How much you pay depends on:
In most cases, you and PG&E share the cost of your PG&E-sponsored retiree medical premiums through one of these programs:
|Retiree Medical Employer Contribution (RMEC)|
|Available if you retired before 2011|
|Retiree Medical Savings Account (RMSA)|
|Available if you retired in 2011 or later and have a remaining RMSA balance|
You had a one-time, irrevocable choice of the RMEC or RMSA, effective January 1, 2011. You can use these programs only to help pay the monthly premium cost of your PG&E-sponsored retiree medical coverage. You can’t use these programs to pay for any other coverage or costs.
Usually, your share of the cost for your monthly premiums is deducted automatically from your monthly pension benefit.
You’ll get a monthly bill for your share of the cost if:
|Your share of the monthly medical premium would take 85% or more of your monthly pension benefit|
|You received a lump-sum pension benefit when you retired instead of a monthly annuity|
You delayed the start of your pension payments
NOTE: After your pension payments start, you’ll need to call the PG&E Benefits Service Center if you want to stop getting monthly bills and switch to pension deductions.
The RMEC is available if you retired before 2011 and you did not elect the RMSA during the special, one-time election period.
If you have the RMEC, your annual Personalized Enrollment Worksheet will show how much your RMEC will pay for the coming year.
RMEC contributions are based on each individual’s eligibility for Medicare. This means an enrolled family could get a combination of RMEC contributions for non-Medicare and Medicare coverage. The amounts are different because the cost of coverage is different.
All RMEC contributions and limits are scaled proportionately, based on years and months of credited service.
Want to know your current-year RMEC contribution rates? Call the PG&E Benefits Service Center at 1-866-271-8144.
Non-Medicare retirees with 10 to 25 years of service will get a contribution ranging from 50%–65% of the cost of Anthem Network Access Plan (NAP) or Anthem Comprehensive Access Plan (CAP) coverage. Annual RMEC contributions can’t exceed annual limits:
Enrolling in a plan other than the Anthem Network Access Plan (NAP) or Comprehensive Access Plan (CAP)? The RMEC will pay the equivalent amount for your coverage—up to 72% of the monthly cost of coverage for your plan. You pay at least 28% of your monthly premium cost.
PG&E will increase the RMEC contribution annually until the amount it pays for Medicare retirees with 25 or more years of credited service reaches the maximum annual limit:
PG&E’s base monthly contribution for a Medicare retiree with 10 to 25 years of service is scaled proportionately. Medicare retirees with retirement dates in 2003 or earlier—and with fewer than 25 years of service—will continue to get the full base contribution up to the annual limit.
PG&E may contribute toward your retiree medical premiums under the Retiree Medical Employer Contribution (RMEC) method when you retire again. If you think this applies to you, call the PG&E Benefits Service Center at 1-866-271-8144.
Do you have the RMEC? Did you retire with at least 10 years of credited service? You have the Retiree Premium Offset Account (RPOA), too.
A one-time allotment of $500 for each year of credited service beyond your first 10 years of credited service—up to $7,500
You can use the RPOA50 to offset 50% of your share of monthly premium contributions
An extra allotment in addition to the RPOA50 if you retired on or before January 1, 2007
After you use your RPOA50, you can use the RPOA25 to offset 25% of your share of monthly premium contributions
You can’t use the RPOA 25 until you’ve completely used up your RPOA50
During Open Enrollment, you can elect to start or stop your RPOA by calling the PG&E Benefits Service Center at 1-866-271-8144. You need to call; you can’t make this election online. If you don’t call, your current RPOA election will continue for the following year.
Why would you want to stop your RPOA? Your spouse will be eligible to inherit your RPOA if your spouse stays enrolled in PG&E-sponsored survivor medical coverage after you die.
If your RPOA balance runs out midyear, you’ll be responsible for paying the amount the RPOA was paying. You won’t be able to switch to a less expensive retiree medical plan during the year just because your RPOA runs out.
If your RPOA balance is low, consider switching to a less expensive plan during Open Enrollment.
The Retiree Medical Savings Account (RMSA) is available if you retired in 2011 or later, or if you retired September 2009 through December 2010 and elected the RMSA during the special, one-time election period.
The RMSA is a special account that helps you pay part of your PG&E-sponsored retiree medical premiums.
For details about the RMSA, download the Retiree Medical Savings Account (RMSA) Frequently Asked Questions. To see how the RMSA helps offset current-year medical plan costs, download the monthly premiums for PG&E-sponsored retiree medical plans:
If you’re eligible for the RMSA, you and your spouse or registered domestic partner will each get your own RMSA when you retire.
For your spouse or registered domestic partner to be eligible for the RMSA, you must be married or in your registered domestic partnership on your retirement date.
Your enrolled children won’t get a separate RMSA—but you can use your RMSA to help pay for their coverage.
Your RMSA grows over time starting when you turn 45—or older, if you’re hired after 45.
