City of Portland. Retirement Basics. Debi Danielson Benefits and Wellness Office Portland Building, 4th Floor (503) /12/15

Transcription

1 City of Portland Retirement Basics Debi Danielson Benefits and Wellness Office Portland Building, 4th Floor (503) /12/15

2 Top 10 retirement decisions 1. When to retire 2. When to claim Social Security 3. Health Coverage 4. How much you can safely spend each year 5. How much investment risk 6. When to pay taxes on investments 7. Where to live 8. Whether your home should help finance retirement 9. Whether to keep working 10.What you will do US News and world report, Oct 2011

3 Health insurance in retirement City of Portland Health insurance in Retirement - Eligibility - Enrollment Process - Cost and Payment Options PERS health insurance Exchange Plans Medicare Social Security Life Insurance Deferred Compensation/457 plan

4 When does City paid benefits coverage end? In General, City paid benefits will end on the last day of the month in which an employee terminates employment. 1. You notify your Bureau that you are retiring 2. An enrollment packet is sent to your home 3. You elect coverage (or not based on your situation)

5 COBRA vs. Retiree coverage COBRA vs. Retiree insurance Both offer continuation of the plan you are currently on COBRA (Federal requirement to offer continuation) ends after 18 months 2% admin fee is charged Retiree (State requirement to offer continuation, ORS ) available until Medicare eligibility When you retire you pay 100% of the premium. When you elect COBRA you pay 102% of the premium.

6 City of Portland Retiree self pay health insurance eligibility Eligible to receive retirement income from PERS (you don t have to be actually receiving the PERS monthly pension) Tier 1 Unreduced benefit at age 58 (or 30 years) Or reduced benefit at age Tier 2 Unreduced benefit age 60 (or 30 years) Or reduced benefit at age OPSRP Unreduced benefit age 65 (58 with 30 years) Or reduced benefit at age if *vested *You are vested in the OPSRP Pension Program on the earliest date in which you complete at least 600 hours of service in each of five calendar years (the years do not have to be consecutive).

7 PERS Public Employees Retirement System PERS Annual Statements mailed to your home each year in the Spring Online Member Service (OMS) Generate and save a benefit estimate, View employment history, current account balance, Salary details and service credit Group Counseling Sessions: If you are unable to attend the PERS education sessions offered at the City of Portland, look at the schedule at PERS online. Some with financial planning advisors from VALIC Retiring within 90 days? Meet individually with a PERS counselor. Schedule a Retirement Application Assistance Session if you have already attended the One year until retirement education session. IAP Disbursement Forecaster This tool is intended to assist you in determining the disbursement options that would be available when you retire your IAP account based on the data that you input. Disbursement options are monthly, quarterly or annually payments over a 5, 10, 15 or 20 year period as well as a one-time total lump sum disbursement. This tool does not calculate the Anticipated Life Span Option.

8 PERS Health Insurance Program (PHIP) Benefits package for Oregon public employees drawing a PERS pension/or eligible to draw -Started in the 1950 s Offers Medicare and non-medicare health coverage, dental insurance, and long term care insurance Offers a Medicare subsidy for qualified retirees (RHIA) Retiree health insurance account. $60 a month towards health premium

9 PHIP Rates non-medicare Plan year 1/1/15-12/31/15 PERS Core Value Moda Health $500 deductible PERS Select Value Moda Health $1,000 deductible PERS Kaiser Permanente $0.00 deductible PERS Kaiser Permanente $1,000 deductible 1 Party Family Dental $ $1, $63.38/$ $ $1, $63.38/$ $ $1, $58.26/$ $ $1, $58.26/$116.40

10 City of Portland insurance Total monthly premium cost for medical/vision and dental Plan year 7/1/14-6/30/15 CityCore Medical, VSP Vision Kaiser NW Medical and Vision 1 Party 2 Party Family $ $1, $1, $ $1, $1, ODS Dental $57.97 $ $ Kaiser Dental $66.61 $ $199.83

11 Eligibility To be covered as a retiree, you must have been covered under the active employee health plans on a City-paid basis in the month prior to your retirement (or disability if considered disabled by PERS). If you currently opt-out of healthcare coverage, you will not be eligible for retiree coverage, as there are no plans for you to continue. If you know you want to opt in for retiree coverage, elect coverage the year you are planning to leave. As a retiree, if you elect medical and opt out of dental, you are not allowed to elect dental at a later date.

