Early Retiree Reinsurance Program

ERRP Defrayals of Monthly Medical Premium Payroll Deductions are Temporary

If you are currently receiving a defrayal of your monthly medical premium payroll deductions as a result of LACERS’ participation in the Early Retiree Reinsurance Program (ERRP), please note that these defrayals are temporary. The defrayals will continue as long as LACERS has ERRP reimbursement funds available.

Once the ERRP reimbursement funds have been exhausted, you will resume paying the full amount of your medical premium deductions.

The ERRP was created by the Patient Protection and Affordable Care Act to help organizations like LACERS maintain coverage for their early retirees by reimbursing them a portion of their eligible early retiree high-cost medical claims. Money received by LACERS from the ERRP will be used to reduce retiree medical plan cost increases.
As a result, you may see a reduction in your medical premium deduction if you meet all the following conditions as of July 2011:

• You are enrolled in a LACERS medical plan, and
• You are paying a LACERS monthly medical premium deduction, and
• Your monthly medical premium deduction increased from 2010 to 2012

The reduction in your medical premium deduction, if any, is reflected in the “Adjustments” section of your retirement allowance check or direct deposit slip.

You will not see a reduction in your medical premium deduction if you meet any of the following conditions as of July 2011:

• You are enrolled in the LACERS Medical Premium Reimbursement Program
• Your LACERS medical subsidy covers the cost of your medical plan and you do not have a monthly deduction
• Your monthly medical premium deduction did not increase from 2010 to 2012

For more information, please contact LACERS.