New health care rules for re-employed retirees
The Ohio Public Employees Retirement System has approved changes to health care coverage for re-employed retirees, and the new rules will go into effect in 2016.
The changes are in response to federal health care regulations that affect OPERS members who go back to work for an OPERS-covered employer after they’ve retired. The regulations limit plan benefit values. They also provide that an HRA is insufficient coverage for an individual defined as an employee and would penalize OPERS if we provided coverage to re-employed retirees through a Health Reimbursement Arrangement.
Thus, OPERS will create separate plans for non-Medicare re-employed retirees and for Medicare-eligible re-employed retirees, both effective Jan. 1, 2016. Re-employed retirees 65 and over will be limited in the number of times they can move in and out of OPERS re-employed retiree coverage in a calendar year. We’ll provide additional details in the summer OPERS Health Care Bulletin.
The new plans will apply to retirees who receive an OPERS pension and also work for an OPERS-covered employer. They will not apply to retirees receiving pensions who work in the private sector or to those who work for a public employer that does not participate in OPERS.
The updates are an extension of the changes that OPERS has made to its health care coverage beginning in 2012. These plan changes preserve health care coverage for the future and provide retirees with affordable choices and increased flexibility. They include a new allowance structure and establishment of the OPERS Medicare Connector, which will allow Medicare-eligible participants to choose coverage on the individual market.
About 8,400 re-employed retirees participate in OPERS health care coverage, and they generally fit into one of three categories:
- Intermittent workers, such as judges, librarians and seasonal employees, who cycle in and out of re-employment or who work limited hours
- Part-time workers, who work continually but for limited hours weekly
- Full-time workers, who go back to a full-time position upon retirement
Based on federal rules, re-employed retirees are classified as active public employees when they go back to work, even if it’s for only a few days each year. That status precludes Medicare-eligible, re-employed retirees who join the Connector next year from accessing funds through a Health Reimbursement Arrangement, which we will use to reimburse participants for premiums and out-of-pocket expenses.
Permitting re-employed retirees who work in an OPERS-covered position to participate in the HRA would subject the entire plan to financial penalty.
Thus, OPERS will maintain a separate re-employed retiree plan for these Medicare participants in addition to the Connector. That will make it possible for members to switch from the Connector to the new group plan should they become re-employed, subject to certain limitations on the number of times they can change plans.
Connector participants who become re-employed will have the following choices:
- Select their employer’s coverage if the employer offers it, which is a requirement of our health care coverage.
- Remain in the plan they selected through the Connector but without receiving their HRA allowance or being able to access funds they may have accumulated in the account. (There are plans available that offer premiums as low as zero dollars per month that could make this option more attractive.)
- Leave the plan they selected through the Connector and enroll in the OPERS re-employed retiree plan. OPERS will provide the appropriate allowance similar to our current health care plan, based on age and service. If the allowance doesn’t cover the full premium, we would deduct the remaining amount from retirees’ pension benefits.
Eligible spouses and dependents would be included in the re-employed retiree plan if the retiree opts for that coverage.
About 28 percent of our re-employed retirees go from retirement to re-employment and back to retirement in the same year. Our new plan will allow Connector participants to do this once per calendar year. That will permit re-employed retirees who become fully retired again to have their HRA accounts and allowances unfrozen so they can fund a Connector-selected plan instead of waiting until the new plan year begins.
Like Connector participants, re-employed retirees under 65 will have a separate plan made available to them. The plan will be similar to the retiree-only, non-Medicare plan for 2015. Premium allowances will follow the new allowance table, which you can find on page 5 of the Comprehensive Guide to Pension and Health Care Changes.
Click here to watch a video with OPERS Health Care Director Marianne Steger explaining the changes. We have posted a fact sheet regarding the changes on our website.
OPERS will mail a fact sheet with more details on re-employed retiree health care coverage in the coming weeks to members affected by the change. Additional detail will be available in the 2016 open enrollment guide this fall and on the OPERS website at www.opers.org.
Michael Pramik
Michael Pramik is communication strategist for the Ohio Public Employees Retirement System and editor of the PERSpective blog. As an experienced business journalist, he clarifies complex pension policies and helps members make smart choices to secure their retirement.
I am presently a retiree rehired with the Board of Elections and I’m over 65! Is the OPERS plan through the connector and will I be able to use the same plan when my term expires? Will I be subject to underwriting when I retire from the Board of Elections if I have to switch policy.
Merrill,
If you are 65 and re-employed and your employer does not provide health care coverage, you have two choices. You can use the OPERS Medicare Connector but receive no HRA allowance. Or, you can enroll in our re-employed retiree group plan. We will provide a premium allowance for that. When you do switch to the Connector when you finally retire, you won’t be subject to medical underwriting.
–Ohio PERS
WHEN WILL THE DETAILS OF THE OF THE RE-EMPLOYED RETIREE MEDICAL PLAN BE AVAILABLE,AND HOW WILL IT EFFECT MY SPOUSE
Thomas,
There will be more information in our summer health care bulletin and in the 2016 open enrollment kit, which we mail out toward the end of summer.
Eligible spouses and dependents would be included in the re-employed retiree plan if the retiree opts for that coverage.
–Ohio PERS
What month do you consider your “summer health care bulletin” – June, July,
August.
Bernadette,
That publication will be mailed in early August.
–Ohio PERS
I am a re-employed retiree, working full time in an OPERS covered position (State of Ohio) and are 68 years old. Both my 82 year old husband and I are on the employers health care plan, have Medicare, and OPERS Health Care as well, my husband has the Medicare/Humana/OPERS tertiary coverage. I do not know how long I will be full time employed with the State of Ohio, likely through October of 2016. Do I need to go to the Connector to subscribe to a new health care plan to replace the current OPERS health care plan, or just freeze the HRA until I retire again? Will my husband need to enroll in a connector? Help!
