1| STATE OF OKLAHOMA | | | 2| 1st Session of the 59th Legislature (2023) | | | 3|SENATE BILL 91 By: Garvin | | | 4| | | | 5| | | | 6| AS INTRODUCED | | | 7| An Act relating to education employee health | | insurance benefits; amending 70 O.S. 2021, Section | 8| 26-105, which relates to the school district employee | | cafeteria plan; increasing allowance received by | 9| certain personnel in lieu of flexible benefit | | allowance; requiring certain documentation; updating | 10| statutory reference; providing an effective date; and | | declaring an emergency. | 11| | | | 12| | | | 13|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | | | 14| SECTION 1. AMENDATORY 70 O.S. 2021, Section 26-105, is | | | 15|amended to read as follows: | | | 16| Section 26-105. A. 1. The flexible benefit allowance shall be | | | 17|used by a school district employee who is participating in the | | | 18|cafeteria plan to purchase major medical health care plan coverage | | | 19|offered by the school district through a cafeteria plan. Any excess | | | 20|flexible benefit allowance over the cost of the major medical | | | 21|coverage purchased by the employee who is participating in the | | | 22|cafeteria plan may be used to purchase any of the additional | | | 23|benefits offered by the school district or may be taken as taxable | | | 24|compensation as provided in subsection C of this section. | | | Req. No. 588 Page 1 ___________________________________________________________________________
1| 2. Certified personnel who choose not to participate in the | | | 2|school-district-sponsored cafeteria plan shall receive Sixty-nine | | | 3|Dollars and seventy-one cents ($69.71) per month as taxable | | | 4|compensation in lieu of the flexible benefit allowance amount | | | 5|provided in subsection B of this section. For the fiscal year | | | 6|ending June 30, 2024, and each fiscal year thereafter, certified | | | 7|personnel who choose not to participate in the | | | 8|school-district-sponsored cafeteria plan shall receive one-half | | | 9|(1/2) of the flexible benefit allowance amount for the given plan | | | 10|year per month as taxable compensation in lieu of the full flexible | | | 11|benefit allowance amount provided in subsection B of this section. | | | 12| 3. Support personnel who choose not to participate in the | | | 13|school-district-sponsored cafeteria plan shall receive One Hundred | | | 14|Eighty-nine Dollars and sixty-nine cents ($189.69) per month as | | | 15|taxable compensation in lieu of the flexible benefit allowance | | | 16|amount provided in subsection B of this section. For the fiscal | | | 17|year ending June 30, 2024, and each fiscal year thereafter, support | | | 18|personnel who choose not to participate in the | | | 19|school-district-sponsored cafeteria plan shall receive one-half | | | 20|(1/2) of the flexible benefit allowance amount for the given plan | | | 21|year per month as taxable compensation in lieu of the full flexible | | | 22|benefit allowance amount provided in subsection B of this section. | | | 23| 4. Certified and support personnel who choose not to | | | 24|participate in the cafeteria plan pursuant to this subsection shall | | | Req. No. 588 Page 2 ___________________________________________________________________________
1|provide proof of coverage under a separate health insurance plan and | | | 2|sign an affidavit attesting that the employee is currently covered | | | 3|and does not require school-district-sponsored health insurance each | | | 4|plan year. | | | 5| B. Each eligible school district employee shall be credited | | | 6|annually with a specified amount as a flexible benefit allowance | | | 7|which shall be available for the purchase of benefits. The amount | | | 8|of the flexible benefit allowance credited to each eligible school | | | 9|district employee shall be communicated to the employee prior to the | | | 10|enrollment period for each plan year. | | | 11| 1. For the fiscal year ending June 30, 2002, the flexible | | | 12|benefit allowance amount for certified personnel shall be no less | | | 13|than Sixty-nine Dollars and seventy-one cents ($69.71) per month. | | | 14|For the fiscal year ending June 30, 2002, the flexible benefit | | | 15|allowance amount for support personnel shall be no less than One | | | 16|Hundred Eighty-nine Dollars and sixty-nine cents ($189.69) per | | | 17|month. | | | 18| 2. For the fiscal year ending June 30, 2004, the flexible | | | 19|benefit allowance amount for certified personnel shall be no less | | | 20|than fifty-eight percent (58%) of the premium amount for the | | | 21|HealthChoice (Hi) option plan for an individual offered by the State | | | 22|and Education Employees Group Insurance Board. For the fiscal year | | | 23|ending June 30, 2003, and each fiscal year thereafter, the flexible | | | 24|benefit allowance amount for support personnel shall be no less than | | | Req. No. 588 Page 3 ___________________________________________________________________________
