February 7, 2011
New Retiree Health Insurance
(State Employees Only)
The Department of Employee Trust Funds (ETF) recently enhanced
Benefits System to report retiree health insurance continuation
by adding a new cancellation of coverage reason - Retirement.
This new process will:
- make a cursory eligibility evaluation;
- cancel the existing contract; and
- create a new contract as a retiree.
ETF developed this because of the Group Insurance Board's decision
to end a state employee's eligibility for the state employer's premium
contribution at the end of the month following the date a state
employee terminates employment, including termination for retirement.
This change became effective January 1, 2012. Previously, retiring
state employees had up to two months of prepaid health insurance
premiums to use that included the employer premium contribution
before their annuitant coverage needed to be in place for uninterrupted,
continuous health insurance coverage.
Typically, the sick leave certification process takes at least
30 days to complete. The new Retirement cancellation process allows
an employee to use his or her estimated Accumulated Sick
Leave Conversion Credit (ASLCC) to pay for state health insurance
premiums on the first of the month following retirement.
Please note that this is an interim process. We will notify employers
when a long-term solution is available. Click on the following
image for screen
shots and instructions to guide you through this new process.
If you have questions, please contact ETF Retiree Services at 1-877-533-5020.