Please provide advance notice of your retirement as follows:

Faculty—Members of the faculty who plan to retire are asked to give 18 months advance notice to their department chair and to the Provost whenever possible.  Faculty members are also asked to provide written notice to Human Resources at least 3 months prior to their expected retirement date whenever possible.

Professional Staff—Members of the professional staff who plan to retire are asked to notify their manager and Human Resources, in writing, at least 3 months prior to their expected retirement date whenever possible.  Greater advance notice is appreciated.

·      Contact TIAA-CREF, (800) 842-2776, to request detailed information about your retirement income options, tax information, and necessary forms to initiate payments from your retirement account.

·      Only for faculty and professional staff under age 55 as of December 31, 2012, or employed by the College after December 31, 2012:  Please contact Human Resources to verify whether your Emeriti Health Account balance has vested.  Faculty and professional staff with a vested Emeriti Health Account balance upon retirement may contact the Emeriti Service Center, at (866) 363-7484, for information about accessing and using funds.

·      To enroll in an Emeriti health and/or prescription drug plan upon retiring, please call the Emeriti Retirement Service Center, at (866) 363-7484, within 90 calendar days of your retirement date.

·      Only for faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012:  To enroll in the College’s Group Health & Prescription Drug Plan as a retiree (the Highmark plan), please contact Human Resources, 291-3902, prior to your retirement date to request an enrollment form.

·      Contact the Social Security Administration, (800) 772-1213  for detailed information regarding Social Security benefits.

·      For information about Medicare, or to apply for benefits, call (800) 633-4227 or visit the Medicare website.  (College retirees and their dependents who are eligible for coverage through Medicare must enroll in Medicare Part B on the earliest possible date, in order to have supplemental health coverage through a College-sponsored plan.)If you are covered through the College’s dental plan and wish to continue your coverage, temporarily, through “COBRA”, please carefully read the COBRA notice you will receive in the mail, and respond and make payments directly to the third party administrator within the required time frame.

·      If interested in retaining the difference between your life insurance coverage as an active employee and your coverage as a retiree, please contact Human Resources, 291-3995, to obtain a life insurance conversion form, and mail it to the College’s life insurance carrier within 31 calendar days.  You will then need to pay the applicable premium as determined by the life insurance carrier.  You may also wish to assure your life insurance beneficiary designation is up-to-date; you may contact Human Resources for a beneficiary form, or obtain one from the Human Resources public eDisk folder.Prior to your last day on campus, please return any College credit cards and College keys and fobs to Human Resources. 

·     Please assure any other College property in your possession (library books, IT equipment, etc.) is properly returned.

·     Please report to the Franklin & Marshall Auxiliary Services office for a retiree identification card and a parking permit.

·     Please assure Human Resources and the Payroll Coordinator has an up-to-date mailing address for you; you may update your address through the “Inside F&M” web site.

Feel free to contact Human Resources with any questions about retirement. Faculty and professional staff planning to retire may schedule a meeting with a Human Resources Administrator to review benefits and other related information.

Retirement Savings Plan

Accumulations (contributions plus any associated investment earnings) in the TIAA-CREF retirement account of a retiring member of the faculty or professional staff may be withdrawn, “rolled over” to an Individual Retirement Account (IRA), or left invested in the Franklin & Marshall Retirement Plan.  Based on current IRS regulations, an individual who separates from service after age 59-1/2 may withdraw funds from the Retirement Plan without a tax penalty.  However, normal federal income tax will be withheld when funds are withdrawn.  It may be possible to withdraw funds prior to age 59-1/2 without a tax penalty if an individual is at least age 55 when employment ends. Retiring members of the faculty and staff are strongly advised to consult with TIAA-CREF and/or a tax specialist prior to requesting a distribution from their retirement account.

Through the Retirement Plan, faculty and staff have several options for receiving retirement income including:

  • purchasing a lifetime variable annuity with your account accumulation, which provides regular income for the retiree's life,
  • purchasing a joint and survivor variable annuity which provides regular income for the College retiree’s life and, following the retiree’s death, provides regular income during his/her beneficiary's life,
  • purchasing a fixed-period annuity which provides regular payments for the period selected by the retiree,
  • rollover of funds to an IRA,
  • systematic cash withdrawals,
  • lump sum withdrawals, or
  • a combination of these options.

Please note: Lifetime and joint and survivor annuities are irrevocable. Monthly annuity income will vary from year to year based on the previous year's investment performance.

Any money invested in the TIAA Traditional Annuity (RA) must be withdrawn in essentially equal amounts over a 10 year period.

For participants who are married at the time benefit payments commence, distribution will be in the form of a "Qualified Joint and Survivor Annuity", unless an optional form of payment is selected, with the spouse's written (and notarized) consent.  A Qualified Joint and Survivor Annuity is a monthly annuity paid for the retiree's lifetime, with a lifetime annuity payable to his/her spouse upon the retiree's death equal to 50% of the annuity income amount paid during the retiree's lifetime. If a participant is not married on the date benefits are to begin, the participant will automatically receive a lifetime annuity (regular payments for as long as the retiree lives), unless a different option is selected.

Participants may waive the Qualified Joint and Survivor Annuity or the lifetime annuity and select a different retirement income option during the 90-day period before the annuity is to begin.

