STATE CONTRIBUTION RATE TO CHANGE FOR NEW RETIREES

Must Apply By October 1 Deadline To Lock-In 85/15 

JULY 31, 2009: State employees, who have not yet retired, should pay close attention to a proposal, contained in the outside sections of H4181 (supplemental budget), that dramatically increases the health insurance contributions paid by future retirees. H4181 was enacted and sent to the governor on Wednesday.

The proposal, which was devised by Governor Patrick, creates what the legislation calls a “Healthcare Contribution Plan”, whereby active state employees can lock in the current 15% state retiree health insurance contribution. The catch – employees must announce their intention to retire by October 1, 2009 and then retire no later than January 31, 2010. Otherwise, the retiree insurance rate will jump to 20% for those active employees who do not take part in the plan (opting in by October 1) and retire by the end of January.

Tags: