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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1947 By: Bullard
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6 AS INTRODUCED
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7 An Act relating to Oklahoma Employees Insurance and
7 Benefits Act; amending 74 O.S. 2021, Sections 1308.3,
8 as amended by Section 1, Chapter 21, O.S.L. 2025, and
8 1370, as amended by Section 10, Chapter 245, O.S.L.
9 2024 (74 O.S. Supp. 2025, Sections 1308.3 and 1370),
9 which relate to basic health plan and flexible
10 benefit allowance; defining terms; authorizing opt
10 out for certain participants enrolled with certain
11 health care sharing ministry; requiring active
11 employees to receive certain funds in lieu of certain
12 flexible benefit amount; updating statutory language;
12 and providing an effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 74 O.S. 2021, Section 1308.3, as
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17 amended by Section 1, Chapter 21, O.S.L. 2025 (74 O.S. Supp. 2025,
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18 Section 1308.3), is amended to read as follows:
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19 Section 1308.3. A. As used in this section:
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20 1. "Health care sharing ministry" (HCSM) means a not-for-profit
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21 organization that is tax-exempt under Section 501(c)(3) of the
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22 Internal Revenue Code of 1986, as amended, and:
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23 a. limits its members to those who share a common
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24 set of ethical or religious beliefs,
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1 b. facilitates sharing of medical expenses between
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2 members in accordance with its ethical or
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3 religious beliefs,
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4 c. requires regular contributions from members with
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5 no assumptions of risk or promise to pay for
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6 medical expenses,
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7 d. provides an electronic report at least quarterly
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8 to members detailing the amount of needs shared
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9 and contributions received,
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10 e. conducts an annual audit which shall be performed
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11 by an independent certified public accounting
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12 firm in accordance with generally accepted
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13 accounting principles and shall be made available
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14 to the public upon request, and
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15 f. provides a disclaimer stating that it is not an
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16 insurance company and participation is voluntary;
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17 and
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18 2. "Qualified HCSM member" means any resident of this state who
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19 has been an active member of an HCSM for at least one (1) month
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20 during the applicable tax year.
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21 B. Any active employee eligible to participate or who is a
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22 participant may opt out of the state's basic plan as outlined in
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23 Sections 1370 and 1371 of this title, or may opt out of the health
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24 and dental basic plan options only and retain the life and
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1 disability plan benefits, provided that the participant is currently
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2 covered by a separate health insurance plan or will be covered by a
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3 separate health insurance plan at or before the beginning of the
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4 next plan year or is a qualified HCSM member or will be at or before
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5 the beginning of the next plan year. Any active employee eligible
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6 to participate or who is a participant opting out of coverage
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7 pursuant to this section shall provide proof of the separate health
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8 insurance plan or health care sharing ministry participation and
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9 sign an affidavit attesting that the participant is currently
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10 covered and does not require state-provided health insurance each
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11 plan year. Any active employee opting out of the state's basic plan
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12 or the health and dental basic plan options pursuant to this section
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13 due to coverage by a separate health insurance plan shall receive
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14 One Hundred Fifty Dollars ($150.00) in lieu of the flexible benefit
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15 amount the employee would be otherwise eligible to receive. Any
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16 active employee who is a qualified HCSM member opting out of the
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17 state's basic plan or the health and dental basic plan options shall
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18 receive the full flexible benefit amount the employee would be
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19 otherwise eligible to receive. Any savings realized by the state as
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20 a result of a participant opting out of health insurance plan
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21 coverage shall be retained by the state.
