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An important part of your Pension Plus retirement plan is your retiree healthcare plan. If you’re unsure of your retiree healthcare plan, log in to your pension account, miAccount, to find out.
You have the Premium Subsidy retiree insurance plan if you first worked for a Michigan public school between July 1, 2010, and September 3, 2012, and you did not choose the Personal Healthcare Fund under PA 300 of 2012.
If you have the Premium Subsidy plan, the retirement system will pay a portion of your insurance premiums in retirement when you meet eligibility requirements. You have a graded premium subsidy in which the amount of your subsidy is based on career length. The longer you work under the retirement system, the greater the insurance subsidy is, up to the maximum subsidy allowed by law (currently set at 80 percent).
Members with the Premium Subsidy retiree healthcare plan contribute 3 percent of compensation to the Retiree Health Care Fund. These contributions are refundable in certain cases:
If you or your beneficiary is eligible for a refund of Retiree Health Care Fund contributions, the refund will be issued upon request in equal monthly installments over a 60 month (5 year) period.
Personal Healthcare Fund
You have the Personal Healthcare Fund retiree insurance plan if you:
The Personal Healthcare Fund is a part of the Savings Component of your retirement plan that can be used for paying healthcare expenses in retirement. If you have the Personal Healthcare Fund for your retiree healthcare plan, you were automatically enrolled in an additional 2 percent contribution to your retirement investment account, earning you a 2 percent employer match.
If you chose the Personal Healthcare Fund under PA 300 of 2012
If you chose to switch to the Personal Healthcare Fund during the 2012 Retirement Reform (PA 300 of 2012), you stopped paying the 3 percent Retiree Health Care Fund contribution as of February 1, 2013,* and the amount of the Retiree Health Care Fund contributions you made since September 4, 2012, were paid to your 401(k) account. You are fully vested in those contributions. The amount of any Retiree Health Care Fund contributions you made before September 4, 2012, will be refunded to you by your employer. Refer to the News and Updates section for more information about the refund of these contributions.
If you first worked between September 4, 2012, and January 31, 2018
If you first worked between September 4, 2012, and January 31, 2018, the Personal Healthcare Fund also gives you a credit to a Health Reimbursement Account (HRA) if you have at least 10 years of service when you first terminate employment. The credit will be $2,000 if you are at least age 60 at termination. If you are less than age 60 at termination, the credit will be $1,000.
A Health Reimbursement Account (HRA) is a tax-advantaged health savings plan funded by your employer to help you pay for eligible healthcare expenses you incur after retirement. HRAs are funded and wholly-owned by the employer; HRA rules do not allow you to contribute. Funds are deposited into a noninterest-bearing account for you when you terminate employment. The Office of Retirement Services (ORS) will send you details about your HRA when you become eligible for your account.
*The date your plan changes took effect was based on your transition date. The exact date depends on your school district's payroll cycle.