12 How do I enroll in the City s retiree health insurance plan? You will receive an enrollment packet via regular mail. Packets are sent out once we receive information from your Bureau that you are retiring. The packet contains both COBRA and Retiree information. You must complete and return the retiree or COBRA election form within 60 days. Once we receive your enrollment form and payment we will notify the insurance company that you are covered. As a retiree you do not have access to the online system that active employees use.

13 enrolling continued Annual Enrollment each June, retirees can change plans just like active employees. Retirees will receive a packet. If there are no changes, the default will be a roll over of existing elections and dependents. Please keep the Benefits Office updated with your current address, phone number, and address You may only continue the plans you were enrolled in when you retired unless you move out of the service area and/or network and change plans.

14 Moving out of area? If you move outside the Kaiser service area, you are no longer eligible to continue Kaiser coverage. See the SPD or Summary Plan Description for more information. Enrollment in CityCore would be your only option with the City. We do have a national network called PHCS, through ODS, if you reside outside the local area. PPO network. If, as an active employee, you have a covered dependent living out of area, (child in school) they can use the PHCS Healthy Directions network.

15 Re-Enrollment Option You may re-enroll if you have remained covered under another employers group sponsored health plan. You will be required to provide proof of continued coverage from the point your coverage with the City terminated. If you go to an individual plan such as LifeWise or an individual Kaiser plan you cannot re-enroll at a later date. (Federal Exchange health plans are individual plans.) *Should this provision change in the future, it will change prospectively and participants will be provided notice.

16 Making monthly payments Auto Pay (monthly electronic withdrawal for savings/checking account) This option requires that you complete and return a form authorizing us to automatically deduct your premium each month out of a checking or savings account. OR Pay by coupon Payment coupons are sent to you by the Benefits Office and are to be included with your monthly check payable to the City of Portland

17 Premium payments Initial payment is due 45 days from date of election. No claims are processed until premium is paid in full. Payments are due 1 st of each month Grace period of 30 days If you pay after the 15 th of the month, you may have a delay in claims payment Premiums are subject to change during annual enrollment (July 1) of each year

18 Strategies to pay for coverage 1. Deferred Compensation Account 2. Personal Savings/IRA 3. IAP Account through PERS

19 City of Portland Health Insurance Annual Cost Scenarios *Estimates are for planning and should be used as a guide. Actual costs will be determined on an annual basis. CityCore and Kaiser cost based on 6% increase per year. CityCore 1 party 2 party Age 58 in 2015 $7,591 $14,827 Age 59 in 2016 $8,122 $15,865 Age 60 in 2017 $8,691 $16,975 Age 61 in 2018 $9,299 $18,163 Age 62 in 2019 $9,950 $19,435 Age 63 in 2020 $10,647 $20,795 Age 64 in 2021 $11,392 $22,251 $65,693 $127,312 Kaiser 1 Party 2 Party Age 58 in 2015 $7,334 $14,268 Age 59 in 2016 $7,921 $15,409 Age 60 in 2017 $8,555 $16,642 Age 61 in 2018 $9,239 $17,973 Age 62 in 2019 $9,978 $19,411 Age 63 in 2020 $10,776 $20,964 Age 64 in 2021 $11,639 $22,641 $65,442 $127,309

