Bill
Number: S.B. 1174
Yarbrough
Floor Amendment
Reference
to: the FINANCE committee amendment
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
Requires the board to
establish a separate account that consists of payments of subsidies for group
health and accident coverage for retired members. Prohibits the use or
diversion of the corpus or income for any purpose unless liabilities under this
section are satisfied. Changes are needed to allow the subsidy to
continue as a pre-tax benefit and to bring the plan into conformity with the
Internal Revenue Code as a result of compliance review.
Fifty-first Legislature Yarbrough
First Regular Session S.B.
1174
YARBROUGH FLOOR
AMENDMENT
SENATE AMENDMENTS TO
S.B. 1174
(Reference to FIN
amendment)
Page 1, before line 1, insert:
Page 9, lines 4 and 17, strike
"fund" insert "separate
account established pursuant to subsection G of this section"
Between lines 11 and 12, insert:
Between lines 13 and 14, insert:
"G. The board shall establish a separate account
that consists of the benefits provided in this section. The board shall
deposit the benefits provided by this section in the account. The board shall
not use or divert any part of the corpus or income of the account for any
purpose other than the provision of benefits pursuant to this section unless
the liabilities to provide the benefits pursuant to this section are
satisfied. If the liabilities to provide the benefits described in this section
are satisfied, the board shall return any amount remaining in the account to
the employer.
H. Payment of the benefits provided by this
section is subject to the following conditions:
1. The payment of the benefits is subordinate to
the payment of retirement benefits payable by the plan.
2. The total of contributions for the benefits
and actual contributions for life insurance protection, if any, shall not
exceed twenty‑five per cent of the total actual employer and employee
contributions to the plan, minus the contributions to fund past service
credits, after the day the account is established.
3. The contributions by the employer to the
account shall be reasonable and ascertainable."
Amend title to conform