New Information for Faculty
Can you tell me more about the American Recovery and Reinvestment Act of 2009?
The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily reduces the COBRA monthly premium for individuals who are involuntarily terminated between September 1, 2008 and December 31, 2009. These individuals will pay only 35% of the COBRA premiums under their plans for a maximum of up to 9 months. For example, an eligible employee whose COBRA effective date is September 1, 2009 will pay 35% of their COBRA payment until May 31, 2010. This employee will then have the option of continuing coverage at 100% of the COBRA payment until February, 2011 (the normal expiration date for this employee’s COBRA).
ARRA is a federal program. More information is available online: http://www.dol.gov/ebsa/COBRA.html.
If I am not offered an instructional appointment for Fall 2009, what are my options for continuing health coverage?
You have three options:
- You may participate in COBRA.
- COBRA information and election forms will be sent to your home address within 14 days of your separation.
- If you choose to participate in COBRA, you may be eligible for a COBRA subsidy, through the American Recovery and Reinvestment Act of 2009 (ARRA). Each case will be reviewed on an individual basis. Factors in the review include entitlement rights and contract provisions impacting ARRA. Notification of any rate reduction will be included in the COBRA packet mailed to your residence.
- If you are eligible, you may retire.
- If you are age 50 or older and have at least five years of CalPERS service credit, you are eligible to retire. If so, you must retire within 120 days of your separation date from the university to be eligible for health benefits in retirement. If you have questions relating to retirement, please contact Mary Snipes in Human Resources at mary.snipes@csun.edu or at 677-2728.
- You may elect to procure private health insurance.
If I am offered an instructional appointment for Fall 2009 with an appointment that does not qualify me for health benefits, what are my options for continuing health coverage?
You have three options:
- You may participate in COBRA.
- COBRA information and election forms will be sent to your home address within 14 days of Benefits Administration being notified of your time base change.
- If you choose to apply for COBRA, the ARRA subsidy will not apply to a reduction in time base.
- If you are eligible, you may retire.
- If you are age 50 or older and have at least five years of CalPERS service credit, you are eligible to retire. If so, you must retire within 120 days of your separation date from the university to be eligible for health benefits in retirement. If you have questions relating to retirement, please contact Mary Snipes in Human Resources at mary.snipes@csun.edu or at 677-2728.
- You may elect to procure private health insurance.