Re-employment and the Health Reimbursement Arrangement

A re-employed retiree is one who is receiving an OPERS pension benefit and is also employed in an OPERS-covered position. This includes re-employment in a full-time, part-time or seasonal/occasional OPERS position. Classification of a re-employed retiree is not dependent upon contribution or earnings.

In the event you become re-employed by an OPERS-covered employer, you must inform the employer that you are receiving an OPERS benefit. If you know of your intention to become re-employed when you apply for retirement, you can provide that information within your retirement application.

Potential re-employment plans should be discussed with the employer to determine whether there are any restrictions or policies on re-employment. Contributions to OPERS must begin from the first day of re-employment.

How re-employment impacts your Health Reimbursement Arrangement

The OPERS HRA is a retiree-only plan, which means it works a little differently for re-employed retirees.

Medical plan enrollment requirements

Pre-Medicare – Pre-Medicare re-employed retirees can accrue HRA deposits during their re-employment period. Same as a Pre-Medicare benefit recipient who is not re-employed, you can enroll in any medical plan you choose; however, you must be opted in to the HRA to receive monthly HRA deposits from OPERS. Even though you are accruing HRA deposits while re-employed, any expenses incurred during your re-employment period are not reimbursable.

Medicare – Medicare-eligible re-employed retirees can accrue HRA deposits during their re-employment period. You must be enrolled in a medical plan through the OPERS Medicare Connector administered by Via Benefits to receive HRA deposits. Even though you are accruing HRA deposits while re-employed, any expenses incurred during your re-employment period are not reimbursable.

Accruing HRA deposits during your re-employment period

Your monthly HRA deposits from OPERS will accrue in a Re-employed Accumulated HRA for the month(s) you are employed in an OPERS-covered position. Your Re-employed Accumulated HRA will not be accessible during your re-employment period.

You may use any balance you had in your HRA prior to your re-employment period to be reimbursed for expenses incurred prior to your re-employment period, but not for expenses incurred during your re-employment period.

Administrative fees will not be deducted while you are re-employed. To view or print your Re-employed Accumulated HRA balance at any time, log into your OPERS online account.

When Your Re-employment Period Ends

The monthly HRA deposits accrued in your Re-employed Accumulated HRA will be deposited into your primary HRA account. The accrued deposits will have an administrative fee of $2.60 deducted for every month in which you accrued funds within your Re-employed Accumulated HRA. You may use your HRA to receive reimbursement for expenses incurred before and/or after your re-employment period. However, you may not use your HRA to receive reimbursement for expenses incurred during your re-employment period.

What is a Re-employment Period?

Your re-employment period begins the first day of the month in which your employment in an OPERS–covered position started and ends the last day of the month in which your employment is terminated.

Eligibility for Health Reimbursement Arrangement (HRA)

OPERS offers a Health Reimbursement Arrangement (HRA) to benefit recipients meeting certain age and service credit requirements. The HRA is an account funded by OPERS that provides tax-free reimbursement for qualified medical expenses such as monthly post-tax insurance premiums, deductibles, co-insurance, and copays incurred by eligible benefit recipients and their eligible dependents.

OPERS members retiring with an effective date of Jan. 1, 2022 or after will be eligible for the HRA by meeting one of the following criteria:

Age 65 or older

· Minimum of 20 years of qualified health care service credit

Age 60 - 64

· Group A – 30 years of total service with at least 20 years of qualified health care service credit

· Group B – 31 years of total service with at least 20 years of qualified health care service credit

· Group C – 32 years of total service with at least 20 years of qualified health care service credit

Age 59 or younger

· Group A – 30 years of qualified health care service credit

· Group B – 32 years of qualified health care service credit at any age or 31 years of qualified health care service credit and at least age 52

· Group C – 32 years of qualified health care service credit and at least age 55

Aging into eligibility

Providing a member has at least 20 years of qualified health care service credit at retirement, they will eventually be eligible for the HRA even if they are not eligible when they first retire.

· Members retiring at age 65 or older with at least 20 years of qualified service credit will be eligible for the HRA on their retirement date.

· Members retiring prior to reaching age 65 will be eligible at retirement or become eligible when they turn 60 or when they turn 65 depending on their service credit at retirement (see criteria above.)

Your Monthly HRA deposit

If you are eligible for the HRA based on the criteria previously listed, OPERS will fund your HRA with a monthly deposit. The amount of this deposit will be a percentage of a base allowance amount.

With an OPERS benefit effective date of Jan. 1, 2022 or after, your allowance percentage is determined by:

· Your years of qualified health care service credit as of your benefit effective date; and

· Your age when you first become eligible for the HRA.

2025 base allowance amounts:

Pre-Medicare benefit recipients:

$1,200 per month Allowance Percentages and monthly HRA deposits will range from 51% ($612.00 per month) to 90% ($1,080.00 per month) of the base allowance amount.

Medicare benefit recipients:

$400 per month Allowance Percentages and monthly HRA deposits will range from 51 percent ($204.00 per month) to 90 percent ($360.00 per month) of the base amount.

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