2007 Appropriations Act, Section 28.19.(a) Salary -- Related Contributions/Employer
Section 28.19.(a) of the 2007 Appropriations Act includes a provision that requires employers who hire or have hired a retiree as an employee, to enroll the retiree in the active group and pay the cost for the hospital-medical benefits if that retiree works “in a position that would require the employer to pay hospital-medical benefits if the individual had not been retired.” This applies to the temporary or interim reemployment of a retiree who works 30 or more hours per week, and would otherwise be allowed to enroll as a non-retired individual and receive the State’s contribution for health insurance.
This provision became effective July 1, 2007. Employers with reemployed retirees who meet the above criteria must enroll these reemployed retirees in the employer’s active group retroactive to July 1, 2007.
Please follow the steps outlined below to enroll these reemployed retirees in the active group:
Employing Agency Responsibility
- Identify and compile a list of all affected reemployed retirees. This list must include the reemployed retiree’s name, social security number, and date the reemployed retiree was first hired into this position or July 1, 2007 (whichever is later).
- Forward this list, along with a cover letter to confirm the reemployment of these retirees, to the Retirement System and the State Health Plan as follows:
NC Dept. of State Treasurer State Health Plan
Retirement Systems Division Attn: State Membership Services
Attn: Retiree Health Insurance P.O. Box 30111
325 North Salisbury Street Durham, NC 27702
Raleigh, NC 27603-1385
- Distribute an Enrollment Form (C9) to all affected reemployed retirees. The effective date of coverage should be the first of the month following the date the re-employed retiree became eligible under the active group.
- Forward the completed enrollment form to the State Health Plan at the address listed above.
Blue Cross and Blue Shield of NC (BCBSNC) will refund premiums to the Retirement System for each of the reemployed retirees who are enrolled in the Retiree Group. Retirees who have a portion of the State Health Plan premium deducted from their monthly retirement allowance will be refunded the premium amount that was deducted in the following month’s retirement benefit allowance. BCBSNC will bill the employing agency for premiums due. If there are retroactive premiums due for dependent coverage or PPO Plus coverage, it is the responsibility of the employer to collect any retroactive premiums from the reemployed retiree.
Employing Agency Process Going Forward When the retiree first becomes reemployed:- Have the reemployed retiree complete an Enrollment Form (C-9);
- Collect and submit the Enrollment Form to the SHP in a timely manner;
- Notify the Retirement System of the retiree’s reemployment and provide the following information:
- Reemployed Retiree’s name
- Social Security Number
- Effective date of coverage on the active group, to ensure that there is no lapse in coverage.
- Have the reemployed retiree complete the HM Form and submit it to the Retirement System;
- Notify the Retirement System of the reemployed retiree’s termination of employment and provide the information necessary for the Retirement System to identify the retiree; and
- Notify the State Health Plan of the termination of coverage from the active group on the remittance advice.
- Identify reemployed retirees from employing agencies’ lists;
- Cancel the retiree group health plan coverage with the Retirement System effective on either the date of hire or July 1, 2007, whichever is later; and
- Notify BCBSNC of the cancellation on the monthly invoice.
- Identify reemployed retirees from employing agencies’ lists;
- Cancel retiree health plan coverage with the Retirement System;
- Notify BCBSNC of cancellation on monthly invoice;
- Have the reemployed retiree complete an HM Form and
- Enroll employee in the retired group with the Retirement System.
Attachments: SALARY-RELATED CONTRIBUTIONS/EMPLOYER, Section 28.19.(a)
SALARY‑RELATED CONTRIBUTIONS/EMPLOYER SECTION 28.19.(a)
Required employer salary‑related contributions for employees whose salaries are paid from department, office, institution, or agency receipts shall be paid from the same source as the source of the employees' salary. If an employee's salary is paid in part from the General Fund or Highway Fund and in part from department, office, institution, or agency receipts, required employer salary‑related contributions may be paid from the General Fund or Highway Fund only to the extent of the proportionate part paid from the General Fund or Highway Fund in support of the salary of the employee, and the remainder of the employer's requirements shall be paid from the source that supplies the remainder of the employee's salary. The requirements of this section as to source of payment are also applicable to payments on behalf of the employee for hospital‑medical benefits, longevity pay, unemployment compensation, accumulated leave, workers' compensation, severance pay, separation allowances, and applicable disability income benefits.
Notwithstanding any other provision of law, an employer who hires or has hired a retiree as an employee shall enroll the retiree in the active group and pay the cost for the hospital‑medical benefits if that retiree is employed in a position that would require the employer to pay hospital‑medical benefits if the individual had not been retired.
