Annuitant Premium Contributions Clause Samples
The Annuitant Premium Contributions clause defines the responsibilities and procedures for the annuitant to make premium payments toward an annuity contract. Typically, this clause outlines the frequency, amount, and acceptable methods of payment, and may specify consequences for missed or late payments, such as suspension of benefits or contract termination. Its core practical function is to ensure that the annuity remains funded and active by clearly establishing the payment obligations of the annuitant, thereby preventing misunderstandings and lapses in coverage.
Annuitant Premium Contributions. (1) The State System shall continue to pay the full cost of AHCP benefits for those eligible employees who retired prior to July 1, 2005.
(2) Eligible employees who retire after June 30, 2005 and before July 1, 2008 and who enroll in the AHCP and are not eligible for Medicare, shall contribute to the cost of coverage at the same dollar amount for their choice of plan that was in effect the day of their retirement. Upon becoming eligible for Medicare, they shall cease the foregoing contribution and instead pay the same percentage of the State System’s cost for the Medicare supplement as active employees are paying for their PPO plan benefits.
(3) Eligible employees who retire after June 30, 2008 and who enroll in the AHCP shall contribute to the cost of the AHCP at the same dollar amount for the type of contract and choice of plan as that in effect on the day of the employee’s retirement. Throughout the annuitant’s lifetime while enrolled in the AHCP, the dollar amount paid by the annuitant shall be adjusted whenever the percentage of contribution paid by active employees for the same type of contract and choice of plan is adjusted. The new percentage shall be applied to the rate for the type of contract and choice of plan that was in effect on the day of the employee’s retirement to determine the new annuitant contribution. The wellness program and non-participant contribution increase set forth in Section 3.a.(4) and Section 3.b.(3) above shall not apply to annuitants.
(4) If an annuitant who retires after June 30, 2005 and before July 1, 2008 opts to change health plans, he/she shall contribute to the new plan in the same dollar amount that was in effect for that plan as of the date of his/her retirement.
(5) If an annuitant who retires after June 30, 2008 opts to change health plans, he/she shall contribute to the new plan in the same dollar amount that was being contributed to that type of contract and choice of plan by active employees on the day of the employee’s retirement, adjusted for any changes occurring since that time in the percentage of contributions paid by active employees.