Healthcare in Retirement
Social Security recipients and their spouses are eligible at age 65 for Medicare health insurance.
If an employee has 10 or more years of service in a full-time benefit-eligible position, he/she may retire as early as age 59½, and continue participation in the group health insurance plan until age 65, at which time Medicare coverage begins. Assuming the employee meets the qualifications, the University's retiree health benefit that is in effect at that time will then be available at age 65. Retiree health insurance benefits are determined by date of hire.
For employees hired before April 1, 2003 who retire after July 1, 2008, the University will provide up to a total of $35,000 for you (and up to an additional $35,000 for eligible spouses) toward your health care at retirement. The University makes contributions in annual installments to a Health Reimbursement Account (HRA), which is managed by Towers-Watson (ExtendHealth) Health & Medicare Exchange. These funds are to be used for reimbursement of premiums paid for Medicare Supplement Plans, Medicare Part D prescription drug premiums and other medical expenses that are incurred in retirement. Contributions to the HRA are tax advantaged contributions.
For employees hired on or after April 1, 2003, the University makes monthly contributions to the TIAA Retirement Health Plan (RHP) all full-time employees who have attained age 40 and have completed two years of benefit eligible service. The University contributions, along with any voluntary contribution you make, are invested through TIAA. These funds are directed into the TIAA LifeCycle Funds that closest meets the year of your 65th birthday.
The TIAA RHP provides a tax advantaged way to invest and accumulate assets to pay for your insurance premiums and other health expenses in retirement with investment and administrative services provided by TIAA and ConnectYourCare, a third party claims processor.