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
-
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.)
-
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.
-
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
-
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.
-
The number of credits
will be based upon the
retiree’s years of continuous service
with the
University.
- Years of service will be based
upon the employee’s anniversary
date. Partial years of service will
be granted on a prorated basis.
- Breaks in service - Employees who
meet the minimum eligibility requirements
(refer to “Eligibility”)
will have all time worked for the
University count towards this benefit,
regardless of any breaks in service
which may have occurred. Breaks in
service, however, will not be counted
as time worked in the formula.
- Each year of service earns credits
of $3.33 per month during retirement.
For example: a retiree with 15 years
of service would receive 15 x $3.33
per month, or $49.95 per month in
flex benefit credits for the purchase
of medical coverage. A retiree with
15 years and 6 months of service would
receive 15 and 6/12 x $3.33 per month,
or $51.61 per month in credits.
-
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.
-
There is no maximum number
of years of service for which credits
will be accumulated.
-
Credits may be used to
purchase medical coverage directly from
an insurer of the retiree’s choice
(referring to “Purchase of Coverage”).
-
Coverage for eligible
dependents may be purchased with excess
credits and/or retiree contributions.
-
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.
-
Retiree contributions
will be necessary to pay the difference
between the plan cost and the available
credits.
-
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
-
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.
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.
-
Duquesne University will
issue payment checks, based upon the retiree’s
credit formula, on a quarterly basis.
-
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
-
The retiree is responsible
for reviewing the dependent qualifications
and enrollment procedures with the insurance
carrier of their choice.
-
for dependents. Eligible
dependents are defined
as:
- A spouse enrolled under the group
medical program prior to the Duquesne
University employee’s retirement.
- A dependent(s) enrolled under the
group
medical program prior to the Duquesne
employee’s retirement.
-
Death of Retiree
- Upon the death of the retiree, banked
credits can be used by an eligible surviving
dependent to continue coverage.
- 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.
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