Retiring From UC

1
Retiring From UC

• Presented by
• Kim Martin, Retirement Team Leader
• Deborah Lloyd, Health Care Facilitator

2
Todays Topics - Part I

• The UC Retirement System (UCRS)
• The UC Retirement Plan (UCRP)
• Eligibility and Rules
• Monthly Retirement Income (MRI)
• Lump Sum Cashout (LSC)
• Other Benefits
• The UC Retirement Savings Program
• UCRP Retirement Process
• Resources
• Questions

3
The UC Retirement System

• The UC Retirement Plan
• The UC Retirement Savings Program

4
The UC Retirement System

• The UC Retirement Plan (UCRP)
• The UC Retirement Savings Program
• The Defined Contribution or DC Plan
• The Tax-Deferred 403(b) Plan or 403(b)
• 457(b) Deferred Compensation Plan or 457(b)

5
The UC Retirement System
UC Retirement Plan (UCRP) Pension Recordkept at
UC Office of the President
Retirement Savings Program Recordkept at FITSCo
Voluntary Tax Deferred 403(b) Plan
Voluntary 457(b) Deferred Compensation Plan
(DC) Plan
Mandatory Pretax Account
Voluntary After-tax Account
6
The UC Retirement System

• The UC Retirement Plan (UCRP)
• UCRP with Social Security
• UCRP without Social Security
• UCRP Safety
• UCRP Tier Two

7
The UC Retirement Plan

• Eligibility depends on your appointment and hours
  you work
• Membership is AUTOMATIC
• 1. 50 (or more) for 12 months (or longer) or
• 2. Upon working 1,000 hours in a rolling 12-month
  period in a limited appointment or
• 3. Members of the Non-Senate Instructional Unit
  after working 750 hours in an eligible position
• Vested with 5 years of UCRP service credit

8
The UC Retirement Plan

• Plan Features
• Lifetime monthly retirement income
• Survivor benefits
• Basic death payment
• Contingent annuitant payment options
• Lump sum cashout (LSC)
• Sick leave conversion
• Cost of living adjustment (COLA)
• Capital Accumulation Provision (CAP)
• Disability Income
• Service credit buyback

9
The UC Retirement Plan

• UCRP and Members contributed 1961 through 1990
• Contributions not required at present
• Redirected to the DC Pre-tax Plan
• For more details, visit a new website,
  Future of UC Retirement Plan at
  http//www.universityofcalifornia.edu/news/
  ucrpfuture/welcome.html

10
The UC Retirement Plan

• UCRP is a defined benefit plan
• Monthly Retirement Income (MRI) based on a
  pre-defined formula
• Age at retirement
• Years of UCRP service credit
• Highest average plan compensation (HAPC) at
  retirement

11
UCRPMonthly Retirement Income

• Age Factors
• Increase monthly between ages 50 and 60
  (Effective January 1, 2001)
• Age 50 and 0 months .0110
• Age 50 and 1 months .0111
• Age 50 and 2 months .0112
• Age 60 or more .0250

12
UCRPMonthly Retirement Income

• Service Credit
• Accrues proportionate to appointment percentage
  on paid status
• Full-time accrual rate .0833 monthly
• Periods of approved leave without pay, partially
  paid sabbatical, extended sick leave, furlough,
  temporary layoff, noncontributory plan 02 leaves,
  Temporary Reduction in Time (TRIT), incomplete
  Time Reduction Incentive Plan (TRIP) will reduce
  service credit
• Unused sick leave balance converts to service
  credit
• Must retire within 120 calendar days of date of
  separation

13
UCRPMonthly Retirement Income

• Service Credit
• Sick leave conversion calculation
• Hours of unused sick leave/2000 Added service
  credit
• Example
• 500 sick leave hours/2000 .2500 added service
  credit
• Note Sick leave does not convert for Lump sum
  cashout

14
UCRPMonthly Retirement Income

• Service Credit
• Temporary Reduction in Time Program (TRIP)
  1992-1995 not automatic
• Staff and Academic Reduction in Time (START) is
  automatic
• Partial Year Career (PYC) accelerated

