The City of Rocky Mount participates in the Local Government Employees’ Retirement System (LGERS), a defined benefit plan, administered by the North Carolina Department of State Treasurer (DST). Eligible employees contribute 6% of their salary and are fully vested after completing a minimum of five (5) years of creditable service. Other features of LGERS are the ability for reciprocity between systems, transfer of service credit, add to your creditable service, disability retirement, and death benefits for active employees and retirees.

Employers with health plans are required to communicate certain Notices to employees and retirees.

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) added a new prescription drug program to Medicare, referred to as “Part D”. Prescription drug coverage under Medicare became available January 1, 2006.

This Act requires the City to annually notify all Medicare eligible beneficiaries about this new Part D availability. A Medicare eligible beneficiary includes:

1. Anyone who is entitled to Medicare Part A and/or enrolled in Part B (people age 65 or older),
2. People under age 65 if they receive at least 24 months of social security or railroad retirement benefits based on disability and are entitled to Medicare Part A benefits, and;
3. People of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).

Since we may be unable to identify someone in your family who may qualify for Medicare Part D coverage, we are providing this notice to all covered employees and retirees so that you can review this information to determine if it applies to you or any of your covered family members

Our prescription drug program is considered Creditable coverage; therefore, you will not be subject to the Medicare late entrant premium penalty if you do not enroll in Part D at this time. However, you may want to review the Medicare Part D benefits to consider your options. If you have questions about the new Part D coverage, the attached notice contains information on the resources available.