Allows a retiree who moves outside of the coverage of the EUTF to be reimbursed for the lesser of an amount equal to the amount of the personal health insurance policy or contributions for the most comparable EUTF plans for the retiree. (SD1)

A BILL FOR AN ACT

SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§87A-   State and county contribution; reimbursement for retired employees. Effective July 1, 2007, an employee-beneficiary who retires, relocates outside of the State, and is unable to participate in a health benefits plan established by the board shall be reimbursed for the costs associated with securing a personal health insurance policy. The reimbursement shall be the lesser of the actual amount of the personal health insurance policy or the amount of the state or county contribution for the most comparable health benefits plan. The board shall determine eligibility for reimbursement which shall be paid by the fund on a quarterly basis upon the presentation of documentation that the premium for the personal health insurance policy has been paid."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2007 and shall apply to all retirees regardless of their date of retirement.