15
UCRPMonthly Retirement Income

• Highest Average Plan Compensation (HAPC)
• Full-time monthly salary rate calculated over
  highest 36 consecutive months preceding
  retirement
• Reduced by 133 for Member with Social Security
  (Social Security Offset)
• Periods of approved Leave Without Pay are skipped
• Partial Year Career (PYC) prorated

16
UCRP MRIBenefits Formula

• Member without Social Security
• Formula
• Step 1
• Years of service credit X age factor Benefits
• Step 2
• Benefits X HAPC Basic Retirement Income (BRI)

17
UCRP MRIBenefits Formula

• Member without Social Security
• Assumptions
• Years of service credit 25
• Age Factor for age 55 .0180
• HAPC 3,500
• Calculation
• Step 1
• 25 X .0180 .4500 or 45
• Step 2
• .4500 x 3,500 (HAPC) 1,574/mo.

18
UCRP MRIBenefits Formula

• Member with Social Security
• Formula
• Step 1
• Years of service credit X age factor Benefits
• Step 2
• Benefits X HAPC (reduced 133) BRI

19
UCRP MRIBenefits Formula

• Member with Social Security
• Calculation
• Step 1
• 25 X .0180 .4500 or 45
• Step 2
• .4500 x 3,500 (HAPC) 1,574/mo.
• Step 3
• Social Security offset applies at age 65
• .4500 x 133 59, subtracted at age 65
• Age 65 benefit 1,515/mo.

20
UCRP MRI Benefit Percentages
21
UCRP MRIOFFSETS

• Offsets
• Social Security Offset
• Applies because the employee contribution is
  lower than for employees without SS
• Reduction begins at age 65, even if retired
  earlier
• Non-contributory Offset (02)
• 1966-1971 Employee contributions not required
• Offset can be eliminated through buyback

22
UCRP MRI Post Retirement Survivor Continuance
(PRSC)

• Payable upon Members death
• Guaranteed benefit for eligible survivors who
• are in this status for at least one year prior
  to UC retirement paid in order as follows
• 1.) Spouse or Domestic Partner or
• 2.) Natural or adopted children (50 support,
  unmarried, under 18 or under 22 and a full-time
  student or disabled based on age, as above) or
• 3.) Dependent parent (50 support)

23
UCRP MRI Post Retirement Survivor Continuance
(PRSC)

• Members benefits not reduced
• UCRP member without Social Security
• PRSC 50 of Basic Retirement Income (BRI)
• 1,500 .5000 X 3,000
• UCRP member with Social Security
• PRSC 25 of Basic Retirement Income (BRI)
• 750 .2500 X 3,000

24
UCRP Death Benefits

• Preretirement Survivor Income
• Death While Eligible To Retire
• Basic Death Payment
• For information about these benefits, read the
  appropriate Survivor and Beneficiary Handbook,
  available on At Your Service.

25
UCRP MRI Contingent Annuitant

• Lifetime monthly income after Members death
• Separate payment from PRSC
• Elect one of UCRPs four alternate payment
  options
• Can be anyone, including person eligible for PRSC
• Reduces benefit payable to Member

26
UCRP MRI Contingent Annuitant

• Reduction depends on Members age, contingent
  annuitants age and option chosen
• Election is irrevocable

27
UCRP MRI Alternate Payment Options
Example 1 Contingent Annuitant is a spouse to
whom the Member has been in a relationship with
for at least one year prior to their UC
retirement.
28
UCRP MRIAlternate Payment Options
Example 2 Contingent Annuitant is a spouse to
whom the Member has been in a relationship with
for at least one year prior to their UC
retirement.
29
UCRP MRI Alternate Payment Options
Example 3 Contingent Annuitant is not an
eligible survivor.
30
UCRP MRICost of Living Adjustment

• Cost of living adjustment (COLA)
• Based on Consumer Price Index (CPI)
• First COLA due 7/1 following one full year of
  retirement
• For detailed information, read pages 7-8 of the
  Retirement Handbook.

31
UCRP MRITaxes

• Subject to federal and state taxes
• Tax withholding election for monthly retirement
  income, survivor income, or disability income is
  changeable
• Submit to UC HR/Benefits Tax Withholding
  Election for UCRP Income UBEN 106 (R4/05),
  available on At Your Service

32
UCRP MRI Plan Limits

• Maximum benefit percentage cannot exceed 100
  (Years of service credit X age factor)
• Internal Revenue Code (IRC)
• Section 415 (b)
• Dollar Limit
• 415(m) Restoration Plan
• Section 401(a)(17)
• Covered Compensation
• For detailed information, read the UCRP IRC 415
  Factsheet, available on At Your Service

33
UCRP Lump Sum Cashout

• Plan Rules
• Formula

34
UCRPLump Sum Cashout (LSC)

• Elected in lieu of lifetime monthly retirement
  income
• Present value projection of BRI as of cashout
  date and includes assumed COLAs
• Election is irrevocable

35
UCRPLump Sum Cashout

• Forfeit all benefits basic death benefit,
  postretirement survivor continuance contingent
  annuitant benefit temporary Social Security
  supplement (for those under 65) or sick leave
  conversion, including retiree medical and dental
  insurance, if eligible
• May rollover LSC into DC Plan, 403(b), 457(b) or
  IRA
• Minimum required distributions may apply
• Payable to Member, subject to ordinary income
  taxes and 20 tax withholding
• Early distribution penalties may also apply

36
UCRPLump Sum Cashout

• Formula
• BRI X Lump sum factor LSC
• Calculation
• Age 60
• 2,000 x 154.20 308,400

37
UCRP Other Benefits

• Capital Accumulation Provision
• Disability Income
• Service Credit Buyback

38
UCRPCapital Accumulation Provision (CAP)

• Allocations for Members
• 1992, 1993, 1994, 2002, 2003
• Earns 8.5 - 7.5
• May rollover into DC Plan, 403(b), 457(b) or IRA
• Minimum required distributions may apply
• Taxable as ordinary income without rollover
• Early distribution penalties may also apply
• 10 federal
• 2½ state
• View CAP Balance via At Your Service Online

39
UCRPDisability Income

• Disability Income
• Member has a permanent disability or a disability
  expected to last 12 consecutive months or longer
  and meets eligibility criteria
• For information about these benefits, read the
  UCRP Disability Handbook, available on At
  Your Service.

40
UCRPService Credit Buyback

• Advantages
• May help with vesting
• Higher retirement income
• May help attain eligibility for and/or increase
  amount of UC contribution for retiree health and
  dental benefits
• IMPORTANT 3 year deadline applies
• Buyback of leave periods does not count towards
  eligibility for UCRP Disability Income
• For detailed information, read The UCRP Buyback
  Booklet, available on At Your Service

41
The UC Retirement Savings Program

• DC Plan, 403(b), and 457(b)

42
The UC Retirement Savings Program

• Fidelity Investments Tax-Exempt Services Company
  (FITSCo) provides all account services for DC
  Plan, 403(b), and 457(b)
• Access to FITSCo Retirement Services Specialists
• Call 1-866-682-7787, Monday through Friday
  between 500 a.m. and 900 p.m., PT, or online
  www.netbenefits.com

43
The UC Retirement Savings Program

• 2007 Maximum Annual Contribution (MAC) limits
  are
• General limit Age 50 and over
• 403(b) Plan 15,500 20,500
• 457(b) Plan 15,500 20,500
• Total both plans 31,000 41,000
• Catch-up provisions may apply
• Call 1-866-682-7787, Monday through Friday
  between 500 a.m. and 900 p.m., PT, or online
  www.netbenefits.com
• Handout 2007 UC Retirement Readiness Education
  Program

44
UC Retirement Process

• Useful Tools
• How to Apply for Retirement
• Other Retirement Plans
• UCB Retirement Team
• Resources

45
At Your Service Useful Tools

• Go to At Your Service website
• http//atyourservice.ucop.edu
• View Retirement Estimates
• View UCRP and CAP Balances
• Retirement Savings Plans (FITSCo)
• Retirement Plan Benefit Estimator
• Forgot Your Password?

46
At Your Service Forgot Your Password?

• Click on
• Click on Password link
• Temporary password will be sent to e-mail
  address(es) on file, or
• Call Campus Benefits Office at 643-7986
• Ask for a password reset
• Leave name and Social Security number
• If you call before 3 p.m., your password will be
  reset to default (birthday mmddyyyy) by end of
  day (e.g., June 17, 1967 is 06171967)

47
At Your Servicehttp//atyourservice.ucop.edu
48
At Your Service Online http//atyourservice.ucop.e
du
49
At Your Service Onlinehttp//atyourservice.ucop.e
du
50
How to Apply For Retirement

• Call OHR Central Benefits at 2-7053 and request
  a Personal Retirement Profile four months prior
  to your date of retirement
• Contact FITSCo at 1-866-682-7787, or online
  www.netbenefits.com to obtain DC Plan, 403(b),
  457(b) account balances
• Meet with your tax advisor or financial planner
• Contact past employers to inquire about possible
  retirement benefits

51
How to Apply for Retirement

• Gather required documentation
• Eligible survivor(s) and/or coannuitants birth
  evidence, (such as birth certificate or
  passport), marriage certificate,
• Declaration of Domestic Partnership (SEC/STATE
  LP/SF DP-1), or Declaration of Domestic
  Partnership UBEN 250 and three supporting
  documents, Social Security numbers, Medicare
  cards
• Notify your department of your plans to retire

52
Other Retirement Plans

• California Public Employees Retirement System
  (CalPERS)
• 1-800-352-2238, or online www.calpers.ca.gov
• California State Teachers Retirement System
  (CalSTRS)
• 1-800-228-5453, or online www.strs.ca.gov
• Reciprocity benefits may apply
• Requires concurrent retirement dates with UCRP
  and other applicable system(s)
• For more detailed information, refer to the
  appropriate CalPERS or STRS factsheet, available
  on At Your Service

53
Other Retirement Plans

• Social Security Administration (SSA)
• Contact for estimate of benefits
• Reduction in SSA benefits possible, if any
  portion of UCRP pension is not coordinated with
  Social Security
• 1-800-772-1213, or online www.ssa.gov
• Teachers Insurance Annuity Association-College
  Retirement Equities Fund (TIAA-CREF)
• Serves academic, medical, cultural and research
  fields
• 1-800-842-2007, or online www.tiaa-cref.org

54
UCB Retirement Team

• If last name begins with
• A - K Contact Art Leon at 643-7549, or
  e-mail aleon_at_berkeley.edu
• L - Q Contact Emily Ladner at 642-1122, or
  e-mail ladner_at_berkeley.edu
• R - Z Contact Darda Swanson at 642-9310, or
  e-mail dswanson_at_berkeley.edu

55
Resources

• At Your Service http//atyourservice.ucop.edu
• At Your Service Online
• Retirement Plan Benefit Estimator
• Handout University of California Retirement Plan
  Benefit Percentages
• UCRP Retirement Summary Plan Descriptions
• Members with Social Security
• Members without Social Security
• Safety Members
• Tier Two Members
• Handout Retirement Handbook

56
Resources

• Fidelity Investments Tax Exempt Services Company
  (FITSCo)
• 1-866-682-7787, Monday through Friday between
  500 a.m. and 900 p.m., PT, or
• www.netbenefits.com
• Handout 2007 UC Retirement Readiness Education
  Program

57
More Publications Available on At Your Service

• Benefits for Domestic Partners booklet
• Declaration of Domestic Partnership UBEN 250
• Returning to UC Employment After Retirement
  Factsheet
• Survivor and Beneficiary Handbooks
• Tax-Deferred 403(b) Summary Plan Description
• The UCRP Buyback Booklet
• UCRP/CalPERS Reciprocity Factsheet
• UCRP/CalSTRS Concurrent Factsheet
• Benefits Newsletters
• Human Resources and Benefits Briefing
• New Dimensions - For UC Retirees

58
Questions???
59
UC Retiree Health Benefits

• Medical
• Dental
• Legal
• (Vision not offered)

60
Todays Topics Part II

• Eligibility for Retiree Health Benefits
• Medicare
• Retiree Health Coverage
• Medical Plans
• Other Health and Welfare Plans
• Things to Consider
• Resources
• Questions

61
Eligibility for Retiree Medical and Dental
Coverage

• If you elect UCRP monthly retirement income
  AND
• You were enrolled when you left UC employment
• You elect to continue coverage at time of
  retirement
• Your retirement date is within 120 days of your
  separation
• Your coverage is continuous
• You meet service credit requirements

