Sec. 1. 20-A MRSA §13451, sub-§3, as amended by PL 1997, c. 643, Pt. OO, §1 and affected by §3, is repealed and the following enacted in its place:

3.__Payment by State.__The State shall pay a portion of retired teacher members' share of this insurance as follows:

A.__For retired teacher members with a household income less than 60% of the federal poverty level, 50%;

B.__For retired teacher members with a household income less than 120% of the federal poverty level, 45%;

C.__For retired teacher members with a household income less than 180% of the federal poverty level, 40%; and

D.__For retired teacher members with a household income equal to or greater than 180% of the federal poverty level, 35%.

For purposes of this subsection, "federal poverty level" means the nonfarm income official poverty line for a family of the size involved, as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget Reconciliation Act of 1981, Section 673, subsection 2.

Sec. 2. Effective date. This Act takes effect January 1, 2002.

SUMMARY

This bill increases the amount of the portion of retired teachers' health insurance paid by the State from the current amount of 30% to an amount up to 50%, based on the household income of the retired teacher.