As noted above, upon retirement individuals may leave their retirement contributions  invested through the College’s Plan and TIAA-CREF.  However, minimum distributions from a retiree's account generally must begin no later than the April 1st following the year in which the retiree reaches age 70-1/2.  If the minimum distribution is not withdrawn, a tax penalty, in addition to normal federal tax, may be assessed.  The required minimum distribution amount will vary by individual, and is based on factors such as age, life expectancy, and retirement account balance. TIAA-CREF will calculate the minimum distribution amount for any participant who is required to receive minimum distributions.

The forms, informational material, and income projections needed to make choices and to initiate distributions from your retirement account are available directly from TIAA-CREF.  Those planning to retire are encouraged to contact TIAA-CREF, (800) 842-2776, well in advance of their retirement date to discuss all options.  Upon request, TIAA-CREF will provide retirement income projections, discuss tax implications, and send all forms necessary to withdraw or transfer funds as applicable.

Those planning to retire are advised to read the Retirement Plan Summary Plan Description, available on the Human Resources web pages and by contacting the Human Resources office, and to consult a tax advisor.

Emeriti Health Account   

applicable to: (a) faculty and professional staff who were employed by the College in a full-time status on December 31, 2012, and under age 55 as of December 31, 2012, and (b) to those appointed to full-time positions after December 31, 2012, regardless of age

Vested funds in the Emeriti Health Account may be accessed, on a tax-free basis, at age 55 or older, following termination of employment.  Vested funds in an individual’s Emeriti Health Account may be used during retirement to help pay health, prescription, and dental insurance premiums.  Vested funds may also be used to receive reimbursement for the cost of other eligible medical expenses, such as Medicare premiums, deductibles, and co-payments.

College contributions to an employee’s Emeriti Health Account “vest” once the employee has completed 15 continuous years of full-time College employment after age 40 (as early as age 55).  The Accounts of faculty and professional staff employed by Franklin & Marshall in a full-time capacity on December 31, 2012, and who were age 50 through 54 as of December 31, 2012, vest the earlier of completion of 15 continuous years of full-time employment with the College after the age of 40, or upon completion of 10 consecutive years of full-time employment after the age of 50.  An employee’s own (elective) contributions to his/her Emeriti Health Account are immediately vested.  Again, vested funds in an individual’s Emeriti Health Account may be accessed following retirement or termination of employment, and may be used to help pay eligible medical expenses.

If a member of the faculty or professional staff terminates employment, for any reason, before College contributions to his/her Emeriti Health Account have vested, all such contributions and any associated investment earnings will be permanently forfeited by the employee.

Human Resources may be contacted if an individual needs to verify whether his/her Emeriti Health Account balance has vested.  Faculty and professional staff with a vested Emeriti Health Account balance upon retirement may contact the Emeriti Service Center, at (866) 363-7484, for information about accessing and using funds. Those planning to retire are advised to read the Emeriti Retirement Health Plan Summary Plan Description.


Benefits-eligible College Retiree— Definition

Members of the faculty and professional staff are eligible for health insurance and life insurance coverage during retirement if they meet the following requirements:

a)    If age 55 or older by December 31, 2012, and employed by Franklin & Marshall in a full-time, benefits-eligible position on December 31, 2012:  Upon termination of employment, have completed at least 10 consecutive years of full-time employment with Franklin & Marshall College after age 50 (at least age 60 upon employment termination). 

Those who retired by December 31, 2012, and faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012, remain eligible for health and prescription coverage during retirement through the College’s Highmark plan.  Those who retire(d) on or after January 1, 2013 (and did not sign a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012), are eligible for health, prescription, and dental coverage through the Emeriti Retirement Health Plan.

b)    If age 50 through 54 as of December 31, 2012, and employed by Franklin & Marshall in a full-time, benefits-eligible position on December 31, 2012:  Upon termination of employment, have completed at least 15 continuous years of full-time employment with Franklin & Marshall after age 40 (at least age 55), or 10 consecutive years of full-time employment after age 50 (at least age 60), whichever comes first.  Once meeting these requirements, a retiree may enroll in an Emeriti health and prescription plan as early as age 60.

c)     If under age 50 as of December 31, 2012, and employed by Franklin & Marshall in a full-time, benefits-eligible position on December 31, 2012, or hired by Franklin & Marshall in a full-time, benefits-eligible position after December 31, 2012, regardless of age:  Upon termination of employment, have completed at least 15 continuous years of full-time employment with Franklin & Marshall College after age 40 (at least age 55 when employment terminates).  Once meeting these requirements, a retiree may enroll in an Emeriti health and prescription plan as early as age 60.

Health and Prescription Drug Coverage During Retirement

Retirement On or After January 1, 2013; Emeriti Retirement Health Plan-- Members of the faculty and professional staff who retire(d) as of January 1, 2013, or later are eligible for medical, prescription, and dental coverage through the Emeriti Retirement Health Plan.  (Faculty members who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement prior to January 1, 2013, but retire after this date are eligible for coverage through the Highmark health and prescription plan.)

a)“Grandfathered” Employees:  Members of the faculty and professional staff employed by the College in a full-time position on December 31, 2012, and age 55 or older as of December 31, 2012, are considered “grandfathered”. 

Full-time, grandfathered employees may enroll in an Emeriti health and prescription drug plan, plus optional dental plan, during retirement if retiring: (1) at age 60 or older and (2) after completing at least 10 consecutive full years of full-time College employment after the age of 50.

