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Retiree Benefits

ORP participants who have met the age and service requirements for retiree benefits may purchase post-employment benefits from the Group Insurance Commission (GIC).

Participants receiving post-employment benefits are generally considered as "retirees" or "deferred retirees" depending upon whether or not they receive retirement income. This status may be changed at any time to the following:

• Deferred Retiree: if the participant meets the eligibility requirements listed below and discontinues Retiree Income;
• Retiree: if the participant meets the eligibility requirements listed below;
• No GIC: if the participant simply discontinues purchasing insurance from the GIC; and
• Not Eligible: if the participant removes all assets from the plan.

Deferred Retiree

A Deferred Retiree is an ORP participant who meets these criteria:

1. Participants must currently be a member of the ORP with assets maintained in the program.
2. Participants have accrued at least ten Years of Creditable Service for GIC purposes.
3. Participants purchase insurance covered from the GIC.

Premiums
Deferred Retirees pay the full premium for the coverages purchased from the GIC. The Commission bills the participant for each month’s premiums. Deferred Retirees may draw funds from the ORP at any time; however, they must leave a minimum amount in the plan to preserve eligibility for post-employment benefits.

Retiree

A Retiree is an ORP Participant who meets these criteria:

1. Participants must draw a Retiree Income from the plan.
2. Participants meet either of these two age and service requirements:
   • Accrue at least 10 Years of Creditable Service and attain age 55; or
   • Accrue at least 20 Years of Creditable Service with no age requirement.
3. Participants must purchase insurance coverages from the GIC.

Premium Rate
Premium rates for Retiree coverages are set by the Legislature. Currently, Retirees pay 15% of the total health care rate. Participants’ monthly Retiree Insurance premiums are deducted from their Retiree Incomes by their Providers. The Providers forward the premiums to the Plan Administrator who coordinates, reconciles, and remits them to the Group Insurance Commission.

Survivors for GIC Purposes

If a participant's survivors are eligible for GIC Retiree Benefits, then the provisions governing the participant's ORP income and related insurance premium deductions will also apply to the survivors. Consequently, the participant should incorporate these details in financial and retirement planning. Contact the GIC to determine if survivors meet the definition of those who would be eligible for insurance coverage.

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Related Links
Information on Disability Retirement
Policy on the adequacy of retiree income (.PDF)
Policies for Retiree Benefit Premium Deductions (.PDF)
Group Insurance Commission (GIC)