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Are Social Security eligibility and Medicare eligibility the same thing?
A: Being eligible for social security benefits does not necessarily mean that you are eligible for Medicare benefits. Please contact the Social Security Office to ascertain your eligibility status for Medicare.
The Social Security Office is located at:
605 N. Arrowhead Ave., Suite 101
San Bernardino, CA 92401
Telephone Number: (909) 226-3256
Additional information on Medicare is available at http://www.medicare.com/.
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Can I have direct deposit for my medical reimbursement?
Yes you can, please contact the City of Rancho Cucamonga Benefits Technician Michelle Yancy at 909-477-2700 ext. 2412 for the form.
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If I have retiree medical why do I care about Medicare?
While retiree medical, whether obtained through COBRA or the City's retiree medical plan provides you with medical coverage, the cost for this coverage may be expensive for retirees. In contrast, Medicare provides you with an affordable medical insurance that is subsidized by the federal government.
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If I need to change my medical plan, add or delete dependents who do I call?
To make changes call CalPERS (888) 225-7377. Changes to medical plans may be done during open enrollment period, normally around middle of September.
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What do I need to do if I have direct deposit and I have to close my account for any reason?
You must notify City of Rancho Cucamonga Accounts Payable ASAP, must complete a new direct deposit form.
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What happens if my retirement check is less than my medical premium?
Your net retirement pension will be applied toward the payment of your medical insurance. Therefore, you will no longer receive a pension check from CalPERS. Instead, the District will reimburse you at the beginning of each month the amount that is equivalent to your net retirement pension.
At the beginning of each quarter CalPERS will bill you the difference between the cost of your medical premium minus your net retirement pension and the District's statutory minimum contribution. The District will reimburse you this same amount in advance of the due date for payment to CalPERS.
To help you better understand this process, please see the illustration below.
Illustration
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Assumptions:
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Cost of Medical Premium:
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$1,633.00
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Employer Statutory Contribution:
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97.00
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Employee's Net Monthly Pension:
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1,100.00
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Calculation of Premium Owed CalPERS
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Monthly Premium:
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$1,633.00
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Minus: Employer Contribution:
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97.00
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Employee Share of Premium:
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1,536.00
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Minus: Net Monthly Pension:
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1,100.00
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Monthly Premium Owed CalPERS:
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$436.00
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Quarterly Premium = $436 x 3 months
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$1,308.00
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At the beggining of each quarter, CALPERS will bill the employee the amount of $1,308 and the District will reimburse same amount to the employee in advance of the due date for payment to CalPERS.
At the beginning of each month, the District will pay the amount that is equivalent to the employee's net monthly allowance ($1,100 in this example). This will make the retiree "whole" just as they were prior to the revised agreement.
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When can I transition to COBRA and what are the limitations?
You are eligible to enroll in federal COBRA within 60 days of separation from service. Participation in federal COBRA is limited to eighteen months, after which you may also enroll in the state CalCOBRA program for up to an additional of eighteen months. When you enroll in COBRA, you will lose your eligibility to enroll in the City's retiree medical plan.
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When does the City send my medical reimbursement check?
Reimbursement will be sent out by the 1st of every month either by check or direct deposit, after verification of continuing insurance
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Who do I call if I am having a problem with my retiree medical?
Please contact either CalPERS (888) 225-7300 or City of Rancho Cucamonga Benefits Technician Michelle Yancy (909) 477-2700 ext. 2412.
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Why is the City retiree rates so much higher than the active employee rate?
GASB 45 requires retiree rates to be calculated independent of other groups. The calculation of premium rates includes demographics of plan participants and utilization experience. The disparity of premium rates between retired and active employees is also a reflection of the average age of participating employees.
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Will the amount that is deducted from my retirement check be taxed?
The medical premium that will be deducted from your monthly retirement check by CalPERS will be deducted post tax. However, you should be able to claim this amount as a "tax deduction" when filing your income tax return; please consult with your tax advisor for your specific circumstances.
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Will the check I receive from the City of Rancho Cucamonga to reimburse me for my medical premium be taxed?
No- this fringe benefit is exempt from taxes, per IRS Publication 15b.
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