Health & Pension Summary
All state employees share the same health and pension benefits as negotiated by SEBAC, the State Employees Bargaining Agent Coalition. The current Agreement is in effect until 2017. What follows is a summary of the health and pension benefits. More comprehensive information is available from your college personnel or business office or from the State Comptroller.
Health Benefits
The level of health care coverage is guaranteed through 2017. Even if the insurance companies offering the coverage change, the benefits will mirror current benefits.
The State will offer a choice of plans at varying cost to the employee, depending on the plan and type of coverage (individual, family) . The State guarantees at least one health insurance plan option for active and retired employees that is paid 100% by the State. Employees will pay less if they choose managed care or preferred provider plans. Those who wish to have the traditional indemnity plan may do so at higher costs. All plans will gradually increase co-pays for office visits and most plans will gradually raise the monthly premiums.
Part-time employees scheduled to work at least 17.5 hours per week receive the same health insurance coverage as full-time employees. Those who work less than 17.5 hours may buy health insurance at the group rate.
Pension Benefits
All employees, both full-time and part-time, are in a pension program. Two options are open to all employees: The State Employees Retirement System (SERS) and the alternate retirement plan, ARP. A third option, available only to those already enrolled in it, is the Teachers Retirement System (TRS).
The program you choose will depend on your own unique circumstances. Both the SERS and TRS plans are defined-benefit plans. These guarantee a specific payout according to formulas based on years of service and income.
The alternate retirement plan, ARP, is an income-earning investment plan which carries a higher risk, but also the potential of a higher payout. It has the advantage of immediate vesting, but the employee does not access the employer's contribution to the fund until retirement.
Employees must make a choice in the first semester of employment. Those who do not choose will automatically be places in SERS.
Key features of each plan are listed below:
SERS: A defined benefit plan -- benefits based on years of service and earnings. All employees are eligible. There is a 5-year vesting. If hired between 1984-1997, there is no employee contribution. If hired after July 1, 1997, there is a 2% contribution.
ARP: An income-earning investment plan -- benefits are based on contributions and income earned by the chosen funds. All employees are eligible. There is immediate vesting, but you do not access the full funds until retirement. Requires a 5% employee tax-deferred contribution. All income earned by the plan is tax-deferred.
TRS: A defined benefit plan -- benefits are based on years of service and income. Participants must already be enrolled in the plan to have their earnings in the community college system credited. There is 10-year vesting. Requires a 7% employee contribution, not tax-deferred.