LACERS - Your Medical Plan Premium Subsidy

Your Medical Plan Premium Subsidy

A medical plan premium subsidy may be available for LACERS Retirees and Surviving Spouses/Domestic Partners to apply to the cost of their monthly premiums. Your subsidy may only be applied toward premium costs of a LACERS medical plan.

All Retired Members with health plan dependents and Surviving Spouses/Domestic Partners with health plan dependents must complete and submit a Certification of Dependent status for Health Coverage form.

The medical subsidy used to provide medical benefits to dependents may be reported as imputed income to the Retired Member or Surviving Spouse for Federal tax purposes. See Taxability of Health Subsidy.

Based on the plan and coverage you choose, your medical subsidy and Retirement Allowance may or may not cover your entire monthly medical premium. If your premium is greater than your subsidy, the premium balance will be deducted from your Retirement Allowance. If your monthly net Retirement Allowance is not sufficient to cover any necessary premium deduction, contact LACERS for other payment options.

Subsidy Eligibility of Member

You are eligible for a medical plan premium subsidy if you:

Are retired
Are age 55 or older
Have at least 10 years of:
- Service (equivalent to the number of years you worked for the City)
  - If you are full-time employee or
  - If you are a part-time employee who became a LACERS member on or before April 22, 1990
- Service Credit (the number of actual hours you worked)
  - If you are a part-time employee who became a LACERS member after April 22, 1990
Are enrolled in a LACERS-sponsored medical plan or a participant in the Medical Premium Reimbursement Program (MPRP)

Subsidy Eligibility of Surviving Spouse/Domestic Partner

The eligible Surviving Spouse/Domestic Partner medical plan premium subsidy is based on the deceased Member's eligibility criteria. The subsidy maximums are different for eligible Surviving Spouses/Domestic Partners.

If You Are Under Age 65 or Over Age 65 with Medicare Part B Only

You will receive 4% of the maximum medical subsidy for each whole year of Service you have - up to 100% of the maximum medical subsidy (part-time Members whose LACERS Membership date is after April 22, 1990 receive 4% of the maximum medical subsidy for each whole year of Service Credit).

For example:

Years of Sevice	Percentage	Maximum Portion of Subsidy
21 Multiplied by (x)	4% =	84%

If You Are Over Age 65 with Both Medicare Parts A and B

Your medical coverage will be subsidized at a different rate than if you were only enrolled in Medicare Part B. In addition, you will be reimbursed for the cost of your basic Medicare Part B premium. There is no Medicare Part B premium reimbursement for dependents or Surviving Spouses/Domestic Partners.

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