Of Record: Retirement Benefits

OF RECORD

This announcement has been sent to faculty and staff whose employment records show that they meet the age and service requirements as of June 30, 1996, to receive University retiree benefits. If you meet the requirements stated below and have not received the notice, contact the Benefits Office at 898-7282 immediately. -- From the Human Resources Office

Special Announcement on Retiree Health Benefits for Faculty and Staff

On April 6, 1993, the University announced a modification to retiree health benefits. Effective July 1, 1996, faculty and staff eligible for retiree health benefits will be required to cost-share, in other words, to contribute toward their health insurance premiums. Copies are available from the Benefits Office of the announcement published in the April 6, 1993, Almanac.

Currently faculty and staff are eligible for retiree benefits if they are:

age 55 or older with 15 years or more of full-time service, or
age 62 or older with 10 years or more of full-time service.

Payroll records indicate that as of June 30, 1996 you meet the age and service requirements to retire before July 1, 1996. Thus, while the University reserves the right to make changes to your retiree health benefits in the future, if you retire by June 30, 1996, under the plan provisions currently in effect, the University will pay the full premiums for pre-Medicare and Medicare supplement health benefits. The University does not pay Medicare Part B premiums. You must contact the Benefits Office at 898-7282 for confirmation of eligibility.

The chart at right provides examples of the estimated cost-sharing -- the share of premiums to be paid by retirees who retire after June 30, 1996. The actual cost-sharing will be determined by:

the employee's age at retirement;
the medical plan and coverage elected (single or family); and
if applicable, the age of the covered dependent.

The cost-sharing amounts shown on the chart are based on the current (1995-1996) costs of the medical plans and the current level of University contributions. Premiums for the medical plans and University contributions will change on July 1, 1996 and each year thereafter. Also, as the April 6, 1993 Almanac states, the percentage of University contribution is adjusted down and the retiree's cost-sharing is higher for each year the employee retires before age 65, or the normal Social Security/Medicare eligibility retirement age, if later. The lower University percentage continues after this age which is currently 65.

Also, as stated in the Almanac announcement, two other changes will take effect on July 1, 1996:

the 15-year or 10-year service period must be continuous (i.e., there will be no bridging of service for the purpose of determining eligibility for life, health, and tuition retiree benefits); and
no new dependent can be covered after an employee retires.

The Benefits Office will be sponsoring Question & Answer sessions at the Faculty Club on:

: February 29 from 11:30 a.m. to 12:30 p.m.; March 4 from noon to 1 p.m.; March 5 from 1 to 2 p.m.

We urge you to attend one of these sessions and learn about your alternatives before you make a decision about retirement.

--Benefits Office

Estimated Retiree Cost-Sharing Effective July 1, 1996

(based on 1995-1996 medical costs and University contributions)

If you retire at age Your monthly premium for single medical coverage will be... Options Up To Age 65 Options At Age 65+ (Medicare Eligible)

Bl. Cross PENN Care/ Grt. Keystn. HMO-PA Bl. Cross KeyCare 65 Plan 100 Comp Plan Atl. PA 65-Spec. 65 or later NA NA NA NA NA 41.10 7.83 64 61.79 0 10.20 0 1.28 43.84 8.35 63 65.64 1.88 14.04 0 5.13 46.57 8.87 62 69.50 5.75 17.91 1.25 9.00 49.31 9.39 61 73.37 9.62 21.78 8.98 16.73 54.80 10.44 59 81.09 17.33 29.50 12.83 20.58 57.53 10.96 58 84.96 21.20 33.36 16.70 24.45 60.28 11.48 57 88.82 25.07 37.23 20.57 28.32 63.02 12.00 56 92.67 28.92 41.08 24.42 32.17 65.75 12.53 55 96.54 32.79 44.95 28.29 36.04 68.50 13.05

If you retire at age Your monthly premium for family medical coverage will be... Options Up To Age 65 Options At Age 65+ (Medicare Eligible) Bl. Cross PENN Care/ Grt. Keystn. HMO-PA Bl. Cross KeyCare 65 Plan 100 Comp Plan Atl. 65-Spec. 65 or later NA NA NA NA NA 82.20 15.66 64 164.48 4.15 54.15 0 11.48 87.68 16.70 63 178.10 13.77 63.77 3.02 21.10 93.15 17.74 62 187.75 23.42 73.42 12.67 30.75 98.63 18.79 61 197.41 33.08 83.08 22.33 40.41 104.12 19.83 60 207.06 42.73 92.73 31.98 50.06 109.60 20.88 59 216.68 52.35 102.35 41.60 59.68 115.07 21.92 58 226.34 62.01 112.01 51.26 69.34 120.56 22.96 57 235.99 71.66 121.66 60.91 78.99 126.04 24.01 56 245.61 81.28 131.28 70.53 88.61 131.51 25.05 55 255.26 90.93 140.93 80.18 98.26 137.00 26.10

Almanac

February 27, 1996
Volume 42 Number 22

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