Waiver of Participation (Employee Opt Out)

All employees must participate in the HCSP adopted by their employer or bargaining unit; however, an employee can opt out of the plan if he/she meets one of these conditions:

  • Eligible for TRICARE retiree benefits - Must be retired military (20 years of service), which make the employee eligible for retiree benefits now or in the future.

  • Eligible for V.A. medical benefits due to a service-connected disability - priority group 1, 2, or 3

  • Is a foreign national who plans to return to their country of origin

  • Has comprehensive health care coverage through another documented source - must be provided until death and 70% of the cost  covered by the employer. The insurance coverage must be provided by a source other than the current employer who is sponsoring the HCSP, such as a former employer or spouse's employer.

Note: Medicare DOES NOT qualify as comprehensive health coverage.

MSRS must approve all waiver requests

  • Employee should contact the MSRS Service Center to obtain a waiver form. MSRS explains to the employee the impact of waiving participation. 
  • Employee must return the completed form and supporting documentation to MSRS for review and approval. 
  • If the waiver is approved by MSRS, a confirmation letter will be sent to the employee.

Approval notice

  • For all public employers except the State of Minnesota, a copy of the employee's approval to opt out confirmation letter will be sent to you so appropriate action can be taken, if any.
  • If the employer is the State of Minnesota or remits payroll through the state payroll system, the SEMA4 payroll system will be flagged so no future contribution can be remitted.

What else you should know

  • The approved waiver only applies to future contributions. Contributions remitted prior to the waiver approval date will remain in the HCSP account to be used for post-employment reimbursement of eligible health care expenses.

  • An election to waive participation is irrevocable.The employee will not have another opportunity to participate in the HCSP, even if they are employed by another Minnesota public employer.