62
Eligibility for Retiree Coverage

• Service Credit Requirements
• If hired before 1/1/90 Eligible for full UC
  contribution toward premiums
• Retire before age 55 with at least 10 years
  service credit OR
• Retire at age 55 or later with at least 5 years
  service credit
• Hired after 1/1/90 Qualify for retiree health
  coverage after 10 years service
• Graduated eligibility--- you will receive a
  percentage of UCs maximum contribution
• See Retirement Handbook, page 15

63
UCs Medicare Enrollment Requirements for Retirees

• UC requires retirees and/or enrolled family
  members to enroll in Medicare Part B when they
  become eligible for premium-free Part A
• Usually at age 65 (but not always)
• Transfer into the Medicare-coordinated version
  of the UC medical plan
• Even if you dont attain full Social Security
  benefits until after age 65, UC requires that you
  enroll in Medicare at age 65
• Social Security will bill you quarterly if you
  are not yet receiving Social Security income

64
Why UC Mandates Medicare

• Retirees over age 65 without Medicare cost at
  least twice as much to insure as those with
  Medicare.
• Enrollment in Medicare partially reduces the cost
  to the plan, which keeps the UC premiums
  affordable for all.
• Allows UC to continue to fund health benefits for
  retirees.
• Retiree health coverage is not an entitlement.

65
Medicare

• Part A (hospital insurance)
• Usually an entitlement with no monthly premium
• Part B (medical insurance)
• Monthly premium Indexed to income
• 80,000 or less will pay 93.50 in 2007
• Part D (prescription drug coverage)
• Coordinated with your UC retiree medical plan
• No monthly cost, UC retirees enrolled
  automatically by medical plan/UC
• Can not enroll in a non-UC Part D program

66
Medicare Eligibility

• You may be eligible for Medicare through your own
  work history
• OR through the work history of your spouse or
  former spouse
• To clarify your eligibility, contact Social
  Security

67
When to enroll in Medicare?

• If you are an employee, you do not need to enroll
  in Medicare Part B -- nor do any dependents
  enrolled in your UC medical plan
• Enroll in Part B when you retire
• If you are a retiree, you enroll in Part B when
  you become eligible -- covered dependents enroll
  when they become eligible
• See handout Medicare Flowchart

68
Dependents of Retirees

• Covered dependents of retirees are also required
  to enroll in Medicare when they become eligible
• Remember your dependents must be in the same
  medical plan as you
• If they dont have Medicare yet they will remain
  in the regular version of the plan
• Medicare version of the plan may differ from
  regular plan

69
Medicare Enrollment Process for Retirees

• Make an appointment with Social Security if you
  have questions about Medicare eligibility
• Enroll in Medicare Part A and Part B
• If not eligible, get a Denial Letter from
  Social Security
• UC will send you a Medicare Declaration form
• HMO will send you a Medicare Choice Enrollment
  Form
• UC will transfer your enrollment to the Medicare
  version of your medical plan
• See handout Enrollment Details

70
Exceptions to UC Medicare Mandate

• UC does not require you to enroll in Medicare
  Part B if
• You reside outside the United States
• You must enroll in Medicare if you return to USA
• You may incur a late penalty from Medicare when
  you re-enroll
• You are still working at UC and have health
  coverage as an employee
• You are a dependent of an active employee

71
You will lose your UC retiree coverage if

• You qualify for Part A, but do not sign up for
  Part B, or discontinue Part B at any time
• You enroll in an HMO and do not assign your
  Medicare benefits to plan
• Must fill out special Enrollment Form and send to
  plan
• You assign your Medicare benefits to a non-UC
  sponsored medical plan
• You purchase a non-UC Medicare Part D
  Prescription Drug plan.