The College pays a portion of Emeriti premiums on behalf of grandfathered retirees who are enrolled through Medicare Parts A and B.  Grandfathered individuals pay their full dental premiums during retirement, if they elect dental coverage.

b)“Non-grandfathered” Employees:  Full-time members of the faculty and professional staff employed in a full-time position as of December 31, 2012, and under age 55 as of December 31, 2012, plus those hired by the College after December 31, 2012, are not considered grandfathered.   

Full-time, non-grandfathered employees may enroll in an Emeriti health and prescription drug plan during retirement at age 60 or older, if they retired after completing at least 15 consecutive full years of full-time College employment after the age of 40.  Full-time, non-grandfathered members of the faculty and staff employed by the College on December 31, 2012, and who are age 50 through 54 as of December 31, 2012, may enroll in an Emeriti plan at age 60 or older, if retiring after completing either 15 consecutive years of College service after age 40 or 10 consecutive years after the age of 50, whichever occurs first.

Non-grandfathered faculty and professional staff pay their full health, prescription, and dental premiums during retirement.  They may use vested funds in their Emeriti Health Account to help offset their premiums.

Retirement Prior to January 1, 2013; Highmark Health Plan— Members of the faculty and professional staff who retired on or before December 31, 2012, and faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012, but retire after this date, are eligible for medical and prescription drug coverage during retirement through the College’s Shared Services Group Health Plan, with coverage currently provided through Highmark Blue Shield.  Such individuals are eligible to retire with benefits coverage after completing 10 consecutive years of full-time College employment after age 50 (as early as age 60).

Coordination of Benefits— For retirees and spouses/domestic partners eligible for Medicare coverage, the College's health plan or Emeriti health plan is generally considered a secondary plan and Medicare is considered the primary plan.  A retired College employee who is eligible for coverage through the federal Medicare program, and if applicable his/her covered spouse or domestic partner who is eligible for coverage through Medicare, must enroll in Medicare Part A and Part B on the earliest possible date following retirement in order to retain supplemental coverage through either the College’s Highmark plan or an Emeriti health plan.  Currently, there is no requirement that retired employees enroll in a Medicare Part D prescription plan.  

Please note: College retirees and their covered dependents pay premiums as well as applicable co-payments, coinsurance, and deductibles when seeking health care services.  Those enrolled through Medicare pay the applicable Medicare premium in addition to the required Highmark or Emeriti premium.  Medical and prescription drug benefits and coverage levels, premiums, co-payments, deductibles, and other plan provisions are not "locked in" at retirement and are subject to change at the sole discretion of the College or Emeriti Retirement Health Solutions. 

Health and Prescription Drug Coverage - Retirement As of January 1, 2013 or Later

Eligible faculty and professional staff who retire(d) on or after January 1, 2013, may enroll in an Emeriti health and prescription drug plan, and optional dental plan.  (Faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement prior to January 1, 2013, and then retire after January 1, 2013, are eligible to enroll in the Highmark plan – see below for information.)

Emeriti Health Plan Eligibility

a)“Grandfathered” Employees:  Members of the faculty and professional staff employed by the College in a full-time position as of December 31, 2012, and who were age 55 or older as of December 31, 2012, are considered “grandfathered”. 

Full-time, grandfathered employees may enroll in an Emeriti health and prescription drug plan if retiring: (1) at age 60 or older and (2) after completing at least 10 consecutive full years of full-time College employment after the age of 50.

b)“Non-grandfathered” Employees:  Full-time members of the faculty and professional staff employed in a full-time position and who were under age 55 as of December 31, 2012, plus those hired by the College after December 31, 2012, are not considered grandfathered. 

Full-time, non-grandfathered employees are eligible to enroll in an Emeriti health and prescription plan: (1) at age 60 or older and (2) after completing at least 15 consecutive full years of full-time employment with Franklin & Marshall after age 40. 

Full-time, non-grandfathered members of the faculty and staff employed by the College on December 31, 2012, and who are age 50 through 54 as of December 31, 2012, may enroll in an Emeriti plan at age 60 or older, if retiring after completing either 15 consecutive years of College service after age 40 or 10 consecutive years after the age of 50, whichever occurs first.

A non-grandfathered employee who retires between age 55 and 59, after completing at least 15 consecutive years of full-time service with Franklin & Marshall after age 40, may enroll in an Emeriti health plan as early as age 60.

Emeriti plans are available for retirees age 60 through 64 who are not yet eligible for coverage through Medicare (“pre-65” plans), and for those age 65 and older who are enrolled in Medicare Parts A and B (“post-65” plans).  Plans for those age 65 and older coordinate coverage with Medicare. 

The Emeriti plans are administered by Emeriti Retirement Health Solutions and are currently insured through Aetna.  Several different medical and prescription drug plans are offered; retired employees may choose the plan options that best meet their needs. Coverage is offered nationwide. An optional dental plan is also available to those who retire as of January 1, 2013, or later.  Interested invididuals can find details by reading Emeriti health and prescription plan information.

Coverage is provided for the College retiree as well as for the retiree’s spouse or domestic partner, and children through age 25.  A spouse or domestic partner who is not yet enrolled through Medicare Parts A and B may enroll in a “pre-65” Emeriti plan; if enrolled in Medicare Parts A and B, the spouse/partner may enroll in a “post-65” Emeriti plan.  A retiree’s spouse or domestic partner must generally elect the same health and prescription options as the retiree elects, and must generally enroll in an Emeriti plan at the same time the College retiree enrolls. 

