Steps Toward Retirement

Transcription

1 Benefit Options and Actions to be taken by Retirees or Faculty and Staff Nearing Retirement Review an audio/visual presentation on the University s Retiree benefits at: retirement-0 Eligibility for Official University Retiree Status The following job types of the University are eligible for retirement status from the University of Pittsburgh: Executives Full-time regular Faculty Part-time regular Faculty in the tenure stream or tenured for no less than half time Full-time regular Librarian Full-time regular Research Associate Full-time regular Staff who are not covered by a collective bargaining agreement. Union Eligible employees should check their Collective bargaining Agreement for eligibility. If you have not been in one of the job types listed above for your full career, Human Resources will review your employment history to determine eligibility. In addition to meeting the criteria above, retiree status is granted if the following eligibility criteria are met: Recognized University of Pittsburgh start date prior to July 1, 2004: Must be age 62 years or older on the last day of work. Recognized University of Pittsburgh start date on or after July 1, 2004: Must be a minimum of age 62 years on last day of work with age plus University service (associated with the recognized Pitt start date) equal or greater than 85. An eligible spouse/partner is the individual designated as such on University records at the time of retirement. Action Steps and Important Information All sections below may be applicable to the retiree. 1. Notify your Department Decide upon a termination/retirement date, which is defined as your actual last day at work. Notify your department of your retirement date. Notification period may vary by position and department. Speak with your immediate supervisor regarding specific department requirements. A longer notification period will allow for a smoother transition and timely processing of all necessary paperwork. We recommend notifying your department 3 months prior to your retirement date.

2 2. Contact Social Security Administration Three months prior to retirement (if age 65 and over) OR three months prior to turning age 65. The Social Security office can assist with collecting your Social Security benefits as well as enrollment in Medicare Part A and Part B. Telephone: (800) Web site: Medicare Part A (Coverage for Hospitalization) - Pays for inpatient hospital, skilled nursing facility, and some home health care. About 99 percent of Medicare beneficiaries do not pay a premium since they or their spouses have at least 40 quarters of Medicare covered employment. If you are already receiving Social Security benefits, locate your Medicare ID card to make certain that you were automatically enrolled If you are not receiving benefits, contact Social Security and apply for Medicare Part A about 3 months prior to your 65 th birthday Medicare Part B (Coverage for Professional Services) - Covers a portion of the cost of physicians services, outpatient hospital services, certain home health services, durable medical equipment, and other items. If you are already receiving Social Security benefits, locate your Medicare ID card to make certain that you are enrolled in Part B coverage. You do not have to sign up for Medicare Part B while you have active coverage, such as Panther Gold HMO, through the University. To avoid a penalty, you will need to enroll in Medicare Part B upon retirement if you are over the age of 65 as part of the Special Enrollment Period (SEP). Obtain a Medicare Part B application from Social Security about three months prior to retirement date (if over age 65) or three months prior to age 65. If you and/or your eligible spouse/domestic partner are over age 65 at the time of retirement, please send your completed Medicare Part B enrollment form and the Request for Employment Information form to the Benefits Department for confirmation of your active coverage. This will allow you to enroll during the Special Enrollment Period (SEP) without penalty. The Benefits Department will complete the Request for Employment Information form. If both you and your spouse/domestic partner are over 65, separate forms will be required. Forms are available from your local Social Security Office. Medicare Part B does carry a monthly premium. The premium is paid through a deduction from your Social Security check. 3. Defined Contribution Plan Participants should meet with TIAA-CREF Three to six months prior to retirement date to review your accounts and to discuss potential investment and distribution strategies. TIAA-CREF is committed to continue investment advice for both TIAA-CREF and Vanguard funds during and after employment at the University of Pittsburgh. Upon retirement from the University of Pittsburgh employees have the opportunity to continue their investment relationship with TIAA-CREF. TIAA-CREF Telephone Counseling: (800) Personal Appointments: (412) Appointment by Web site:

3 4. Defined Benefit Plan Participants must call the Pension Administration Center. Learn more about your options upon retirement. Telephone: Important documents you will receive following the processing of your retirement Retiree Benefits Enrollment Packet mailed to your home address about 30 days before your retirement date (assuming that your retirement has been processed in a timely manner by your Department) by the University s retiree benefits administrator, UPMC Benefit Management Services. Please call the University of Pittsburgh Retiree Benefits Management Services at (888) if you have any questions. Medicare Part B Application to be completed about three months in advance of your retirement date (if over the age of 65), or about 3 months before your 65 th birthday. The Medicare Part B Application must be completed in order for retirees to avoid being charged a penalty for enrolling late for Part B coverage. If you are over the age of 65 upon retirement, you will also be required to submit an Employer Verification form signed by the Benefits Office along with your Medicare Application. Retirement Plan Withdrawal Forms may be required to be completed by retired faculty and staff to draw upon their retirement accounts. Medical Insurance Carrier Application if you are over 65, and you have elected the Universitysponsored medical insurance, you will be required to complete an application for the insurance carrier. This form will be mailed to your home from the insurance carrier once you submit your enrollment form with your health plan elections. 6. Health Care Plan Coverage and Costs Pre-65 Retirement Benefits Health Care Options The medical, dental, and vision coverage for retirees between the ages of 62 and 65 is a continuation of the same plans available to active faculty and staff. They are listed on the chart below. UPMC Pantehr Gold HMO UPMC Panther Advocate PPO UPMC Panther Premier PPO Dental United Concordia Plus Managed Care (DHMO) United Concordia Flex I United Concordia Flex II Medical UPMC Panther Plus PPO UPMC Panther Basic PPO Vision Davis Vision Fashion Excellence Plan Davis Vision Designer Gold Plan