72
Retiree Health Coverage
73
2007 Monthly Premiums

• See handout 2007 Plan Costs for UC Retirees
• Graduated eligibility (hired after 1/1/90)
• You will receive a percentage of the UC
  contribution, you pay the rest
• Part B reimbursement usually does not apply
• See Retirement Handbook, page 15

74
GE Health Net Example (2007)
75
Total Cost of Your Plan

• Consider the total cost of your plan
• Your monthly premium cost
• Part B premium (indexed in 2007, 93.50 min.)
• Deduct your Part B reimbursement (if any)
• Copays, deductibles, the balance you must pay
  after the plan pays its share
• Out-of-pocket maximum
• Cost to you for services not covered by plan
• See handouts 2007 Plan Costs for UC Retirees and
  Medical Benefits Summary 2007 (for members with
  Medicare)

76
When Can You Change Plans?

• Open Enrollment
• November of each year, change effective Jan. 1
• Move out of plans service area
• If you move out of your HMO service area, you
  have 31 days to change plans
• Fill out Address Change Notice and UBEN 100 form
• Available on At Your Service website
• Contact OP Customer Service for assistance

77
Location

• Which plans cover your location?
• Go to At Your Service website
• Choose Retirees, then Health and Welfare Benefits
• Quick Link Medical Benefits Summary
• Gives all plans available in a zip code area
• Call the plan for the most current service areas
  because services areas are subject to change

78
Coverage in Other Locations

• If you move within California
• Check to see if plan covers your new location
• If you move outside California
• Blue Cross PPO, High Option Supplement, Core
• If you move outside USA
• Blue Cross PPO, High Option Supplement, Core
• Will switch to Non-Medicare version of plan
• Higher premiums, different coverage levels

79
Transition from Active to Retiree Coverage

• When you retire, UC Berkeley terminates your
  coverage as an active employee.
• UCOP begins your coverage as a retiree.
• Effective immediately
• Medical and Dental plans are notified through a
  monthly electronic communication process.
• Plan ahead! Try to avoid getting medications
  during the first few weeks of your retiree
  coverage.
• Call HCF Program for assistance if necessary

80
2007 Retiree Medical Plans
81
Regular (Non-Medicare) Plans
82
HMOs

• Health Net
• PacifiCare of California
• Kaiser
• Same as active plans
• Go to At Your Service for
• Details of coverage
• Doctor search
• Links to plan websites
• Formulary

83
Blue Cross Plus/Blue Cross PPO

• Same as active plans
• Go to At Your Service for
• Link to special UC/Blue Cross
• website
• Details of coverage
• Doctor search
• Formulary

84
Medicare-Coordinated Plans
85
Medicare vs. Non-Medicare Plans

• All the UC medical plans have a separate
  Medicare-coordinated version
• The Medicare-coordinated version of a plan may
  differ in
• Plan benefits
• Costs
• Service area
• Network providers
• Enrollment/de-enrollment process
• See handout Medical Benefits Summary 2007 (for
  members with Medicare)

86
UC Medicare-Coordinated Plans

• Medicare Choice plans (HMOs)
• Health Net/Seniority Plus
• Kaiser/Senior Advantage
• Pacificare/Secure Horizons
• Blue Cross plans
• Blue Cross Plus
• Blue Cross PPO
• High Option Supplement to Medicare
• Core/Medicare

87
Medicare Coordination with HMO Plans

• You assign your Medicare benefits to the plan
• Must complete forms with UC and your plan
• Plan agrees to assume full responsibility for
  your medical care
• Medicare pays the plan a flat fee each month
• You must receive all services through the plan
• Cannot use Medicare outside the plan
• You automatically have the prescription drug
  benefits of Medicare Part D
• Should not enroll in a non-UC Part D plan

88
Medicare Coordination with HMO Plans

• You must live in the plans service area
• You must receive services from network providers
  (medical group)
• You select a Primary Care Physician (PCP) who
  coordinates your care
• Preauthorization required for services
• Referrals limited to provider within medical
  group
• Out-of-area emergency services only
• Small copayment for most services
• No claim forms, no annual deductible

89
Blue Cross Plans and Medicare

• High Option Supplement to Medicare
• Blue Cross PPO
• Blue Cross PLUS
• Core / Medicare

90
Blue Cross Plans with Medicare

• You do not assign your Medicare to the plan
• Medicare is primary payer, Blue Cross is
  secondary
• You have an annual deductible
• Then, Medicare coordinates with Blue Cross to pay
  a percentage of the cost, you pay the rest
• After you reach annual maximum out-of-pocket,
  plan pays 100 of covered charges
• See Medical Benefits Summary 2007 for more
  details

