The Retiree Medical
Plan, effective for employees retiring after
July 1, 1994, is based upon the benefits credits
concept that is similar to the DUFLEX plan
that will help retirees purchase medical coverage
from the insurer of their choice during retirement.
The number of benefit credits allotted will
be determined by the retiree's years of active
service. The procedures to be followed are
outlined below.
A. PLAN DESIGN
Eligibility
1. The minimum requirement for participation
in this plan will be the attainment of age
62 and 10 years of continuous service with
the University. If this minimum eligibility
requirement is met, all other service with
the University will count in the credit formula,
even if breaks in service have occurred. Breaks
in service, however, will not be counted as
time worked in the formula. (For example:
An employee, age 62, had 5 years service;
left the University for 3 years; then returned
for 10 years. This employee would be entitled
to credit for 15 years of service.)
2. Early Retirees (pre-age 65) — will
be eligible to convert their active plan under
the COBRA provisions or they may purchase
a policy on their own.
3. Regular Retirees (age 65 and older) —
must purchase Medicare Part B and will be
eligible to select a Medicare Supplement from
the available options.
Credits and Contributions
1. Duquesne will commit to a fixed number
of "credits" to help retirees purchase
medical coverage. The number of credits allotted
will be reviewed each plan year. A credit
is the same as a dollar.
2. The number of credits will be based upon
the retiree's years of continuous service
with the University.
3. Each month after
retirement, the retiree will receive the number
of credits indicated by the formula. These
credits may be used to the extent needed for
the purchase of medical coverage. Excess credits
will automatically be carried forward for
use in future years.
4. There is no maximum number of years of
service for which credits will be accumulated.
5. Credits may be used to purchase medical
coverage directly from an insurer of the retiree's
choice (referring to "Purchase of Coverage").
6. Coverage for eligible dependents may be
purchased with excess credits and/or retiree
contributions.
7. If at retirement, the retiree wants to
delay the use of credits, (for example, because
of coverage by a working spouse, etc.) the
delay may be accomplished by completion of
the waiver section of the Open Enrollment
Form.
8. Retiree contributions will be necessary
to pay the difference between the plan cost
and the available credits.
9. Retirees will be responsible for notifying
the Office of Human Resource Management within
30 days of a qualified life event such as:
marriage, birth or adoption of a child, divorce
or legal separation, death, loss of eligibility,
gain or loss of employment by a spouse.
Purchase of Coverage
1. Retirees have the option of using their
credits to purchase medical coverage from
the insurer of their choice, or banking their
credits for future use.
2. Retirees purchasing medical coverage through
their own insurer must submit the name, address,
policy number, and premium due to the Office
of Human Resource Management on a timely basis.
3. Duquesne University will issue payment
checks, based upon the retiree's credit formula,
on a quarterly basis.
4. To ensure credits are not considered taxable
as income, the check will be made payable
to insurer for the benefit of (FOB) the retiree.
The retiree will be responsible for forwarding
the check to the insurer.
Dependents
1. The retiree is responsible for reviewing
the dependent qualifications and enrollment
procedures with the insurance carrier of their
choice.
2. Excess credits may be used to purchase
coverage for dependents. Eligible dependents
are defined as:
a. A spouse enrolled under the group medical
program prior to the Duquesne University employee's
retirement.
b. A dependent(s) enrolled under the group
medical program prior to the Duquesne employee's
retirement.
Death of Retiree
1. Upon the death of the Retiree, banked credits
can be used by an eligible surviving dependent
to continue coverage.
2. If there are no eligible surviving dependents,
the credits will be forfeited.
B. ADMINISTRATION
Duquesne University, through the Office of
Human Resource Management, will be responsible
for the administration of the plan internally,
or through a third party administrator.
The University, through
its Benefits and Budget committees, will review
the credit value to ascertain that the allowances
for credits meet the financial objectives
of the University, while at the same time
addressing the needs of retirees to be able
to afford medical coverage.
C. AMENDMENT AND
TERMINATION
Duquesne University reserves the right, at
its sole discretion, to amend this Plan in
whole or in part at any time and from time
to time, or to terminate it at any time, without
advance notice pursuant to the terms of the
plan document. Amendments to the plan are
made by the Office of Human Resource Management
with the approval of the Executive Vice President
for Management and Business. Termination of
the plan must be approved by the Executive
Vice President for Management and Business
and approved by the Executive committee of
the University Board of Directors.
Orig. 7/94
Rev. 01/01/00
