Frequently Asked Benefits Questions
- Am I Eligible for Benefits?
- What is the Health Insurance Coverage?
- Does the County Offer Life Insurance?
- Do I Pay For Long Term Disability Insurance?
- When Am I Fully Vested in the Pension Plan?
- Can I Join the Deferred Compensation Program?
To be eligible for benefits, an employee must be customarily scheduled to work 25 hours or more per week and at least 1,250 hours per calendar year. All benefits are explained to new employees during orientation which is generally conducted by the Benefits Administrators during the first week of employment with the County. At that time, new employees are provided with the information necessary to make a decision regarding their benefits with Charles County.
All benefits will be in effect on the first day of the month following the date of employment and will end on the last day of the month unless otherwise specified. To obtain a copy of detailed information pertaining to a particular benefit or if you have any questions relating to employee benefits, please contact the Department of Human Resources.
What is the Health Insurance Coverage?
An eligible employee may choose to enroll in the health insurance program during the first 30 days of employment with the County. The insurance plans are packaged as follows:
- Medical & prescription; and
- Dental & Vision
An employee may select one, both or none of the packages offered, depending on the type of insurance needed. The employee portion of the premium costs, which vary according to the insurance type and coverage level selected, is paid through a pretax, semimonthly payroll deduction.
Full-time employees are responsible for 30% of the cost of the premium. Employees who work on a full-time reduced hour basis will be subject to prorating of the premium.
During the plan year, no changes may be made to an employee's health coverage unless there is an acceptable, documented lifestyle change/qualifying event (e.g., marriage, divorce, birth or adoption of a child, change in spouse's employment, spouse’s open enrollment). In the event of a change, a lifestyle change form must be submitted to the Benefits Administrator within 31 days of the event. If the form is not submitted within the 31 day time frame, the change cannot be made until the next open enrollment period. The benefits will become effective on the date of the qualifying event (e.g., the date of marriage or birth date of a child). Each year, there will be an open enrollment period during which an employee may enroll in the health insurance, drop insurance coverage entirely or make changes in insurance coverage (e.g., change from an HMO to the PPN, add dental & vision).
Termination of Employment: A terminated employee's insurance will be in effect through the end of the month in which employment ceased. However, a terminated employee may elect to continue health coverage under COBRA provisions for at least 18 months. Information regarding enrollment procedures and premium costs for COBRA coverage is provided at the time of separation from service.
Does the County Offer Life Insurance?
Basic: All eligible employees are automatically provided with basic life insurance, at no charge to the employee, in the amount of one and one-half (1.5) times the employee's annual salary rounded up to the next thousand. This plan also contains provisions for accidental death or dismemberment.
In addition, there is a "Living Benefit" which allows an employee who is terminally ill to withdraw up to 50% of the life insurance amount while still alive. Please refer to the life insurance benefit guide for specific details on qualifying for this benefit.
Dependent: An eligible employee may elect within the first 30 days of employment to purchase insurance for a spouse ($10,000 coverage) and/or dependent child(ren) ($5,000 coverage). A dependent child is eligible for coverage through age 19 or until age 23 if a full time college student. The cost for this insurance is a flat rate per month and is paid by the employee through a semimonthly payroll deduction. An employee may only elect this benefit within 30 days of employment, during open enrollment or within 31 days of marriage.
Supplemental: Additional life insurance may be purchased by an eligible employee in the amount of one, two or three times the employee's annual salary. The rate for this supplemental life insurance is based on an individual's age and annual salary and is adjusted as an employee's age and salary changes. An employee may apply for supplemental life at any time by completing an Evidence of Insurability form which is forwarded to the carrier for review. However, the amount of additional life insurance may only be increased (e.g., going from one times salary to three times salary) during open enrollment. Evidence of Insurability forms may be obtained in the Department of Human Resources.
The basic and supplemental life insurance benefit amounts as stated above will reduce by 35% at age 65 and will further reduce by 50% at age 70.
Termination of Employment: A terminated or retired employee may convert the life insurance to an individual policy provided the carrier is notified within 30 days after the date of termination. Information regarding the conversion process and premium cost is provided at the time of separation from service.
Do I Pay For Long Term Disability Insurance?