91
Blue Cross Plans with Medicare

• Medicare is your primary insurance
• Blue Cross Plus In-Network, go through PCP for
  services
• You must use Medicare providers
• Doctor has contract with Medicare
• Find doctors online at http//www.medicare.gov
• No private contract providers
• Neither Medicare nor Blue Cross will pay
• You automatically have the prescription drug
  benefits of Medicare Part D
• Should not enroll in a non-UC Part D plan

92
Prescription Drug Coverage

• All UC retiree medical plans cover prescription
  drugs, but formularies vary between plans
• Formularies may change during the year
• Must meet Medicare Part D standards
• Three tier copayment structure for all plans
• Generic on formulary HMO 10/ BC 15
• Brand name on formulary HMO 20/ BC 25
• Off-formulary HMO 35/ BC 40
• Mail order available
• Save by receiving three months worth of
  medications for two copayments

93
Other Health Welfare Plans
94
Dental Delta PMI

• Same plans for retirees as for actives
• For most retirees, premiums are fully paid by UC
• Exception Graduated Eligibility

95
ARAG Legal Plan

• Same plan for retirees as for actives

96
Things to Consider
97
Health Care Reimbursement Account (HCRA)

• Retirees are not eligible for HCRA
• HCRA participation ends on the last day of the
  month of your last payroll deduction
• Example Retire June 30, last paycheck is July 1,
  HCRA ends on July 31.
• COBRA is available from SHPS
• They will send you a COBRA packet when coverage
  ends

98
Suspension of Retiree Coverage

• Any retiree who is covered under another group or
  individual medical plan may suspend UC retiree
  medical coverage.
• Applies to retirees with and without Medicare
• Use UBEN 100 form (available on At Your Service)
• Retiree will be able to re-enroll in UC plans
• During any Open Enrollment period
• November of each year
• When an involuntary loss of coverage (ILOC)
  occurs

99
Eligibility Reminder

• All enrolled family members must meet eligibility
  requirements
• It is your responsibility to de-enroll family
  members when they lose eligibility
• Dont wait until Open Enrollment
• Failure to meet eligibility requirements may
  result in severe penalties
• No duplicate coverage through UC, you may be
  covered in only ONE of the following categories
• Employee of UC
• Retiree of UC
• Eligible dependent family member

100
Rehired Retirees

• If you return to work at the University as a
  rehired retiree there may be an impact on your
  retiree medical coverage.
• If your appointment is 43.75 or more you become
  eligible for insurance as an employee.
• Employee insurance will be primary payer
• Medicare/retiree plan becomes secondary payer
• Must enroll in non-Medicare version of your
  retiree plan, or opt out of UC retiree coverage
  and have Medicare only
• Detailed information in the Returning to UC
  Employment After Retirement Factsheet
• Available on the At Your Service web site

101
Tips for Planning Ahead

• Think about your age in the coming year.
• You might want to switch to the desired plan
  during the Open Enrollment before you turn 65.
• Read Open Enrollment materials each year to track
  changes in coverage.
• Remember that you may have to change plans if you
  move out of area.
• Stay informed of general developments in Medicare
  and medical insurance.
• Use your online resources
• http//atyourservice.ucop.edu/
• Choose Retirees page

102
Resources

• UCB Health Care Facilitator Program
• Handout Health Care Facilitator Program brochure
• Social Security Administration Office
• UCB Retirement Center
• UCOP Customer Service (Retiree Insurance Unit)
• Your medical plan
• See handout Resources for UCB Retired Faculty
  and Staff

103
Please fill out Evaluation Form
104
Questions????
105
Handouts for Retiring from UC workshop

• 1. Always At Your Service brochure KP 4003
• 2. Retirement Handbook KP 1400
• 3. UCRP Benefit Percentages
• 4. 2007 UC Retirement Readiness Education Program
• 5. Medicare Flow Chart
• 6. Enrollment Details
• 7. 2007 Plan Costs for UC Retirees
• 8. 2007 Medical Benefits Summary KP 2103
• 9. Resources for UCB Retirees
• 10. Whos Your Beneficiary? KP 3613
• 11. Glossary of Terms
• Folders KP 4010
• Copy of the PowerPoint slide presentation