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22 SECTION 2. AMENDATORY 74 O.S. 2021, Section 1370, as
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23 amended by Section 10, Chapter 245, O.S.L. 2024 (74 O.S. Supp. 2025,
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24 Section 1370), is amended to read as follows:
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1 Section 1370. A. Subject to the requirement that a participant
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2 must elect the default benefits, or the basic plan, or is a person
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3 who has retired from a branch of the United States military and has
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4 been provided with health care through a federal plan, to the extent
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5 that it is consistent with federal law, or is an active employee who
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6 is eligible to participate and who is a participant who has opted
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7 out of the state's basic plan according to the provisions of Section
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8 1308.3 of this title, and provides proof of this coverage, flexible
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9 benefit dollars may be used to purchase any of the benefits offered
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10 by the Oklahoma Employees Insurance and Benefits Board under the
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11 flexible benefits plan. A participant who has opted out of the
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12 state's basic plan and provided proof of other coverage as described
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13 in this subsection shall receive One Hundred Fifty Dollars ($150.00)
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14 an amount pursuant to Section 1308.3 of this title in lieu of the
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15 flexible benefit monthly. A participant's flexible benefit dollars
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16 for a plan year shall consist of the sum of (1) flexible benefit
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17 allowance credited to a participant by the participating employer,
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18 and (2) pay conversion dollars elected by a participant.
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19 B. Each participant shall be credited annually with a specified
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20 amount as a flexible benefit allowance which shall be available for
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21 the purchase of benefits. For participants on a biweekly payroll
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22 system the disbursement of the flexible benefit allowance shall be
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23 credited over twenty-four pay periods resulting in two pay periods
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24 that do not reflect a credit. The amount of the flexible benefit
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1 allowance credited to each participant shall be communicated to him
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2 or her prior to the enrollment period for each plan year.
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3 C. Except as provided in subsection D of this section, for the
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4 plan year beginning January 1, 2013, the benefit allowance shall not
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5 be less than the Plan Year plan year 2012 benefit allowance amounts,
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6 and each plan year thereafter, the amount of a participant's benefit
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7 allowance, which shall be the total amount the employer contributes
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8 for the payment of insurance premiums or other benefits, shall be:
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9 1. The greater of the amount of benefit which the participant
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10 would have qualified for as of plan year 2021, or an amount equal to
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11 the monthly premium of the HealthChoice High Option plan, the
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12 average monthly premiums of the dental plans, the monthly premium of
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13 the disability plan, and the monthly premium of the basic life
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14 insurance plan offered to state employees or the amount determined
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15 by the Council Oklahoma Employees Insurance and Benefits Board based
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16 on a formula for determining a participant's benefit credits
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17 consistent with the requirements of 26 U.S.C., Section 125(g)(2) and
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18 regulations thereunder;
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19 2. The greater of the amount of benefit which the participant
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20 would have qualified for as of plan year 2021 or an amount equal to
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21 the monthly premium of the HealthChoice High Option plan, the
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22 average monthly premiums of the dental plans, the monthly premium of
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23 the disability plan, and the monthly premium of the basic life
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24 insurance plan offered to state employees plus one of the additional
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1 amounts as follows for participants who elect to include one or more
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2 dependents:
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3 a. for a spouse, seventy-five percent (75%) of the
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4 HealthChoice High Option plan, available for coverage
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5 of a spouse,
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6 b. for one child, seventy-five percent (75%) of the
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7 HealthChoice High Option plan, for coverage of one
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8 child,
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9 c. for two or more children, seventy-five percent (75%)
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10 of the HealthChoice High Option plan, for coverage of
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11 two or more children,
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12 d. for a spouse and one child, seventy-five percent (75%)
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13 of the HealthChoice High Option plan, for coverage of
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14 a spouse and one child, or
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15 e. for a spouse and two or more children, seventy-five
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16 percent (75%) of the HealthChoice High Option plan,
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17 for coverage of a spouse and two or more children;
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18 3. For the plan year beginning January 1, 2022, the amount of a
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19 participant's benefit allowance shall be increased by two percent
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20 (2%) from the amount provided in the previous year;
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21 4. For the plan year beginning January 1, 2023, the amount of a
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22 participant's benefit allowance shall be increased by two percent
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23 (2%) from the amount provided in the previous year; or
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1 5. The greater of the amount of benefit which the participant
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2 would have qualified for as of plan year 2023, or an amount equal to
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3 the monthly premium of the HealthChoice High Option plan, the
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4 average monthly premiums of the dental plans, the monthly premium of
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5 the disability plan, and the monthly premium of the basic life
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6 insurance plan offered to state employees plus one of the additional
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7 amounts as follows for participants who elect to include one or more
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8 dependents:
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9 a. for a spouse, seventy-five percent (75%) of the
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10 HealthChoice High Option plan, available for coverage
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11 of a spouse,
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12 b. for one child, seventy-five percent (75%) of the
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13 HealthChoice High Option plan, for coverage of one
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14 child,
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15 c. for two or more children, seventy-five percent (75%)
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16 of the HealthChoice High Option plan, for coverage of
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17 two or more children,
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18 d. for a spouse and one child, seventy-five percent (75%)
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19 of the HealthChoice High Option plan, for coverage of
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20 a spouse and one child, or
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21 e. for a spouse and two or more children, seventy-five
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22 percent (75%) of the HealthChoice High Option plan,
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23 for coverage of a spouse and two or more children.