20 Exchange Plans Health Insurance Marketplace An option for medical coverage is through the Health Insurance Marketplace, or exchange. The exchange allows people without medical insurance to shop for and purchase health insurance coverage for themselves and their dependents. Using the website, you can compare all of your options and costs side by side and see if you qualify for financial help. All of the plans offered through the exchange must meet certain rules relating to affordability, required minimum benefits and market standards. Through the exchange: You can choose from four plan levels: Bronze, Silver, Gold and Platinum. They provide different levels of coverage to fit different needs. You can choose from a variety of insurance companies. Shopping through the exchange allows you to see several options and associated costs at one time. You can fill out an application for financial help. Information on the health care marketplace offered by the federal government can be found at or call

21 How to pick a health plan Consumer Reports Article, September 2014 The three most important questions you need to ask 1. What does the plan cover? - Read the summary of benefits and coverage 2. How much does the plan cost? - Monthly premium and out of pocket expenses (deductibles, coinsurance, copays) - In general if you pay a higher premium upfront, the less you pay when you receive medical care Bronze cover 60 %, low monthly premium, higher out of pocket average deductible $5,081 Silver cover 70%, higher premium, lower out of pocket average deductible $2,907 Gold cover 80%, higher premium, lower out of pocket, average deductible of $1,277 Platinum cover 90% and have the highest premium, and lowest out of pocket, deductible,$347 - There are also catastrophic plans available, premium tax credits may be available on all but this plan 3. Which doctors and hospitals are in it? - Make sure you check and double check that the with the health plan and your doctor s billing office to make sure your providers are in the provider network you are considering

22 Age 58 Bronze plan, 1 party

23 Age 58, Gold plan, 1 party

24 Who can get Medicare? 65 & older -or- 24 months after entitlement to Social Security disability benefits -or- Amyotrophic Lateral Sclerosis -or- Permanent kidney failure and receive maintenance dialysis or a kidney transplant -or- Exposure to Environmental Health Hazards

25 Medicare, enroll online

26 ABC s -and D -of Medicare Medicare is health insurance for people age 65 or older, under 65 with certain disabilities, or any age with permanent kidney failure Part A Hospital coverage Part B Medical coverage These are Original Medicare coverage. Both of these plans pay 80%. Most people want something to the fill 20% gap. Contact Mount Hood Community College at or at community education To sign up for a Welcome to Medicare class Put on by a local SHIBA representative, 2.5 hour evening class 7pm Bob Earnest

27 Medicare Part B,C & D Medicare Part A (Hospital Insurance) Typically no monthly premium Medicare Part B (Medical Insurance) Standard Part B premium in 2015 is $ Medicare Part C (Medicare Advantage plan/supplement plan) You need to elect parts A & B to elect part C Medicare Part D (Prescription Drug Coverage) Go to for more info

28 PERS Medicare rates Monthly Insurance premium Jan 1, Dec 21, 2015 Dental is also available through PERS if you elect initially Medicare Plans *with RHIA 1 Party Family Subsidy, see PERS handbook for more info Moda Supplement Plan $ $ Kaiser Advantage Plan $ $ Providence Medicare Align Group PacificSource Medicare essentials $ $ $ $412.60

29 Part D PERS Medicare Plans do not have a coverage gap! Members pay 40% of discounted charge, up to $150 for 31-day supply

30 Oregon Medicare Advantage Plans (non PERS plans) Monthly premium Jan 1, 2015-Dec 31, 2015 Medicare Advantage Plans 1 party Moda Health Plan $55 Kaiser Sr Advantage Basic Plan Kaiser Senior Advantage Plan $41 $112 Humana Gold Plus $0 Providence Medicare Extra $116 Regence MedAdvantage $188

31 Monthly insurance cost in Retirement at Medicare Part A $0 Part B $ Part C $ Total $260.08

32 Age 65 (or under) Medicare eligibility If you are on the retiree health insurance plan and turn age 65 You are not able to continue on the same plan; When you become Medicare eligible you may transition to a Supplement/gap or Advantage plan. If you have a spouse/domestic partner under 65, the spouse/domestic partner may continue on the under 65 plan, even if you leave our plan for other coverage. The retiree could elect the Kaiser Senior Advantage plan through the City or can seek coverage outside of the City with a Medicare supplement or Advantage plan. As a PERS retiree you may be able to purchase a Medicare plan through PERS or an individual plan through another carrier Contact SHIBA (Senior Health Insurance Benefits Assistance) for more information at (800) in Oregon or (800) in WA