Enrolling in an Emeriti Health and Prescription Plan – Important Information

To enroll in an Emeriti health and/or prescription drug plan upon retiring, a College retiree must call the Emeriti Retirement Service Center, at (866) 363-7484, within 90 calendar days of his/her retirement date.

An eligible retiree may only enroll during a one-time 90 calendar-day period beginning the later of:

  1. the date employment ends / the retirement date;
  2. the date temporary continued coverage through COBRA ends;
  3. the date the retiree becomes age 65; or
  4. the date the retiree enrolls in Medicare Part A and Part B.

Typically, a retiree’s spouse or domestic partner and any dependent children (through age 25) may only enroll in an Emeriti plan during the same 90 calendar day period that applies to the College retiree.  However, a working spouse or domestic partner may elect to remain covered through his/her own employer’s health plan and then enroll in Emeriti health plan once he/she retires, or may wait to enroll in an Emeriti Plan once enrolled through Medicare Parts A and B.

A College retiree’s spouse or domestic partner and children may not enroll in an Emeriti health plan if the College retiree is not enrolled (however, a retiree’s dependents may remain enrolled following the retiree’s death). 

Important note:  There is not a once-per-year opportunity to enroll in an Emeriti health or prescription plan.  A College retiree and his/her spouse or domestic partner must enroll in an Emeriti health and/or prescription drug plan when first eligible in order to have coverage during retirement; retirees and spouses / partners have a one-time 90-day enrollment period during which to elect coverage through an Emeriti health and/or prescription plan. 

If a College retiree or eligible dependent does not enroll during the applicable one-time 90 calendar-day period, he/she will not be eligible for coverage through an Emeriti plan again, unless the individual experiences a qualifying “life event”.  Eligible dependents must enroll during the same 90 day period when the College retiree may enroll or lose their eligibility, except if they experience an applicable life event. 

Additionally, retirees and their covered dependents generally may not re-enroll in an Emeriti health or prescription plan if they previously dropped their Emeriti coverage, except in limited situations.

To learn more about the 90 day enrollment period and qualifying life events, individuals are encouraged to call the Emeriti Service Center, at (866) 363-7484, prior to retiring.

The spouse or domestic partner must enroll in the same Emeriti health and prescription plan options as the College retiree, unless one is enrolled in Medicare and the other is not yet eligible for coverage through Medicare.

Emeriti Health Plan Premiums for Those Who Retire(d) as of January 1, 2013 or Later

Grandfathered Employees— Members of the faculty and professional staff who are:

1.     employed by Franklin & Marshall in a full-time capacity on December 31, 2012, and

2.     age 55 or older on or before December 31, 2012,

comprise a “grandfathered” group.  Franklin & Marshall pays a portion of the Emeriti medical and prescription premium for each grandfathered, Medicare-enrolled retiree and his/her spouse or same-sex domestic partner. 

As noted above, a grandfathered retiree is eligible to enroll in an Emeriti plan: (1) if retiring after completing at least 10 consecutive years of full-time employment with Franklin & Marshall after the age of 50, and (2) at age 60 or older.

Retirement at Age 65 or Older:  For grandfathered, Medicare-enrolled retirees (generally those age 65 and older), the College funds a portion of Emeriti premiums during the retiree’s lifetime, or until the retiree is no longer enrolled in an Emeriti plan.  The College-paid subsidy is held in an account on behalf of each grandfathered retiree.  The retiree may access the funds in his/her account to help pay monthly Emeriti premiums.

If a grandfathered, Medicare-enrolled retiree’s spouse or same-sex domestic partner is enrolled in an Emeriti plan (either a “pre-65” plan or a “post-65” plan), the College also provides its subsidy for the spouse/same-sex partner.  The subsidy is provided for the retiree’s spouse or same-sex partner until the earlier of: the date the spouse/partner is no longer enrolled in an Emeriti health plan; the date the College retiree is no longer enrolled in an Emeriti health plan; or the date the College retiree passes away (the spouse/partner may remain covered through an Emeriti health and prescription plan for life but will pay the full premium effective with the death of the College retiree). 

The College-paid Subsidy

The College currently funds the equivalent of 70% of the premium for a post-65 mid-level Emeriti health plan (“medical plan L”) and mid-level prescription drug plan, based on premiums in the 17603 zip code, and based on premiums for an age 70 – 74 retiree.  The College-paid subsidy is provided for each eligible retiree and each eligible spouse or same-sex domestic partner. The retiree and spouse or same-sex partner pays the full balance of his/her total Emeriti premium through automatic transfers from a personal savings or checking account.

Emeriti health and prescription premiums vary based on the plan elections an individual makes, and based on the individual’s residence / zip code, age, and Medicare-eligibility status.  The College provides the same subsidy to each grandfathered, Medicare-enrolled retiree and on behalf of each enrolled spouse or same-sex domestic partner.  Therefore, depending on the health and prescription elections an individual makes; where he/she resides; age; and for the spouse or partner, Medicare-eligibility status, the College-paid subsidy may equal more or less than 70% of the individual’s actual Emeriti premiums.  The retiree and spouse or partner are responsible for paying the remainder of their premiums not funded by the College.

