ROAD TO RETIREMENT:
HOW TO PLAN FOR YOUR FUTURE
Road to Retirement
A program for Purdue employees
approaching retirement.
Purdue University Official Retiree
Faculty or Staff members
•age 55 or more
•with at least 10 years of service
AND
•age plus years of service equals or exceeds 70
Purdue University
Retirees Association (PURA)
•Free Membership
•Monthly luncheons with interesting speakers
•Trips and tours
•Campus and community activities
•Quarterly Newsletter
•Volunteer Opportunities
See the Retiree Brochure and the
PURA website for information www.purdue.edu/retirees
From Work to Retirement -orThings I Wish I Had Thought About !
Important Considerations
Short Range and Long Range Goals
Where to Retire
Family Responsibilities
Financial Security
Legal Security
Personal Emotional Needs
Benefit Programs for Official Retirees
•Complimentary “A” parking permit
•Fee privileges
•Staff rates on tickets, recreational facilities
•Nursing Center services
•Wellness programs (Flu Shot, EAP)
•University email and data network remote facilities
Benefit Programs for Official Retirees
•Optional participation in University-sponsored
group medical & Rx insurance
•Optional participation in Group Life Insurance plan
to age 65
Medical Plan Options
Plans are reviewed annually
and are subject to change
Medical Plan Coverage
Retiree or Spouse/SSDP Under Age 65
•Continue on same plans as active faculty and staff
until age 65.
•You pay the full cost.
•Can change plan during annual open enrollment.
•At age 65, can join a 65+ Purdue retiree group plan.
Medical Plans - Retirees Over Age 65
Definitions
•Medicare Part A – Hospital (Inpatient)
-No monthly premium - Paid during working years
•Medicare Part B – Medical (Outpatient)
-Sign up at 65 or at full retirement
-Base Premium for 2013 is $104.90/month
Definitions - Continued
•Medicare Part C - Private Insurance
Medicare Advantage - PPO, HMO, Private Fee for Service
Pay Part B monthly premium + insurance premium
•Medicare Part D - Prescription Drug Coverage
Pay monthly premium to insurance company
•Parts B, C and D have a Premium
Parts B & D have penalty if not joined when eligible
Special Enrollment Period (SEP) at retirement
Definitions - Continued
Creditable Coverage, Medicare Parts B and D
•Until time of full retirement have been covered by
employer’s medical & Rx insurance
•Part B and/or Part D penalty may apply if cannot show
creditable coverage past age 65
•Employer will provide evidence of creditable coverage
Medical Plans 2013
Retirees Over Age 65
PURcare – Medical (incl. Vision) and Prescription Drug
•Supplement to Medicare Parts A and B through UnitedHealthcare
•Excellent Nationwide coverage
•See any doctor or use any provider that accepts Medicare for medically
necessary coverage
•Includes Medicare Part D prescription drug coverage
•International coverage for illness/accident
•Extra coverage above individual plans (e.g. Hospital, Skilled Nursing)
Medical Plans 2013
Retirees Over Age 65
UnitedHealthcare Group Medicare Advantage PPO
•Medicare Part C private insurance
•A type of Medicare Advantage Plan approved by Medicare
Nation-wide PPO network
Out of Network - any Medicare doctor or facility that will accept
payment from the plan
Payment to provider is the same reimbursement as Medicare
Includes medical/hospital and Part D prescription coverage
Important Retirement Decision!
Group Health Plan Eligibility
•Official Retiree, Qualifying Spouse/SSDP
•Enrolled in Medicare Part A & B
•Age 65 (PURcare)
If you choose an individual health
insurance plan, you will not be able to
return to a Purdue retiree group plan.