All eligible employees are automatically covered by the County's long-term disability insurance plan at no cost to the employee. To qualify for this benefit, an employee must be unable to perform the essential functions of their position for a period of 180 days following the date of injury or illness or until all accrued sick leave is taken, whichever is greater. The plan provides income in the amount of 60% of the employee's base monthly salary up until age 65, if at the time of disability, the employee is age 60 or under. For anyone age 61 or older at the time of disability, the plan does not cover a disability which begins in the first 12 months after the effective date of coverage which is caused by, results from or is contributed to by a preexisting condition. A preexisting condition is defined as one for which an employee sought or received medical treatment in the three months prior to the effective date of the insurance. Please refer to the AIG Long-term Disability benefit plan guide for further information and details on this insurance.
An employee who suffers an injury or illness which has a foreseeable long-term duration should contact the Benefits Administrator in the Department of Human Resources as soon as possible to begin the application process for long-term disability coverage.
When Am I Fully Vested in the Pension Plan?
Participation in the Charles County defined benefit pension plan is voluntary for an employee who was hired prior to July 1, 1991 and mandatory for an employee hired on or after July 1, 1991. An open enrollment period is held in November of each year to allow for an employee currently not enrolled in the plan to participate as of January 1 of the next year.
An employee's contribution to the plan is made through a pretax payroll deduction and equals 4% of base salary as of July 1st of each year. The County also makes a contribution into the plan for each employee.
A participating employee is eligible to retire and begin collecting an annuity at age 62 with at least five (5) years of service or age 60 with at least 20 years of service. An employee may request early retirement from the pension plan anytime after attaining age 52. Upon reaching the decision to retire, an employee should notify their supervisor in writing as soon as possible and the request should then be forwarded immediately to the Department of Human Resources. To allow ample time for processing the necessary retirement paperwork, an employee should, whenever possible, notify the Department of Human Resources at least two months in advance of the last day of work.
For purposes of calculating the retirement benefit:
Final Average Earnings (FAE) = average of July 1 salary for the highest three consecutive years during the 10 years prior to retirement.
Credited Years of Service = years of participation in the retirement plan.
Vesting Schedule (hired prior to July 1, 1997) = 100% vested after five years of service, 75% vested after four years, 50% vested after three years.
Vesting Schedule (hired on or after July 1, 1997) = 100% vested after five years of service.
An employee's retirement benefit would be calculated as follows:
FAE x 1.5% x credited years of service 1-5, plus
FAE x 1.75% x credited years of service 5-10, plus
FAE x 2% x credited years of service 10-15, plus
FAE x 2.25% x credited years of service 15-20, plus
FAE x 2.5% x credited years of service 20+
For an employee who was hired prior to July 1, 1997 and who retires with less than five (5) years of service, the retirement benefit as calculated above would be multiplied by the appropriate vesting percentage to determine the reduced retirement benefit amount. For an employee who retires early, the retirement benefit as calculated above would be actuarially reduced based on the number of years and/or months remaining before the employee would reach normal retirement age.
Termination of Employment: Upon termination of employment with the County for any reason other than retirement, a participant in the pension plan will be entitled to a refund of the employee's contributions to the pension plan plus any accrued interest. If, at the time of termination, a participant is vested in the retirement plan, they may elect to leave the monies in the plan until attainment of normal retirement age at which time the employee could begin collecting a retirement annuity from the pension plan. Information regarding disbursement of funds from the pension is provided at the time of separation from service.
Please refer to the Summary Plan Description (SPD) for more specific details and information regarding the pension plan. To obtain a copy of the SPD, please contact the Department of Human Resources.
Can I Join the Deferred Compensation Program?
The County has established a deferred compensation program with several companies to allow an eligible employee to further plan for their retirement. Participation in the plan is voluntary and the employee determines the amount of money to contribute each payday (minimum deferral - $10 per payday) and where the money is invested. Contributions are made through a pretax payroll deduction with income tax on the contributions being deferred until the year in which the funds are disbursed. The maximum amount an individual may defer is updated annually by IRS regulations. An employee may change their contribution at any time during the year.
Anyone interested in participating in the deferred compensation program should contact the vendors directly to make arrangements to enroll in the plan. Brochures on the three deferred compensation vendors may be obtained in the Department of Human Resources.
Termination of Employment: An employee must contact the deferred compensation vendor within 60 days after termination of employment. Information regarding disposition of deferred compensation funds is provided at the time of separation from service.
