Considering Retirement? Here's what you need to know.
Teamsters Local 700 brought questions about retirement and insurance to the SERS Insurance Supervisor. Below are the questions, and responses. Download the full PDF here.
Is the 727 Health and Welfare Benefits Plan considered a traditional state insurance plan?
The Teamster 727 Health Insurance Plan is not considered a traditional state insurance plan because it was negotiated independent of other state plans and is not available to all state employees. In order to be covered under the Teamsters 727 Health Insurance plan, Local 700 members are required to opt out of the state’s plan. While Central Management Services pays the premiums on behalf of those Local 700 members covered under the Teamsters 727 Blue Cross Blue Shield Plan, it is treated as an outside plan not affiliated with the state plans in place.
Are those enrolled in the 727 Health and Welfare Benefit Plan eligible for a financial incentive program?
No. In order to be eligible for the financial incentive, the member must opt out of the Teamsters plan and go back into the traditional state insurance plan. This can only be done during an open enrollment of qualifying event.
Can a member who is covered under the 727 Health and Welfare Benefit Plan still receive the state stipend in
retirement?
Yes, as long as upon retiring, the member enrolls in the state’s insurance plan.
If I’m nearing retirement, how long can I stay enrolled in the 727 Health and Welfare Benefit Plan?
A Teamster member who is already enrolled in Teamsters 727 Health Insurance Plan with premiums paid by CMS can keep his eligible coverage until the last day of employment. The Teamster member does not need to opt out of Teamster coverage before retirement in order to enroll in the state’s plan after retirement. Upon retiring from state service, the member is then required to enroll back into the state insurance plan and upon proving he has qualifying coverage under the Act, he will be eligible for the stipend.
When is the member required to go back to the state insurance plan?
The member can enroll in the state insurance plan at the time of retirement. There is no requirement to opt out of 727 Health Insurance Plan prior to the time of retirement.
DOWNLOAD PDF
Is the 727 Health and Welfare Benefits Plan considered a traditional state insurance plan?
The Teamster 727 Health Insurance Plan is not considered a traditional state insurance plan because it was negotiated independent of other state plans and is not available to all state employees. In order to be covered under the Teamsters 727 Health Insurance plan, Local 700 members are required to opt out of the state’s plan. While Central Management Services pays the premiums on behalf of those Local 700 members covered under the Teamsters 727 Blue Cross Blue Shield Plan, it is treated as an outside plan not affiliated with the state plans in place.
Are those enrolled in the 727 Health and Welfare Benefit Plan eligible for a financial incentive program?
No. In order to be eligible for the financial incentive, the member must opt out of the Teamsters plan and go back into the traditional state insurance plan. This can only be done during an open enrollment of qualifying event.
Can a member who is covered under the 727 Health and Welfare Benefit Plan still receive the state stipend in
retirement?
Yes, as long as upon retiring, the member enrolls in the state’s insurance plan.
If I’m nearing retirement, how long can I stay enrolled in the 727 Health and Welfare Benefit Plan?
A Teamster member who is already enrolled in Teamsters 727 Health Insurance Plan with premiums paid by CMS can keep his eligible coverage until the last day of employment. The Teamster member does not need to opt out of Teamster coverage before retirement in order to enroll in the state’s plan after retirement. Upon retiring from state service, the member is then required to enroll back into the state insurance plan and upon proving he has qualifying coverage under the Act, he will be eligible for the stipend.
When is the member required to go back to the state insurance plan?
The member can enroll in the state insurance plan at the time of retirement. There is no requirement to opt out of 727 Health Insurance Plan prior to the time of retirement.
DOWNLOAD PDF
Teamsters 727 Benefits Fund
The Teamsters Local 727 Health and Welfare Fund provides top-notch coverage for many of our members. If you have any questions, do not hesitate to contact your Collection and Field Representative at (773) 685-0340.
5940 W. Montrose Ave.
Chicago, IL 60634
Phone: (773) 685-0340
Fax: (773) 685-0463
WEBSITE
5940 W. Montrose Ave.
Chicago, IL 60634
Phone: (773) 685-0340
Fax: (773) 685-0463
WEBSITE
Questions about the transition to the Teamsters Local 727 Health and Welfare Plan Coverage? View our Frequently Asked Questions sheet.
Contact Teamsters Local 700 with any questions at (847) 939-9700 or by email at [email protected], or contact the Fund Office Directly at (773) 685-0340.
Contact Teamsters Local 700 with any questions at (847) 939-9700 or by email at [email protected], or contact the Fund Office Directly at (773) 685-0340.