Note:  If a pre-age-65 (non-Medicare-eligible) spouse or same-sex domestic partner is covered through an Emeriti health plan, the College’s subsidy paid on behalf of the spouse/partner will equal considerably less than 70% of the total Emeriti premium for a pre-65 health plan.  This is because the premiums for a pre-65 health plan are higher than premiums for the post-65 plans that supplement coverage provided through Medicare.  As described above, the College-paid subsidy will equal 70% of the premium for a mid-level post-65 plan.

If dental coverage is elected, the retiree and spouse/partner pay the full dental premium.  If a retiree covers his/her child through an Emeriti plan, the retiree pays the full premium on behalf of the child.

The College-provided subsidy is subject to change at the discretion of the College. 

Retirement Prior to Age 65:  Grandfathered employees who retire prior to age 65 (between age 60 and 64) pay the full premium for their health and prescription drug coverage, and for that of the spouse or domestic partner.  Once a grandfathered College retiree is enrolled through Medicare Parts A and B, the College will pay a portion of the premium for an Emeriti health and prescription plan, for the retiree and the spouse or same-sex domestic partner, as described above.  

Phased Retirement Program for Faculty:  The College pays a portion of Emeriti health and prescription premiums for grandfathered faculty who retire through the Phased Retirement Program, either prior to or after age 65.  The College’s monthly subsidy equals the equivalent of 70% of the premium for a post-65 mid-level Emeriti health and prescription drug plan, based on premiums in the 17603 zip code, and based on premiums for an age 70 – 74 retiree.  If a faculty member retires through the Phased Retirement Program prior to age 65 (prior to enrollment in Medicare Parts A and B), he/she will receive the College subsidy, but will likely pay a relatively high premium for coverage through a pre-65 Emeriti plan until enrolled in Medicare Parts A and B. 

The College also makes its subsidy payment on behalf of the faculty retiree’s spouse or same-sex domestic partner. 

Faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement prior to January 1, 2013, remain eligible for coverage during retirement through the Highmark health plan.

Paying Emeriti Premiums

A College retiree is required to set-up automatic, electronic transfers from a personal savings or checking account in order to pay Emeriti health plan premiums.  Retirees are to contact the Emeriti Service Center to establish such electronic transfers: (866) 363-7484.  An amount equal to the retiree’s and covered dependent’s, if applicable, full premium, minus the College-paid subsidy, will be automatically transferred each month from the retiree’s savings or checking account to the Emeriti Plan administrator.

Current Premiums for Those Enrolled Through an Emeriti Health Plan (Grandfathered Individuals)

Browse Emeriti Plan premiums

The premiums listed on the Emeriti web site represent the full premium.  Retirees eligible for the College-funded subsidy pay the difference between the full premium shown on the web site and the College-paid subsidy for the year.  For calendar year 2014, the College-paid subsidy equals $158.65 per month, for each eligible retiree and each eligible spouse or same-sex domestic partner.  The retiree and spouse or same-sex domestic partner, if applicable, pay the difference between their full premium and the College-funded subsidy.

Medicare-eligible retirees and spouses/partners pay Medicare premiums.  Emeriti plan premiums are in addition to Medicare premiums.

Spouse’s Coverage upon Retiree’s Death / “Grandfathered” Retirees— The spouse or same-sex domestic partner of a College retiree who retires on or after January 1, 2013, may enroll in an Emeriti health and prescription plan.  Spouses and partners may retain coverage through an Emeriti plan for life, even if the College retiree passes away before the spouse/partner.  However, the College-paid subsidy for the spouse or same-sex domestic partner of a grandfathered, Medicare-enrolled retiree will cease when the College retiree passes away.  The spouse/partner will pay the full premium effective with the death of the College retiree. 

Non-grandfathered Employees Members of the faculty and professional staff who are:

1.     employed by Franklin & Marshall in a full-time capacity on December 31, 2012,

and

2.     under age 55 as of December 31, 2012,

are considered “non-grandfathered”.  Non-grandfathered employees receive College-provided funding in an Emeriti Health Account.  Non-grandfathered employees pay 100% of the premium for their health coverage during retirement, and for that of a spouse or partner.  Such individuals may draw on vested funds in their Emeriti Health Account to help pay their premiums.  Individuals should read the Emeriti Plan Summary Plan Description, or contact Human Resources, for details.

Non-grandfathered members of the faculty and professional staff are eligible to enroll in an Emeriti medical, prescription, and or dental plan upon retirement at age 60 or older, after completing 15 consecutive years of full-time employment with Franklin & Marshall after the age of 40.  Full-time employees employed by the College as of December 31, 2012, and age 50 through 54 as of December 31, 2012, may enroll after completing either 15 consecutive years of full-time employment after the age of 40 or 10 consecutive years of full-time College employment after the age of 50, whichever comes first.  A retiree must be at least age 60 to enroll in an Emeriti plan.

Paying Emeriti Premiums

During retirement, premium payments are deducted automatically from a retiree’s Emeriti Health Account.  A retiree is required to establish automatic transfers from a personal savings or checking account to his/her Emeriti Health Account to assure sufficient funds are available to pay premiums.  Retiring employees should contact Emeriti Retirement Health Solutions, at (866) 363-7484, for details.

Current Premiums for Those Enrolled Through an Emeriti Health Plan (Non-grandfathered Individuals)

Browse Emeriti Plan premiums

“Non-grandfathered” retirees pay the full premiums listed on this web site, and may use vested funds, on a tax-free basis, from their Emeriti Health Account to offset premiums.

