POST RETIREMENT BENEFITS

Transcription

1 POST RETIREMENT BENEFITS EFFECTIVE OCTOBER 1, 2017 EMPLOYEES AGE ON OCTOBER 1, 2017 BIRTHDATE OCTOBER 2, OCTOBER 2, 1965

2 EMPLOYEES WHO ARE BORN BETWEEN OCTOBER 2, 1955 AND OCTOBER 2, 1965 HAVE A CHOICE OF TWO OPTIONS OPTION 1 PARTICIPATE IN AN ENRICHED UNIVERSITY CONTRIBUTION TO THE TIAA 403(b) DEFINED CONTRIBUTION PLAN OPTION 2 PARTICIPATE IN A POST RETIREMENT HEALTH BENEFIT PLAN

3 OPTION 1 ENRICHED TIAA 403(b) CONTRIBUTION EMPLOYEES CHOOSING THIS OPTION WILL RECEIVE A 2% UNIVERSITY CONTRIBUTION TO THE TIAA DEFINED CONTRIBUTION PLAN WITHOUT REQUIREMENT FOR ANY PERSONAL DEFERRAL EMPLOYEES CHOOSING TO MAKE A PERSONAL CONTRIBUTION TO THE DEFINED CONTRIBUTION PLAN MAY ADJUST THEIR CONTRIBUTIONS ON A QUARTERLY BASIS

4 EMPLOYEES WHO CHOOSE OPTION 1 MAY CONTRIBUTE 2% - 5% OF THEIR ANNUAL BASE WAGES TO THE DEFINED CONTRIBUTION PLAN AND RECEIVE AN ADDITIONAL UNIVERSITY CONTRIBUTION ACCORDING TO THE FOLLOWING SCHEDULE: 403 (b) Employee Elective Deferral Employer Minimum Contribution Employer Matching Contribution Total Employer Contribution 5.00% 2.00% 5.00% 7.00% 4.00% 2.00% 3.60% 5.60% 3.00% 2.00% 2.20% 4.20% 2.00% 2.00%.80% 2.80% 1.00% 2.00% 0.00% 2.00% NO PROVISIONS OF THE ENRICHED OPTION WILL BE AVAILABLE TO EMPLOYEES MAINTAINING A POST-RETIREMENT HEALTH BENEFIT OPTION.

5 THE CHANGE TO THE UNIVERSITY S CONTRIBUTION FOR THE DEFINED CONTRIBUTION PLAN DOES NOT PRECLUDE FUTURE ENHANCEMENTS OR CHANGES TO THE SCHEDULE. ASSETS IN THE DEFINED CONTRIBUTION PLAN ARE ACCESSIBLE WHEN THE PARTICIPANT IS AGE 59 ½ AND NO LONGER EMPLOYED BY THE UNIVERSITY.

6 OPTION 2 PARTICIPATION IN POST-RETIREMENT HEALTH BENEFITS PLAN INDIVIDUALS CHOOSING TO RETIRE BEFORE AGE 65 (AGE 62-64) WITH 10 YEARS OF SERVICE WILL HAVE CONTINUED COVERAGE UNDER THE BRADLEY UNIVERSITY HEALTH PLAN UNTIL AGE 65 AT THE APPLICABLE RETIREE PREMIUM RATE. WHEN AGE 65 IS REACHED, RETIREE MUST ENROLL IN MEDICARE PARTS A & B AND MEDICARE BECOMES THE PRIMARY INSURER.

7 OPTION 2 PARTICIPATION IN POST-RETIREMENT HEALTH BENEFITS PLAN (continued) AFTER AGE 65 AND ENROLLED IN MEDICARE, THERE IS A CHOICE OF RETAINING COVERAGE UNDER THE BRADLEY HEALTH PLAN OR ENROLLING IN THE HUMANA MEDICARE ADVANTAGE PLAN (OR ITS SUCCESSOR PLAN) FOR SUPPLEMENTAL COVERAGE.

