Certain State of Indiana employees hired and beginning employment before March 14, 2026, qualify for Retirement Medical Benefits Account (RMBA). They include:

• Employees of executive, legislative, or judicial branch of the State government;

• State elected or appointed officers;

• Members of the General Assembly;

• An elected officer paid by the State;

• An officer paid by the State under IC 33-23-5-10, IC 33-38-5-7, or IC 33-39-6-2.

What is RMBA?

Think of it like a health reimbursement arrangement established to cover the cost of certain health insurance premiums.

Its purpose is to fund, on a pre-tax basis, the insurance premiums associated with benefits for sickness, accident, hospitalization and medical expenses for certain retired employees.

Once you retire, it can be used to pay for health insurance premiums for you & your covered dependent(s).

Contributions

The employer allocates contributions annually to an eligible employee's reimbursement account on your behalf. The amount of the contribution each plan year is based on your age on the last day of the calendar year falling within the RMBA plan year for which the contribution is made. The amounts are:

RMBA is changing

On July 1, 2026, Public Law 104 took effect. It states that the current RMBA plan will terminate as of December 31, 2026. Active employees hired prior to March 14, 2026 will make a one-time irrevocable election during the State's Open Enrollment period in the fall of 2026. They can elect to either:

• Transfer their current RMBA balance to the new 2027 Retiree Health Benefit Trust Fund (“2027 RMBA”); or

• Receive a one-time, non-matching employer contribution to their Hoosier START 401(a). Balances will vary based on age and years of participation in RMBA.

Disclosure: The election referred to throughout this page is the eligible employee's decision to waive any and all rights to their RMBA account. If they elect to waive their participation in, and any rights to receive benefits under, the RMBA account, they will become eligible for a one-time, non-matching employer contribution to the Hoosier START 401(a) plan, as described below. The one-time, non-matching employer contribution referred throughout may be reduced to comply with requirements imposed by the Tax Code.

How does Public Law 104 impact you?

Note: Active employees hired before Mar. 14, 2026, who are eligible for the RMBA, who are not eligible for additional contributions, that take the default option and are on long-term disability at the time of the one-time credit to the members’ Hoosier START account (in early 2027) may be impacted differently. Please contact your HR Director during Open Enrollment for assistance if you believe that this situation may be relevant to you.