Retired Teachers Chapter News

New retirees’ health insurance deductions

Nov 1, 2007 4:34 PM

When municipal employees retire, it takes several months before they start receiving regular pension checks from the city and another few months before those checks reflect the optional rider deduction for health insurance.

To make up for the period during which no health insurance deductions were taken, the city used to take out double deductions for many months. The double deductions were a hardship. Under the new policy, the recoupment deduction is limited to $35 per pension check plus that month’s deduction.

The lower make-up deductions were worked out by the Municipal Labor Committee, of which the UFT is part, and the New York City Employees Health Benefits Program. Therefore, pension checks are reduced at a lesser amount for new retirees. However, it is highly advisable that retirees keep careful records of their health plan costs and deductions.

New retirees should multiply their health-plan costs by the number of months in which health deductions were not taken, then keep track of the total as the city starts to take out the extra $35 per pension check, until the full amount has been made up.