Christine,
If you’re working full time and have coverage through your employer, you likely should not sign up for coverage through the Connector. In fact, it’s required that you do take the employer’s coverage if it’s offered.
However, if you would like to opt for additional coverage to that of your employer, you can use the Connector but you wouldn’t receive an allowance from us. Medicare Advantage plans and prescription plans generally do not coordinate with employer-sponsored plans. So you might purchase more insurance than you need. You also could sign up for additional coverage through the upcoming OPERS group re-employed retiree plan.
The same is true for your spouse. If you don’t receive an allowance, neither would your spouse. And remember, your spouse has to choose the same coverage that you have.
–Ohio PERS
So correct me if I’m wrong, but you are now changing retirees health care AGAIN. I retired in Oct 2014 with almost 26 years in LE at age 48. I had to retire to beat the changes occurring on Jan 1 2015. I waited two months and came back to the department as a part time employee with NO benefits (Ins. Vac. Comp. or Sick Time). I am working up to 16 hrs a week at a reduced hourly rate mostly to cover my wife’s private insurance premiums because OPERS is dropping spouses . Now my choices are: 1. To quit and take from the department and community 26 years of knowledge and experience that cost them far less than a full time employee, 2. Pay more than I make ( part time) for insurance premiums. 3. Settle for a “plan” that will be far less than I have now and still have to pay more. I think you are going to find a lot of rehired employees quitting and working in the private sector or just not working at all. Maybe that is what OPERS is hoping will happen, quitting or paying higher premiums ?????? Hopefully the taxpayers will see the savings and experience they get with rehired employees and put a stop to this.
I am very disappointed in OPERS.
I went back to work for the State of Ohio because OPERS announced it was eliminating my wife’s health care benefits, despite telling me that it supposedly had 15 years of health care funding, which would have taken my wife and I to Medicare before running out before I retired from the State of Ohio.
After I retired, OPERS told me that its 15 years of health care funding went from 15 years to only 3 years, because it took a large amount of money out of its health care fund and put it in its pension fund.
Now, despite a booming stock market, OPERS has announced a new health care plan that will cost reemployed retirees more money for their health care.
Whatever promises OPERS makes can’t be relied upon.
I learned this the hard way.
Slowly taking away everything from working and retired OPERS members. What a joke.
Ben,
On the contrary, the IRS has made it clear that we cannot use a Medicare Connector-type coverage for re-employed retirees without severe penalties ($36,500 per year, per employee). Meanwhile, for those under 65, changes in health care rules contained in the Affordable Care Act (look up “Cadillac tax”) are causing us to create a re-employed retiree health care plan for them.
These new plans give members valuable health care coverage options.
–Ohio PERS
So, if I am an OPERS retiree and am re-employed by STRS, SERS or move out-of-state and work for a public entity, I would not be affected by the IRS regulation regarding health care? Please explain. Also, would you please provide the specific section of the IRS regulation that addresses this? Is OPERS the only public retirement system in Ohio affected?
A. Ruiz,
That’s correct. The new re-employed retiree plans will apply only to retirees who return to work in an OPERS-covered position. You can read IRS Notice 2013-54 and IRS Notice 2015-17 for more information. The IRS also gives guidance on this topic in the form of a Q&A.
–Ohio PERS
Is OPERS the only public retirement system in Ohio affected?
Dave,
The Cadillac tax will affect all employers who provide health care benefits of a certain level. The new health care plan for those over 65 is in reponse to rules on Health Reimbursement Arrangements, and OPERS is unique among Ohio public pension plans in providing an HRA.
–Ohio PERS
Am I correct in my understanding that the OPERS HRA is the account where, if the retiree completes two of the eligible items within one running year, a maximum of $100 (at $50 per item) will be placed in the retiree’s HRA, which can be used at any time by the retiree toward medical bills. If this is correct, then it is this $100 per year maximum benefit that puts re-employed retirees into a “cadillac” health care plan? I certainly hope the OPERS solution for the “similar” plan that will begin January 1, 2016 for the re-employed retirees reflects how small this “cadillac” truly is.
Anita,
You’re thinking of the Retiree Medical Account, not the Health Reimbursement Account. The measure of a “Cadillac” health care plan is the threshold that represents the maximum allowable health care plan value before an excise tax would be imposed. For 2018, it’s $10,200 for singles, $27,500 for families.
–Ohio PERS
So correct me if I’m wrong, you are now changing retirees’ health care AGAIN. I retired in Oct 2014 with almost 26 years in LE at age 48. During that time I was also a volunteer fireman for 16 years that paid a small amount into OPERS. I had to retire to beat the changes occurring on Jan 1 2015. I waited two months and came back to the department as a part time employee with NO benefits (Ins. Vac. Comp. or Sick Time). I am working up to 16 hrs a week at a reduced hourly rate mostly to cover my wife’s private insurance premiums because of OPERS dropping spouse coverage.
Now, my choices:
1. To quit and take from the department and community 26 years of knowledge and experience that cost them far less than a full time employee,
2. Pay more than I make ( part time) for monthly insurance premiums.
3. Settle for a “plan” that will have less benefits then I have now but will have to pay more for.
Why is OPERS penalizing retirees who need to work to help supplement their retirements and pay for their spouses insurance.
Please answer this, If I quit to avoid paying more for this special “rehire health plan”, then I could not become a member of a volunteer fire department again. We only got $3.00 a fire run, but they still pay into OPERS. So if I made 20 runs a month and got paid $60.00 I would have to pay OPERS about $250 or whatever for special rehire insurance. Is that correct ? Guess we’ll lose a lot of volunteers!!!!!!!!
