approaching retirement Purdue University Official Retiree Faculty or Staff members age 55 or more with at least 10 years of service AND Age plus years of service ID: 1044058
Download Presentation The PPT/PDF document "Road to Retirement A program for Purdue..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
1. Road to RetirementA program for Purdue employees approaching retirement.
2. Purdue University Official RetireeFaculty or Staff members age 55 or more with at least 10 years of service AND Age plus years of service equals or exceeds 70
3. Purdue University Retirees Association (PURA)Free MembershipMonthly luncheons with interesting speakersTrips and toursCampus and community activitiesQuarterly NewsletterVolunteer OpportunitiesSee the Retiree Brochure and the PURA website for information - www.purdue.edu/retirees
4. From Work to Retirement -or-Things I Wish I Had Thought About !Important ConsiderationsShort Range and Long Range GoalsWhere to RetireFamily ResponsibilitiesFinancial SecurityLegal SecurityPersonal Emotional Needs
5. Benefit Programs for Official RetireesComplimentary “A” parking permitFee privilegesStaff rates on tickets, recreational facilitiesNursing Center servicesFlu ShotsUniversity email address and data network remote facilities
6. Benefit Programs for Official RetireesOptional participation in University-sponsored group medical & Rx insuranceRetiree continuing a Purdue plan can continue to cover Spouse/SSDP/Dependent*Surviving Spouse/SSDP/Dependent* can continue to be covered Optional participation in Group Life Insurance plan to age 65 * Dependent eligibility rules apply
7. Plans are reviewed annuallyand are subject to changeMedical Plan Options
8. Medical Plan CoverageRetiree or Spouse/SSDP Under Age 65Continue on same plans as active faculty and staff until age 65.You pay the full cost.Can change plan during annual open enrollment.At age 65, can join a 65+ Purdue retiree group plan.
9. 2014 Monthly Medical Premiums *Retiree and/or Spouse/SSDP Under Age 65 3% discount for annual payment. Billed from Purdue Accounts Receivable.Purdue Health Plan Single coverage $587 Retiree + Sp/SSDP $1,321PHP No HSA 1 Single coverage $519 Retiree + Sp/SSDP $1,167PHP No HSA 2 Single coverage $468 Retiree + Sp/SSDP $1,052*Tobacco-User Additional Premium $500/person/year
10. Medical Plans - Retirees Over Age 65 DefinitionsMedicare Part A – Hospital (Inpatient)No monthly premium - Paid during working yearsMedicare Part B – Medical (Outpatient)Sign up at 65 or at full retirementBase Premium for 2014 is $104.90/month
11. Definitions - Continued Medicare Part C - Private InsuranceMedicare Advantage - PPO, HMO, Private Fee for ServicePay Part B monthly premium + insurance premiumMedicare Part D - Prescription Drug CoveragePay monthly premium to insurance companyParts B, C and D have a PremiumParts B & D have penalty if not joined when eligibleSpecial Enrollment Period (SEP) at retirement
12. Definitions - Continued Creditable Coverage, Medicare Parts B and DUntil retirement have coverage from employer’s medical/Rx insurance, as good or better than MedicarePart B and/or Part D penalty may apply if cannot show creditable coverage past age 65Employer will provide evidence of creditable coverage
13. Medical Plans 2014 Retirees Over Age 65PURcare – Supplement (incl. Vision) and Prescription DrugSupplement to Medicare Parts A and B through UnitedHealthcareExcellent Nationwide coverageSee any doctor or use any provider that accepts Medicare for medically necessary coverageIncludes Medicare Part D prescription drug coverageInternational coverage for illness/accidentExtra coverage above individual plans (e.g. Hospital, Skilled Nursing)
14. Medical Plans 2014 Retirees Over Age 65UnitedHealthcare Group Medicare Advantage PPOMedicare Part C private insuranceA type of Medicare Advantage Plan approved by MedicareNation-wide PPO network Out of Network - any Medicare doctor or facility that will accept payment from the plan Payment to provider is the same reimbursement as MedicareIncludes medical/hospital and Part D prescription coverage
15. Important Retirement Decision!Group Health Plan EligibilityOfficial Retiree, Qualifying Spouse/SSDPEnrolled in Medicare Part A & BAge 65 (PURcare)If you’re age 65 with Medicare and choose an individual health insurance plan, you will not be eligible to return to a Purdue retiree group plan.
