Rehired Retirees

Senate Bill 399 Impact on Rehired Retirees

Senate Bill 399 https://www.ncleg.gov/Sessions/2019/Bills/Senate/PDF/S399v5.pdf allows retired teachers to return to work in high-need schools without adversely impacting the retired teachers’ benefits. Similar to other retirees who may be rehired on a non-permanent basis, retirees returning to work in a high-need school must cancel their retiree health benefit and enroll in health benefits through their employer. Retirees returning to work in high-need schools are eligible to enroll in same health benefits for which other full-time employees are eligible.

Once the retiree has completed their employment with the high-need school, their coverage should be terminated as an employment termination, not a “retirement” termination. Once that termination is complete, the retiree can re-enroll in retiree benefits using the “loss of other coverage” qualifying life event located in eBenefits.

Retirement Health Benefit Termination Process

Prior to the hire date, the HBR should notify the Plan of the need to terminate retiree health benefits by completing an Exception Form.

Upon approval of the exception to terminate the retiree health benefit, the HBR should establish the active benefit enrollment shell in eBenefits that will enable the retiree to enroll in coverage. As a reminder, the retiree will not be able to enroll until the retiree health benefit has been canceled.