Funny, you work your entire career being told by OPERS that the sacrifices you and your families had to endure will be worth it come retirement time. Then just prior to your retirement they start changing the rules, retirement ages, benefits, health insurance etc.
I would love to see this new “Federal Law” that states OPERS has to charge retirees who return to work (with no benefits) for their insurance. If that’s the case then lets see if all the other public employee retirement systems do the same, both state and nationwide since it is a “Federal Law”.
Tom,
You say you had to retire in 2014 with almost 26 years of service credit to “beat the changes” effective Jan. 1, 2015. We can assume you’re talking about the new health care rule that now requires 20 years of qualifying service credit and a minimum age of 60 for health care coverage vs. the previous criterion of 10 years service credit. We also have stipulated that our members can retire with health care at any age if they have 30 years of qualifying service credit.
Regarding how federal law impacts our coverage, we relied on guidance from the Internal Revenue Service (IRS Notice 2013-54 and IRS Notice 2015-17) to determine that OPERS retirees who become public employees for an OPERS-covered employer cannot participate in the Health Reimbursement Arrangement that is key to our newly created OPERS Medicare Connector.
But since you indicate you are in your 40s, you’re not asking about Medicare coverage. The under-65 plan we are creating for re-employed retirees is partly in response to the Cadillac tax, which is a feature of the Affordable Care Act (a federal law). The tax targets plans with high levels of health coverage to help fund coverage more widely on a national basis. There are dozens of articles available on the Internet that describe the Cadillac tax, which goes into effect in 2018.
It sets a maximum allowable plan value that we can provide in a health care plan before being subjected to punitive monetary penalties. In order to avoid these penalites, we’ve determined that the best solution is to create the new plan just for the re-employed retirees. The plan will be similar to the current plan for under-65 retirees, and you will hear more about it as the year progresses.
–Ohio PERS
A couple years ago I raised the issue of how the Cadillac tax would affect OPERS. This is the most response I’ve ever seen. What’s the IRS decision concerning retirees that are not re-employed?
David,
The Health Reimbursement Arrangement is described in the IRS document you can read by clicking here. Retirees who are not re-emlpoyed will be able to use the money we deposit through the HRA for reimbursement of premiums and qualified medical expenses.
–Ohio PERS
If I retire and re-hire by an OPERS covered employer but choose not to be on OPERS health care plan will the new plan apply to me. Also, when I retire for good, would I still be able to pick up opers health care. I would have enough years and age.
A.,
In your example, you do not state whether you would be in our coverage first, then go back to work, or if you are working, retire, then go directly back to work without ever initiating OPERS coverage.
If the former example is the case, our members can always delay entry into our health care coverage and start up later. In the case of someone having coverage, retirees who voluntarily elect to withdraw from the OPERS health care plan may re-enroll, but only if they provide “proof of creditable coverage” in another health care plan. Click here to read a blog that addresses this situation.
–Ohio PERS
Another little tidbit, the Cadillac tax applies to plans costing over $10,000 for a single person per year. So ours is just under that, why would it affect us????????? $800.00 per month X 12 equals $9600.00
Tom,
The threshold is higher because the tax extends beyond the value of the health care plan itself and includes tax-advantaged health care account features such as flex spending, health reimbursement accounts and pretax contributions to a health savings account.
–Ohio PERS
I would like to know if you are in group A do you have to retire before January 2018. Or can you retire after 2018 as a group A member?
Victor,
Members of Group A are those who are eligible to retire on or before Jan. 7, 2018. Retiring after that date doesn’t change the fact that they are Group A members.
–Ohio PERS
I should have made myself clear,I’m not blaming OPERS. I am referring to Obamacare ,it’s making a mess out the health care system for everyone , all these rules that are turning lives upside down. The people that never paid will still not, and wil be paid for by the working stiff. I am happy with my OPERS benefits
This new health care rule will effect me,I am still working part time and I am 65 years old. I hope it’s as good as my Human and exepresscripts coverage. My real only complaint is removing the spouses and 30 year requirement for L.E.
My current OPERS employer is being told that the requirements concerning the Cadillac tax are not finalized and there will likely be changes. They indicate they can not yet determine if changes need to be made. Why is OPERS making changes now and will you make adjustments if it does not become effective in its’ current form.
Also, I have been reemployed in a full time elected official position with an OPERS employer for six years receiving health insurance through my employer and OPERS as my secondary coverage. If I decide to know longer work after 2016 when my term ends, and am still under 65 would I revert back to my current plan?
Teresa,
As we’ve said, we’re making changes so that members don’t get hit with huge increases in 2018. Surely we will adjust the plan details if the Cadillac tax goes asy.
And yes, you would revert back when you are fully retired.
–Ohio PERS
I am 63 years old and am re employed for an OPERS employer. Am I correct in assuming that I will have to change my health plan in 2016 because I work part time, then change it again when I turn 65 and change it yet again when I totally retire? When I totally retire will I be able to get the same benefits at the same cost as if I only had to change when I went on Medicare?
Thank you,
I realize it is not OPERS tha t is at fault but The Affordabe Care Act that is causing all these changes.
Judith,
When you are over 65 and retired, you will access a health care plan through the OPERS Medicare Connector. You won’t receive an allowance. Rather, you’ll receive a monthly amount deposited into a Health Reimbursement Account, which you can use to pay premiums and other health care bills. How closely this plan resembles your current coverage is something you can discuss with OneExchange, our Connector administrator, when you sign up for that coverage.
