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Staff Handbook
Retirement From the University of Pittsburgh
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Staff Handbook Contents:
-Welcome to the University of Pittsburgh
-Introduction
-Nondiscrimination Policy
-At Will Employment
-Employment Status for Staff Positions
-Wage and Salary Administration
-Paid and Unpaid Time Off From Work
-Benefits Programs
-Retirement From the University of Pittsburgh
-Employee Relations Procedures and Guidelines
-General Policies and Guidelines
-Employee Services
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Retirement From the University of Pittsburgh
Retirement from the University of Pittsburgh
Although you may retire at any time, official retirement from the University is
accorded only if you are 62 years of age or older. When you officially retire
from the University, you may continue to participate in selected benefits,
programs, and services. Faculty and staff hired on or after July 1, 2004 must
meet an age and service requirement equal to 85 with a minimum age of 62 to
qualify for retiree medical, life insurance, and other retirement benefits.
Retiree Medical
The Defined Dollar Benefit Program (DDB), the University’s retiree medical
program, is effective July 1, 2004.
- The DDB program is the only option available to retirees and spouses/domestic partners age 65 or older.
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The DDB program is an option for retirees and their spouses age 62 to 65.
(Alternatively, the retiree and spouse may elect the University’s active
medical coverage during this period.)
General Information
The Defined Dollar Benefit (DDB) program extends the cost-sharing
concept that the University has adopted for active medical coverage providing a
reimbursement account for you and your eligible spouse/domestic partner upon
retirement.
On the first of each month, a fixed amount of credits will be applied to your
account that may be used for reimbursement of retiree medical coverage. Your
eligible spouse is the person you are legally married to at the time of your
retirement. Your eligible domestic partner is the person you have designated on
an approved affidavit that is filed with the University.
Credits will not accrue while you or your spouse/domestic partner are covered
by the University’s active medical plans.
The amount of credits provided will be reviewed annually and increased in
accordance with the medical component of the Consumer Price Index. Your credit
balance will accrue from month to month and year to year if the cost of retiree
medical coverage does not exceed the number of credits in your account. Credits
will also accrue if you have coverage through a spouse/domestic partner or
another employer.
To the extent the retiree medical plan costs more than the credits in your
account, you will owe the balance and will be billed accordingly. Credits may
be used to reimburse you or your spouse for retiree medical coverage only.
Credits will not be used for reimbursement of any other active employee
coverage outside the University.
Retiree Medical Coverage—Pre–65
The pre-65 retiree medical coverage is a continuation of the same
plans available to active faculty and staff. The medical plans are administered
by UPMC Health Plan. Participants have the option to disenroll from the University’s sponsored
coverage and elect to take the defined dollar benefit (DDB) credits at any time
at age 62 or older. However, once you elect to take DDB credits, you do not
have the option to revert back to University coverage on a cost-sharing
basis. The plans will be available to you but you must apply the DDB
credits against the full cost of coverage.
Changes in elections may be made if you have a family status change
that includes gain or loss of employment, divorce, deletion of a dependent,
death of a spouse, relocation, etc.
The University’s contribution continues as usual, and you will be billed for
the equivalent of your usual payroll deduction.
Retiree Medical Coverage at Age 65 or Older
The current post-65 options are:
- Major Medical
- Security Blue - Medicare HMO
- UPMC for Life - Medicare HMO
- UPMC for Life- Medicare PPO
It is possible the medical plan options may change from year to year for post-65 participants.
Major Medical
Major Medical is a supplement to Medicare Parts A and B. Medicare Parts A and B
do not provide full coverage. There are high dollar deductibles, co-insurance,
and other “gaps” in coverage. As a result, participants may purchase a Medigap
policy as well. The cost for Medigap coverage is paid by the retiree. The
premium varies by the plan you choose and the region of the country in which you reside.
The University requires retirees to elect a Medigap policy to be eligible for Major Medical coverage.
The primary reason for electing Major Medical is the prescription drug
coverage. After meeting certain deductibles and co-payments, the Major Medical
plan covers prescription drugs and does not have a plan maximum. Medicare Parts
A and B plus a Medigap policy work in conjunction with Major Medical to provide
a valued avenue of coverage for post-65 retirees.
Medicare HMOs
An attractive alternative of increasing popularity is the Medicare HMOs, which
incorporate the coverages provided under Medicare Parts A and B, Medigap, and
Major Medical. As a result, retirees may obtain broader coverage with less
paperwork. However, services are limited to the area in which the network resides.
Currently the University offers two Medicare HMOs. They are available in most
counties in Western Pennsylvania. Security Blue is provided through Highmark
Blue Cross and Blue Shield. UPMC for Life is through UPMC Health Plan. Both
presently offer unlimited prescription drug coverage.
UPMC for Life–PPO
The UPMC for Life Medicare PPO offers a broad range of in-network benefits
generally at 100 percent coverage utilizing the UPMC network. Additionally, for
those who travel for extended periods of time, this plan also provides
comprehensive out-of-network coverage generally on an 80 percent plan/20
percent member cost share basis.
During the six-month period immediately preceding your retirement from the
University, you should contact the Social Security Administration and the
Benefits Section of the Office of Human Resources for additional information.
The retiree section of the Human Resources Web site also contains a wealth of
information.
Retiree Dental/Vision Healthcare Plans
Retirees under age 65 may elect to continue the active dental and/or vision
coverage in effect at the time of retirement. Upon reaching age 65, the
University offers voluntary group dental and vision coverage. Additionally, the
Medicare HMOs and PPOs offer limited dental and vision coverage.
Education Benefits at Time of Retirement
Depending upon length of service, status, and enrollment immediately prior to
official retirement, you may receive the education benefits that were
applicable when you were actively employed. See Policy 07-11-02. Additional
information concerning provisions for a spouse and/or dependent children is
available from the Benefits Section of the Office of Human Resources.
Life Insurance at Time of Retirement
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 per year for each
year of service. AD&D insurance cancels at retirement. The difference
between your basic life insurance as an active employee and the amount provided
in retirement may be converted to an individual life insurance policy by
applying to the carrier within 31 days after retiring and paying the actuarial
rate of the carrier. Any optional insurance coverage in effect at the time of
retirement is portable. You may continue the optional coverage at attractive
group rates.
Continuation of Coverage through COBRA
Through the University, various provisions and alternatives apply to your
spouse, whether less than 65 years of age or over the age or 65. In addition,
when you reach age 65, there are provisions through the University for
dependent children under age 19 years, or age 19 to 25 years if a full-time
dependent student. When no longer eligible through the University because of
age or student status, you will receive information and may elect to continue
medical coverage for your dependent for a specified period of time through COBRA.
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