State Contribution Toward Retiree Premium
(Provision Ends in 2008)

As of July 1, 2002, the contribution toward retirees’ premiums is based on the amount of time an employee worked for the State.

The contribution for a retiree is calculated using the number of full years of service as reported to MCHCP by MOSERS or PSRS (if your State service is with them) times 2.5%. The maximum percentage cannot exceed 75% and is determined by State appropriations. The current maximum is 65%. After the percentage is computed, the dollar amount is figured on the low cost plan in the region where you live. Then that amount is deducted from the total premium rate leaving the amount you must pay.

  If you retired prior to July 1, 2002, and the amount of the contribution based on your years of service is less than the amount that was being paid toward your premium at that date, you continue to receive the contribution amount that was in place prior to July 1, 2002. Each year for January coverage, a new calculation is run. You will receive the contribution amount that is higher.

2003 Retirement Incentive Law

If you retired with a retirement date effective February 1, 2003, through September 1, 2003, provisions of SB 248 dictate that you may continue your medical insurance coverage based on the active member rate. The medical incentive ends the earlier of:

• Five years*
• Eligibility for Medicare

*This provision continues for five years from the effective date of this law or your retirement date, whichever is later.

The earliest premium changes due to the incentive will occur July 1, 2008, unless you become eligible for Medicare.

When the incentive ends, the contribution will change to reflect a percentage based on your years of service and the retiree rate. You will be notified of the rate change in a Confirmation Letter.