Employers: Retirees Returning to Retirement

Employers and Retirees play a huge role in ensuring a Retiree’s Active Member coverage transitions back to Retiree coverage.

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Retiree Responsibilities

Within 31 days of a Retiree’s last day of work, he/she Must notify SHBP Member Services via email at [email protected] or via phone at 800-610-1863 that they are returning to Retirement.

Employer Responsibilities

Employers should immediately transmit a Retiree’s eligibility data indicating Termination from Employment to SHBP the same as they would for an employee terminating their employment for any reason other than retirement. Unless the Retiree is retiring from a position with the Employer, the record should not indicate they are a Retiree.

If the Employer mistakenly transmits an incorrect Record to SHBP, the Employer should immediately contact SHBP Employer Services to request further guidance from their dedicated Employer Services Specialist. 

SHBP Responsibilities

After SHBP becomes aware that the Retiree is returning to retirement status:

  1. SHBP will coordinate with the Retiree’s State Retirement system to resume deductions of his/her SHBP premiums from their annuity, and
  2. If applicable, SHBP will place the Retiree on Direct Pay status until his/her premiums are able to be deducted from their annuity, and the Retiree will receive an invoice from SHBP via ADP’s subcontractor, WageWorks. Until a Retiree confirms that their premiums are being deducted from their annuity, he/she must submit premium payments per the terms of the invoice.