Revised on May 10, 2012

When can a Municipal Employer withdraw from the GIC?

A Municipal Employer may withdraw from the GIC at three or six year intervals from the date on which it transferred subscribers to the GIC.  (A Section 19 Agreement may be for three or six years; a Section 23 transfer is for three years.)  For Municipal Employers who joined the GIC off-cycle (that is, other than on July 1 of any year) the initial partial year does not count toward the three years.  In other words, a Municipal Employer that joined effective January 1, 2012 may withdraw effective July 1, 2015.

How does a Municipal Employer withdraw from the GIC?

A Municipal Employer (city, town, or district administration) must notify the GIC of its decision to withdraw by October 1 in order to withdraw the following July 1.  Except as otherwise indicated in a Section 19 Agreement, withdrawal revokes acceptance of Section 19.  After withdrawal, the Municipal Employer and public employee unions return to governance of  negotiations of health insurance under chapter 32B and chapter 150E.

 


This information provided by the Group Insurance Commission.