2011 Benefits in Retirement

Carrying Coverage into Retirement

Effective November 1, 2002, to be eligible for retirement from the University System of Georgia (USG), an employee must meet one of the following four (4) conditions at the time of his/her separation from employment, regardless of the retirement plan elected by the employee:

Carrying Coverage into Retirement

• An employee must have been employed by the USG for the last ten (10) years in a regular, benefitted position and have attained age 60; or

• An employee must have at least 25 total years of benefitted service established with a State of Georgia sponsored retirement plan, of which the last five (5) years of employment must have been continuous and with the USG; or

Carrying Coverage into Retirement

• An employee must have at least 30 total years of benefitted service established with a State of Georgia sponsored retirement plan, of which the last five (5) years of employment must have been continuous and with the USG; or

• An employee must be deemed to be totally and permanently disabled, as documented through the receipt of disability benefits from Social Security or from the TRS, following 9.5 years of continuous service to the USG in a regular, benefitted position

Carrying Coverage into Retirement

• If you have retired from another State of Georgia sponsored Retirement plan, you may not count such retirement service toward meeting the eligibility criteria for retirement from the USG

• Just because you meet the criteria to retire under TRS does not mean you have met the criteria to retire with USG benefits!

2011 Medical Options in Retirement

• If you retire and you are under age 65, you have the following Medical Plan Choices:

•BCBS HMO•Kaiser HMO•HDHP Plan or the HDHP Alternative Network Plan•PPO Plan or the PPO Alternative Network Plan

• If you retire and you are age 65 or older, you have the following Medical Plan Options:

•Kaiser HMO Senior Advantage•HDHP Plan or the HDHP Alternative Network Plan•PPO Plan or the PPO Alternative Network Plan

2011 Medical Options in Retirement

• The medical/dental plan and dependents covered at the time you retire is the coverage that you take into retirement with you; You will not be able to add or change plans or add dependents at the time you retire unless:–You are enrolled in the BCBS HMO plan and you are over age 65 –You are enrolled in the BCBS HMO plan and you are moving out of state

• If you terminate your coverage in retirement, you will not be allowed to re-enroll in the coverage!

Moving Out of State after Retirement?

• What plan do you choose?•HDHP Plan or the HDHP Alternative Network Plan•PPO Plan or the PPO Alternative Network Plan

•Remember the HDHP and the PPO plans use the same network of providers: the BCBS PPO network•The HDHP & PPO Alternative Network plans use the same network of providers: the BCBS Blue Open Access POS Network

Coverage Out of the Country• Enroll in the BCBS PPO or HDHP plan to

utilize the BlueCard Worldwide Network– Medical assistance for inpatient,

outpatient, and professional services from healthcare providers worldwide

– 24 hours a day, 7 days a week, 365 days a year

– BlueCard Access Line 1-800-810-BLUE (2583) inside U.S. or call collect 1-804-673-1177 outside U.S.

– Claim Form – 1-800-810-BLUE (2583) or www.bcbs.com/bluecardworldwide/index.html– Prescription Drugs Claims: BCBSGA, P.O.

Box 7728, Columbus, GA 31908

Medicare As An Active Employee

• As an active employee, when you turn age 65, you will want to enroll in Medicare Part A•You are not required to enroll in Medicare Part B•You will not be subject to penalties if you enroll in Medicare Part B at a later date as long as you have “credible coverage” from your Medicare eligibility date•Health Care coverage through the University is considered “credible”• As long as you remain an active employee, the medical coverage through the University is Primary and Medicare is secondary

Medicare in Retirement• When you decide to retire, if you are Medicare Eligible, apply for Medicare Part B 3 months prior to your retirement date! • Once you retire, if you are enrolled in Medicare Part B, Medicare becomes primary and the medical coverage from the University is secondary• For employees retiring in 2011, Medicare enrollment is not Mandatory. However, if you retire in 2011 and you and/or your spouse are eligible for Medicare and do not enroll, you will be responsible for paying the entire cost of the premium (both the employee and employer portions) – a nonMedicare enrolled rate!