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1 D. To the extent that it is consistent with federal laws and
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2 regulations, and in particular the regulations set forth by the
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3 United States Secretary of Defense in 32 C.F.R., Section
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4 199.8(d)(6), a benefit may be provided to an employee who is an
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5 eligible TRICARE beneficiary whereby he or she may purchase a group
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6 TRICARE Supplemental supplemental product under a qualifying
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7 cafeteria plan consistent with the requirements of 26 U.S.C.,
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8 Section 125, provided that:
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9 1. The state, as employer, may not provide any payment for nor
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10 receive any consideration or compensation for offering the benefit;
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11 2. The employer's only involvement is in providing the
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12 administrative support for the benefit under the cafeteria plan; and
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13 3. The employee's participation in the plan is completely
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14 voluntary.
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15 The benefit allowance under paragraph 2 of subsection C of this
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16 section of an employee whose plan participation includes a group
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17 TRICARE Supplemental supplemental benefit shall not include any
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18 allowance or portion thereof for such TRICARE Supplemental
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19 supplemental benefit.
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20 E. This section shall not prohibit payments for supplemental
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21 health insurance coverage made pursuant to Section 1314.4 of this
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22 title or payments for the cost of providing health insurance
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23 coverage for dependents of employees of the Grand River Dam
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24 Authority.
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1 F. If a participant desires to buy benefits whose sum total of
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2 benefit prices is in excess of his or her flexible benefit
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3 allowance, the participant may elect to use pay conversion dollars
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4 to purchase such excess benefits. Pay conversion dollars may be
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5 elected through a salary reduction agreement made pursuant to the
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6 election procedures of Section 1371 of this title. The elected
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7 amount shall be deducted from the participant's compensation in
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8 equal amounts each pay period, with the exception of participants on
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9 a biweekly payroll system, where such deduction shall occur over
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10 twenty-four pay periods over the plan year. On termination of
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11 employment during a plan year, a participant shall have no
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12 obligation to pay the participating employer any pay conversion
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13 dollars allocated to the portion of the plan year after the
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14 participant's termination of employment.
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15 G. If a participant elects benefits whose sum total of benefit
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16 prices is less than his or her flexible benefit allowance, he or she
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17 shall receive any excess flexible benefit allowance as taxable
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18 compensation. Such taxable compensation will be paid in
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19 substantially equal amounts each pay period, with the exception of
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20 participants on a biweekly payroll system, where such deduction
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21 shall occur over twenty-four pay periods over the plan year. On
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22 termination during a plan year, a participant shall have no right to
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23 receive any such taxable cash compensation allocated to the portion
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24 of the plan year after the participant's termination. Nothing
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1 herein shall affect a participant's obligation to elect the minimum
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2 benefits or to accept the default benefits of the plan with
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3 corresponding reduction in the sum of his or her flexible benefit
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4 allowance equal to the sum total benefit price of such minimum
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5 benefits or default benefits.
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6 SECTION 3. This act shall become effective November 1, 2026.
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8 60-2-2345 CAD 1/15/2026 9:07:16 AM
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Req. No. 2345 Page 10Every fact on this page links to its source, starting with the official bill record.