LANSING – The states considered to have full-time legislatures generally do offer healthcare coverage to their retired lawmakers, but along with New Jersey, Michigan legislators looked at revising those benefits in 2007.
Earlier this month, the House amended SB 868 to provide a maximum 42 percent state-paid coverage for lawmakers elected after January 1, 2008. Lawmakers would get 30 percent coverage for 10 years of service and 3 percent for each year thereafter not to exceed 90 percent of coverage.
The bill did not make changes for lawmakers elected before that date, so they would still receive full state-paid coverage for serving six years once they reach the age of 55.
The bill was returned to the Senate, but the chamber didn’t vote on the measure before adjourning for the year. A spokesperson for Senate Republicans could not be reached Wednesday on whether the legislation is a priority for the chamber in 2008.
The proposal to alter the healthcare benefits offered to retired lawmakers in Michigan came as the state faced one of its toughest fiscal deficits to date and legislators wanted to show the public they were willing to shoulder some of the burden.
Originally, the House had eliminated any healthcare coverage for legislators elected after January 1, 2007 (HB 4580 is still in a Senate committee), which meant the current crop of lawmakers would still receive coverage.
The Senate’s original version of the bill would have changed the vesting schedule from six to four years to provide 30 percent coverage at four years. Retired lawmakers would get 6 percent more state coverage for each year they served, not to exceed 14 years, so that if an individual served the maximum amount of terms in both chambers he or she could have the state pay for 90 percent of the healthcare coverage upon retirement.
Pennsylvania similarly vests its lawmakers at five years in order to receive state-paid healthcare benefits and legislators there recently changed their retirement schedule in order to receive benefits at age 50, like Pennsylvania state troopers.
In Illinois, retired lawmakers get the same healthcare coverage as active ones, according to the National Conference of State Legislatures.
In Ohio and Wisconsin, elected officials pay into a state system in order to receive healthcare coverage upon retirement. However, Wisconsin lawmakers who leave office before retirement lose their healthcare coverage until re-enrolling with the state upon retirement.
Massachusetts gives its retired lawmakers the same health plan as other retired state employees, 85 percent of which is paid by the state and 15 percent is paid by the individual.
New Jersey also offers retired lawmakers and retired state employees the same program. The state pays for healthcare coverage after 25 years of service and bases the coverage on what contract was running when the person accrued that minimum service credit and not when they retired. Employees with 25 years of service before July 1, 1997, however, were the last group to receive full state-paid coverage.
But this fall New Jersey lawmakers started their own review of retiree healthcare benefits.
California is the only state to ban retirement benefits for state lawmakers, according to NCSL. Voters approved a constitutional amendment to say that elected officials in California serving before November 7, 1990 were the only ones who could receive benefits. NCSL did not have any data on New York, which also operates a full-time Legislature.
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