Medicare-eligible retirees and spouses/partners pay Medicare premiums.  Emeriti plan premiums are in addition to Medicare premiums.

Spouse’s Coverage upon Retiree’s Death / “Non-grandfathered” Retirees— The spouse or domestic partner - same-sex or opposite-sex – of a College retiree who retires on or after January 1, 2013, may enroll in an Emeriti health and prescription plan.  Spouses and partners may retain coverage through an Emeriti plan for life, even if the College retiree passes away before the spouse/partner.  The spouse/partner will pay the full applicable Emeriti premium for his/her coverage.

Health and Prescription Drug Coverage - Retirement Prior toJanuary 1, 2013

Eligible faculty and professional staff who retired prior to January 1, 2013, may enroll in the College’s health and prescription drug plan administered by Highmark. 

Additionally, faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement prior to January 1, 2013, and then retire after January 1, 2013, may enroll in the Highmark plan.

Highmark Health Plan Eligibility— A full-time College employee who, on the date active employment is terminated: (1) is at least age 60 and (2) has completed at least 10 consecutive full years of full-time College employment after the age of 50 is eligible for continued health and prescription drug coverage through the College’s plan administered by Highmark Blue Shield. 

Eligible faculty and professional staff may enroll in the Highmark PPO Health Plan $300, which offers relatively low monthly premiums and a modest $300 per person / up to $600 per family annual deductible for services received from a participating provider.

Coverage is provided for the College retiree as well as for the retiree’s spouse or same-sex domestic partner, and the retiree’s children through age 25, if applicable.

Coverage is provided nationwide at the highest “coordinated care” level when seeing a participating Highmark Blue Shield PPO provider or “BlueCard” provider.  Medical care is also available worldwide through the Blue Cross Blue Shield network.

Whether or not a retiree elects health and prescription drug coverage upon retirement, he/she may elect coverage during any Open Enrollment period, or when first eligible for Medicare coverage. 

Those who retire mid-year do not have to pay their full deductible again upon retiring; retirees will receive credit for whatever portion of the health plan deductible has already been paid during the calendar year in which they retire.

Enrolling in the Highmark Retiree Health Plan

Human Resources will provide an enrollment form prior to the retirement date to faculty and professional staff who are retiring and are eligible to enroll in the Highmark plan.

Health Plan Premiums for Those Who Retired Prior to January 1, 2013

Premiums paid by a College retiree and his/her spouse or same-sex domestic partner are based on the Medicare-eligibility status of the retired Franklin & Marshall employee. Those who retire at age 65 or older and are enrolled in Medicare Parts A and B currently pay a percentage of the total premium, with the College paying the bulk of the premium.

Those who retire from age 60 through 64 and are not enrolled through Medicare Parts A and B pay the full premium for their coverage, as well as for the spouse’s/partner’s coverage regardless of the spouse’s / partner’s Medicare-eligibility status, unless they retire through an approved early retirement program as noted below.

Faculty members who retire through the Phased Retirement Program or the Pre-retirement Leave of Absence Program, and professional staff who retired between January 1, 2010, and July 31, 2012, through the Voluntary Early Retirement Program, pay the same health and prescription drug premiums as Medicare-eligible retirees, regardless of their Medicare-eligibility status or the status of their spouse or same-sex domestic partner. 

Year 2014 Premiums for Medicare-enrolled Retirees and Those Who Retired Via an Approved Early Retirement Program:

PPO Health Plan $300:  $104.65 per month for the retiree only; $170.36 per month for the retiree and 1 dependent; and $279.15 per month for the retiree and 2 or more dependents.

Medicare-eligible retirees and spouses/partners pay Medicare premiums.  The premiums listed above are in addition to Medicare premiums.

Year 2014 Premiums for Non-Medicare-eligible Retirees Who Did Not Retire Via an Approved Early Retirement Program:

PPO Health Plan $300:  $631.50 per month for the retiree only; $1,027.84 per month for the retiree and 1 dependent; and $1,684.48 per month for the retiree and 2 or more dependents.

During retirement, premiums must be paid by check to the College’s Human Resources office on an after-tax basis, and may be paid on an annual, semi-annual, quarterly, or monthly basis.

Dependent’s Coverage Upon the Retiree’s Death / “COBRA”— If a College retiree elects health and prescription drug coverage for his/her spouse or same-sex domestic partner or child, upon the retiree's death the spouse and any other eligible dependents may generally retain coverage for up to 36 months through “COBRA”.  In order to be eligible for temporary continuation of coverage through COBRA, the retiree’s dependent or a designee must notify the College’s Human Resources office of the retiree’s death within 60 calendar days of the death.  Once notice has been provided to Human Resources, the deceased retiree’s dependent will receive notification of COBRA continuation rights from Ceridian Benefit Services, the College's COBRA administrator. To be eligible for continued health and prescription drug coverage, the dependent must respond to the COBRA notice and make payments within the required time frame as specified in the notice from Ceridian Benefits Services.

The deceased retiree's dependent will pay normal COBRA premiums, which are equal to the full premium equivalent as calculated by the College plus a 2% administrative fee.

Please see the Shared Services Health Plan Summary Plan Description, on the benfits page, for more information, or contact the Human Resources office.  Questions about temporary continued coverage through COBRA may also be directed to Ceridian Benefit Services at (800) 877-7994.

