IMPORTANT: DEADLINE OF THURSDAY 9/14
Reduction of Retiree Health Fund Contribution Form (CO-1330 fillable form
Word Version)
Reduction of Retiree Health Fund Contribution Form (CO-1330 pdf version)
Anyone wishing to offset the 1.5% pension contribution increase must complete and submit the attached form NO LATER THAN September 14, 2017 to your Human Resources Department:
If you choose to offset the 1.5% pension contribution, please know and understand how this operates. While it will provide monetary relief this year, it WILL cost more as the defered contributions MUST be paid back between July 2019 and June 2023 through an additional 0.5% of annual salary for that 4 year period. Selecting this deferment option, will only delay the 1.5% increase for one year; the 1.5% will kick in next year (and then the additional 0.5% will kick in the year after that).
This is the pertinent language you should understand:
I elect to reduce my Retiree Healthcare Trust Fund contributions by a total of 1.5% for the equivalent of a one year period beginning Sept. 29, 2017. By so doing, I agree to repay an additional 0.5% of compensation to the Retiree Healthcare Trust Fund over a four-year period beginning July 1, 2019. Throughout the repayment period my Retiree Healthcare Trust Fund contribution will be 3.5% of my then-current compensation [for those whose 3% RHTF payments expire between 7/1/19 and 6/30/23, the RHTF will remain at 0.5% through June 30, 2023]
If I leave state service before paying the amount due for my deferred Retiree Health Fund contributions, I will repay the present value of the remaining amount due in a lump sum and agree that this amount may be withheld from my final paycheck. I acknowledge that if I fail to repay the amount due to the Retiree Health Fund, any retiree health benefits to which I am entitled will be suspended until the total is paid in full.