Returning to Work after Termination / Retirement

It is important that you understand how re-employment affects your ability to access your HCSP account. If you return to work after termination or retirement you may have limited or no access to your HCSP  funds.


If I return to work and employer is:                                                              
Can I request HCSP reimbursements?

Not a Minnesota public employer

(example: Target Corp or State of Wisconsin)

Yes

A Minnesota public employer but you have not previously worked for this employer

(example: changing from county employment to city employment)

You can request reimbursements of the HCSP account balance that resulted from previous employment.

Contributions to the HCSP that result from new employment are not eligible for reimbursement until you end the new employer.

A Minnesota public employer and you previously worked for this employer

Note: There must be a termination date and break in service.

You have limited or no access to your HCSP assets.   

  • See Rehired Employee to learn more. 

  • Contact MSRS and/or your employer to discuss your eligibility to request reimbursements.

 

Examples of a "previous"  Minnesota public employer:

  • Employee who returns to work under a State of Minnesota PRO Agreement or PERA's Phased Retirement Option and break in service is less then 13 weeks.

  • Retired teacher who returns to work with his/her district as a substitute teacher.

  • State of Minnesota employee who transfers from one state agency to another state agency.

  • MNSCU employee who transfers from one campus/location to another campus/location.

  • Employee who accepts a different job with same employer that results in a change in bargaining unit affiliation or retirement plan coverage (for example, change from TRA to PERA).

 

Rehired vs New Employee

Employees who return to work are classified as "rehired" or "new" for the purpose of accessing their HCSP account. It is important that you understand how your status impacts your ability to request reimbursements.


Rehired Employee 
Generally, a rehired employee is not eligible to request reimbursement of medical expenses incurred after they return to work. Exception: If rehired in a position not eligible for employer-sponsored health insurance coverage, may be reimbursed with funds credited to the HCSP account prior to January 1, 2014.

Definition of rehired employee
An HCSP participant re-employed by a previous public employer that sponsored their HCSP and whose status as a terminated employee of the sponsoring employer lasted less than 13 consecutive weeks, or less than 26 consecutive weeks, if employer is an educational organization.

A rehired employee can be a:

  • full-time, part-time, or seasonal employees (regardless of the number of hours works)

  • substitute teacher who returns to work with their former district (regardless of the number of days or hours worked)

  • retiree who returns to work under the State of Minnesota post-retirement option (PRO) or PERA’s phased retirement option


New  Employee
A new employee may request reimbursement of eligible medical expenses from the HCSP account balance attributed to any previous Minnesota public employment. Any HCSP account balance attributed to the new employer/employment cannot be accessed until the participant ends that employment.

Definition of new employee
An HCSP participant who returns to work with:

  • a different employer (public or private);
    or

  • their previous employer who sponsored their HCSP and the period of absence with no earnings from that employer was at least 13 consecutive weeks, or at least 26 consecutive weeks, if employer is an educational organization.