2013 PURcare Senior Supplement
•PURcare premium for 2013 is $268.32/month/person
A decrease of $6.72 from the 2012 premium
Veterans with Rx coverage from VA ($191.02)
•$300 annual deductible (Medicare Parts A and B)
Once satisfied, plan pays 100% medical coverage for
rest of year
•$150 annual Vision benefit with no deductible
2013 PURcare Prescription Plan
Prescription drug coverage
•Exceeds coverage required under Medicare Part D legislation
Open formulary (FDA approved, medically necessary)
No gap in coverage (donut hole)
No step therapy
Few prior authorizations or limited quantities
2013 PURcare Prescription Plan
Prescription drug coverage
•No deductible
•50% co-insurance locally (30 or 90 day supply)
•45% co-insurance by mail order (90 day supply)
•2013 maximum co-pay allowed
Tier 1
$10 /month
Tier 2
$45 /month
Tier 3-4 $95 /month
•No cost after $4,750 out of pocket
PURcare Vision Benefit
A vision rider of $150 per year for expenses
not allowed by Medicare
•No Network, use any provider
•No 12 month waiting period requirement
•May use for frames, lenses, second pair of glasses,
refraction
•Not for refraction/glasses after cataract surgery
2013 Group Medicare Advantage PPO
•UnitedHealthcare Medicare Advantage PPO
Premium is $185.96 per person per month for
medical/hospital and prescription drug coverage
Office co-pay of $15 for primary and $25 for specialist
In-patient hospital co-pay is $200/day
$3000 Annual Maximum out-of-pocket for medical/hospital
Prescription co-pays do not count toward out-of-pocket max
2013 Group Medicare Advantage PPO
•Prescription Drug Coverage
Defined formulary (not all drugs covered)
Drug tier determines cost - $4, $28, $58, 33%
Tier 1 generic drugs are covered during the Gap –
you pay only your co-pay.
Step therapy, prior approval and limited quantities
on some covered drugs
Plan Comparison
PURcare
•Higher monthly premium
($268.32)
•Lower yearly out-of-pocket costs
for medical ($300)
•Broader Rx coverage with few
restrictions and no gap in
coverage
•100% Rx coverage during
catastrophic phase
Medicare Advantage PPO
•Lower monthly premium ($185.96)
•Higher yearly out-of-pocket costs for
medical ($3000)
•More limited Rx coverage, but with
coverage of Tier 1 generics in the
gap
•More Rx restrictions and some cost
during catastrophic phase
Additional Benefits for Both Plans
•SilverSneakers
•Newtone, Curves, Ismail Center, Snap Fitness, YMCA
•Over 10,000 participating clubs nationwide
•NurseLine
•Optum Discount
Why a Purdue Retiree Group Plan?
•Purdue HR staff assigned to help you
•Not age rated – premiums do not increase with age
•No yearly re-enrollment for Medical or Part D Rx
•Better benefits than most individual plans offer
•PURA Benefits Committee works on your behalf to
negotiate best possible plans
Message from PURA Benefits Committee
“PURA believes that prudent retiree health insurance
decisions should be determined by value, service and
dependability. Your health insurance is important to your
well-being and peace of mind. Choosing an insurance plan
on the basis of price alone can be risky and costly.”
Life Insurance
Life Insurance Under Age 65
You are eligible to:
•Continue Basic Term Life (1.5x Salary) and Additional
Term Life – all or part – by paying the full cost
•Continue all or part of coverage for dependents
•Port (extend) Accidental Death & Dismemberment
coverage for you and/or your dependents
Cost Example: Age 63
Salary, $30,000
•Current Basic Term Coverage of $45,000
(paid by Purdue at 1.5 x Salary)
= $29.70/month
•Current Additional Coverage of $60,000
(paid by you at 2x salary)
= $39.60/month
Life Insurance age 65 - 69
You are eligible to:
•Convert Basic Term Life (1.5x Salary) to an individual
policy with Minnesota Life by paying the full cost
Cost is dependent upon age and amount of coverage
•Port (extend) Additional Term Life by paying the full
cost
Cost is dependent upon age and amount of coverage
Cost Example: Age 66
Salary, $30,000
•Current Basic Term Coverage of $45,000
(paid by Purdue at 1.5 x Salary)
= $236.92/month
•Current Additional Coverage of $60,000
(paid by you at 2x salary)
= $128.40/month
Life Insurance age 70+
•If you have ported (extended) your Additional Term Life
coverage up to this point, or if you are retiring past age 70,
you are guaranteed conversion of the Basic/Additional Term
Life coverage. You can keep this coverage for life by paying
the full cost.
•Cost is based on age and coverage amount.
Cost Example: Age 72
Salary, $30,000
•Current Basic Term Coverage of $45,000
(paid by Purdue at 1.5 x Salary)
= $329.93/month
•Current Additional Coverage of $60,000
(paid by you at 2x salary)
= $439.90/month
Retirement Should
be a Reward for a
Job Well Done!
Questions?
Thank you for attending.
Kate LaMar
Human Resources
klamar@purdue.edu