If I quit employment under OPERS as a re-employed retiree, can I work for the Village as a private planning consultant under a service contract? The Village offers no health or medical insurance or benefits to any employee.
David,
Sure, you can. But realize that if the employer you’re going back to work for as an independent contractor is the same employer you retired from, you will forfeit your pension benefit during the time you’re working as a contractor. See page 4 of our “Returning to Work After Retirement” leaflet.
–Ohio PERS
As a re employed retiree is there a cut off date that I can leave my State of Ohio job so I will not be considered a re employed retiree or is it to late.
Lee,
The definition of a re-employed retiree in our system is someone who retires and collects a pension then goes back to work in an OPERS-covered position. It’s not about timing. If you retire, then go back to work in an OPERS-covered position, you’re considered a re-employed retiree.
–Ohio PERS
New to this conversation: I’m 62 and retiring June 1st — Is this going to hit non-Medicare aged retiree workers, too? Neither I nor my spouse will be using Medicare for a few years. This fall can I still go back to work as a part-time/temporary pool worker for an OPERS employer (where no medical insurance is included as a paid benefit) and not lose the OPERS retiree medical insurance for me and my spouse? As a temp/part-timer, can I be forced to buy insurance from employer, rather than from OPERS.
Chris,
This plan does not go into effect until 2016, and when it does it will be very similar to the current coverage for your age group. So until then you will be eligible for OPERS’ current health care coverage if your employer doesn’t provide coverage to someone in that position. You can’t be forced to purchase insurance from an employer if the employer offers it, but if the employer offers it and you decline, you would not be eligible for coverage that we offer. This fact sheet provides further information that might be helpful.
The health care guide states if a retiree has an allowance of greater than 75% the allowance will not be lower after the health care changes. Does this still hold true for the retirees returning to an opers position after these new changes ?
Bill,
Your premium will be based on your years of public employment and your age when you first enrolled in OPERS health care coverage. As a re-employed retiree, you may experience a higher premium than a participant who is not re-employed. Beginning July 1, you’ll be able to use your online account to estimate your cost to be in the re-employed retiree plan in 2016. You also can contact us at 800-222-7377 to run that estimate for you.
–Ohio PERS
I retired in August of 2014 with 28 years of service in opers. I am 56 and considering part-time employment in a opers position similar to my previous position, but there will be no benefits. Will my healthcare that I am currently receiving thru opers be affected in any way? Or will my opers monthly benefit be affected? Please respond as this will affect my decision to become re-employed. Thank you.
Mary,
If you become re-employed after retiring and wish to use OPERS for your health care coverage, we will begin offering a re-employed retiree health care plan beginning in 2016. You’ll get more information in upcoming newsletters, blogs, videos and other communication sources. We’ll lay out all the details in our open enrollment guide later this summer. This will not affect your pension benefit.
–Ohio PERS
If it doesn’t go into effect until January 2018 , why are you doing it two years early???? Also I bet this new plan will be reduced benefits higher deductibles and goes with it higher premiums is that correct or is it going to be exactly the same as what we have now?????
Tom,
The reason that we’re creating the new health care plan beginning next year is to get our costs under control so that we don’t have to impose a much-higher plan cost for participants in 2018. While the health care plan for retirees and re-employed retirees will be similar, the plan for re-employed retirees might have higher premiums.
–Ohio PERS
I personally have been aware for a couple of years (through our local SSA office) that someone on medicare cannot deposit into or use funds in an HRA. So are you telling us that OPERS did not know this when you set up the new system using an HRA to deposit our allowances?
I am assuming you have known and so why would you set up a system knowing that it was not possible for 8,400 of your participants?
I work an average of 12-15 hours a week at a library and am not offered insurance benefits. It will be really a sad state of affairs if I have to quit this job because of being penalized by OPERS.
Sharon,
As we stated in the blog, we are not discontinuing health care coverage for re-employed retirees. Rather, we are setting up a new health care plan that will be tailored for those retirees who choose to return to work in an OPERS-covered position.
–Ohio PERS
I retired in 2010 at age 64 with 35+ years of OPERS covered service and went to work part-time for another OPERS covered employer later in 2010. My spouse (also covered under my OPERS plan) will be Medicare eligible in 2017. It seems that, to minimize the impact of these new Re-employed restrictions, I may want to convert to an “independent contractor” relative to my part-time employment. I plan to continue my current part-time employment thru 2017 (so my concern is only for 2016 + 2017). I figure my net income for 2016 +17 will total about $20,000.
I highly value my OPERS benefits along with Ohio’s Def. Comp. (457) Prgm. and would not be as financially secure otherwise so It is difficult to criticize OPERS for all the plan revisions given the economic reality of today’s environment. It is frustrating though to have to adapt to all of this change in retirement.
Thanks for your help.
Bill
Bill,
We can’t give you advice. We can say that these rules apply only to those who go back to work in an OPERS-covered position. With the contractor arrangement likely not being an OPERS-covered position, then the new re-employed retiree health care plan would not apply.
–Ohio PERS
If a re-hired retiree comes back to work part-time, under 30 hours per week and is not eligible for health care coverage by the employer does this affect their OPERS insurance coverage?
Theresa,
Yes — no matter how many hours you work, if you retire and go back to work in an OPERS-covered position you are classified as a re-employed retiree. We’ve created the new plans for members who would like to retire and go back to work in an OPERS-covered position. If you work part time next year in the private sector or in a public job that is not covered by us, then you can remain on your current plan or use the OPERS Medicare Connector if you’re eligible.
