1. A. A retired employee who began State service on or before June 30, 2011, and the designated beneficiaries of a retired employee who began State service on or before June 30, 2011, and a retired employee of the Judges’ Retirement System who began State service on or after July 1, 2011, and the designated beneficiaries of a retired employee of the Judges’ Retirement System who began State service on or after July 1, 2011, are eligible to receive the subsidy provided by the State for the cost of the health insurance benefits program on the following basis:

   1. (1) If an employee retired directly from State service before July 1, 1984, the retired employee and the designated beneficiaries of the retired employee shall receive the same subsidy that is provided to a State employee;
   2. (2) If an employee retired from State service on or after July 1, 1984 and had at least 5 years of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive 5/16 of the subsidy provided to a State employee;
   3. (3) If an employee retired from State service on or after July 1, 1984 and had more than 5 but less than 16 years of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive 1/16 of the subsidy for each year of creditable service that is more than 5 but less than 16 years;
   4. (4) If an employee retired from State service on or after July 1, 1984 and had 16 years or more of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive the same subsidy that is provided to a State employee;
   5. (5) If a retired employee is in receipt of a State disability retirement allowance, the retired employee and the designated beneficiaries of the retired employee shall receive the same subsidy that is provided to a State employee;
   6. (6) Except as provided in §A(7) of this regulation, a person in receipt of a special death benefit under State Personnel and Pensions Article, §29-204, Annotated Code of Maryland, shall receive the same subsidy that is provided to a State employee; and
   7. (7) If a retired State employee retires with a periodic benefit under the Optional Retirement System of State Personnel and Pensions Article, Title 30, Annotated Code of Maryland, the retiree and the dependents of the retiree shall receive the subsidy provided pursuant to State Personnel and Pensions Article, §2-509(a), Annotated Code of Maryland.

2. B. A retired employee who began State service on or after July 1, 2011 and the designated beneficiaries of a retired employee who began State service on or after July 1, 2011 are eligible to receive the subsidy provided by the State for the cost of the health insurance benefits program on the following basis:

   1. (1) If an employee retired from State service and had at least 10 years of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive 10/25 of the subsidy provided to a State employee;
   2. (2) If an employee retired from State service and had more than 10 but less than 25 years of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive 1/25 of the subsidy for each year of creditable service that is more than 10 but less than 25 years;
   3. (3) If an employee retired from State service and had 25 or more years of creditable service, the retired employee and the designated beneficiaries of the retired employee shall receive the same subsidy that is provided to a State employee;
   4. (4) If a retired employee is in receipt of a State disability retirement allowance, the retired employee and the designated beneficiaries of the retired employee shall receive the same subsidy that is provided to a State employee;
   5. (5) Except as provided in §B(6) of this regulation, a person in receipt of a special death benefit under State Personnel and Pensions Article, §29-204, Annotated Code of Maryland, shall receive the same subsidy that is provided to a State employee; and
   6. (6) If a retired State employee retires with a periodic benefit under the Optional Retirement System of State Personnel and Pensions Article, Title 30, Annotated Code of Maryland, the retiree and the dependents of the retiree shall receive the subsidy provided pursuant to State Personnel and Pensions Article, §2-509(b), Annotated Code of Maryland.

3. C. The health insurance benefit for eligible retirees and their designated beneficiaries includes a prescription drug benefit that:

   1. (1) Has the same copayments, coinsurance, and deductible that apply to the prescription drug benefit for active State employees;

   2. (2) Requires:

      1. (i) Retirees and their designated beneficiaries who qualify for the maximum State subsidy to pay 25 percent of the premium for the prescription drug benefit; and
      2. (ii) Retirees and their designated beneficiaries who qualify for a partial State subsidy to pay 25 percent of the premium for the prescription drug benefit plus the proportional additional amount required under State Personnel and Pensions Article, §2-508(b)(4)(ii) and (c)(4)(ii), Annotated Code of Maryland; and

   3. (3) Requires retirees and designated beneficiaries to pay out-of-pocket limits up to:

      1. (i) $1,500 per plan year for the retiree only coverage; and
      2. (ii) $2,000 per plan year for the retiree plus dependent(s) coverage.
4. D. Beginning on July 1, 2020, Medicare-eligible retirees will cease to be eligible for the prescription drug benefit option provided under the State Employee and Retiree Health and Welfare Benefits Program.
5. E. A retired employee and the designated beneficiaries of the retired employee shall pay the remainder of the cost of the health insurance benefits premium that is not provided for under §§A—D of this regulation.

