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Saturday January 31st 2015

Retiree Healthcare Trust Fund

The SEBAC 2011 Agreements require that all employees (some employees were required by the SEBAC 2009 Agreement) contribute to the Retiree Health Fund for 10 years or until they retire, whichever comes first, to offset the retiree healthcare costs of individuals contributing to the fund.

This contribution applies to members of the State Employees Retirement System (SERS) and the Alternate Retirement Program (ARP).  Employees in these plans who are currently contributing 3% of compensation to the Retiree Health Fund will continue to do so without modification.

This contribution does not apply to part-time faculty, however, if a part-time faculty member completes sufficient actual service to qualify for retiree health coverage, s/he will be required to pay the required percentage of compensation for the full 10-year period (or such lesser periods as may be required).

For more information, please see Retiree Trust Fund Provisions of SEBAC 2009 and SEBAC 2011 and the Comptroller’s Memo Re: Retiree Health Fund Contributions Starting July 2013.

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