Pre-RetirementBenefits Information for those retiring in 2014

Corrin Sorteberg, Benefits Manager

February 21st & 28th 2014

For discussion

• Carrying benefit coverage into retirement

• Healthcare options

• National & International coverage

• Medicare enrollment

• Medicare coordination of benefits

• Medicare Part D

• Other benefits in retirement

• Paying benefit premiums

• Open Enrollment annual change period

• Keeping your ‘ducks in a row’

Carrying Benefit Coverage into Retirement

Effective November 1, 2002, to be eligible for retirement from the USG System, an employee must meet one of the following 4 conditions at the time of separation from employment.

BOR Policy 8.2.8.2

Retirement Eligibility in USG

• 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

• 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 (will be updated to 10 years in 2013 to match TRS) of continuous service to the USG in a regular, benefitted position

Retirement Eligibility in USG (cont.)

• An individual who has retired from another State of Georgia sponsored retirement plan 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!

Healthcare OptionsMedical and dental coverage may continue once you retire.

Medicare eligibility is a determining factor in your coverage options.

Retiring under age 65non-Medicare

• You pay the same monthly premium as an active employee

• You will continue with the same plan you had as an active employee

• BlueCross BlueShield Blue Choice HMO

• Kaiser HMO

• BlueCross BlueShield BOR Open Access POS

• BlueCross BlueShield HSA Open Access POS

Retiring at 65 or olderMedicare eligible

• Your healthcare choices are:

• Kaiser HMO Sr. Advantage

• Must reside in applicable GA counties

• BOR Open Access POS

• Your monthly premium is reduced with Part B coverage (you or your spouse)

• HSA Open Access POS

What benefits can I change after I retire?

• You may drop any of your benefits at anytime

• You are no longer subject to pre-tax rules on your premiums

• You may file your monthly premiums on your taxes

• Once dropped you may not re-enroll in the future

• You are not able to add or change plan coverage for medical, dental or vision unless you meet the certain criteria

Options to change or add plan coverage after retirement

• You are enrolled in BlueChoice HMO and are 65 on or after you retire; you must change your medical plan

• You are enrolled in BlueChoice HMO or Kaiser and moving out of Georgia; you must change your medical plan

• Your dependent is no longer a full time student; your dependent is no longer eligible for dental coverage

• Your dependent is age 26; your dependent is no longer eligible for medical coverage

• You may not add a current dependent to your medical plan after you retire, even if he/she is under age 26

National & International CoverageHealthcare coverage if your reside or travel outside of Georgia

National and International Medical Coverage

• BCBS BlueCard National or Worldwide coverage

• In-network rates apply for out-of-country coverage

• For national and international coverage you have two plan options:• BlueCross BlueShield BOR Open Access POS

• BlueCross BlueShield HSA Open Access POS

Medicare EnrollmentA Medicare Primer: How Medicare affects you as an active employee

and as a retiree

Medicare basics

• Part A Medicare is for hospital coverage

• Part B Medicare is for doctor visits and outpatient hospital services

• Part C is Medicare Advantage Plan• Combines Part A, Part B and usually Part D

• not required if you have USG healthcare coverage

• Part D is prescription drug coverage

Medicare enrollment while you are actively employed at

GSU• At age 65, you have the option to enroll in Medicare Part A

• If you receive Social Security, you are required to be enrolled in Part A

• Those enrolled in the HSA Open Access POS plan may not contribute to the HSA if you choose to enroll in Medicare (Parts A,B,C or D)

• Part B enrollment is NOT required, as a monthly fee will be incurred

• Your USG medical coverage is primary and Medicare is secondary

Medicare enrollment Retiring from GSU at age 65 or older

• You and/or your spouse must enroll in Medicare Part B or pay the full cost of the premium (employee and employer portions) at the non-Medicare enrolled rate

• You and/or your spouse are not subject to a penalty to enroll in Part B

• Medicare becomes primary and the medical coverage from Georgia State becomes secondary

How to apply for Medicare

• If you will be Medicare eligible at the time of your retirement or thereafter:• Start the Medicare enrollment process up to three months prior to your

retirement date

• Enroll on line at http://www.medicare.gov/

• It really is fast and easy!

