Planning to Retire: Pending Retirement FAQs
When a SHBP Employing Entity terminates an Active Member due to retirement they are placed in a “Pending Retiree” status the first day of the month after Active Member coverage ends.
- Example: Last Date of Deduction reported by Employer is 6/30/2020, therefore Active Member Coverage ends with Employer 7/31/2020. On 8/1/2020 Pending Retiree status begins.
What information will I receive from SHBP when I Retire?
Once a Pending Retiree’s Active Member Coverage ends, a Welcome to Retirement Letter is mailed within 7-10 business days.
- This is the same letter that Retirees receive.
- Many Pending Retirees will receive this letter twice:
- Initially when they transition to Pending Retirement status (i.e., first day of the month after Active Member coverage ends), and
- When they transition to Retirement status upon SHBP receiving their New Retiree record from their State Retirement System.
How will I know if I am a Pending Retiree?
You will be placed in a Direct Pay status and directly billed for your SHBP premiums by ADP via their subcontractor, WageWorks.
When will I transition from Pending Retiree Status to Retirement Status?
SHBP cannot transition a Pending Retiree to Retiree status until we receive his/her New Retiree record from their State Retirement System. This record includes important data such as the date your retirement begins, your years of service as of 1/1/2012, and your total years of service.
Please note your State Retirement System will not deduct your SHBP premiums from your annuity during the time you are in Pending Retiree Status so you must pay SHBP directly during this time period.
When and How Do I Pay My Premiums as a Pending Retiree?
Prior to your Active Member Coverage ending, you will be placed in a Direct Pay status and directly billed for your SHBP premiums by ADP via their subcontractor, WageWorks at the same rate for up to 6 months, without any interruption to your coverage. If you fail to pay the premiums billed during Pending Retirement status, your coverage will be terminated with no right to reinstatement unless you return to work with a SHBP Employing Entity in a benefits eligible position.
You may contact SHBP Member Services via email at [email protected] or via phone at 800-610-1863 and select the appropriate prompt for pre-retirement questions under the Active Member menu.