16. PURcare Senior SupplementPURcare premium for 2014 is $262.94/month/personA decrease of $5.38 from the 2013 premiumVeterans with Rx coverage from VA ($181.53)$300 annual deductible (Medicare Parts A and B)Once satisfied, plan pays 100% of Medicare allowed amounts for rest of year$150 annual Vision benefit with no deductible
17. 2014 PURcare Prescription PlanPrescription drug coverageExceeds coverage required under Medicare Part D legislationOpen formulary (FDA approved, medically necessary)No gap in coverage (donut hole)No step therapyFew prior authorizations or limited quantities
18. 2014 PURcare Prescription PlanPart D prescription drug coverage – Open FormularyNo deductibleYou pay the lesser of: 50% co-insurance locally (30 or 90 day supply) 45% co-insurance by mail order (90 day supply)Or the 2014 maximum co-payTier 1 $10 /mo. retail or $20/mail orderTier 2 $45/mo. retail or $90/mail orderTier 3-4 $95/mo. retail or $180/mail orderNo cost after $4,550 out of pocket in 2014
19. PURcare Vision BenefitA vision rider of $150 per year for expenses not allowed by MedicareNo Network, use any providerNo 12 month waiting period requirementMay use for frames, lenses, second pair of glasses, refraction Not for refraction/glasses after cataract surgery
20. 2014 Group Medicare Advantage PPOUnitedHealthcare Medicare Advantage PPOPremium is $198.56 per person per month for medical/hospital and prescription drug coverageOffice co-pay of $15 for primary and $25 for specialistIn-patient hospital co-pay is $200/day$3000 Annual Maximum Out-of-Pocket for medical/hospitalPrescription co-pays do not count toward out-of-pocket max
21. 2014 Group Medicare Advantage PPOPrescription Drug CoverageDefined formulary (not all drugs covered)Drug tier determines cost - $4, $28, $58, 33%Tier 1 generic drugs are covered during the Gap – you pay only your co-pay.Step therapy, prior approval and limited quantities on some covered drugs
22. Plan ComparisonPURcareHigher monthly premium ($262.94)Lower yearly out-of-pocket costs for hosp./medical ($300)Broader Rx coverage with few restrictions and no gap in coverage100% Rx coverage during catastrophic phaseMedicare Advantage PPOLower monthly premium ($198.56)Higher yearly out-of-pocket costs for hosp./medical ($3000)More limited Rx coverage, but with coverage of Tier 1 generics in the gapMore Rx restrictions and some cost during catastrophic phase
23. Additional Benefits for Both PlansSilverSneakersNewtone, Curves, Ismail Center, Snap Fitness, YMCAComing Soon! Cordova Recreational Sports CenterOver 10,000 participating clubs nationwideNurseLineOptum Discount
24. Why a Purdue Retiree Group Plan?Purdue HR staff assigned to help youNot age rated – premiums do not increase with ageNo yearly re-enrollment for Supplement or Part D RxBetter benefits than most individual plans offerPURA Benefits Committee works on your behalf to negotiate best possible plans
25. Message from PURA Benefits Committee“PURA believes that prudent retiree health insurance decisions should be determined by value, service and dependability. Your health insurance is important to your well-being and peace of mind. Choosing an insurance plan on the basis of price alone can be risky and costly.”
26. Life Insurance
27. Life Insurance Under Age 65You are eligible to:Continue Basic Term Life (1.5x Salary) and Additional Term Life – all or part – by paying the full cost Continue all or part of coverage for dependentsPort (extend) Accidental Death & Dismemberment coverage for you and/or your dependents
28. Cost Example: Age 63Salary, $30,000Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary) = $29.70/monthCurrent Additional Coverage of $60,000 (paid by you at 2x salary) = $39.60/month
29. Life Insurance age 65 - 69You are eligible to:Convert Basic Term Life (1.5x Salary) to an individual policy with Minnesota Life by paying the full cost Cost is dependent upon age and amount of coveragePort (extend) Additional Term Life by paying the full cost Cost is dependent upon age and amount of coverage
30. Cost Example: Age 66Salary, $30,000Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary) = $236.92/monthCurrent Additional Coverage of $60,000 (paid by you at 2x salary) = $128.40/month
31. Life Insurance age 70+If you have ported (extended) your Additional Term Life coverage up to this point, or if you are retiring past age 70, you are guaranteed conversion of the Basic/Additional Term Life coverage. You can keep this coverage for life by paying the full cost. Cost is based on age and coverage amount.
32. Cost Example: Age 72Salary, $30,000Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary) = $329.93/monthCurrent Additional Coverage of $60,000 (paid by you at 2x salary) = $439.90/month
33. Retirement Should be a Reward for a Job Well Done!
34. Questions?Thank you for attending.Kate LaMarHuman Resourcesklamar@purdue.edu