54-52.1-03.3. Eligibility for retiree health benefits - Fixed contribution and reduction factors

54-52.1-03.3. Eligibility for retiree health benefits - Fixed contribution and reduction

factors.

1. The following individuals are entitled to receive credit for hospital benefits coverage,

medical benefits coverage, and prescription drug coverage under any health insurance

program and for any dental, vision, and long-term care benefits coverage under any

insurance program:

a. A member or surviving spouse of the highway patrol troopers' retirement system

is eligible for the credit beginning on the date retirement benefits are effective.

b. If the member first enrolled before January 1, 2020, a member or surviving

spouse of the public employees retirement system is eligible for the credit

beginning on the date retirement benefits are effective.

c. A member or surviving spouse of the retirement program established by

job service North Dakota under section 52-11-01 is eligible for the credit

beginning on the date retirement benefits are effective.

d. A retired judge or surviving spouse of the retirement program established under

chapter 27-17 is eligible for the credit beginning on the date retirement benefits

are effective.

e. If the former participating member first enrolled before January 1, 2020, a former

participating member of the defined contribution retirement plan receiving

retirement benefits, or the surviving spouse of a former participating member of

that retirement plan who was eligible to receive or was receiving benefits, under

section 54-52.6-13, is eligible as determined by the board pursuant to the board's

rules.

2. The board shall calculate the allowable monthly credit toward hospital benefits

coverage, medical benefits coverage, and prescription drug coverage under any health

insurance program and toward dental, vision, and long-term care benefits coverage

under any insurance program under subsection 1 in an amount equal to five dollars

multiplied by the member's or deceased member's number of years of credited service

under the highway patrol troopers' retirement system, the public employees retirement

system, the retirement program established by job service North Dakota under section

52-11-01, or the judges' retirement program established under chapter 27-17. For a

member of the public employees retirement system receiving an early retirement

benefit or the surviving spouse of that member, or a former participating member of the

defined contribution retirement plan who is receiving a periodic distribution and would

not meet the normal retirement provisions of the public employees retirement system,

the allowable monthly credit must be reduced by three percent if the member

terminates employment within one year before attaining the age of sixty-five and an

additional reduction factor of six percent applies for each year the member terminates

employment before attaining the age of sixty-four. For a member of the highway patrol

troopers' retirement system receiving an early retirement benefit or the surviving

spouse of that member, the allowable monthly credit must be reduced by three percent

if the member terminates employment within one year before attaining the age of

fifty-five and an additional reduction factor of six percent applies for each year the

member terminates employment before attaining the age of fifty-four. For a member of

the retirement program established by job service North Dakota under section

52-11-01 receiving an early retirement benefit or a discontinued service annuity under

the plan provisions of that retirement program or the surviving spouse of that member,

the allowable monthly credit must be reduced by three percent if the member

terminates employment within one year before attaining the age of sixty-five and an

additional reduction factor of six percent applies for each year the member terminates

employment before attaining the age of sixty-four.

uity under

the plan provisions of that retirement program or the surviving spouse of that member,

the allowable monthly credit must be reduced by three percent if the member

terminates employment within one year before attaining the age of sixty-five and an

additional reduction factor of six percent applies for each year the member terminates

employment before attaining the age of sixty-four.

3. The board shall apply the credit allowable under subsection 2 as elected by the eligible

participant to the payment of monthly premiums required of each individual eligible

under subsection 1 for hospital benefits coverage, medical benefits coverage, and

prescription drug coverage under any health insurance program and for dental, vision,

and long-term care benefits coverage under any insurance program. The board shall

allow spouses who each have credit under subsection 2 to combine the spouses'

credits and shall apply the combined credit to the required monthly premiums as

elected pursuant to this subsection. However, if the allowable credit under any

circumstance exceeds the monthly premium in effect for selected coverage, that

amount of the credit which exceeds the premium is forfeited and may not be used for

any other purpose.

4. As an alternative to the calculation of the allowable monthly credit under subsection 2,

the board may provide actuarially reduced benefit options for the member and the

member's surviving spouse, including a one hundred percent joint and survivor option

or a fifty percent joint and survivor option.