Health Reimbursement Account (HRA)

A member of the faculty or professional staff who meets the College’s definition of a benefits-eligible retiree upon employment termination, and who was enrolled in the PPO Health Plan $1,000 + HRA immediately prior to retiring, will retain his/her HRA balance. Although no additional funds will be deposited into the HRA following retirement, any unused balance will remain in the account and may be used by the retiree and his/her eligible dependents for reimbursement of eligible medical expenses.  Following retirement, “eligible expenses” include all medical expenses qualified under Section 213(d) of the Internal Revenue Code.  Please read the Health Reimbursement Account Summary Plan Description for full details.  A College retiree may contact Significa Benefit Services, (717) 581-1300, to determine his/her HRA balance.  A retiree’s HRA balance must generally be depleted before he/she can be reimbursed for eligible heath care expenses from assets in the Emeriti Health Account.

Life Insurance Coverage

A full-time member of the faculty or professional staff who meets the College’s definition of a benefits-eligible retiree upon employment termination, as described above, is eligible for life insurance coverage during retirement.

Upon retirement, the value of College-paid life insurance coverage will be 25% of: the value immediately preceding retirement; the value if a retiring faculty member’s salary had not been reduced based on participation in the Phased Retirement Program or Pre-retirement Leave of Absence Program; or the value immediately prior to reaching age 75, whichever is greater. Coverage is not subject to further reductions during retirement.

Conversion Privilege— Retirees have the option of converting the difference between their life insurance coverage level as an active employee and their coverage level upon retirement to an individual policy. If interested in conversion, the retiree must contact the College's life insurance carrier within 31 calendar days of his/her last working day. If the life insurance conversion form is completed and the first premium paid by the retiree within 31 calendar days of retirement, evidence of good health will not be required to convert group coverage to an individual policy. (If a retiree chooses not to take advantage of this conversion privilege, he/she will retain College-paid life insurance coverage equal to 25% of the pre-retirement coverage level as outlined above.)

Education Benefits for Retirees and their Dependents

A member of the faculty or professional staff who meets the College’s definition of a benefits-eligible retiree upon employment termination, as described above, is eligible for tuition reduction benefits during retirement.

A College retiree may enroll in Franklin & Marshall courses or Elizabethtown College courses which are held on the Franklin & Marshall campus with no tuition fees, if space is available. A retiree's spouse or same-sex domestic partner may enroll in Franklin & Marshall courses or Elizabethtown College courses which are held on the Franklin & Marshall campus with no tuition fees, if space is available (the value of benefits for a same-sex partner may be taxable, per federal regulations).

College retirees may apply for Grant-in-Aid, a Children's Scholarship, or a Tuition Exchange scholarship on behalf of their dependent children (up to two children of a College retiree may participate in the Tuition Exchange Program). To be eligible to receive education assistance benefits for a child:

a)     the child must meet the definition of a "dependent", as described in the Education Assistance Benefits policy,

and

b)    the parent-child relationship must have been legally established prior to the parent's retirement from Franklin & Marshall and at least five years prior to the commencement of benefits.

Additional Information

Pre-retirement Counseling / Employee Assistance Program— Through the College’s Employee Assistance Program (E.A.P.), full-time employees may access pre-retirement counseling. Trained counselors can help future retirees formulate a step-by-step, individualized retirement plan. E.A.P. services focus on assessing emotional readiness for the transition to retirement, providing support and planning for a successful transition, identifying any problems and stressors, discussing how roles and relationships may change, discussing use of time and money, providing support for those with challenging health concerns, and helping to identify community resources. Those planning to retire are encouraged to contact the E.A.P. prior to retirement. Full-time employees and their family (household) members are each eligible for up to 3 free sessions with a trained counselor per fiscal year. The E.A.P. may be accessed by calling (800) 327-7770.  (Note: the E.A.P. benefit is only available while actively employed by the College.)

Use of Facilities— Retired College employees may continue to use the College libraries and the Alumni Sports & Fitness Center and receive free admission to many College events.

Vacation Payment— At retirement, professional staff receive payment for earned but unused vacation days from the current fiscal year. However, payment is not made for unused vacation days if termination occurs at fiscal year-end (June 30).

Paid Sick Leave— Eligibility for paid sick leave terminates as of the last actual day of work. There is no payment made for unused sick days upon retirement.

Dental Coverage— Coverage through the College’s Group Dental Plan terminates upon retirement. However, retired employees may continue their coverage temporarily, generally for up to 18 months, through "COBRA", by paying the full premium equivalent plus a 2% administrative fee. Coverage may also be continued for eligible dependents.  Please see the Dental Plan Summary Plan Description, available on the Human Resources web pages or from Human Resources, for more information and current COBRA premiums.

Those who retire(d) on or after January 1, 2013, may elect to enroll in a dental plan offered by Emeriti Retirement Health Solutions.  Enrollees pay the full premium.

Flexible Spending Accounts Plan / Medical Expense Reimbursement Account— Participation in the Medical Expense Reimbursement Account terminates upon retirement.  Participants may submit claims for eligible, unreimbursed medical expenses incurred through their retirement date to the third-party administrator (Highmark Blue Shield).

A retiring employee may choose to continue his/her participation in the Medical Expense Reimbursement Account through the current calendar year by making after-tax contributions to his/her account. Ceridian Benefits Services will send notice of this option to terminating participants. If continued participation is not elected, only those eligible medical expenses incurred through the retirement date may be submitted for reimbursement from the former employee’s remaining account balance.

