State of Connecticut

HEALTHCARE COST
CONTAINMENT COMMITTEE
COMPTROLLER'S SEAL STATE OF CONNECTICUT 55 ELM STREET
HARTFORD, CONNECTICUT
06106-1775
Telephone (860) 702-3480
Facsimile (860) 702-3556
STATE OF CONNECTICUT  
  HEALTHCARE POLICY & BENEFIT SERVICES DIVISION
OFFICE OF THE STATE COMPTROLLER
 

Notice for Existing Employees with Fewer than 5 years of State Service

The SEBAC 2009 Agreement requires that existing employees with fewer than 5 years of service as of July 1, 2010 contribute 3% of their compensation to the Retiree Health Fund to offset the cost of future retiree healthcare benefits. This requirement only applies to employees eligible for State-paid healthcare benefits. The program is described in Comptroller's Memo 2010-11.

The 3% deduction to the Retiree Health Fund will end when the employee

-completes 10 years actual service (minus all healthcare-eligible State service prior to 7/1/2010); or
-completes 5 years actual service and retires directly from State service at age 62 or older (restricted to active employees who were at least age 52 or older and actively employed by the State on April 21, 2009), whichever is earlier.

The following employees are not subject to the 3% deduction: Workers who are not eligible for State-paid health benefits; adjunct faculty members who are only intermittently eligible for State-paid active employee health coverage; and employees who prove that they have retiree health coverage from another employer. Waiver of active State-paid active healthcare benefits does not exempt you from making this contribution.

Anyone who was on the payroll as of July 1, 2009 and will have 6 years of healthcare-eligible service as of July 1, 2010 will not be subject to the 3% deduction and does not have to be audited. (Up to one year of unpaid leave will be permitted for this group.)

Employees subject to the 3% deduction must fill out a new form, the CO-1300, which will set the start and estimated stop dates for the 3% deduction. This form will be used to record prior State service not reflected in CORE-CT, indicate exempt status, and, most importantly, to make sure your agency stops the deductions when your obligation has been fulfilled.

You will not be eligible for retiree health benefits until required contributions to the Retiree Health Fund have been made and you fulfill the other requirements in the SEBAC 2009 Agreement. Please direct any questions to your agency's Payroll/HR staff.

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