 817 -- HIGHWAY AND TRANSPORTATION EMPLOYEES' AND HIGHWAY
PATROL RETIREMENT SYSTEM (Hagan-Harrell)

Currently, members of the Highway and Transportation Employees'
and Highway Patrol Retirement System who are receiving long-term
disability benefits or disability benefits for injury in the
line of duty are permitted to continue on disability when they
reach normal retirement age or may retire at any time after
reaching normal retirement age.  The bill deletes those
provisions and clarifies that members who retire while receiving
such disability benefits will receive the greater of the normal
annuity or the minimum annuity as if actively employed until
normal retirement age and as if their compensation had been
their rate of pay immediately preceding the date of disability.
A provision that made members receiving disability benefits
before August 28, 1995, eligible to receive such benefits in
accordance with prior eligibility requirements is extended to
cover employees receiving such benefits before August 28, 1997.

FISCAL NOTE:  No impact on state funds.

HB 817 -- HIGHWAY AND TRANSPORTATION EMPLOYEES' AND HIGHWAY
PATROL RETIREMENT SYSTEM

SPONSOR:  Hagan-Harrell

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Retirement by a vote of 7 to 0.

Currently, members of the Highway and Transportation Employees'
and Highway Patrol Retirement System who are receiving long-term
disability benefits or disability benefits for injury in the
line of duty are permitted to continue on disability when they
reach normal retirement age or may retire at any time after
reaching normal retirement age.  The bill deletes those
provisions and clarifies that members who retire while receiving
such disability benefits will receive the greater of the normal
annuity or the minimum annuity as if actively employed until
normal retirement age and as if their compensation had been
their rate of pay immediately preceding the date of disability.
A provision that made members receiving disability benefits
before August 28, 1995, eligible to receive such benefits in
accordance with prior eligibility requirements is extended to
cover employees receiving such benefits before August 28, 1997.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the bill moves people from
disability to retirement benefits at the point a person would
usually retire.  Although such a change subjects the person to
possible income tax obligations, the balancing factor is that
medical coverage is less costly.  The bill does not affect the
77 people currently in this situation but addresses a maturing
disability benefit situation.

Testifying for the bill was Representative Hagan-Harrell.

OPPONENTS:  There was no opposition voiced to the committee.

Becky DeNeve, Research Analyst

HB 817 -- Highway and Transportation Employees' and Highway
Patrol Retirement System

Sponsor:  Hagan-Harrell

Currently, members of the Highway and Transportation Employees'
and Highway Patrol Retirement System who are receiving long-term
disability benefits or disability benefits for injury in the
line of duty are permitted to continue on disability when they
reach normal retirement age or may retire at any time after
reaching normal retirement age.  The bill deletes those
provisions and clarifies that members who retire while receiving
such disability benefits will receive the greater of the normal
annuity or the minimum annuity as if actively employed until
normal retirement age and as if their compensation had been
their rate of pay immediately preceding the date of disability.
A provision that made members receiving disability benefits
before August 28, 1995, eligible to receive such benefits in
accordance with prior eligibility requirements is extended to
cover employees receiving such benefits before August 28, 1997.