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The Vermont Statutes Online



Title

03

:
Executive






Chapter

021

:
INSURANCE BENEFITS











 

§

631. Group insurance for State employees; salary deductions for insurance,

savings plans, and credit unions

(a)(1) The

Secretary of Administration may contract on behalf of the State with any

insurance company or nonprofit association doing business in this State to

secure the benefits of franchise or group insurance. Beginning July 1, 1978,

the terms of coverage under the policy shall be determined under section 904 of

this title, but it may include:

(A) life,

disability, health, and accident insurance and benefits for any class or

classes of State employees; and

(B) hospital,

surgical, and medical benefits for any class or classes of State employees or

for those employees and any class or classes of their dependents.

(2)(A) The term

"employees" as used in this section shall include among others any

class or classes of elected or appointed officials, but it shall not include

members of the General Assembly as such, nor shall it include any person

rendering service on a retainer or fee basis, members of boards or commissions,

or persons other than employees of the Vermont Historical Society, the Vermont

Film Corporation, the Vermont State Employees' Credit Union, Vermont State

Employees' Association, and the Vermont Council on the Arts, whose compensation

for service is not paid from the State Treasury, nor shall it include any

elected or appointed official unless the official is actively engaged in and

devoting substantially full time to the conduct of the business of his or her

public office. For purposes of group hospital-surgical-medical expense

insurance, the term "employees" shall include employees as defined in

this subdivision and former employees as defined in this subdivision who are

retired and are receiving a retirement allowance from the Vermont State

Retirement System or the State Teachers' Retirement System of Vermont and, for

the purposes of group life insurance only, are retired on or after July 1,

1961, and have completed 20 creditable years of service with the State before

their retirement dates and are insured for group life insurance on their

retirement dates. For purposes of group hospital-surgical-medical expense

insurance only, the term "employees" shall include employees as

defined in this subdivision and employees who are receiving a retirement

allowance based upon their employment with the Vermont State Employees'

Association, the Vermont State Employees' Credit Union, the Vermont Council on

the Arts, as long as they are covered as active employees on their retirement

date, and:

(i) they have at

least 20 years of service with that employer; or

(ii) have

attained 62 years of age, and have at least 15 years service with that

employer.

(B) The premiums

for extending insurance coverage to employees shall be paid in full by the

Vermont Historical Society, the Vermont Film Corporation, the Vermont State

Employees' Association, the Vermont State Employees' Credit Union, the Vermont

Council on the Arts, or their respective retirees. Nothing herein creates a

legal obligation on the part of the State of Vermont to pay any portion of the

premiums required to extend insurance coverage to this group of employees.

(3) The term

"dependents" shall include only an employee's spouse, or an

employee's unmarried child. However, no person may be covered both as an

employee and as a dependent, and no person may be considered as a dependent of

more than one employee. The term "child" shall in addition to an

employee's own or lawfully adopted children, include such stepchildren, foster

children, children under adoptive supervisory placement, and other children as

depend upon the employee for support and maintenance.

(4), (5)

Repealed.]

(6) The State

Treasurer and Commissioner of Finance and Management, with the approval of the

Governor, shall deduct from a State employee's compensation such amounts for

group insurance or assessments for benefits for dependents as defined in

subdivision (3) of this subsection when so requested by the employee and shall

apply the same forthwith to the cost of such benefits.

(7) The State

Treasurer and the Commissioner of Finance and Management, with the consent of

the Governor, shall deduct from any State employee's compensation such amounts

as the employee may request for United States savings bonds, Vermont State

Employees' Credit Union, any employee organization certified by the State Labor

Relations Board as of July 1, 1977 so long as the employee organization retains

that certification, or for charitable pledges or for other purposes as

determined by the Governor or through collective bargaining and shall pay the

same forthwith to the payee.

(8) The

provisions of this section shall include the employees in any or all State

departments whether office employees or otherwise.

