The Ohio Public Employees Retirement System (“OPERS”) recently changed the health care coverage for re-employed retirees that will go into effect on January 1, 2016. The changes are in response to federal health care regulations that affect OPERS members who return to work for an OPERS covered employer after they’ve retired.
Those re-employed by an OPERS employer are considered active public employees under federal regulations. These regulations prevent OPERS from providing reimbursements or contributing allowances to re-employed individuals’ Health Reimbursement Accounts (“HRA”) during active employment. A re-employed individual is also unable to access funds within their HRA account for expenses incurred during active employment. These changes go into effect January 1, 2016, but only apply to those OPERS retirees re-employed by OPERS employers. Coverage for those re-employed by non-OPERS employers remains unchanged.
Potential impact on OPERS employers: These changes may cause re-employed retirees, especially those working few hours per month, to resign their OPERS re-employment positions. In order to best prepare for potential turnover it is important to stay informed and discuss with re-employed retirees their intentions relative to continued employment. OPERS frequently issues information regarding this issue at: http://perspective.opers.org/pensions/new-health-care-rules-for-re-employed-retirees/
Also, OPERS is making individual counseling available to re-employed retirees. Effected employees can obtain this assistance either online or by contacting OPERS directly.
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