Authority: State Personnel and Pensions Article, Title 2, Subtitle 5, Title 4, Subtitle 1, and Title 8, Subtitle 1, Annotated Code of Maryland

Effective date: December 30, 1985 (12:26 Md. R. 2542)

Chapter revised effective February 9, 1987 (14:3 Md. R. 271)

For a history of State Personnel Regulations before February 12, 1997, see the prior version of COMAR Title 06 or contact the Maryland State Archives for assistance.

Regulation .01 repealed and new Regulation .01 adopted as an emergency provision effective July 1, 2008 (35:15 Md. R. 1346); adopted permanently effective August 25, 2008 (35:17 Md. R. 1489)

Regulation .01B amended effective July 1, 2009 (36:10 Md. R. 717); September 20, 2010 (37:19 Md. R. 1284); October 3, 2011 (38:20 Md. R. 1204); February 26, 2018 (45:4 Md. R. 207)

Regulation .02 repealed effective February 23, 2009 (36:4 Md. R. 355)

Regulation .03A amended as an emergency provision effective January 1, 2005 (32:2 Md. R. 144); amended permanently effective June 6, 2005 (32:11 Md. R. 983)

Regulation .03 repealed and new Regulation .03 adopted as an emergency provision effective July 1, 2008 (35:15 Md. R. 1346); adopted permanently effective August 25, 2008 (35:17 Md. R. 1489)

Regulation .03 amended as an emergency provision effective June 30, 2013 (40:15 Md. R. 1227); amended permanently effective October 14, 2013 (40:20 Md. R. 1653)

Regulation .03 amended effective February 16, 2015 (42:3 Md. R. 317)

Regulation .03A amended effective September 20, 2010 (37:19 Md. R. 1284); October 3, 2011 (38:20 Md. R. 1204)

Regulation .03A, C amended effective February 26, 2018 (45:4 Md. R. 207)

Regulation .03A, D amended effective July 1, 2009 (36:10 Md. R. 717); February 18, 2013 (40:3 Md. R. 219)

Regulation .03-1 adopted effective July 1, 2009 (36:10 Md. R. 717)

Regulation .03-1 amended effective February 16, 2015 (42:3 Md. R. 317)

Regulation .03-1B amended as an emergency provision effective June 30, 2013 (40:15 Md. R. 1227); amended permanently effective October 14, 2013 (40:20 Md. R. 1653)

Regulation .04 repealed and new Regulation .04 adopted as an emergency provision effective July 1, 2008 (35:15 Md. R. 1346); adopted permanently effective August 25, 2008 (35:17 Md. R. 1489)

Regulation .04A, B amended effective February 16, 2015 (42:3 Md. R. 317)

Regulation .04B amended effective November 14, 2022 (49:23 Md. R 997)

Regulation .04B, C amended effective July 1, 2009 (36:10 Md. R. 717)

Regulation .05 amended effective February 18, 2013 (40:3 Md. R. 219)

Regulation .05A amended effective January 6, 2005 (31:26 Md. R. 1865)

Regulation .06 amended effective July 1, 2009 (36:10 Md. R. 717)

Regulation .06 repealed effective February 16, 2015 (42:3 Md. R. 317)

Regulation .09 adopted effective January 25, 2010 (37:2 Md. R. 69)

Regulation .10 adopted effective August 3, 2015 (42:15 Md. R. 1016)