A new state law changes how health and dental insurance will be funded for future retirees. The new law only affects individuals who begin employment with state-covered insurance on or after May 2, 2008.

Funding of health benefits is unchanged for current retirees and employees hired prior to May 2, 2008; as are the rules to qualify for enrollment in state health insurance programs.

The new law, signed by S.C. Governor Mark Sanford on April 2, 2008, changes the number of years of earned service necessary to qualify for funded retiree insurance from the current 10 years to 15 years for a half contribution, and to 25 years for a full contribution.

This means that an affected individual who retires with 15 years of service will pay 50 percent of the employer portion in addition to the employee portion of their state health and dental insurance premium. Only employees with 25 years of service will be eligible to continue their state health and dental insurance by paying only the employee portion of the premium.

Retirees who have five or more years of service, but fewer than 15 years of service with a state-covered entity will have to pay the full premium cost if they want to keep state health and dental insurance.

If you have questions, contact a benefits counselor in the Division of Human Resources’ Benefits Office at 803-777-6650.