–Ohio PERS
So if I understand this correctly, this takes effect January of 2016. If I work part-time in 2015 under opers but quit the end of December 2015, this will not affect me? If I do work in 2016, I will have to join the new group, but once I quit, I can again be covered under my original opers healthcare plan.? Will this affect the original allowance I received when I fIrst retired? I am 56 and retired in 2014 with 28 years of service with the understanding that my healthcare allowance would not drop below 75%.
Mary,
You’re correct that if you fully retire by the end of this year that the new re-employed retiree rules will not affect you. Beginning next year, because you’re under 65, you would be in either our plan for re-employed retirees or our plan for retirees. Just remember that you might have to satisfy multimple deductibles if you move back and forth. And you’re also correct that these plans will follow the rules of our new allowance tables.
–Ohio PERS
I am retired from OPERS and went back to work part time for OPERS. Does this mean that I must quit my part time job that I am presently working for OPERS before Dec 2015 so this does not effect me in 2016. Or am I already effected?
Teresa,
That decision is up to you. The plans will apply to re-employed retirees in 2016. Beginning July 1 you’ll be able to use your online OPERS account to create an estimate of your cost to participate in an OPERS re-employed retiree plan in 2016. Or, you can call us at 800-222-7377 and we can help. But that’s in July, not now.
–Ohio PERS
If someone is retired from OPERs and rehired as an elected official, and they currently contribute to OPERS, do they have the option of switching to contribute to social security? If they switch to social security, would that eleviate the change in their health insurance?
Barbara,
Not if it’s an OPERS-covered position.
–Ohio PERS
OPERS Board and Staff. Thanks for your work on retiree health insurance for re-employeed retirees. Your work on behalf of all both current and future retirees is to be applauded. Once again, you worked out a plan to provide options for all categories of retirees and for that I am grateful. Thanks again.
With the upcoming changes for re-employment, what if a retiree works through an employment agency on a part time basis and is placed in an OPERS covered position on an assignment? The staffing agency is considered the employer and is not OPERS. What if any effect does this have on the retiree?
Joy,
Employees working through a staffing agency are not considered public employees, so the re-employed retiree health care rules would not apply.
–Ohio PERS
ok I have over 39 years full time.My age is 59 now. If i decide to retire this year or years after. Come Jan 2016. If I come back to work at the same place and work only part time which i don’t receive any health ins because only full time employees can receive the health ins. this will still affect me.
Dan,
The new plans will impact anyone who retires from OPERS and returns to work in an OPERS-covered position regardless of how much or how little they work.
–Ohio PERS
If I am on your OPERS re-emplyoed retiree coverage for a couple of years, when i am no longer a OPERS employee, can i then use the conector and what penalty will I experience due to no guarantee issue?
Jim,
We’ve recently posted a blog entry on the guaranteed issue question. Click here to read it.
–Ohio PERS
My husband rehired/retired and will be on my medical insurance through my employer starting 1/1/16. He is not on the OPERS medical insurance. If he remains working under OPERS in 2016, will this effect him since he is not on the insurance?
Michelle,
The new plans apply to all re-employed retirees who return to work in an OPERS-covered position. But because your husband will have coverage through another source, he is not required to sign up for coverage through OPERS.
–Ohio PERS
I retired December 31, 2013, at age 63 after 35 years of full time employment under OPERS. I returned to work immediately and am fully covered by my employer’s health care plan. During my 35 years of pre-retirement employment, I did not pay into medicare. As a re-employed OPERS member, I do pay into medicare. I am now 65 but have not signed up for Medicare part A or B as I had been told it was not necessary until I went under the OPERS healthcare plan. I am so confused eith all of these changes. 1. Do I need to sign up for Medicare A-B? Am I eligible under my spouses Social Security for Medicare or will I incur huge premiums if I cannot? Because it wil be another couple of years until I fully retire, will my pension amount be effected by these changes?
Lyn,
Give us a call at 800-222-7377, and we can answer all of your questions.
–Ohio PERS
I am a rehired retiree and just found out that if I pass away before turning 65 years of age, my beneficiaries will receive ZERO dollars from my present employer’s 14% contribution on my behalf into my MPP. This is no small amount to me. Presently, it is ~ $80,000. I know these programs have a cost/fee to manage and operate – and we pay for this I think. However, the replies I get back from OPERS stating the 14% go towards pension (annuity) and healthcare costs does not make sense to me. My pension and healthcare costs are already vested by my retirement funds not my rehired funds? We get a choice after 65 years of age to take the MPP lump sum and not the annuity. So why is 65 this magical number? And why is the 14% monies kept by OPERS before 65?
Even if I do make it to 65, the so-called “matching amount” will be only 67%. Fyi – prior to 2005 it was 100%.
Additionally, we are informed that the OPERS Board can adjust this percentage at any time and that it will impact you immediately when it is done. How can we plan with this type of potential action always available by OPERS? When will another adjustment take place and what will be the reasoning for it?
Once again….what moderation is necessary?
Tim,
Please read our Comments Policy, a link to which exists in each of our blog postings:
We encourage your comments on the Ohio Public Employees Retirement System’s PERSpective blog. We can’t respond to every comment. Please be aware that we review all comments before they’re posted, and we reserve the right not to publish or to remove any comment that in our sole discretion does not further the purpose of the blog.
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Here is our policy:
By posting any comments, posts or other material on the OPERS-sponsored blog, you give OPERS the irrevocable right to reproduce, distribute, publish, display, edit, modify, create derivative works from, and otherwise use your submission for any purpose in any form and on any media. You also agree that you will not:
Post material that infringes on the rights of any third party, including intellectual property, privacy or publicity rights.
Post material that is unlawful, obscene, defamatory, threatening, harassing, abusive, slanderous, hateful, or embarrassing to any other person or entity as determined by OPERS in its sole discretion.
Post advertisements or solicitations of business.
