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Committee backs interim study on pre‑Medicare health coverage for retired peace officers
Summary
The State and Local Government Committee recommended that House Bill 1371 be carried forward as a "shall consider" interim study to examine options for providing pre‑Medicare health insurance to retired North Dakota peace officers, citing the need for more detailed PERS analysis and discussion of funding, age and service thresholds.
The North Dakota Senate State and Local Government Committee on the hearing for House Bill 1371 recommended the measure be moved forward as an interim study so analysts can determine the fiscal and policy implications of restoring pre‑Medicare health coverage to some retired peace officers.
Representative Houck, who introduced the bill, said the proposal originally sought to provide health insurance for peace officers with a minimum of 20 years’ service who retire before becoming eligible for Medicare. "I respectfully ask that you support the shall consider study, so the interim committee may determine the positive impact these benefits will have on the peace officer career within North Dakota," he said.
Supporters including the Chiefs of Police Association of North Dakota and the North Dakota Peace Officers Association told the committee they back the study and want to participate in interim work. "They'd like to take a closer look at there's a way that the state and locals can partner on a recruitment tool recruitment retention tool of this sort and would like to participate in that study in the interim," said Stephanie Ingebretsen for the Chiefs.
Rebecca Fricke, executive director of the North Dakota Public Employees Retirement System (NDPERS), spoke in a neutral capacity and urged the committee to include an analysis of how reopening pre‑Medicare group coverage would affect the state's financial reporting. She noted the state closed the NDPERS pre‑Medicare retiree plan effective July 1, 2015 and said that closure was driven by reporting requirements for other post‑employment benefits (OPEB) that affected the state's financial statements. "Our pre Medicare retiree rate is actually set in law. So what we're charging those roughly 100 and some members that are still part of this is a statute driven premium that actually does not cover the cost of the group," she said.
Fricke and others told the committee more time is needed to examine options including minimum age, minimum service, maximum duration of benefit and possible full or partial funding approaches. Committee discussion repeatedly returned to the need for actuarial and PERS-specific analysis before adopting policy.
After testimony and discussion the committee voted to give House Bill 1371 a due‑pass recommendation as a study. The motion passed by roll call; recorded aye votes included Chair Rohrs, Vice Chair Castaneda, Senator Lee and Senator Wallin (vote 4‑0‑2).