4 Post-65 Retirement Benefits Health Care Options Each of the University-sponsored medical insurance plans coordinates with or complements Medicare Parts A and B. Prescription drug coverage is included in each of the plans, fulfilling the requirements to be designated as credible coverage. Programs Requiring Local Residency UPMC for Life HMO UPMC for Life PPO-Standard UPMC for Life PPO-Basic Highmark Freedom Blue PPO-Standard Highmark Freedom Blue PPO-Basic Dental United Concordia Access Medical Programs for National and Local Residency UPMC National Complementary with PDP Highmark Signature 65 with Blue Rx Vision Davis Vision Fashion Plan The cost of medical coverage is outlined in the Summary Guide to Benefits. Pre-65 Retirees should refer to the guide for active faculty and staff. A separate guide is prepared for Post-65 Retirees. Spouse/domestic partners under the age of 65 may have access to University coverage; however, they are responsible for the full cost of that coverage until they reach age 62. In other words, University subsidized coverage is not provided to spouses/domestic partners under the age of 62. Please refer to the following web pages: Eligible retirees between the ages of 62 and 65 have the following options: Continue active coverage until age 65 - You will be responsible for paying the cost share or difference that is not covered by the University. This cost share is the same amount paid monthly by active faculty and staff. Your cost share is paid for on an after-tax basis. Receive the Defined Dollar Benefit credits (DDB) credits - You may have access to other active health care coverage. This coverage may be available through the active medical plan of your spouse/domestic partner or another employer. Your credits will accrue in your account for future use if you have other active coverage. Eligible retirees who are 65 or older have the following cost sharing arrangement: Active medical coverage through the University discontinues. However, you become eligible for several University-sponsored post-65 plans. The change occurs because of the integration with Medicare programs. Please refer to the section of the web site describing Post-65 medical plans. The DDB credits may be used to cover the cost of the post-65 coverage. Depending on the cost of the coverage, the DDB credits may cover the full cost of the coverage and even leave you with a surplus of credits or you may have to pay the difference between the cost of coverage and the amount of credits you receive.

5 Other Pre-65 Retirement/Post-65 Retirement Benefits 7. Flexible Spending Accounts Participants can file claims for reimbursement for six months following the date of retirement. However, expenses have to be incurred on or before the last day of work. Contact UPMC Health Plan at (888) with questions. 8. Life Insurance For official retirement from the University, the University provides group life insurance at no cost in the amount of $15,000 if you have completed 10 or more years of service. For service of less than 10 years, the amount of coverage is calculated at $1,500 for each year of service. AD&D insurance cancels upon retirement. The University will pay the full cost of the premium and it will continue throughout your lifetime. You also have a portability option to continue any Optional (Supplemental) Life and Optional Dependent Life coverage at group rates through Aetna after you leave the University. You will be billed directly by Aetna until you reach the age limit as specified in the plan or until you cancel your coverage. Portability also applies to coverage for your spouse/partner and dependent children. You have 31 days from the date of coverage termination to complete an application and submit a premium payment to Aetna. Subject to the terms of the Group Policy, the conversion feature allows an employee to continue the balance of Basic Life excluding the Retiree Life amount. The conversion feature is an option for employees who do not qualify for portability or when portability is not available (Basic Life). It enables an employee to convert their coverage to an individual insurance policy when their group coverage ceases. No medical examination is required, but application and payment of the first premium must be made within 31 days of the date Group Coverage terminates. Note: Portability and conversion are not available for basic and Optional AD&D. Contact Aetna directly at (800) with questions or if you would like to port/convert your basic and/or optional life insurance. 9. Long Term Care Participants are able to port (continue) Long Term Care insurance after retirement. Unum will automatically start direct billing the retiree for the same coverage they had as an active employee. Contact Unum directly at (800) with questions. 10. Education Benefits Staff: Please refer to University of Pittsburgh Policy , or call the Benefits Department at (412) Faculty: Please refer to University of Pittsburgh Policy , or call the Faculty Records Department at (412)

6 Should you have any specific question about the retiree benefits, please contact the Benefits Department at or Acknowledgement The aforementioned information has been reviewed with me: Faculty/Staff Member (Print) Date Faculty/Staff Member (Signature) Date Benefits Department Representative Date Visit the University s Retiree Benefits Web site at: It provides additional information including: Health care options plan grids and certificates of coverage Contact information Helpful links Forms DISCLOSURE: The information presented in this Retirement Checklist is intended to provide a general overview and discussion of the plans. Descriptive literature is available from the carriers and the Office of Human Resources. Plans and administration of University plans are subject to change.