Post chain letters or pyramid schemes.
Impersonate another person.
Allow any other person or entity to use your identification for posting or viewing comments.
Post the same note more than once or “spam.”
–Ohio PERS
I retired in 2012 from a OPERS employer was hired in the private sector under private insurance. I was hired by another OPERS employer in 2014 and am now under my employer’s insurance. I have NOT been on the OPERS insurance at anytime. I plan to work for this employer until or close to medicare age. Am I included in this new plan?
Rod,
The new plan will not affect you if you are enrolled in your employer’s plan.
–Ohio PERS
I retired November 30, 2014 due to the 2015 health care changes and rehired December 1, 2014 back into an OPERS covered position. I am 55 years old and not effeted by Medicare and plan to work another 10 years. I have my health Insurance through my employer, can I elect to just stay on my employers plan as is ? Am I effected if I just stay on the health plan as is, and if so please explain.
Thank, you
William,
Actually, if your employer offers health care you are required to sign up for that in order to receive your allowance. You do not need the OPERS re-employed retiree plan.
–Ohio PERS
Michael, did you guys not see that High risk job retirees are above the $10,200 limit per individual ???? $1650 to $3450 over that. So I think OPERS may want to rethink starting this without further thought. Please refer to https://www.law.cornell.edu/uscode/text/26/4980I#FN-1 Section C Applicable dollar limit, Sub-Section IV , I and II. If you don’t post this at least email me a response.
High Risk-The term “employees engaged in a high-risk profession” means law enforcement officers (as such term is defined in section 1204 of the Omnibus Crime Control and Safe Streets Act of 1968), employees in fire protection activities (as such term is defined in section 3(y) of the Fair Labor Standards Act of 1938), individuals who provide out-of-hospital emergency medical care (including emergency medical technicians, paramedics, and first-responders), individuals whose primary work is longshore work (as defined in section 258(b) of the Immigration and Nationality Act (8 U.S.C. 1288 (b)), determined without regard to paragraph (2) thereof), and individuals engaged in the construction, mining, agriculture (not including food processing), forestry, and fishing industries. Such term includes an employee who is retired from a high-risk profession described in the preceding sentence, if such employee satisfied the requirements of such sentence for a period of not less than 20 years during the employee’s employment.
Tom,
We are aware of the “high-risk” threshold. We are seeking more guidance from the IRS regarding how these professions will be treated when calculating aggregate value, excise tax and other issues. We are awaiting a response from the IRS to our inquiry. Of course, a very large proportion of our retirees will never meet this definition, but we are working on this issue for those who will.
–Ohio PERS
Obamacare is the cause. We need to write to our Federal representatives in Washington, D.C. and try to get our U.S. Senators and the U.S. House of Representatives to repeal Obamacare IMMEDIATELY.
I retired with 33 year,s and I have been re-employed for 4 years. I have been paying the Medicare tax for most of my career. I am 56 years old with one 22 year old dependent. I have preexisting conditions (cancer survivor, auto-immune and chronic pain from an accident). I have OPERS medical insurance as secondary now. I want to be able to cover my son until he is 26 (if needed), and I like the acupuncture coverage that my new employer, OSU, provides as it has been the only treatment that has really helped me–so I am motivated to work FOR the OSU insurance I get now.
Since I am paying for the OPERS insurance now, will this “grandfather” me in so that I can retire and still have the regular OPERS coverage?
With my medical issues, I am terrified that I will not be able to afford the premiums of a new plan. I may end up working for 40 years and not receive the same benefits as others who had the luxury of not having to go back to work–and I will be 61 when I have worked 40 years–a single parent, passed over for promotions but employee of the year awards. I was hoping that I could retire without having to worry.
Tess,
The plan design for the under 65 re-employed retirees will be the same as the under-65 retiree only plan. We’ll provide premiums as permitted by the new allowance tables, which you can find in our Comprehensive Guide on our website.
–Ohio PERS
I am retired from the Cuyahoga County Public library. I work as a substitute periodically when there are vacancies due to illness, vacation, etc. This amounts to perhaps 8 or 16 hours per month. Will I also lose my access to my allowance after Jan 2016 during those months in which I work?
Paul,
You won’t lose your allowance if you sign up for the OPERS re-employed retiree coverage. However, if you already are in the OPERS Medicare Connector, you are allowed only once full cycle (leave the Connector and become re-employed, then come back to the Connector) before your Connector Health Reimbursement Arrangement would be frozen for the calendar year. So if after that one cycle you become re-employed again, you can receive an allowance if you then join the OPERS re-employed retiree plan. But if you then leave that job and try to rejoin the Connector, you won’t be able to use this HRA until the following year.
–Ohio PERS
Michael Pramik says:
May 29, 2015 at 1:09 pm
Tom,
We are aware of the “high-risk” threshold. We are seeking more guidance from the IRS regarding how these professions will be treated when calculating aggregate value, excise tax and other issues. We are awaiting a response from the IRS to our inquiry. Of course, a very large proportion of our retirees will never meet this definition, but we are working on this issue for those who will.
–Ohio PERS
I think this will affect more than you think…Again OPERS is wanting to start something without fully understanding it or the consequences it will have on members. Just like the big rush to change the retirement on Jan 2014, then after realizing that you were trying to do it to quick you changed it to Jan 2015. All I am asking is why the rush when it will not go into effect until Jan 2018. If it even does go into effect. With so many legislators wanting to repeal it, WHY RUSH IT ????
Tom,
We are already over the lower threshold of $10,200 for retirees under 65 and we are just $250 less than the higher threshold for those 55 and over. So we have to start dealing with this now or retirees should expect huge reductions in the year that it hits.
