The 2009 SEBAC Agreement implements a new requirement …



The 2011 SEBAC Agreement amended the 2009 SEBAC Agreement by adding a new requirement for funding retiree health benefits for employees who are eligible for State-paid health insurance and who are not paying the three percent (3%) contribution on or before June 30, 2013. This requirement mandates that such employees shall begin paying a contribution to the Retiree Health Fund which will continue for ten years or until retirement, whichever is sooner, and will be phased in as follows:

One-half percent (.5%) beginning July 12, 2013 (biweekly)

Two percent (2%) beginning July 11, 2014 (biweekly)

Three percent (3%) beginning July 10, 2015 (biweekly)

A new deduction code, OPE2, was created to accommodate this requirement and should be utilized for employees in the State Employees Retirement System (SERS) and the Alternate Retirement System (ARP).

State employees who are members of the Teachers Retirement System (TRS) will not be required to pay into the Retiree Health Fund in the first phase of this action inasmuch as they are already paying 1.25% towards this fund via their TRS retirement deduction code. A new deduction code (OTR2 at zero percent) has been established for tracking purposes only for TRS members. Phase in for TRS members will be as follows:

Zero percent (0) beginning July 12, 2013 (biweekly)

Three quarters percent (.75%) beginning July 11, 2014 (biweekly)

One and three quarters (1.75%) beginning July 10, 2015 (biweekly)

General Deduction Set-Up – Deduction Taken

In April 2013, the Comptroller's office provided each agency with a list of employees eligible for the new deduction. Agencies had until May 15, 2013 to notify the Comptroller's Office if anyone on the list should have been excluded by reason of employment or other status. Retiree Health Fund contributions for approximately 37,000 additional employees will be initiated via Core-CT. The deduction will take effect on each employee's first full pay period that begins after July 1, 2013. The deduction end dates (and future adjustment of deduction amounts for 2014 and 2015) will also be performed through Core-CT.

OPE2: Retirement Health Fund (Ret Health Fund 2013). This deduction will be entered on the General Deduction Data Page for all eligible employees, except TRS members.

OTRS: Retirement Health Fund (0%) deduction for TRS members (tracking purposes).

Pay Frequency Deduction Start Date

Bi-weekly 7/12/2013

Special Bi-weekly 7/26/2013

Semi-Monthly 8/1/2013

Monthly 8/1/2013

For more information on both SEBAC 2009 and SEBAC 2011, please refer to memorandums issued by the Office of the State Comptroller, Healthcare Policy and Benefit Services



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