The trustees are pleased to announce that future retirees now have more choices in how and when they earn or collect an EBT retiree health benefit. Existing retirees have no change to their benefits.
The Employee Benefit Trust (EBT) is a separate and distinct trust fund established years ago to help you as an LVMPD retiree/separated employee from the Department with the reimbursement of your future health care expenses (premiums, copays, deductibles, etc.). This trust fund is currently 100% employee-funded; there is no contribution from the Department on your behalf or on behalf of the retirees.
Your EBT trustees have worked hard to take into consideration all the feedback you have given them and have worked with hired professionals to create a structure they believe to be fair and equitable.
Effective for new retirements on or after January 1, 2022, the structure will be more like what you are used to with PERS. The benefit amount you are eligible for is now tied directly to your years of commissioned service. Once you have accumulated 10 years of commissioned service with LVMPD, you will qualify for a benefit.
- The minimum of 10 years of commissioned service remains the minimum requirement for benefits. Bought time with PERS does not count toward eligibility in this Trust.
- All commissioned time must be within the LVMPD. Time outside of LVMPD does not count toward your eligibility in the Trust.
- To receive the maximum reimbursement benefit of up to $400 per month, you must have 20 years of commissioned service. Bought time with PERS does not count toward eligibility in this Trust.
- You must be eligible to receive a retirement benefit from PERS. Your decision to defer your PERS benefit doesn’t affect your eligibility for EBT benefits.
If you do not have the 20 years of commissioned service, you now can choose one of the following options:
- Receive a lesser benefit based on your years of service upon retirement.
- Elect to buy up to earn the full benefit.
If you choose not to buy up any shortfall, you may do either of the following:
- Retire and defer receiving the benefit until you reach what would have been your 20th anniversary.
- Elect to begin receiving a lesser benefit directly upon retirement.
The amount required to buy up is different depending on your choice.
A benefit calculator has been created by the actuaries employed by EBT and is now posted to the LVPPA and LVPMSA sites. You do not have to log on or be a member to access it on those sites. We are working with LVMPD to have it placed on the LVMPD Intranet as well. This calculator is a tool to estimate your benefit and/or buy-up amount and should be used to aid you in making the decisions that are right for you. Upon notice of separation/retirement, the actuary will formally complete your out-processing review and will determine the final amount earned and, if applicable, the amount owed if you choose to buy up. Buy-ups can be paid to the Trust out of your cash-out. The contribution is taken out tax-free prior to any payroll taxes being applied.
Beneficiary designations will now be determined upon out-processing. Spouses, domestic partners and children under the age of 26 are eligible beneficiaries. If you get divorced or dissolve a domestic partnership, you will not be permitted to assign another beneficiary. A beneficiary must be an eligible beneficiary to receive a benefit.