BENEFIT PREMIUM PENSION SUBSIDY
NEW RETIREES/LTD MEMBERS
- Depending on when your Retirement System (ASRS or PSPRS/CORP/EORP) receives your benefit elections, you may owe one or more months of health and/or dental premiums.
- After enrolling, check your pension deductions. If the premium deduction has not occurred or the deduction is incorrect by your first full (not the estimated) pension check, immediately contact ADOA Benefit Services Division at 602-542-5008.
- To learn about your premium calculation and your pension, see the "Benefit Premium Pension Subsidy" section below.
BENEFIT PREMIUM PENSION SUBSIDY
The Arizona State Retirement System (ASRS), the Public Safety Personnel Retirement System (PSPRS), the Elected Officials Retirement Plan (EORP) and the Corrections Officer Retirement Plan (CORP) may provide payment subsidies toward insurance premiums for eligible members and dependents who elect health coverage through ADOA Benefit Services Division.
Pension questions? Call your retirement system - ASRS: 602-240-2000, PSPRS/EORP/CORP: 602-255-5575.
No basic premium benefit subsidy is provided to Retirees in the University Optional Retirement Plan or to PSPRS or CORP members who are LTD members.
Your retirement system will determine if you are eligible for a premium benefit subsidy and the amount to which you may be entitled.
To determine your basic premium benefit subsidy, you need to know:
- Your years of credited service in your retirement system or Plan if you are an ASRS or EORP member (years of service is not a criterion for CORP and PSPRS members).
- Your coverage type (i.e., single or family coverage).
- Medicare eligibility.
- Benefit Premium Pension Subsidy Rate Chart
Determining Your Costs WORKSHEET
Calculating your monthly costs, premium benefit subsidy, and pension check can be simple. Each retiree’s circumstances are different, but understanding how all the pieces work together will make it an easy process.
- The premium benefit subsidy for the basic program varies depending on your years of service with the State of Arizona, the retirement system you are enrolled in, and the insurance plan in which you enroll.
- ADOA, ASRS, and PSPRS offer retiree health insurance plans. Premiums differ depending on the plan option selected and whether you are enrolled in single or family coverage.
- Use this Benefit Premium Pension Subsidy Rate Chart and Worksheet to guide you in calculating your costs.
After you fill out the worksheet listed in the section above, you can determine what kind of payment member you are.
- Non-Direct Pay Member - If the sum of your premium benefit subsidy and pension is greater than or equal to the total monthly premium, you will be considered a non-direct pay member. Non-direct pay members are not billed.
- Direct Pay Member - If you are or become a direct pay member, you will receive a billing notice regarding future premium payments. If you do not receive a billing notice within 90 days, contact ADOA Benefit Services Division at 602-542-5008.
- You are responsible for paying all premiums. Failure to keep your premiums current will result in the cancellation of your insurance coverage.
- If you are assessed a Part D-Income Related Monthly Adjustment Amount, you will be notified by the Social Security Administration. You will be responsible for paying this extra amount. If you are required to pay the extra amount, and you do not pay it, you will be disenrolled from the plan and lose both your medical and pharmacy benefit.