• Provide a copy of you and your spouse’s Medicare Part B card to HR once you have entered the information in ADP

• Do this in the month of the birthday

• If it is after your birthday HR will apply the information

Medicare Coordination of BenefitsHow Medicare coverage coordinates with your USG medical plan

BOR Open Access POSBenefit Coordination with Medicare

• $100. charge for a medical office visit

• Healthcare provider files with Medicare first, Medicare allows $100. charge

• If deductible is met, Medicare pays 80%

• Healthcare provider then files claim with BCBS, which allows $100. charge

• The remaining 20% portion is paid fully by BCBS

HSA Open Access POS Benefit Coordination with Medicare

• Before HSA deductible is met:

• Medical claim filed through Medicare

• Retiree pays Medicare deductible and Medicare co-pays

• Claim is filed with BCBS; the entire allowed amount goes towards the BCBS deductible until deductible is met

• Once HSA deductible is met:

• Claim is filed with Medicare first; after Medicare pays, claim is filed with BCBS and plan pays the rest

HSA Open Access POS Benefit Coordination with Medicare

• Pharmacy Coverage (2013)

• Retiree pays 100% of negotiated rate until deductible is met; then retiree pays 15% and plan pays 85% up to annual out-of-pocket limit

• Out-of-pocket maximum: $3,000 for single coverage or $6,000 2 or more

Medicare Part DPrescription plan drug coverage

Medicare Part D

• Kaiser Sr. Advantage Plan

• Kaiser will automatically serve as Medicare Part D provider

• BOR Open Access POS

• Contains pharmacy plan with Express Scripts

• The cost of Medicare Part D is included as part of the medical premium for both plans

Post Script on Medicare from Board

of Regents

November 2013 BOR meeting: passage of provision to migrate all retirees 65 and older to non-USG secondary medical plans. Details and updates to follow.

Other Benefits in RetirementA wide array of choices from Georgia State University

GSU Benefits

Must be enrolled in prior to retirement

• Dental coverage – 100% employee paid

• Life insurance

• Vision coverage – 100% employee paid

• Health Savings plan (HSA)

• Flex spending plan (FSA)

May enroll in after retirement

• Lifestyle Benefits

• Pet Insurance – open to GSU community (faculty, staff and students)

Basic Life Insurance at Retirement• Basic Life remains at $25,000 at no cost to you

• Be sure to keep your beneficiaries up-to-date!

• This is NOT a death benefit, be sure to state in your will, your funeral expense plan

• You may choose to take any of your BOR life into retirement with the following:

• Dependent Life reduces by 50% to $5,000 coverage on your spouse and/or child(ren)

• Supplemental Life is reduced to 50% or $15,000, whichever is less

• Requires minimum 10 years enrollment

Beneficiary panel in ADP

You may elect a primary and a secondary beneficiary

Your FSA & HSA Accounts at Retirement

FSA Accounts

• Must incur all expenses by last working day

• 90 days from retirement date to apply for reimbursements

HSA Accounts

• Funds available until balance is exhausted

• You may not contribute at age 65 if you are working & enrolled in Medicare

• At age 65 withdrawals may be made for expenses other than medical, dental & vision

Paying Benefit PremiumsHow to pay for healthcare benefits

How to pay healthcare benefits after retirement

• You may set up retiree benefits in ADP beginning the date of your retirement and up to 29 days thereafter

• Benedirect will notify you of your retiree choices by mail and you will receive information to set up direct debit

• All retirees are subject to direct debit payment for premiums

• Around the 7th of each month

Open Enrollment Annual Change Period

All retirees are required to review the information on changes to their benefits for the coming year

Open Enrollment

• OE period is generally mid October to mid November

• All employees MUST actively enroll

• BOR wants all USG participants to review their benefit record during OE

• Some penalties may be incurred for those who do not review and/or update information

• Changes take effect on January 1st

Open enrollmentwhat you can do

• During the annual retiree change period, you have 3 options:• Drop or discontinue benefits

• Participate in a different healthcare plan option

• Drop dependents from your current coverage

• Add Lifestyle Benefits

Open enrollmentwhat you cannot do

• Add medical, dental, vision or life coverage

• Add a dependent child(ren) or spouse

• Unless you experience a qualifying event

• At which time you may add a dependent at anytime throughout the year, within 30 days of the qualifying event

Open Enrollment as a retiree• The new ‘certainty’ in life as a retiree: benefits will evolve and change

• Stay informed!

• OE plan year changes will be mailed to home address

• Email notifications also provided

• Keep you email address up to date in ADP

• Benefit changes for OE and updates throughout the year will be posted on the retiree website at http://retirees.hr.gsu.edu/

• online quarterly reviews are highly recommended with the current healthcare landscape

BOR website for retiree information

http://www.usg.edu/hr/benefits/retiree_benefits

Keeping your ‘ducks in a row’Other benefits to consider

TRS participantsforms for HR

Vacation payout

• Maximum payout of 360 unused, accrued hours for 12 month employees

• May transfer to a 403b

• Taxed at 25%

• You must receive approval from your department if funding is from a sponsored fund, grant or project

Important information for

separating employees

http://employees.hr.gsu.edu/benefits/separating-employees

/

Perks in Retirement

• Free parking with your GSU Retiree ID

• Membership at GSU recreation center

• Georgia’s Own Credit Union

• Access to GSU IT programs and products

• Employee Assistance – employee & family

• GSU 62

• Open Enrollment Benefits Fair