Learn more about Renewals and Withdrawals from Municipal Health Insurance with the GIC

Timeframe for renewing and withdrawing from the GIC and the procedures.

Revised on 7/27/2017

Renewal

After entering the GIC, a municipal employer (city, town, or district administration) has the option to renew for no less than two years after the term of the initial agreement ends.  Please send a new PEC Section 19 Agreement (if you joined under Section 19) or a confirmation of renewal (if you joined under Section 23) outlining the terms of your renewal (two or more years) to the attention of the GIC’s Executive Director.  Please send by December 1 preceding your July 1 renewal date.

When a Municipal Employer can withdraw from the GIC

A Municipal Employer may withdraw from the GIC after an initial three year term or after the renewal term (a minimum of 2 yr interval as stated in the agreement to join the GIC) from the date on which it transferred subscribers to the GIC.  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, 2013 may withdraw effective July 1, 2016.

How Municipal Employer would withdraw from the GIC

A Municipal Employer (city, town, or district administration) must notify the GIC of its decision to withdraw by December 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. Send a signed letter on municipal letterhead from the appropriate public authority of a political subdivision as defined in 32B, §2 - ''Appropriate public authority'', as to a county, except Worcester county, the county commissioners; as to a city, the mayor; as to a town, the selectmen; as to a district, the governing board of the district and for the purposes of this chapter if a collective bargaining agreement is in place, as to a commonwealth charter school as defined by section 89 of chapter 71, the board of trustees; and as to an education collaborative, as defined by section 4E of chapter 40, the board of directors,send to the GIC’s Executive Director's attention.

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