2017 Health & Dental Subsidy Updates
Medicare Health Subsidy Benefit
Effective January 1, 2017, the maximum Medicare Health Subsidy will increase from $487.71 to $505.93. This is an increase of 3.7% or $18.22 from the current Medicare Health Subsidy. The Medicare Health Subsidy is for eligible retired members and their Qualified Surviving Spouses/Domestic Partners who are enrolled in Medicare Parts A and B. The new subsidy will appear on the December 2016 pension checks for coverage effective January 1, 2017. The maximum monthly subsidy received is based on the member’s whole years of service at retirement, as shown in the chart below.
|Member’s Whole Years of Service||Maximum Medicare Health Subsidy*|
|Less than 10||No subsidy|
|10 – 14||The lesser of: $379.45 or 75% of the single-party premium of the participant’s health plan.|
|15 – 19||The lesser of: $455.34 or 90% of the single-party premium of the participant’s health plan.|
|20 or more||The lesser of: $505.93 or 100% of the single-party premium of the participant’s health plan.|
*If the member: (1) entered DROP or retired after July 14, 2011, and (2) did not opt in during the designated period to make the additional 2% pension contribution, the Maximum Medicare Health Subsidy is equal to the July 1, 2011 amount of $480.41.
Member Dental Subsidy
The Dental Subsidy will also increase in January 2017, to a maximum of $44.60 for members who have retired with 25 years of service or more. Eligible retired members with less than 25 years of service receive 4% (up to 100%) of this maximum for each whole year of service, not to exceed their single-party dental plan premium. Members must be at least 55 years of age and have a minimum of 10 whole years of service to qualify for this subsidy. Dependents and Qualified Survivors are ineligible to receive a dental subsidy.
For questions concerning the LAFPP Health and Dental Subsidy program eligibility requirements, please contact the Medical and Dental Benefits Section at (213) 279-3115 or (844) 88-LAFPP ext. 93115. Information is also available in the Retired Members section of www.lafpp.com.