Common use of Definition of Health Eligible Retiree Clause in Contracts

Definition of Health Eligible Retiree. Effective with service retirements on and after July 1, 2009, to be a “Health Eligible Retiree” under the SDMC section 24.1201, an employee must have a minimum of 10 years of creditable service in addition to the conditions already stated therein. A service retiree with at least ten (10) years of creditable service will be entitled to 50% of the annual Retiree Medical Benefit. A service retiree with more than ten (10) years but less than twenty (20) years of creditable service will earn 5% more of the annual benefit per year of additional service beyond ten (10). For example, a service retiree with fifteen years of creditable service will be entitled to 75% of the annual Retiree Medical Benefit. A service retiree with twenty (20) years of creditable service will be eligible for the current benefit as a “Health Eligible Retiree.” This change will not affect employees who qualify for disability retirements.

Definition of Health Eligible Retiree. Effective with service retirements on and after July 1, 2009, to be a “Health Eligible Retiree” under the SDMC section 24.1201, an employee must have a minimum of 10 ten (10) years of creditable service in addition to the conditions already stated therein. A service retiree with at least ten (10) years of creditable service will be entitled to 50% of the annual Retiree Medical Benefit. A service retiree with more than ten (10) years but less than twenty (20) years of creditable service will earn 5% more of the annual benefit per year of additional service beyond ten (10)) years. For example, a service retiree with fifteen (15) years of creditable service will be entitled to 75% of the annual Retiree Medical Benefit. A service retiree with twenty (20) years of creditable service will be eligible for entitled to 100% of the current annual retirement medical benefit as a “Health Eligible Retiree.” This change will not affect employees who qualify for disability retirements.