Policy/Memo 31

Number: Policy Memo 31
Date Issued: December 20, 1989
Policy File Ref: A1130

ISSUE:

Counting "ineligible service" with a participating employer/agency toward the length of service requirement for retirement coverage.

Background:

Current procedure does not count prior service toward the retirement service requirement if an employee did not meet the eligibility requirements for enrollment during that period. This means an employee could work for an employer for many years, either full-time or part-time, in a position classified as noneligible for health insurance, later work in an eligible position, enroll for coverage but be denied coverage in retirement because of insufficient service in a qualifying position.

Participating employers/agencies wishing to recognize all service an employee has with the employer have been prohibited from doing so.

Policy:

Permit participating employers/agencies who wish to do so to adopt a written policy to count periods of service an employee has with the agency in a nonqualifying position toward the service eligibility requirement for continuing health insurance in retirement. Such service may be prorated to a full-time equivalent (i.e., 10 years at half-time equals five years of service) at the discretion of the employer, provided the method of calculation is equitably applied.

Employers who wish to adopt this policy must submit a statement of its written policy to the Agency Services Unit.