Medical Plans for Pre-65 Retirees

Retirees and their eligible spouses/domestic partners that are between the ages of 62 and 65 have two choices:

  • Continue with the same coverage as active faculty and staff. You will continue to be responsible for your cost share which on average is 20% of the total cost, OR
  • Start receiving the Defined Dollar Benefit (DDB) credits. The credits adjust annually. You may take the credits and purchase retirement coverage elsewhere or you may “bank” the credits for future use if you have other coverage. Please refer to the chart in the section titled Defined Dollar Benefit Program. DDB credits cannot be used to purchase active coverage through another employer.
  • Spouses/domestic partners under age 62 are responsible for the full premium until cost sharing begins at age 62.

As a reminder, the medical plans offered to eligible spouses/domestic partners prior to age 65 are:

Listed below are a few examples of what usually takes place if someone retires prior to age 65:

  1. Many retired faculty and staff members who had University coverage prior to retirement continue with that same coverage until they reach age 65.
  2. Some retired faculty and staff enroll in a spouse/domestic partner’s employer’s plan. That spouse may be employed by the University of Pittsburgh or elsewhere.
  3. Some retired faculty and staff enroll in the active medical plan of another employer. 

In examples two and three above, you are eligible to receive DDB credits if you have coverage elsewhere. The only exception is that you cannot obtain active coverage from the University of Pittsburgh and receive DDB credits at the same time.