8 IF EMPLOYEE RETIRES AFTER THE AGE OF 65, ENROLLMENT IN MEDICARE PARTS A & B IS REQUIRED UPON RETIREMENT. THERE IS A CHOICE OF CONTINUING COVERAGE UNDER THE BRADLEY HEALTH PLAN OR ENROLLING IN THE HUMANA MEDICARE ADVANTAGE PLAN (OR ITS SUCCESSOR PLAN) FOR SUPPLEMENTAL COVERAGE.

9 PREMIUM STRUCTURE THE PREMIUM WILL BE SPLIT EQUALLY. 50% PAID BY THE UNIVERSITY AND 50% BY RETIREE. CURRENT COST BELOW: BRADLEY PLAN - RETIREES ON MEDICARE: SINGLE COVERAGE - $ % OF PREIMIUM SINGLE + 1 COVERAGE - $ % OF PREMIUM HUMANA MA PLAN RETIREES ON MEDICARE. SINGLE COVERAGE $ % OF PREMIUM SINGLE + 1 COVERAGE $ % OF PREMIUM

10 EMPLOYEES ELECTING TO PARTICIPATE IN POST-RETIREMENT HEALTH INSURANCE WILL NOT RECEIVE THE ADDITIONAL 2% UNIVERSITY CONTRIBUTION TO THEIR TIAA DEFINED CONTRIBUTION PLAN. THEY MAY CONTINUE TO PARTICIPATE IN THE TIAA 403(b) DEFINED CONTRIBUTION RETIREMENT PLAN WITH THEIR CURRENT 5% CONTRIBUTION WITH A 5% UNIVERSITY MATCH. THESE CHANGES DO NOT PRECLUDE FUTURE CHANGES TO THE RETIREE BENEFIT PLAN OR REDUCTION/IMPROVEMENTS TO THE BENEFIT, INCLUDING PARTICIPATION IN A PRIVATE EXCHANGE.

11 WHAT ACTION IS REQUIRED?? ELIGIBLE EMPLOYEES WILL BE ASKED TO SELECT AN OPTION AVAILABLE TO THEM, CHOOSING EITHER THE POST-RETIREMENT HEALTH BENEFIT OR THE ADDITIONAL 2% UNIVERSITY CONTRIBUTION MADE TO THE TIAA DEFINED CONTRIBUTION PLAN. THE SELECTION MAY NOT BE RESCINDED ONCE A CHOICE IS MADE. THE DEADLINE TO MAKE A SELECTION IS APRIL 17, 2017.

12 WHAT ACTION IS REQUIRED?? TO CONSIDER AND/OR MAKE YOUR ELECTION, LOG IN TO THE BRADLEY EMPLOYEE SELF SERVICE PORTAL (BESS) WITH YOUR BRADLEY USER ID AND PASSWORD. CLICK ON THE POST-RETIREMENT HEALTH BENEFITS OR ENRICHED TIAA CONTRIBUTION OPTION ELECTION FORM LINK ON THE LEFT NAVIGATION BAR UNDER THE POST-RETIREMENT BENEFITS HEADING. EVENTUALLY YOU WILL NEED TO COMPLETE THE FORM, SELECTING EITHER THE POST-RETIREMENT HEALTH BENEFIT OPTION OR THE ENRICHED TIAA CONTRIBUTION OPTION, TYPE YOUR NAME IN THE SIGNATURE BOX AT THE BOTTOM OF THE FORM AND CLICK SAVE AND SUBMIT.

13 WHAT ACTION IS REQUIRED?? THE DEFAULT OPTION FOR EMPLOYEES WHO DO NOT SUBMIT THE ELECTION FORM TO THE HUMAN RESOURCE DEPARTMENT THROUGH THE BRADLEY EMPLOYEE SELF SERVICE (BESS) PORTAL, BY APRIL 17, 2017, IS AUTOMATIC ENROLLMENT IN THE ENRICHED TIAA CONTRIBUTION OPTION.