Retiree Premium Offset Account (RPOA) for RMEC Retirees
The Retiree Premium Offset Account (RPOA) is a benefit that was created in 2004 to help retirees reduce the amount they pay for PG&E-sponsored medical plan premiums. The RPOA benefit is not a medical plan nor does the account have any cash value. Rather, it's a bookkeeping account containing credits that can be used to help eligible retirees offset, or reduce, their monthly PG&E-sponsored medical plan premium contributions. The RPOA is fully funded by PG&E so it costs you nothing. There are two RPOAs as explained below: the RPOA50 and the RPOA25. Not all retirees who qualify for the RPOA50 qualify for the RPOA25.
RPOA50
All retirees eligible for retiree medical and who had at least 10 years of credited service are eligible for the RPOA50. The RPOA50 is a one-time allotment of $500 for each year of credited service beyond your first 10 years of credited service, up to a maximum of $7,500. If you were eligible and retired before 2004, you received your RPOA50 allotment in January 2004. If you retired after 2003, you received your RPOA50 at the time of retirement. You can use the RPOA50 to offset 50 percent of your monthly premium contribution, as long as you have a balance in your RPOA50 allotment.
RPOA25
In 2007, PG&E created a second RPOA benefit. If you retired on or before January 1, 2007, with 10 or more years of credited service, you may have received this additional RPOA allotment called the RPOA25. After you have depleted your initial RPOA50 allotment, you can use the RPOA25 to offset 25 percent of your PG&E-sponsored medical plan premiums. You cannot use your RPOA25 until your original RPOA50 has been depleted. If you are using the RPOA50 and you exhaust that balance, usage of your RPOA25 will automatically begin the month following the month in which your RPOA50 is exhausted.
Using Your RPOA
Each year during Open Enrollment, if you have a positive RPOA balance, you can elect to start, stop or continue using your RPOA to pay a portion of your medical plan premium contributions for the upcoming calendar year. (Please note that you must be enrolled in a PG&E-sponsored medical plan to take advantage of the RPOA.) Remember, you must exhaust your RPOA50 balance before using your RPOA25. Therefore, if you elect to use your RPOA benefit and you have a positive RPOA50 balance, you automatically will use the RPOA50 first. If you deplete your RPOA50 balance mid-year and you have an RPOA25 balance, you must begin using this balance the following month even if you would prefer to "save" it.
Making Changes
You may change your RPOA usage election for the upcoming year by indicating your election during the Open Enrollment process. If you don't request a change during Open Enrollment, your current RPOA usage election will remain in effect for the following year. After Open Enrollment ends, you may change your RPOA election during the year only if you have an eligible change-in-status event, as described in the Supplement to Your Enrollment Guide.
If your RPOA balance is depleted during the year, you will be responsible for paying the full amount of your medical plan premium contributions through the end of the year. You will not be allowed to switch to a less expensive medical plan during the year if your RPOA benefit is depleted.
RPOA for Surviving Dependent
Surviving Dependents of RMEC retirees pay the full cost of their medical plan premiums. However, they may "inherit" an RPOA balance if:
  • they became Surviving Dependents on or after January 1, 2004,
  • the retiree was eligible for the RPOA, and
  • the RPOA balance was not depleted.
Calculating Your Contributions
Your monthly medical plan premium contribution is the difference between the full cost of coverage for the plan in which you're enrolled and the amount the Company contributes. However, if you have an RPOA balance as described above, you may use the account to reduce your monthly premium contribution. The following examples show how your monthly contribution amount is calculated — both with and without the RPOA election.
Examples of Monthly Premium Calculations
(Retiree + Spouse – Both Over 65 and in CAP, and assumes retiree has 25 or more years of credited service.)
Example 1
 
Monthly Premium
$725.56
Company Contribution
– 210.32
Retiree Premium Contribution: (without RPOA)
515.24
RPOA50 Election (50% of premium contribution without RPOA)
– 257.62
Retiree's Monthly Premium Contribution (with RPOA)
$257.62
Example 2
 
Monthly Premium
$725.56
Company Contribution
– 210.32
Retiree Premium Contribution: (without RPOA)
515.24
RPOA25 Election (25% of premium contribution without RPOA)
– 128.81
Retiree's Monthly Premium Contribution (with RPOA)
$386.43
Example 3
 
Monthly Premium
$725.56
Company Contribution
–210.32
Retiree Premium Contribution: (without RPOA)
515.24
No RPOA Election (0% of premium contribution without RPOA)
0.00
Retiree's Monthly Premium Contribution (with RPOA)
$515.24