Two Options Regarding Prepaid Employee Benefits Now Available to 10-month Employees Retiring July 1, 2022*
Montgomery County Public Schools 10-month employees who retire on July 1, 2022, now have two options with respect to their fiscal year (FY) 2022 prepaid employee benefits. These new retirees may—
- Maintain active employee benefits through September 30, 2022—Under this option, if a 10-month employee retiring July 1, 2022, opts to enroll in the retiree benefits plan, that coverage would go into effect on October 1, 2022. While this option does not change the rules for Medicare enrollment, it does alter the timeline. Regardless of retirement date, retirees or their dependents who are or become eligible for Medicare must begin the application process at least three months prior to their Medicare coverage effective date. Since those selecting this option will still be covered by their employee benefits plan through September 30, 2022, they will not begin the Medicare enrollment process until July 1, 2022, for a Medicare Part B effective date of October 1, 2022.
- Request a refund of prepaid employee benefit premiums—Ten-month employees retiring July 1, 2022, may instead enroll in the retiree benefit plan effective July 1, 2022, and request a refund of their prepaid employee benefit premiums for the July 1, 2022, to September 30, 2022, portion of the coverage period. Refund requests are for FY 2022 prepaid premiums only and must be made using MCPS Form, 455-4, Refund Request of MCPS Prepaid Benefits.
Refunds would be taxed and range between approximately $100 and $900, depending on the benefits and coverage levels previously elected. Prepaid employee benefit amounts were deducted from each of 20 payroll periods during both the 2021 and 2022 calendar years. Therefore, this option will result in a revised W-2 for 2021 as your 2021 income will need to be adjusted accordingly.
Ten-month employees who retire on July 1, 2022, will indicate their choice between the two options when completing their retirement application on MCPS Form 455-22R, Retiree Benefit Plan Enrollment for New Retirees Only.
For more information, contact the Employee and Retiree Service Center (ERSC)—
- By telephone at 301-517-8100 (Monday through Friday between the hours of 8:00 a.m. and 4:15 p.m.),
- By emailing ERSC, or
- Online via ERSC Connect.
*The information in this article supersedes information related to 10-month employees’ prepaid employee benefits written and published prior to March 1, 2022, in any Montgomery County Public Schools document, publication, or web page.