1|one hundred percent (100%) of the premium amount for the | | | 2|HealthChoice (Hi) option plan for an individual offered by the State | | | 3|and Education Employees Group Insurance Board. | | | 4| 3. For the fiscal year ending June 30, 2005, and each fiscal | | | 5|year thereafter, the flexible benefit allowance amount for certified | | | 6|personnel shall be no less than one hundred percent (100%) of the | | | 7|premium amount for the HealthChoice (Hi) option plan for an | | | 8|individual offered by the State and Education Employees Group | | | 9|Insurance Board. | | | 10| C. If a school district employee who is participating in the | | | 11|cafeteria plan elects benefits whose sum total is less than the | | | 12|flexible benefit allowance, the employee shall receive any excess | | | 13|flexible benefit allowance as taxable compensation. Such taxable | | | 14|compensation shall be paid in substantially equal amounts each pay | | | 15|period over the plan year. Except as otherwise provided for in | | | 16|subsection D of this section, on termination during a plan year, a | | | 17|participating school district employee shall have no right to | | | 18|receive any taxable cash compensation allocated to the portion of | | | 19|the plan year after the termination of the employee. | | | 20| D. In cases where the employee of a school district fulfills | | | 21|the terms of their contract and terminates employment for the | | | 22|subsequent year, the employee shall be entitled to the flexible | | | 23|benefit allowance for the remainder of the current benefit term. | | | 24|For purposes of this subsection, "benefit term" shall mean the | | | Req. No. 588 Page 4 ___________________________________________________________________________
1|twelve-month period after the initiation of benefits for the | | | 2|position held by the employee. | | | 3| E. Each school district employee shall make an annual election | | | 4|of benefits under the plan during an enrollment period to be held | | | 5|prior to the beginning of each plan year. The enrollment period | | | 6|dates will be determined annually and will be announced by the | | | 7|school district,providingprovided the enrollment period shall end | | | 8|no later than thirty (30) days before the beginning of the plan | | | 9|year. Each school district employee shall make an irrevocable | | | 10|advance election for the plan year or the remainder of the plan year | | | 11|pursuant to procedures the school district shall prescribe. | | | 12| F. The school district shall prescribe the forms that school | | | 13|district employees shall be required to use in making their | | | 14|elections, and may prescribe deadlines and other procedures for | | | 15|filing the elections. | | | 16| G. School district employees hired after the closing of the | | | 17|enrollment period shall be allowed to make an election as provided | | | 18|inthis actSection 26-101 et seq. of this title. | | | 19| H. A district board of education shall have the option of | | | 20|providing a flexible benefit allowance to the superintendent of the | | | 21|school district in an amount not more than the amount of the | | | 22|flexible benefit allowance established for certified personnel in | | | 23|subsection B of this section. Funding for the flexible benefit | | | 24| | | | Req. No. 588 Page 5 ___________________________________________________________________________
1|allowance for a superintendent shall be provided through local | | | 2|revenue. | | | 3| SECTION 2. This act shall become effective July 1, 2023. | | | 4| SECTION 3. It being immediately necessary for the preservation | | | 5|of the public peace, health or safety, an emergency is hereby | | | 6|declared to exist, by reason whereof this act shall take effect and | | | 7|be in full force from and after its passage and approval. | | | 8| | | | 9| 59-1-588 RD 12/30/2022 11:11:21 AM | | | 10| | | | 11| | | | 12| | | | 13| | | | 14| | | | 15| | | | 16| | | | 17| | | | 18| | | | 19| | | | 20| | | | 21| | | | 22| | | | 23| | | | 24| | | | Req. No. 588 Page 6