–Ohio PERS
I cannot find where to do the estimator for rehired retirees. I called the 800 number but was told there is no information on that, yet on the website it states it will be available beginning July 1.
Bill,
That has been delayed, and thanks for asking. We’re currently working on a decision tool for re-employed retirees and are hoping to post it to our Internet site in August.
–Ohio PERS
I am a retired OPERS in 2010. I am currently a member of Conneaut City Council an elected position. Health Insurance is not offered to this position at all. We receive $500/month gross. If this is going to affect my insurance premiums I need to know before August 5 as that is the filing deadline for the November election. I need to know before that date. I am assuming an elected official is considered “re-employed”.
Also if it does affect my health care coverage may I refuse the council salary offered and keep my current health insurance.
Thanks.
Deborah,
The calculation of your premium will be the same as for a non-re-employed retiree, and the non-Medicare re-employed plan design is exactly the same as the non-Medicare plan for those not employed. Those under 65 who are retired will receive in 2016, 2017 and 2018 a small reduction of the monthly health care premium to help make up for increases in out-of-pocket expenses precipitated by the Cadillac tax provision of the Affordable Care Act. If you are re-employed, you will not receive this premium discount.
If your job is an OPERS-covered position, you can’t waive salary and be on a different health care coverage plan.
–Ohio PERS
Explain how someone can work 32 years in an OPERS position, retire at age 52, get an elected OPERS position making less than $750 a month with no benefits, and then be penalized by having to pay more for their health insurance and never make any more retirement money even though they continue paying into OPERS. This simply does not make sense to me. Seems like you are discriminating toward OPERS employees AND double dipping into their earnings into OPERS?
Sharon,
We’re not sure we follow that logic. Some outside observers would ask how it is that someone could retire with a pension benefit — and available health care coverage — at age 52.
–Ohio PERS
I Retired from Sheriffs Office at the age of 62. 16 months later after the Sandy Hook incident I was hired as a seasonal employee of a local elementary school thru a Village P.D. which has less than 9 full time and 3 Part time employees. Full time has Police and Fire and Part time Pays in to OPERS. However they do not offer any benefits for Part Time No Insurance, No Clothing allowance, No nothing. How is this new policy effect me? My wife and I will be over 65 by the end of 2015.
John,
Since your new employer doesn’t offer health care coverage, you will have two options for this coverage. One will be to remain in the plan you select through the Connector but without receiving your Health Reimbursement Arrangement allowance or being able to access funds you might accumulated in the account if you go back to work later in the year. (There are plans available that offer premiums as low as zero dollars per month that could make this option more attractive.)
The other option will be to enroll in the OPERS re-employed retiree plan. OPERS will provide the appropriate allowance similar to our current health care plan, based on age and service. If the allowance doesn’t cover the full premium, we would deduct the remaining amount from your pension benefits.
–Ohio PERS
I retired with a little over 28 yrs service from my full time OPERS position. I am also a Volunteer Fire Chief that receives $200.00 a month, which is a OPERS covered position through the Village. As I understand it because of this $200.00 a month job I will lose a $400.50 a month HRA. Even if I take NO PAY OPERS still considers me re-employed? What about Volunteer positions like Auxiliary Deputy Sheriff’s that receive NO PAY? What about OPERS retirees that serve as Volunteer Firefighters that receive a small stipend for fire calls but chose to pay into OPERS years ago when it was an option for Volunteer Firefighters, are they considered re-employed?
Jim,
Please give us a call at 800-222-737 and we can answer your questions.
–Ohio PERS
My husband retired in April after 30 yrs in OPERS system and is currently working part time at the place he retired from. He will be 65 the end of the year. If he chooses to retire again prior to turning 65,what are his options? If he chooses to reenter the workforce, what will his ootions be? Will the new changes affect our coverage children?
Virginia,
If your husband retires before turning 65, he can join the OPERS-sponsored plan, then “age into” Medicare. If he goes back into the workforce, he’d have to opt for the employer’s medical coverage. If the employer doesn’t offer coverage, then he can opt for one of the plans as detailed in the blog. Your children would be covered until 26 in the OPERS plan.
–Ohio PERS
–Ohio PERS
You are saying if I go back to work part time for a temp service or a contractor and they send me to work at a pers contributor I will be considered a rehire and have to pay more for my health inc. and lose my connector even if I am being paid by the contractor or temp service and has no benefits I will not be 65 until 6/22/2016
Steve,
If you retire and go back to work for a temporary agency and are assigned to an OPERS employer, you would be excluded from OPERS membership and thus would not be considered a re-employed retiree. This rule is contained within Ohio Revised Code Section 145.012.
–Ohio PERS
I am 53 and have been retired with OPERS since 2010. My medical coverage is with OPERS. I have been hired Parttime with a city covered under OPERS. Will the changes effect my medical benefits with OPERS? I was told that I had to take medical coverage with the city I am employeed with, true?
Christine,
You can’t decline health care offered by an employer and be eligible for OPERS health care if you are a re-employed retiree in an OPERS-covered position.
–Ohio PERS
I am not eligible for health care through my employer therefore my health Care through pers should not be affected, correct?
Christine,
Your access to our coverage should not be affected if you are not eligible for insurance coverage through your employer.
–Ohio PERS
Thank you!
My wife is currently a re-employed OPERS retiree over 65 with Medicare. Her employer offers insurance for employees. Must she take her employers insurance?
Gary,
Let’s put it this way. A re-employed retiree can’t decline insurance offered by the employer and be eligible for insurance through the Connector.
–Ohio PERS
OK, I understand she must take the employer’s health plan – we’ve resigned ourselves to that fact. I will also be covered under her plan. We are both on Medicare A&B.