Medicare in Retirement•For employees retiring in 2011, Medicare enrollment is not Mandatory. However, if you retire in 2011 and you and/or your spouse is eligible for Medicare and do not enroll, you will be responsible for paying the entire cost of the premium (both the employee and employer portions) • You must provide a copy of your and your spouses Medicare Part B card to HR to receive the lower Medicare enrolled Premiums

Coordination with Medicare• BOR plan pays healthcare benefits after Medicare has paid their portion• A retiree age 65 or older has the option to select the PPO Plan, the HDHP Plan or the Kaiser Permanente Senior Advantage Plan• The BCBS HMO plan does not coordinate with Medicare; Once a retiree turns age 65, he/she must enroll in one of the other medical plan options

BCBS Coordination with Medicare

• Medicare Coordination with the HDHP Plan:• Filed through Medicare first, then filed with BCBS• The entire allowed amount goes towards the HDHP

deductible until deductible is met• Medicare Coordination with the PPO Plan

Example:• Billed amount for office visit is $100• Filed with Medicare first, Medicare allows $100• If deductible is already met, Medicare pays 80% or

$80• The provider files claim with BCBS as Secondary and

allows $100• Since remaining amount after Medicare’s payment

is $20, BCBS will pay 100%

Medicare Part D – Pharmacy Benefits

• Medicare Part D provides subsidized drug coverage

• Kaiser Permanente Senior Advantage provides an integrated benefit covering hospital, physician and drug costs

• Kaiser Permanente will automatically serve as Medicare Part D provider to existing Kaiser Senior Advantage members

• If you currently have an existing Part D plan and enroll in Senior Advantage, your existing Part D Plan will automatically be cancelled by Medicare

• Customer service is available to answer your questions at 404-233-3700, or 1-800-232-4404

Other Benefits in Retirement• If you are enrolled in the dental or vision plans at

the time of your retirement, you may elect to continue this coverage into retirement

• KSU continues to pay for your CIGNA basic life coverage of $25,000 for the remainder of your life

• If you have CIGNA Supplemental life, you may elect to continue your coverage into retirement,. At retirement, your coverage is reduced to 50% of the supplemental coverage amount in effect immediately before retirement or $15,000, whichever is less

• If you have CIGNA dependent life, you may elect to continue this coverage in retirement. At retirement, the coverage is reduced to $5,000

How do I pay for my Benefits Premiums in Retirement?

• USG contracted with ADP to process Retiree Benefits Premiums

• You will receive a bill from ADP around the middle of the month for the next month’s premiums

• Premiums are due on the 7th of the month for that month’s coverage

• You may set up direct debit/ACH through ADP• You may register on-line and have 24 hour access

to your account through the following link: www.benedirect.adp.com or call 1-800-770-7981

• If you premiums become more than 60 days in arrears, your coverage will be cancelled; There is no reinstatement option!

Retiree Coverage Change Period• The USG retiree annual change period is generally held during the fall of each calendar year• The USG retiree annual change period will coincide with the same 30 calendar-day time frame designated as the USG open enrollment period for active, eligible employees• KSU HR will notify you by mail of the annual change period• You will be able to make your changes through the ADP Portal at https://portal.adp.com

A retiree will not be permitted to participate in the annual change period unless he/she elected to take healthcare coverage into retirement at the time of his/her separation from employment with the USG

Retiree Coverage Change Period• During an annual retiree change period, you have 3 options:

• Drop or discontinue medical, dental, or vision coverage;

• Participate in a different healthcare plan option; and/or

• Reduce your level of coverage

• During the annual change period, you will not be allowed to add medical, dental or vision coverage, or, add dependents to your coverage • You may only add dependents if you experience a qualifying events

Qualifying Events• If you experience one of the following four (4) instances of a qualifying event, you will be allowed to change your coverage in retirement:

You or your spouse becomes eligible for Medicare The addition of a dependent(s) because of marriage,

birth, adoption or a Qualified Medical Child Support (QMSCO) ; or

The loss of a dependent(s) health benefit coverage through a change in a spouse’s group coverage, through COBRA coverage, through Medicare, or through Medicaid; or

A change in a spouse’s employment status that affects coverage eligibility under a qualified health plan

Marriage or divorce

Qualifying Events – More Information

• The change your retiree healthcare coverage must be consistent with the qualifying event • The change may be made on-line through the ADP portal at https://portal.adp.com or you can request your change in writing to KSU HR • The change request must be made within 30 days of the Qualifying Event and supporting documentation must be submitted to KSU HR verifying the change within 30 days of the event• The change in coverage will not go into effect until HR has received your documentation and has approved the change • If you are covered under your spouses healthcare plan at the time of retirement and do not take healthcare into retirement, you will not be allowed to add coverage at a later date, even if you lose coverage under your spouse’s plan

Permissible USG Retiree Healthcare Plan Changes

•Because Retiree healthcare premiums are paid with after-tax dollars, as a retiree, you may reduce your healthcare coverage, or, discontinue your healthcare coverage at any time during the plan year •To reduce or cancel your retiree healthcare coverage, make your change through the ADP portal at https://portal.adp.com or submit your request in writing to KSU HR

Retiring Soon?• Meet with Benefits Specialist in HR• TRS application should be

submitted 3-6 months prior to retirement

• TRS Application can now be submitted on-line

• ORP Participants meet/contact Vendor to discuss distribution options and receive distribution paperwork

QUESTIONS ?