What does the October 2010 MPS letter mean?
MPS is receiving federal funds to help it continue to provide group health care benefits to early retirees, age 55-64.
Will the federal funds benefit retirees?
Yes. Either indirectly or directly, the federal reimbursement monies MPS receives will benefit retirees.
How might the reimbursement programs benefit retirees directly?
Retirees may receive a direct benefit if the district and the MTEA reach agreement to use the funds to reduce some of the out-of-pocket costs of early retirees.
The confusing MPS letter mentions a few possible direct monetary benefits to early retirees. However, discussions on using the funds have not started. Our union’s negotiators believe it’s prudent to wait until after the talks are completed.
What is the indirect benefit?
The purpose of the Early Retiree Reinsurance Program is to help employers continue to provide retirees, age 55-64, with health care coverage through the employer’s group plan. The funds reimburse the district’s costs for certain medical costs for its early retirees in either the PPO or HMO.
Can MPS use the reimbursement funds for any purpose other than subsidizing the medical expenses it incurs for retirees, age 55-64?
No. The law mandates that the funds be used solely for this purpose.
To qualify for this benifit, do I have to have 812 sick hours?
Thanks for your questions!
The funds for ERRP will not force you to sign up for the HMO or make any changes to your health insurance.
No need to do anything at this time. We'll update members as soon as there is more news.
How/when we get further updates on this issue?
Right now we just do nothing and hold tight...correct?
Thanks
What do I do now? Will you inform us what the results are when you negotiate with MPS regarding this program? Will ERRP force me to sign-up for the HMO insurance plan? What does the MTEA recommend regarding the ERRP?
Thank you for your help.
Thank you for your comments.
Contact Joan Heithoff of the MTEA staff at 414-259-1990.