New Retiree Enrollment
As a retiree, you can continue coverage with the State Employee Group Benefits Plan if you are eligible at the time you leave active State employment to receive a monthly retirement benefit under the applicable provisions of your particular retirement system. If you have elected a defined contribution retirement plan, the requirements for receiving a monthly retirement benefit under the defined benefit plan option of your retirement system apply. It does not matter whether you decide to actually draw a monthly benefit, elect the defined benefit lump sum distribution, or postpone withdrawal of your benefit.
If you do not continue State Employee Group Benefits, or if you let your coverage lapse, you may not reinstate coverage at a later date.
Quick Information Links
Continuing Coverage
You can continue coverage two ways:
- Transfer coverage and become a dependent of an active or retired spouse on the State Plan, or
- Continue coverage under you own name.
Transfer of Coverage
A retiree may choose to transfer coverage and become a dependent of an active or retired spouse on the State Plan while still retaining the right to return to coverage under his or her own name at a later date, if needed. A retiree who transfers onto another State Employee Benefit Plan member’s coverage does not have to begin a new deductible for the remainder of the plan year or incur the 12-month waiting period on pre-existing conditions. If you transfer to your spouse’s coverage and your spouse is an active employee, you may be able to transfer some or all of your plan C elective life insurance. Contact Health Care and Benefits Division for more information. If you transfer to your retired spouse’s coverage, you lose all life insurance coverage. If your retiree coverage is reinstated due to termination of your spouse’s employment, death, or divorce, and you are not Medicare eligible, Plan A basic life insurance coverage is reinstated.
Continue Coverage under your Name
Complete the Retiree Election Form and return the white copy to Health Care and Benefits Division, PO Box 200130, Helena MT 59620-0130. If you are under age 65 and not receiving Medicare, please complete and return the Life Insurance Enrollment/Change Form, to update your beneficiary information. To convert life insurance or long-term care coverage, contact Health Care and Benefits Division. If you have questions, call (406) 444-7462, (800) 287-8266, or TTY (406) 444-1421, or e-mail us at benefitsquestions@mt.gov.
For additional information on retiree benefit coverage, refer to the Retiree Benefits booklet.
Retiree Options
Non Medicare Eligible Retirees
If you choose to continue State benefits, are under age 65, and are not Medicare eligible, you must continue the core plan which includes medical, dental, and basic life. Continuing existing medical and/or dental coverage on dependents is optional. You are not eligible for group coverage of elective life or accidental death and dismemberment (AD&D) benefits. Consult the life insurance conversion page of the Retiree Benefits booklet for information on converting to an individual policy. If you have group long-term care insurance through Unum Life Insurance, contact Healthcare and Benefits Division for a form to convert this insurance to an individual policy. This form must be submitted to Unum Life Insurance within 31 days of the end of group coverage.
Medicare Eligible Retirees
If you choose to continue State benefits, and you are age 65 or over or otherwise eligible for Medicare, you must continue medical coverage. Continuing dental for yourself and any existing medical and/or dental coverage on dependents is optional. You are not eligible for group coverage of any life or AD&D benefits. See the life insurance conversion information in the Retiree Benefits booklet for individual policy options. If you have group long-term care insurance through Unum Life Insurance, contact Health Care and Benefits Division for a conversion form to continue this insurance as an individual policy. This form must be submitted to Unum Life Insurance within 31 days of the end of group coverage.
Medicare
At age 65, or any time you or your spouse (if covered by the State Plan) become Medicare eligible and enroll in both Part A and Part B Medicare coverage, notify Health Care and Benefits Division. If you do not provide proof of enrollment in Part A and Part B coverage, your State coverage pays as the primary carrier. In that case, your rate will continue to be based on the higher non-Medicare rate for you and/or your spouse, and will not drop until proof of Medicare coverage is provided. See the Summary Plan Document (available at www.benefits.mt.gov) for more information. To assure full coverage, contact your local Social Security Administration Office to enroll in Medicare Part B, if you have not already done so, and to confirm Medicare Part A coverage.
