ROAD TO RETIREMENT: HOW TO PLAN FOR YOUR FUTURE

Road to Retirement

A program for Purdue employees 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 equals or exceeds 70

Purdue University Retirees Association (PURA)

•

Free

Membership •Monthly luncheons with interesting speakers •Trips and tours •Campus and community activities •Quarterly Newsletter •Volunteer Opportunities See the Retiree Brochure and the PURA website for information -

www.purdue.edu/retirees

From Work to Retirement -or Things I Wish I Had Thought About !

Important Considerations Short Range and Long Range Goals Where to Retire Family Responsibilities Financial Security Legal Security Personal Emotional Needs

Benefit Programs for Official Retirees

•Complimentary “A” parking permit •Fee privileges •Staff rates on tickets, recreational facilities •Nursing Center services •Wellness programs (Flu Shot, EAP) •University email and data network remote facilities

Benefit Programs for Official Retirees

•Optional participation in University-sponsored group medical & Rx insurance •Optional participation in Group Life Insurance plan to age 65

Medical Plan Options

Plans are reviewed annually and are subject to change

Medical Plan Coverage Retiree or Spouse/SSDP Under Age 65

•Continue 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.

Medical Plans - Retirees Over Age 65 Definitions

•Medicare Part A – Hospital (Inpatient) -No monthly premium - Paid during working years •Medicare Part B – Medical (Outpatient) -Sign up at 65

or

at full retirement -

Base

Premium for 2013 is $104.90/month

Definitions - Continued

•Medicare Part C - Private Insurance  Medicare Advantage - PPO, HMO, Private Fee for Service  Pay Part B monthly premium + insurance premium •Medicare Part D - Prescription Drug Coverage   Pay monthly premium to insurance company •Parts B, C and D have a Premium Parts B & D have penalty if not joined when eligible  Special Enrollment Period (SEP) at retirement

Definitions - Continued

Creditable Coverage, Medicare Parts B and D •Until time of full retirement have been covered by employer’s medical & Rx insurance •Part B and/or Part D penalty may apply if cannot show creditable coverage past age 65 •Employer will provide evidence of creditable coverage

Medical Plans 2013 Retirees Over Age 65 PURcare

– Medical (incl. Vision) and Prescription Drug •Supplement to Medicare Parts A and B through UnitedHealthcare •Excellent

Nationwide

coverage •See

any

doctor or use any provider that accepts Medicare for medically necessary coverage •

Includes

Medicare Part D prescription drug coverage •International coverage for illness/accident •Extra coverage above individual plans (e.g. Hospital, Skilled Nursing)

Medical Plans 2013 Retirees Over Age 65 UnitedHealthcare Group Medicare Advantage PPO

•Medicare Part C 

private

insurance •A type of Medicare Advantage Plan approved by Medicare Nation-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 Medicare  Includes medical/hospital and Part D prescription coverage

Important Retirement Decision!

Group Health Plan Eligibility •Official Retiree, Qualifying Spouse/SSDP •Enrolled in Medicare Part A & B •Age 65 (PURcare)

If you choose an individual health insurance plan, you will not be able to return to a Purdue retiree group plan.

2013 PURcare Senior Supplement

•PURcare premium for 2013 is $268.32/month/person  A decrease of $6.72 from the 2012 premium  Veterans with Rx coverage from VA ($191.02) •$300 annual deductible (Medicare Parts A and B)  Once satisfied, plan pays 100% medical coverage for rest of year •$150 annual Vision benefit with

no

deductible

2013 PURcare Prescription Plan

Prescription drug coverage •

Exceeds

coverage required under Medicare Part D legislation  Open formulary (FDA approved, medically necessary)  No gap in coverage (donut hole)  No step therapy  Few prior authorizations or limited quantities

2013 PURcare Prescription Plan

Prescription drug coverage •

No

 deductible •50% co-insurance locally (30 or 90 day supply) •45% co-insurance by mail order (90 day supply) •2013 maximum co-pay allowed Tier 1 $10 /month  Tier 2 $45 /month  Tier 3-4 $95 /month •

No

cost after $4,750 out of pocket

PURcare Vision Benefit

A vision rider of $150 per year for expenses not allowed by Medicare •No Network, use any provider •No 12 month waiting period requirement •May use for frames, lenses, second pair of glasses, refraction •Not for refraction/glasses after cataract surgery

2013 Group Medicare Advantage PPO

•UnitedHealthcare Medicare Advantage PPO   Premium is $185.96 per person per month for medical/hospital and prescription drug coverage Office co-pay of $15 for primary and $25 for specialist  In-patient hospital co-pay is $200/day  $3000 Annual Maximum out-of-pocket for medical/hospital  Prescription co-pays do

not

count toward out-of-pocket max

2013 Group Medicare Advantage PPO

•Prescription Drug Coverage  Defined 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

Plan Comparison PURcare

•Higher monthly premium ($268.32) •Lower yearly out-of-pocket costs for medical ($300) •Broader Rx coverage with few restrictions and no gap in coverage •100% Rx coverage during catastrophic phase

Medicare Advantage PPO

•Lower monthly premium ($185.96) •Higher yearly out-of-pocket costs for medical ($3000) •More limited Rx coverage, but with coverage of Tier 1 generics in the gap •More Rx restrictions and some cost during catastrophic phase

Additional Benefits for Both Plans

•SilverSneakers •Newtone, Curves, Ismail Center, Snap Fitness, YMCA •Over 10,000 participating clubs nationwide •NurseLine •Optum Discount

Why a Purdue Retiree Group Plan?

•Purdue HR staff assigned to help you •Not age rated – premiums do not increase with age •No yearly re-enrollment for Medical or Part D Rx •Better benefits than most individual plans offer •PURA Benefits Committee works on your behalf to negotiate best possible plans

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.”

Life Insurance

Life Insurance Under Age 65

You 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 dependents •Port (extend) Accidental Death & Dismemberment coverage for you and/or your dependents

Cost Example: Age 63 Salary, $30,000

•Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary)

=

$29.70/month •Current Additional Coverage of $60,000 (paid by you at 2x salary) = $39.60/month

Life Insurance age 65 - 69

You 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 coverage •Port (extend) Additional Term Life by paying the

full

cost  Cost is dependent upon age and amount of coverage

Cost Example: Age 66 Salary, $30,000

•Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary)

=

$236.92/month •Current Additional Coverage of $60,000 (paid by you at 2x salary) = $128.40/month

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.

Cost Example: Age 72 Salary, $30,000

•Current Basic Term Coverage of $45,000 (paid by Purdue at 1.5 x Salary)

=

$329.93/month •Current Additional Coverage of $60,000 (paid by you at 2x salary) = $439.90/month

Retirement Should be a Reward for a Job Well Done!

Questions?

Thank you for attending.

Kate LaMar Human Resources [email protected]