INDIANAPOLIS, IND. (WOWO) Indiana lawmakers are considering ending a retirement benefit that reimburses state employees for medical costs, replacing it with expanded Hoosier START accounts. The Retirement Medical Benefits Account (RMBA), created in 2007 under Gov. Mitch Daniels, was designed to help employees cover health insurance premiums before they were eligible for Medicare. Senate Bill 10 would allow current employees to choose whether to keep their RMBAs or transfer their balances to Hoosier START through 2026. Beginning in 2027, new hires would no longer receive RMBAs. Hoosier START accounts include employee contributions and a state match, which would increase from $15 to $28 per pay period under the proposal. “It sounded like a great tool, because if you retire at 60 and you don’t get Social Security until 65, you’ve got five years of insurance premiums you have to deal with,” said Sen. Linda Rogers, R-Granger, chair of the Senate Pensions Committee.“But if you look at today’s workforce, people entering it today are not staying like people did years ago.” The shift reflects a focus on recruitment and retention, since RMBA funds are forfeited if employees leave state service before retirement age. Expanding Hoosier START would provide more flexibility and vesting benefits. The committee also discussed offering public retirees a 13th check, along with an additional $50 for certain retirement fund members. Sen. David Niezgodski, D-South Bend, said reserve accounts could cover the 13th check, estimated at $34 million for fiscal year 2027. “If we keep that $50 (in the bill), then it should come out of the supplemental reserve accounts,” Rogers said, noting ongoing negotiations with bill sponsors. The Senate Pensions Committee took testimony on Wednesday, Dec. 10, with a vote expected in January. The panel also reviewed pension benefits for retired police and firefighters, along with contribution rates for local government employers. “Certainly, we all are in agreement that public safety is our No. 1 priority,” Rogers said. “We have to match that with available funds.” The post State Employees Could Shift to Hoosier START appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less