Medicare Part B Enrollment
If you or your spouse are a) over age 65, b) waived Medicare Part B coverage at the time you turned 65 because you had active employee State Plan coverage, and c) plan to elect Medicare Part B now due to termination of employment, you must act promptly to avoid penalties by Medicare for late enrollment. Contact your agency payroll clerk for a letter verifying your State Plan coverage for Medicare purposes.
Medicare Part D Enrollment
Medicare Part D is prescription drug coverage available from Medicare. As a member of the State Plan, your benefit package includes prescription drug coverage, which has been determined to be better than the basic Part D benefits. Most State of Montana retirees will have better prescription drug coverage, at a lower cost, by keeping the State of Montana plan and not enrolling in Medicare Part D. If you enroll in Medicare Part D coverage you may not be eligible for continuation with any State benefits. For more information, call Health Care and Benefits Division.
Medicare Part D Frequently Asked Questions
Retiree Benefit Options
Medical Plan Choices
At the time you retire, you must decide which medical plan to choose. You can either continue your current medical plan or choose a medical plan with a higher deductible for the remainder of the plan year, by indicating your choice on the Retiree Election Form. You will be able to elect any of the medical plans at the beginning of each plan year by making elections during the Annual Change period.
Disability Waiver of Life Insurance Premium
If you are retiring prior to age 60, and are permanently and totally disabled, you may qualify for waiver of life insurance premium through Standard Life Insurance. Contact Health Care and Benefits Division for more information.
Vision Coverage
Retirees who continue core benefits may also continue existing optional vision coverage.
Long-Term Care Coverage
If you are currently enrolled in long-term care coverage, you will automatically receive conversion information shortly after your retirement. If you are interested in purchasing this coverage, please contact Health Care and Benefits Division for a long-term care packet.
Long-Term Disability Coverage
If you are currently enrolled in long-term disability coverage, your coverage will end as of the date you retire.
Dependent Coverage Options
Continuing existing medical and/or dental and/or vision coverage on dependents is optional, but you must elect to continue existing medical coverage for your dependents within the 60-day period after your employee coverage terminates. Any eligible dependent may be added to dental and vision coverage during the Annual Change period. To continue dependent dental coverage, the retiree must also continue dental coverage.
New dependents can only be added mid-year to medical, vision, and/or dental if the request is made within 63 days of a qualifying event (marriage, loss of other coverage, etc.). Existing dependents can only be added to medical if they are losing eligibility for other group coverage (or if there is a substantial decrease in the level of existing coverage, as determined on an individual basis by Health Care and Benefits Division) and the request is made within 63 days of the termination date of the other coverage.
Flexible Spending Account Options
If you did not pre-pay the remainder of your annual flexible spending account election, your account(s) terminate(s) the last day of the month in which full or partial payment has been contributed. You have 120 days after the day your account terminates to submit receipts for eligible expenses incurred during the time your account was active (between January 1 and the day your employee coverage terminates, in the year you retire). If you submit receipts more than 120 days after your account terminates, you will not be eligible for reimbursement for those expenses.
Benefits Payments and Payment Options
Benefits payments for non-Medicare and Medicare eligible retirees are available for review on the Monthly Benefit Rates. You have four options available to make your monthly benefits payments.
- Automatic Deduction from MPERA Benefit Allowance: Health Care and Benefits Division can advise you of the first payment that can be deducted from your MPERA benefit. You will need to self-pay benefits payments to Health Care and Benefits Division for any months prior to the date MPERA deductions begin.
- Monthly Self-Payment to Health Care and Benefits Division: Payments are due on the first day of each month with a 10 day grace period. No monthly bills are sent; however, coupon books are available upon request. This option would include payments from a VEBA account if you are eligible.
- Electronic Payment Deduction from a Checking or Savings Account: Benefits payments are deducted from the designated account on the 6th of each month or the following working day if the 6th falls on a weekend or holiday. You must complete an Electronic Payment Deduction Authorization form.
- Pre-payment Prior to Leaving: You may prepay your benefits for the remainder of the current benefit year out of your final check. This option is only available if your final paycheck has not been received. To pre-pay, you must complete a Retiree Pre-Payment Option form, Retiree Election Form, and a Life Enrollment Change form if you are not Medicare eligible.
You must mark your method of payment on the Retiree Election Form. If you do not check an option, we will assume that you are self-paying monthly.
