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Bill Summary · HB 1327

Summary of House Bill 1327 (HB 1327)

Purpose of the Bill

House Bill 1327 aims to amend the eligibility criteria for certain retired employees under the State and Public School Life and Health Insurance Program in Arkansas. The intent is to clarify and detail the eligibility requirements for retirees seeking to enroll in this insurance program.

Key Provisions

The bill proposes several amendments to Arkansas Code § 21-5-411, specifically addressing the following:

  1. Eligibility Criteria:

    • Retired state employees and public school retirees must have participated in the insurance program for at least five cumulative years before retirement.
    • Eligible retirees must also be vested members of specified retirement systems, including:
      • Arkansas Public Employees' Retirement System
      • Arkansas Teacher Retirement System
      • Arkansas State Highway Employees' Retirement System
      • Arkansas Judicial Retirement System
      • Alternate retirement plans as defined in state law.

  2. Enrollment Process:

    • Retirees who become active retirees (i.e., those receiving retirement benefits) and meet the five-year participation requirement may elect to enroll in the insurance program within 30 days of becoming active retirees.
    • The election must be submitted in writing to the Employee Benefits Division.

  3. Continuation of Coverage:

    • Retirees who decline participation at retirement due to existing coverage under another employer-sponsored plan may elect to join the program later if they experience a qualifying event.
    • An inactive retiree (those who have separated from employment) can continue participation if they have five years of participation and ten years of creditable service, provided they notify the division within 31 days of termination.

  4. Finality of Elections:

    • Failure to elect participation within the specified periods results in a final decision, meaning retirees cannot later change their minds unless specific conditions are met.

Impact of the Bill

  • Affected Individuals: The bill primarily impacts retired state employees and public school employees in Arkansas who are seeking health insurance coverage through the State and Public School Life and Health Insurance Program.
  • Financial Implications: According to the Fiscal Impact Statement, the amendments are not expected to change eligibility rules or create additional costs for the program, as they do not introduce new members to the insurance plan.

Legislative Timeline

  • Introduced: January 30, 2025
  • Passed: The bill underwent several readings and amendments, ultimately passing through both the House and Senate by March 31, 2025.
  • Enacted: The bill was signed into law and is now known as Act 451 as of April 3, 2025.

Conclusion

House Bill 1327 serves to clarify the eligibility and enrollment processes for retired employees seeking health insurance coverage in Arkansas. By detailing the requirements and procedures, the bill aims to streamline access to benefits for eligible retirees while maintaining the program's financial stability.

Compiled from official sources — confirm details with the bill’s official record.

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