Retiree Medical Savings Plan (RMSP)

The Retiree Medical Savings Plan (RMSP) was created by the Trustees of the Midwest Operating Engineers Welfare Fund and is designed to make retiree’s health care spending more manageable and flexible. The funds accumulated under this program can be utilized in a variety of ways to cover your healthcare expenses after retirement.

The RMSP program started June 1, 2007 for Plan A members in Districts 1,2,3,4,5 and 8 with the ratification of the Building and Heavy Highway contracts. This benefit will be a standard part of all contracts moving forward. The Fund Office will maintain RMSP balances for each member. These balances are funded by pre-tax hourly contributions made by your employer at the hourly rate included in the collective bargaining agreement. You cannot make self payments into RMSP.

Annually, the Fund Office will add your share of the RMSP investment earnings to your balance after deducting a small administrative charge. Each quarter, the Fund Office will show the amount of your RMSP balance on your quarterly statement so that you can keep track of it. Your RMSP balance will continue to grow over the years, even if you leave the Fund.

When you retire, if you are eligible for the Midwest Operating Engineers Retiree Welfare Plan coverage, you may use the funds in your RSMP to cover your retiree self-payment premiums. In addition, your RMSP balance can be used to pay for tax-qualified long term care insurance premiums or tax-qualified nursing care expenses. If you are not eligible for Midwest Operating Engineers Retiree Welfare Plan coverage, or do not elect that coverage, you can use your RMSP funds to pay for: premiums for another group healthcare plan, your deductibles and co-pays under another group healthcare plan, Medicare Part B premiums, a Medicare Advantage Plan, a Medicare Part D (prescription drug) plan premium, or premiums for a Medicare supplement (“Medigap”), premiums for a tax-qualified long-term care insurance policy, or for qualified nursing home expenses, qualified home health care and hospice care expenses.

Your RMSP balance may not be used to pay for life insurance policies, loss-of-earnings policies, accidental death and loss of limb, sight, etc. policies, daily indemnity policies that pay you a specified amount while your are hospitalized, med pay coverage under your vehicle insurance, or any taxes imposed by any governmental body.

In the event of your death, your RMSP balance may be used to pay premiums for continued MOE healthcare coverage for your eligible dependents. Any such coverage will be provided in accordance with the MOE Health & Welfare Plan’s surviving dependent or COBRA self-payment rules and coverage provisions. In summary, the following illustrates how, in general terms, the RMSP works and the benefits it provides:


The Retiree Medical Savings Plan is just another example of how your Trustees continue to find ways to improve your benefits.  If you have any questions regarding the RMSP please call the Fund Office at 800-323-3060.