Post-Employment Health Benefit. For Eligible Employees Who Retire on or After April 1, 2012 Option A, B, or C

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1 Post-Employment Health Benefit For Eligible Employees Who Retire on or After April 1, 2012 Option A, B, or C

2 Eligibility-Option A As of April 1, 2012 were on City payroll and either (i) have 25 years of Service Credit on or before April 1, 2012, or (ii) were eligible to retire on or before April 1, If an eligible employee who elected Option A terminates City employment before retirement, and becomes a Deferred Member, the eligible employee will no longer be eligible for Option A, and will instead receive Option C. Eligible employees must have elected a benefit option. Once elected, the choice is irrevocable.

3 Eligibility-Option B An eligible employee must (i) have been on City payroll on April 1, 2012, and (2) remained employed by the City until he or she retires from City service. If an eligible employee who elects Option B on or before retirement, and becomes a Deferred Member, the eligible employee will no longer be eligible for Option B, and will instead receive Option C. Eligible employees must have elected a benefit option. Once elected, the choice is irrevocable.

4 Eligibility-Option C Eligible employees must either have been on City payroll or a Deferred Member on April 1, General Employees: Age 55 with 20 Service Credit Years or age 62 with 10 Service Credit Years Safety Employees: Age 50 with 20 Service Credit Years or age 55 with 10 Service Credit Years If less than 20 years of service, benefit is reduced Eligible employees must have elected a benefit option. Once elected, the choice is irrevocable.

5 Option A Defined Benefit May obtain retiree health coverage upon retirement under any available City-sponsored health insurance plan or any other health insurance plan of their choice. The City will pay or reimburse for health insurance premiums (which may include Medicare premiums) up to $9, for Fiscal Year 2016 ($ per month), and will increase 2% annually. If the eligible employee has less than 20 years of service credit, the benefit is prorated. SDCERS tracks service credit years. Reciprocity is not applicable to this benefit.

6 Option A Required Employee Contribution Throughout the course of employment, including all periods the employee is not actively providing service to the City, the eligible employee will pay $32.11 per pay period on a post-tax basis, beginning with the pay period ending May 25, These contributions will be irrevocable and deducted on a bi-weekly, post-tax basis and will end upon retirement.

7 Option B Defined Benefit May obtain retiree health coverage upon retirement under any available City-sponsored health insurance plan or any other health insurance plan of their choice. The City will pay or reimburse for health insurance premiums (which may include Medicare premiums) up to $5,500 per year ($ per month). There is no annual adjustment or increase in this amount over the course of retirement. If the eligible employee has less than 20 years of service credit, the benefit is prorated. SDCERS tracks service credit years. Reciprocity is not applicable to this benefit.

8 Option B Required Employee Contribution Throughout the course of employment, including all periods the employee is not actively providing service to the City, the eligible employee will pay $16.05 per pay period on a post-tax basis, beginning with the pay period ending May 25, These contributions will be irrevocable and deducted on a bi-weekly, post-tax basis and will end upon retirement.

9 Option A & B Benefit Description Defined benefit Reimbursement of individual medical insurance plan premium up to maximum monthly allowance Examples of Costs NOT eligible for reimbursement: Dependent coverage Annual deductibles Co-pays Prescriptions Medicare Part D Specialty insurance (dental, vision, cancer, etc.)

10 Option A & B Benefit Description (Continued) If enrolled in a City-Sponsored Health Plan, monthly premium, up to monthly limit, will be automatically deducted from monthly retirement benefit. If enrolled in a private health plan, submit proof of payment for reimbursement. Approved requests, up to monthly limit, will be reimbursed on monthly retirement benefit. To be reimbursed in a timely manner, complete and accurate documents must be submitted to SDCERS no later than the 10 th of each month.

11 Option C Defined contribution No required employee contribution Lump sum contribution by the City, once funded, employee determines how the funds are invested. If no selection is made, funds are allocated to the default fund. Funding amount is based on age, City Service Credit and Member status (general or safety) SDCERS tracks service credit years Reciprocity is not applicable to this benefit

12 Option C Defined Contribution (Continued) Refer to funding tables located within Chapter 2, Article 9, Division 1 of the Municipal Code posted on t09division01.pdf Once eligibility has been met, the City has 60 days to fund the account. If not yet funded, submit address updates to SDCERS and Risk Management Contact Risk Management at (619) To determine when account will be funded To determine what amount will be funded

13 Option C Benefit Description Health Reimbursement Arrangement that reimburses eligible employees for medical expenses incurred by employee, employee s spouse or qualified children (under age 26) and dependents. Examples of eligible expenses for reimbursement Medical, dental, vision insurance premiums Note: Premiums subsidized by the Premium Tax Credit through a state or federal marketplace exchange are NOT eligible for reimbursement Qualified medical, dental, and vision expenses not covered by insurance (i.e. co-pay, deductible) Note: Out-of-Pocket expenses for health insurance through a state or federal marketplace exchange may NOT be eligible for reimbursement Tax-qualified long-term care insurance premiums

14 Option C Benefit Description (Continued) Third Party Administrator (TPA) Once funded, TPA will mail enrollment packet Must complete and submit enrollment form to complete enrollment process Submit claims for reimbursement Claims will not be accepted if enrollment form is not received McGregor Retired Member and represented by a Labor Organization Contact McGregor at (888) or Labor Organization HealthSecure/Meritain Unrepresented/unclassified Contact HealthSecure/Meritain at 1 (888) or Risk Management at (619)

15 COBRA- Retirees I ll be retiring soon How do I enroll into COBRA? COBRA packets are mailed to the employee s home address after their termination date is officially entered in OneSD by Personnel. After the packet is received, complete and return the following to Risk Management/ Flexible Benefits: COBRA Election form. The application for each plan you are continuing coverage for. Check made out to City Treasurer for initial premium payment. (COBRA coverage will not be activated until payment is received) To continue Life Insurance coverage, complete and mail the conversion letter(s) directly to The Hartford.

16 COBRA- Retirees How do I make changes to my COBRA enrollment during Open Enrollment? An Open Enrollment packet will be mailed to your home address during the first week of June. Enclosed you will find the following: Letter of upcoming changes Enrollment Change form FY 2016 Premium Rate Sheet Complete and return the Enrollment Change form if you would like to make changes. Coverage will continue as is if an Enrollment Change form is NOT received by the deadline.

17 COBRA- Retirees How do I enroll into Cal-COBRA for an additional 18- months of coverage? 8 to 10 weeks before coverage ends you should receive a Cal-COBRA conversion packet directly from your medical provider. If you do not receive packet, contact the plan provider directly to request one. To be eligible there must be NO lapse in coverage, and all premiums for the first 18 months of COBRA must be paid. Cal-COBRA is for MEDICAL coverage ONLY. If you would like to continue dental or vision coverage you must contact the provider(s) directly to inquire about converting to an individual plan.

Getting Ready for Retirement 2018

Getting Ready for Retirement 2018 Getting Ready for Retirement This presentation summarizes the benefits you may be eligible for in retirement. For more detailed information, please refer to the Research