33 More on Medicare You enroll in Medicare through Social Security Administration If you are receiving a monthly benefit from Social Security when you reach age 65 you are automatically enrolled into Parts A and B of Medicare (and Social Security deducts the premium from your SSA monthly benefit) If you are not receiving a monthly benefit from Social Security and you want to elect A and B, you must go to the Social Security Office to enroll. (Or Enroll Online!) If you are working past age 65 and have healthcare coverage under an employer sponsored group plan you will need to decide whether you want to enroll in Medicare Part B or not. You would likely want to elect Part A three months prior to turning age 65, even if you plan to defer Part B. SHIBA may be helpful as you make your decision. You are not penalized for late enrollment if the reason for late enrollment is because you were enrolled in an employer sponsored group health plan. If you have delayed Part B enrollment, the Social Security Administration will require you bring an employer verification form to our office and the Benefit Office will complete the form verifying your dates of coverage.

34 The Social Security Statement - online!

35 Use the retirement estimator

36 Apply online for retirement benefits

37 457 Deferred Compensation Plan Basics: Voluntary Plan, Save money on a pre and post tax basis Minimum: $10 or 1% per pay period, max $18,000 annually Investment providers ING or Advantis Catch up provision, two types, age 50 and over, or 3 years prior to Normal retirement age Contact Information VOYA (503) Advantis (503) or visit any branch office City Deferred Comp, Jeanine Keller (503)

38 Deferred Compensation Here are some items to think about as you make your retirement announcement to your Bureau: You can make a one-time election of eligible payouts from your final paycheck to deferred compensation. You need to make this election by the 15th of the month before the month in which you are retiring. Complete a Final Paycheck Participation Agreement Form. 90 days prior to retirement, if you are a Tier One or Tier Two employee within the PERS system, you can elect to make a Purchase of Service Credit and buy-back your 6-month waiting period with PERS as well as any other eligible purchase of service credit. Contact your Deferred Comp Service Provider for additional information. If you retire and then return as a working retiree the next business day, you will not be eligible for a distribution of your deferred compensation funds until you have a separation of employment as a working retiree.

39 Deferred Compensation You have initial access to your funds the day after you separate employment. Options for distribution: You can leave your funds in the City s Plan You can take a lump sum distribution You can roll your funds over to another qualified retirement plan You can begin periodic payments to yourself and make changes to this election along the way You can take a partial lump sum distribution as often as you like You can continue to review your fund allocation and make changes as often as you like See FAQ online for additional information.

40 Long Term Care Insurance PERS Long Term Care Insurance Long term care is the type of care received either at home or in a facility when someone needs assistance with activities of daily living. Health insurance does not pay for the cost of long term care. The PERS long term care insurance carrier is UNUM Life Insurance Company of America. All eligible PERS retirees, spouses and dependents may apply for long term care insurance. Contact UNUM for enrollment and eligibility information. UNUM Life Insurance Company of America Long-term Insurance Information Meeting Schedule Check the PERS website for more info

41 Life Insurance Supplemental Life All active employees can view rates and request changes to supplemental life insurance at any time during the year. All active employees can manage beneficiary information online If you have effective coverage (approved and paying the premium) you will have the opportunity to port your coverage and take it with you when you terminate employment with the City. This is term life insurance and ends at age 75 (provided you have continued to pay the premium to Standard Insurance). If you are eligible for portability, you will receive an enrollment form in your retirement/cobra packet. You have 30 days to elect portability once your coverage ends. Basic Life Group life insurance is convertible. It can be changed to an individual rate/policy. You will receive a form in your packet

42 Questions?