§ 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. 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)(i) As used in this section, the term “employees” includes any class or classes of elected
or appointed officials, State’s Attorneys, sheriffs, employees of State’s Attorneys’
offices whose compensation is administered through the State of Vermont payroll system,
except contractual and temporary employees, and deputy sheriffs paid by the State
of Vermont pursuant to 24 V.S.A. § 290(b). The term “employees” shall not include members of the General Assembly as such,
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, or any elected or appointed official unless the official is actively
engaged in and devoting substantially full-time to the conduct of the business of
the official’s public office.
(ii) For purposes of group hospital-surgical-medical expense insurance, the term “employees”
shall include employees as defined in subdivision (i) of this subdivision (2)(A) 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.
(iii) For purposes of group hospital-surgical-medical expense insurance only, the term “employees”
shall include employees as defined in subdivision (i) of this subdivision (2)(A) 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 of 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 Human Resources, 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 Human Resources, with the consent of the
Governor, shall deduct from any State employee’s compensation such amounts as the
employee may request for U.S. 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.
(10) The Secretary of Administration shall not contract for any group hospital-surgical-medical
expense insurance that provides a Medicare Advantage plan or similar plan established
pursuant to Title XVIII of the Social Security Act without the explicit agreement
of all employee organizations certified pursuant to chapters 27 and 28 of this title.
(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; 2007, No. 116 (Adj. Sess.), § 7; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012; 2015, No. 172 (Adj. Sess.), § E.108.2, eff. June 8, 2016; 2017, No. 81, § 2, eff. June 15, 2017; 2023, No. 78, § E.108.1, eff. July 1, 2023.)