Members May See Temporary Reductions in Medical Premium Deductions

Beginning in July 2011, eligible members enrolled in LACERS medical plans may see temporary reductions in monthly medical plan premium deductions as a result of LACERS participation in the federal Early Retiree Reinsurance Program (ERRP).

The ERRP was created by the Patient Protection and Affordable Care Act to assist organizations like LACERS in maintaining coverage for early retirees by reimbursing a portion of eligible early retiree medical claims. Money received by LACERS from the program must be used to reduce retiree medical plan cost increases.

As a result, you may see a reduction in your 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 2011

The reduction in your 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 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 2011

This reduction of your premium deduction is temporary. Once the ERRP reimbursement funds have been exhausted, Retired Members who received the reductions will resume paying the full amount of their medical premium deductions.

Based on the availability of funds by the ERRP, these reductions in premium deductions may be made intermittently.

For more information, please contact LACERS.