Long-term Disability Insurance— Coverage under the College's Long-term Disability Insurance Plan ceases upon retirement.

ID Card / Parking Permit— Retiring members of the faculty and professional staff may visit the Franklin & Marshall College Auxiliary Services office for a retiree identification card and a parking permit.

Email Access— Retired members of the faculty and professional staff may retain their College email account for life.

Part-time Personnel

Faculty and professional staff classified as part-time employees, who are at least age 60 upon employment termination and have 10 or more consecutive years of College service after age 50, are eligible for continued email access, access to the Alumni Sports and Fitness Center and other campus fitness facilities, and access to Franklin & Marshall libraries.

Social Security Benefits and Medicare

The information below provides a summary of Social Security benefits and Medicare coverage.  Those planning to retire are strongly encouraged to contact the Social Security Administration, (800) 772-1213, and Medicare, (800) 633-4227, for detailed, up-to-date information.

Social Security Income Benefits— Retired individuals may be eligible to receive a reduced Social Security income benefit as early as age 62. Currently, the earliest age at which retirees may receive full benefits is 65. The age at which individuals are eligible for full Social Security income benefits rises beyond age 65 for those born after 1937.

The following table shows the age at which a retired individual can receive full Social Security benefits:

                                                                                Normal or “Full Retirement Age”

If year of birth is 1937 or earlier:               age 65

1938:                                                         65 and 2 months

1939:                                                         65 and 4 months

1940:                                                         65 and 6 months

1941:                                                         65 and 8 months

1942:                                                         65 and 10 months

1943 - 1954:                                              66

1955:                                                         66 and 2 months

1956:                                                         66 and 4 months

1957:                                                         66 and 6 months

1958:                                                         66 and 8 months

1959:                                                         66 and 10 months

1960 and later:                                        67

Social security income benefits may be considered taxable income depending on an individual's total earnings while receiving Social Security benefits.

Individuals who continue to work while receiving Social Security income benefits and (a) have not yet reached the age at which they can receive full benefits (“full retirement age”), and (b) earn more than the Social Security threshold for the year, may have their benefits reduced. Currently, if an individual is under his/her full retirement age when Social Security payments begin, $1 in benefits will be deducted for each $2 the individual earns in wages above the “annual limit”.  Visit Social Security to find the current annual limit.

During the year in which an individual reaches his/her full retirement age, $1 in benefits will be deducted for each $3 earned in wages above a different limit, but only counting earnings before the month the individual reaches his/her full retirement age.  Visit Social Security to find the current annual limit.  Special rules may apply during the year in which an individual retires.

Starting with the month an individual reaches “full retirement age”, he/she is eligible for normal Social Security benefits with no limit on earnings.

Individuals must file an application through the Social Security Administration in order to begin receiving benefits. Applications may be filed over the phone at (800) 772-1213, or online. As a general rule, retired individuals should contact the Social Security Administration to apply for benefits during the January prior to retirement, but no earlier than 3 months prior to turning age 62.

Medicare— Health coverage through Medicare is generally available to individuals at the beginning of the month in which they turn age 65.  Medicare Part A pays some costs of hospitalization, some home health services, and limited nursing home care.  Those who receive Social Security benefits will automatically be enrolled in Medicare Part A starting the first day of the month they turn age 65.  Those not yet receiving Social Security benefits may sign up for Part A by contacting Medicare about 3 months before turning age 65.  Most retired individuals do not pay a premium for Medicare Part A because they paid Medicare taxes while working.

Medicare Part B primarily covers physician office visits, outpatient medical care, some home health services, and related services. Prescription drug benefits are available through Medicare Part D programs (retirees of Franklin & Marshall are not required to enroll in a Medicare Part D plan in order to retain coverage through a College-sponsored health and prescription plan).  Typically, those receiving Social Security benefits will automatically be enrolled in Medicare Part B starting the first day of the month they turn age 65.  If an individual does not yet want to enroll in Part B and pay the premium (for example, if still working full-time and covered through the College’s health plan), the Medicare card must be returned based on the instructions sent with the card.  A monthly premium is charged for Medicare Part B and for Part D prescription plans.  Visit Medicare for current premiums.

Those who do not wish to enroll in Medicare Parts A and B when they turn 65, such as if still working full-time with health coverage through their employer, may enroll during the “special enrollment period” following termination of employment. Individuals may enroll by calling or visiting Medicare, (800) 633-4227 .

Note:  Individuals who do not enroll in Medicare Parts A and B on the earliest possible date following retirement may be required, by Medicare, to pay a penalty when they do enroll.  In addition, per College policies, retirees and spouses / partners who are eligible for Medicare must enroll in Part A and Part B on the earliest possible date following employment termination to retain coverage through the College's Highmark health plan or through the Emeriti health plans (there is currently no requirement to enroll in a Part D prescription plan). 

For retired College employees eligible for Medicare, the College’s Highmark plan and the Emeriti plan will coordinate coverage with Medicare, with Medicare generally being considered the primary plan and the College's plan the secondary plan.

Resources for Retirees


Phased Retirement Program for Faculty

The Phased Retirement Program allows eligible full-time, tenured faculty members to elect to reduce their teaching responsibilities in preparation for full retirement from the College.  The typical teaching obligation of a faculty member participating in the Phased Retirement Program is three courses per year.