I’ve watched several videos of changes to health care coverage for re-employed OPERS retirees and I’ve heard references made to additional coverage available through the “OPERS group re-employed Medicare plan”. Reference to this “plan” for re-employed retirees was made in two videos, one of which is at https://www.youtube.com/watch?v=_FWKidTAuTE&feature=youtu.be.
I have yet to see any details of this “plan”. Is this some tertiary plan, like a supplement? My wife’s appointed “phone call” to get advice for enrollment isn’t until early November. It would certainly help to get additional details regarding this “OPERS group re-employed Medicare plan”. The fact sheets we received are of no help in this regard.
Gary,
We addressed this topic in a video we posted to our YouTube channel on June 9, around the 3:15 mark. If you somehow are able to opt for the OPERS interim plan as a re-employed retiere, that plan is detailed in our open enrollment kit, which we sent out last month.
–Ohio PERS
Thanks,
I viewed the video again, listened more closely and studied my enrollment guide. So, the OPERS Interim plan looks like a tertiary level of coverage – (1) I’m under Medicare A&B, (2) I will (must) be covered my the employer’s health plan, and (3) I can also participate in the OPERS Interim Plan for additional coverage — is my understanding of this correct so far? If I choose to participate in the OPERS Interim Plan, will these THREE plans co-ordinate.
Gary,
Yes, but like we said in the video, they might coordinate and they might not.
–Ohio PERS
I am 69 years old and retired from ODOT. I am currently re-employed as a volunteer Emergency Medical Technician (EMT) for the Ross County, Green TWP. Fire Department. I am an employee of Green TWP. but work volunteer hours and do not receive a salary. I do receive a stipend based on how many runs I go on to be used for uniforms and fuel. They offer no health coverage other than workers comp. What is my status for the new health care system? Green TWP. does deduct OPERS from my stipend.
Robert,
Because your employer does not offer you health insurance, you would be eligible to enroll in the OPERS re-employed retiree plan. Please call us at 800-222-7377 for more information, or refer to your open enrollment guide.
–Ohio PERS
I am a 61 year old OPERs retiree considering accepting a temporary part time position with my former employer. It would be for less than .75 FTE, the level at which they offer health insurance. How will this impact my OPERs retiree health insurance? Will my premium go up?
Sara,
We have a decision tool on our website that can help you decide whether or not to go back to work. If you have further questions, contact us at 800-222-7377.
–Ohio PERS
I retired from my OPERS position in 2005 after 28 years of service and a 2 year buy-out by my employer. I returned to work for the same employer later that year on a part-time basis, and retired again this past January. I currently have health care through the PERS non-Medicare, but will turn 65 in December of 2016. I currently serve on our township zoning commission, appointed by the trustees. The zoning commission members are paid $40 for each meeting attended (we meet quarterly), but it is not a PERS position, and we receive no benefits. Is the zoning position considered ‘re-employment’ for the purposes of determining eligibility for non-Medicare coverage or Medicare allowance when I turn 65?
Tom,
It’s not considered OPERS re-employment unless it’s a public position that pays into OPERS.
–Ohio PERS
Some of the responses on this site come close to answering a lot of my questions, but not exactly. We are a municipality with elected council members, and appointed planning commission members. They only get paid between about $200-3000 per year. The employer does not provide health care coverage to these people. Members have already resigned, or may resign, because the cost of the new health plans aren’t justified by the low compensation.
1. Can an individual waive the salary and stay on their existing PERS HRA plan? Or are they still considered re-employed retirees even if they receive no compensation? The other council/commission members would still receive their compensation under this scenario.
2. Is it okay (can the PERS retirees keep their current PERS health plan) if all positions are made volunteer with no compensation? So they would not be PERS-covered positions?
3. Can the municipality switch from paying these persons annually (or monthly) and instead pay on a “per meeting” basis under OAC 145-1-6(G)(9)? I’ve heard different answers here, between “yes” because per-meeting compensation makes it be not a PERS-covered position, to “no” because the Affordable Care Act rules still force the employee off the PERS HRA plan because of the reimbursements provided under that plan.
I hope that’s clear enough. Thank you for all of the explanations here – this is the best place I’ve found to try and get answers in addition to the Fact Sheets.
Kevin,
Waiving your salary would not enable you to retain your HRA if you are employed in an OPERS-contributing position. This is according to state law. It’s the position, not the salary, that helps determine the definition of a re-employed retiree.
As for your other questions, contact our Employer Services department at 888-400-0965. But please recognize the fact that we offer other coverage options for re-employed retirees.
–Ohio PERS
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I am retired from a municipality under OPERS with 30 years of employment, left in 2005. I am presently reemployed under the library system as a substitute. I have no guarantee hours matter of fact up until July of this year I made $300.00. I love my job and just starting to pickup other branches to work increasing my earning about 50% this year. I am 64 yrs old. So if I were to work until November 2016, just before turning 65 yrs of age, will my HRA funds be released then? I only want to work until I turn 65 in November 2016. If not, would it be wise to work until the end of December 2015 and resign or is that too late in the year?
Celia,
You will not have any HRA funds available until you turn 65 and enroll in Medicare parts A and B, so this should not be an issue.
–Ohio PERS
Hi. I am in the re-employed retiree group plan and over 65. I am considering finally retiring and understand I won’t be subject to medical underwriting. Is there however some way to roll-over to maintain my current providers supplementing my Medicare ?
Glenn,
You’ll have to choose your plan through OneExchange in order to receive the contribution into your Health Reimbursement Arrangement account. Please contact OneExchange for more information: 844-287-9945. They can tell you about what plans are available in your area.
–Ohio PERS