President's Corner


January 2021 Light at the End of the Tunnel

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Retiree Medical Savings Plan (RMSP)

The Retiree Medical Savings Plan (RMSP) was created by the Trustees of the Midwest Operating Engineers Health & Welfare Fund and is designed to make retiree’s health care spending more manageable and flexible. The funds accumulated under this program can be utilized in a variety of ways to cover your healthcare expenses after retirement.

The RMSP program started June 1, 2007 for Plan A members in Districts 1,2,3,4,5 and 8 with the ratification of the Building and Heavy Highway contracts. This benefit will be a standard part of all contracts moving forward. The Fund Office will establish individual RMSP accounts for each member. These accounts will be funded by pre-tax hourly contributions made by your employer at the hourly rate included in the collective bargaining agreement. You cannot make self payments into your RMSP account.

Annually, the Fund Office will add your share of the RMSP investment earnings to your account after deducting a small administrative charge. The amount in your account will be shown on your quarterly statement from the Fund, so you can keep track of your account balance. The value in your account will continue to grow over the years, even if you leave the Fund.

When you retire, if you are eligible for the Midwest Operating Engineers retiree healthcare coverage, you can use the funds in your RSMP account to cover your retiree self-payment premiums. In addition, your RMSP account can be used to pay for tax-qualified long term care insurance premiums or tax-qualified nursing care expenses.

If you are not eligible for Midwest Operating Engineers retiree healthcare coverage, or do not elect that coverage, you can use your RMSP funds to pay for: premiums for another group healthcare plan, your deductibles and co-pays under another group healthcare plan, Medicare Part B premiums, a Medicare Advantage Plan, a Medicare Part D (prescription drug) plan premium, or premiums for a Medicare supplement (“Medigap”), premiums for a tax-qualified long-term care insurance policy, or for qualified nursing home expenses, qualified home health care and hospice care expenses.

Your RMSP account may not be used to pay for life insurance policies, loss-of-earnings policies, accidental death and loss of limb, sight, etc. policies, daily indemnity policies that pay you a specified amount while you are hospitalized, med pay coverage under your vehicle insurance, or any taxes imposed by any governmental body.

In the event of your death, the balance in your account may be used to pay premiums for continued MOE healthcare coverage for your eligible dependents. Any such coverage will be provided in accordance with the MOE Health & Welfare Plan’s surviving dependent or COBRA self-payment rules and coverage provisions.

The Retiree Medical Savings Plan is just another example of how your Trustees continue to find ways to improve your benefits. If you have any questions regarding the RMSP please call the Fund Office at 800-323-3060.