BILL NUMBER: SB 1435	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Johnston

                        FEBRUARY 7, 2000

   An act to amend Section 25000 of, and to add Chapter 3 (commencing
with Section 25300) to Part 13.5 of Division 1 of Title 1 of, the
Education Code, relating to teachers' health benefits.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1435, as introduced, Johnston.  Teachers' health benefits:
Medicare premiums.
   Existing law requires the State Teachers' Retirement System to
develop a health care benefits program for members of the Defined
Benefit Program and related persons, subject to appropriation of
funds and further legislative authorization, as specified.
   This bill would delete that requirement and provide that
development of any health care benefits programs shall be subject to
appropriation of funds and further legislative authorization, as
specified.
   Under existing law, specified monthly allowances are paid to
retired members of the Defined Benefit Program of the Teachers'
Retirement Plan.
   This bill would increase those monthly allowances by the amount of
the monthly premium for Medicare Part A, as specified.
   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25000 of the Education Code is amended to read:

   25000.  (a)  The State Teachers' Retirement System shall
develop a program to provide health care benefits for members,
beneficiaries, children, and dependent parents.
   (b)  All costs incurred by the system  to develop
health care benefit programs  pursuant to this part shall be
paid by allocations from the Teachers' Retirement Fund as
appropriated for that purpose.  
   (c) The  
   (b) Any  health care benefits program developed by the system
pursuant to this part shall not be implemented by the system unless
specifically authorized by a statute enacted by the Legislature.
  SEC. 2.  Chapter 3 (commencing with Section 25300) is added to Part
13.5 of Division 1 of Title 1 of the Education Code, to read:

      CHAPTER 3.  MEDICARE PREMIUMS

   25300.  (a) The allowance payable to a retired member of the
Defined Benefit Program pursuant to Part 13 (commencing with Section
22000) shall be increased by the amount of the member's premium for
Medicare Part A.  This amount shall be adjusted annually by the
Teachers' Retirement Board to reflect changes imposed in the premium
by the federal Health Care Financing Administration.
   (b) This section shall only apply to a member who is at least 65
years of age, enrolled in Medicare Part B, and not eligible for
Medicare Part A without payment of a premium.
   (c) The amount described in subdivision (a) shall be deducted from
the monthly disbursement to the member and submitted to the federal
Health Care Financing Administration to pay the member's premium for
Medicare Part A, unless the member elects, on a form prescribed by
the system and duly executed and filed with the system, to have the
amount paid directly to the member.
   (d) The increased allowance authorized by this section is not
vested and shall not be included in the base allowance for purposes
of calculating the annual improvement defined by Sections 22140 and
22141 or for purposes of calculating supplemental payments pursuant
to Sections 24412, 24415, and 24417.