(9) The amount

of life insurance for any retired employee shall be reduced and limited to

$10,000.00 on the date of his or her retirement. The provisions of this section

shall apply to all retirees who complete 20 creditable years of service with

the State before their retirement and are insured for group life insurance on

their retirement dates. The total premiums for group life insurance provided

under this section and section 632 of this title shall be paid by the State on

behalf of employees retired in accordance with the terms of subdivision (2) of

this subsection, on behalf of employees who are on sick leave without pay for a

period not to exceed 12 months and on behalf of any employee on disability

retirement until proof of total and permanent disability has been accepted by

the insurance company.

(b) Repealed.]

(c)(1) At least

every five years, the Secretary of Administration shall advertise for bids on

the insurance contracts and shall award the contract to the person whose bid or

quotation is in the best interest of the State. The Secretary of Administration

may reject any bids or quotations and may request additional bids. Upon

publication of the request for proposals, health care professional and trade

associations may register with the Secretary of Administration to be provided a

list of bidders. Such associations may then submit information about the

business practices of the bidders for the Secretary of Administration to

consider in the course of evaluating bids and request meetings with the

Secretary to discuss the information.

(2) Repealed.]

(3) At least

annually, the Secretary shall hold discussions with established health care

professional and trade associations in regard to provider regulation, provider

reimbursement, or quality of health care.

(d)

Notwithstanding any other provision of this section to the contrary, and in

addition to the powers and duties described in sections 2852 and 2853 of this

title and 10 V.S.A. § 2603, the Secretary of Natural Resources, through the

Commissioner of Forests, Parks and Recreation, is authorized to expend funds for

purposes of continuing employee medical insurance benefits provided to seasonal

temporary State employees by their off-season employers. Any expenditure shall

be subject to the following limitations:

(1) Funds may be

paid either directly to the benefit provider or to the off-season employer as a

reimbursement.

(2) The total

amount paid for any temporary employee medical insurance reimbursement shall

not exceed the costs of group medical benefits for a permanent State employee

as determined by the Commissioner of Human Resources, and it shall be within

the discretion of the Commissioner of Forests, Parks and Recreation to pay some

lesser amount than the maximum.

(3) The

Commissioner of Forests, Parks and Recreation shall establish written

guidelines regarding the administration of this program, subject to the

approval of the Commissioner of Human Resources.

(4) The amount

expended by the Commissioner for this program shall be limited to the amount

directly saved by the Department of Forests, Parks and Recreation on expenses,

such as advertising, unemployment compensation, and training, as a result of

encouraging the return to State seasonal employment by seasonal employees who

have consistent off-season employment. (Amended 1959, No. 170, § 1; 1961, No.

99, §§ 1-3; 1969, No. 68, § 1; 1971, No. 85, § 1; 1971, No. 191 (Adj. Sess.), §

8; 1973, No. 37, § 2; 1973, No. 266 (Adj. Sess.), § 10, eff. June 23, 1974;

1975, No. 65, §§ 2, 4; 1977, No. 109, § 3, eff. July 3, 1977, § 33(f); 1977,

No. 222 (Adj. Sess.), § 4, eff. July 2, 1978; 1979, No. 59, §§ 11, 15; 1983,

No. 195 (Adj. Sess.), § 5(b); 1993, No. 67, § 1; 1995, No. 123 (Adj. Sess.), §

8, eff. June 6, 1996; 1997, No. 147 (Adj. Sess.), § 274a; 2001, No. 27, § 1;

2001, No. 116 (Adj. Sess.), § 11a; 2003, No. 85 (Adj. Sess.), § 1, eff. April

6, 2004; 2003, No. 156 (Adj. Sess.), §§ 14, 15; 2005, No. 71, § 192; 2005, No.

120 (Adj. Sess.), § 1; 2007, No. 7, § 7; 2007, No. 13, § 21; 2007, No. 71, §

10, eff. June 5, 2007; 2007, No. 116 (Adj. Sess.), § 7; 2011, No. 139 (Adj.

Sess.), § 51, eff. May 14, 2012.)