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House Bill 448
Chair's Name: Ben Bridges
Committee: Retirement
House Sponsor: Ben Bridges
HB 448 is a non-fiscal retirement bill amending provisions relating to group term life insurance, which is under the control and management of the State Employees� Assurance Department. This bill requires the department to establish two separate trust funds for group term life insurance, one for inactive members and one for active members of three state retirement systems.
The committee substitute received a Do Pass recommendation from the Retirement Committee and comes to the House Floor under the Open Rule.
Chairman Bridges� opinion of this legislation:
WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?
The bill relates to group term life insurance which is under control of the State Employees� Assurance Department and requires that the two separate trust funds for the group term life insurance be established:
- The Retired and Vested Inactive Members Trust Fund
- The Active Members Fund
WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?
Reporting by employers of �Other Post Employment Benefits (OPEB)� is now necessary in order to meet GASB (Governmental Accounting Standards Boards) standards. Non-pension OPEBs are benefits such as life insurance, disability, long-term care plans, etc. that are earned while an employee is working and paid to the employee after retirement.
GASB establishes standards for measuring and reporting information presented in financial reports of state and local governments.
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