Early retirement plan increases
lifetime maximum
Updated
Effective
Note: The
additional benefits payable applies to expenses incurred on or after
The lifetime maximum benefit for each individual covered under the Railroad
Employees National Early Retirement Major Medical Benefit Plan (United
HealthCare’s Policy GA-46000) is adjusted each year based on the medical cost
component of the Consumer Price Index. In the first year of this new provision
enacted to coincide with the changes in Railroad Retirement, the lifetime
maximum benefit was increased to $79,000.
An important
consideration for individuals thinking about retirement is health coverage
after retirement. The information below summarizes the requirements under the
new legislation.
Eligibility Rules
For Age Annuitants:
· You apply for a 60/30 annuity for which
you are eligible:
v
On
or after the date you reach age 60, or
v
Anytime
during the three months before your 60th birthday, provided you continue
working into the month before the month in which you turn age 60.
· On the day before you apply for your
annuity, your must be covered (other than under COBRA) under the Railroad
Employees National Health and Welfare Plan.
For Disability Annuitants
· You have a current connection with the
railroad industry.
· You have applied for a disability
annuity to which you are entitled.
· You are covered under the Railroad
Employees National Health and Welfare Plan (other than by COBRA) on the day
before the latest of the following dates:
v
The
date you reach age 60
v
The
date you became disabled
v
The
date your railroad service equals 30 years
In addition to the changes in eligibility rules, the lifetime maximum under
GA-46--- will be adjusted each year by the medical cost component of the Consumer
Price Index. The lifetime maximum for 2004 will be $88,100.
v
If you retire and are eligible for GA-46000, you can also purchase supplemental
coverage under GA-23111, Plan E. Generally, Plan E pays 70% of the expenses not
paid under GA-46000 and has a lifetime maximum of $200,000.
When you retire, your railroad will not report you to United Healthcare as a
retiree eligible for GA-46-000. You must enroll yourself and your family with
United Healthcare. You can do this in two ways:
v
You
can purchase GA-23111, Plan E. Your eligibility for GA-46000 will be verified
when your enrollment for that coverage is processed. ID cards for both GA-46000
and GA-23111 will be sent to you. A booklet explaining the Plan E benefits and
an Enrollment form can be obtained by calling United Healthcare.
v
You
can complete and return the "Retiree and Dependent Information" form
found in the center of the GA-46000 employee booklet. Your eligibility will be
verified and a GA-46000 ID card will be sent to you. You can obtain a GA-46000
booklet from your employer or union representative.
If you have any questions about your eligibility for GA-46000 or the benefits
provided under the Plan, call United Healthcare at
This news item was provided by United Healthcare.)