The amount PG&E contributes to your RMSA and to your spouse or registered domestic partner’s RMSA is based on your age and service. The more years of service you have and the older you are when you retire, the higher the value of your RMSA.
The RMSA pays a monthly percentage of your cost for PG&E-sponsored retiree medical coverage until your account is used up. At that point, you’ll pay 100% of the cost.
The percentage the RMSA pays is based on Medicare eligibility:
The RMSA percentage won’t change from year to year, but the dollar amount it pays will vary based on actual premium costs.
How much you pay depends on the total cost of your medical premiums minus how much the RMSA pays.
Usually, the amount you have to pay will be deducted automatically from your monthly pension benefit, but you could get a monthly bill for your share of the cost. For more information, see Will You Be Billed?
You can see how much your RMSA is worth if you’re at least age 46. That’s because you start earning a RMSA when you turn 45, and your RMSA is credited annually at the end of each year. You’ll be able to see your RMSA balance when you turn 46.
There are two ways to see how much your RMSA is worth:
|Current RMSA Balance||Projected RMSA Balance|
If you’re age 46 or older, you can see your current RMSA balance. The RMSA starts growing at age 45, and credits are awarded on the last day of each calendar year.
From your myPlans Connect home page go to: Menu > My Account > Profile > Retiree Savings Account.
This shows your current RMSA balance through December 31 of the prior year. It does not project your balance to retirement. As you continue to work, you’ll earn additional credits at the end of each year—plus, even more credits will be awarded when you retire.
The Retiree Medical Estimator Tool allows you to project beyond what you have earned to date and estimate what your RMSA balance would be as of whatever retirement date(s) you choose to model. This projected balance includes the additional credits that would be awarded when you retire, based on the date(s) you model.
Need help? Download Estimating RMSA Account Balance and Retiree Medical Premiums.
Want to talk to someone about your medical plan options and premium costs? Call the PG&E Benefits Service Center Monday–Friday, 7:30 a.m.–5 p.m. Pacific time: 1-866-271-8144.
Your RMSA automatically starts paying when you elect PG&E-sponsored retiree medical coverage. You don’t need to set up your RMSA payments, and you can’t change or stop your RMSA payments while you’re enrolled in a PG&E-sponsored retiree medical plan.
How long your RMSA will last depends on:
Once your RMSA is used up, it stops paying. At that point, you’ll be responsible for paying 100% of your PG&E-sponsored retiree medical premiums.
If you decide to drop your PG&E-sponsored retiree medical coverage and enroll in any other medical plan—including an active employee plan, such as the Hiring Hall plan—your RMSA balance will be frozen.
Your frozen balance will continue to earn interest even when you’re not using it. You won’t lose your RMSA balance, but you can’t use it to pay for any other coverage. You can only use it to help pay for PG&E-sponsored retiree medical coverage.
Your RMSA balance will be unfrozen, and you can start using it again if you later re-enroll in a PG&E-sponsored retiree medical plan.
Download the Retiree Health Account Cheat Sheet for tips on how to use the Retiree Health Account.
You’ll automatically get this tax-free health reimbursement account if you:
You also could have a Retiree Health Account if you’re eligible for PG&E-sponsored retiree medical coverage and you had Capped Sick Time when you retired—even if you were not enrolled in the Health Account Plan (HAP) as an employee. If you have Capped Sick Time when you retire, 25% of your Capped Sick balance—up to a maximum of 25% of 1,040 Capped Sick hours—will be converted to credits and deposited into a Retiree Health Account for you.
If you had Capped Sick Time and you were enrolled in the HAP as an employee:
If you had Capped Sick Time but you were not enrolled in the HAP as an employee:
|You get unused HAP credits + Capped Sick Time in your Retiree Health Account.||You get Capped Sick Time in your Retiree Health Account.|
*IBEW- and SEIU-represented employees do not have Capped Sick Time.
To see how a converted Capped Sick Time balance is calculated, download the guide to Converting Your Unused Capped Sick Time Bank to Retiree Health Account Credits.
2022 Voluntary Separation Program Participant
Did you receive a Retiree Medical Subsidy for participating in the 2022 Voluntary Separation Program?
You could have a Retiree Health Account even if you weren’t enrolled in the HAP as an employee when you retired. You just have to be eligible for PG&E-sponsored retiree medical coverage.
You don’t have to be enrolled in a PG&E-sponsored retiree medical plan to use your Retiree Health Account—you just need to be eligible for the coverage.
PG&E won’t contribute to your Retiree Health Account after you retire—but you can use your credits to pay for:
You also can use your Retiree Health Account to help pay for your dependents’ eligible expenses—even if they’re not enrolled in a PG&E-sponsored plan.
For details about how to file Retiree Health Account claims, download the Retiree Health Account Cheat Sheet.
You need to budget for your retiree medical coverage. You’ll always have to pay part of the cost—regardless of your RMSA.