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Emeriti Retirement Health Plan

This document provides a summary of the College’s Emeriti Retirement Health Plan (“Emeriti Plan”) which was effective January 1, 2013.

The Emeriti Plan and the information below does not apply to:

  1. faculty and professional staff who retired prior to January 1, 2013, and
  2. faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Program agreement prior to January 1, 2013, and retire on or after January 1, 2013.

Such individuals should read the Shared Services Group Health Plan Summary Plan Description, available at http://www.fandm.edu/humanresources/article/health-and-prescription-drug-coverage-and-hra  and from the Human Resources office, for details about their health plan coverage during retirement.

Additionally, based on federal regulations, employees of The Lancaster City Alliance are not eligible to participate in the College’s Emeriti Plan.

Please Note: Much of the information below does not apply to “grandfathered” faculty and professional staff: those employed on a full-time basis by Franklin & Marshall on December 31, 2012, and age 55 or older on December 31, 2012.  Grandfathered members of the faculty and professional staff will not receive contributions to an Emeriti Health Account and will not be eligible to use the Emeriti Reimbursement Benefit during retirement.  However, grandfathered individuals will be eligible to enroll in Emeriti health, prescription, and dental plans following retirement, and the College will pay a portion of their Emeriti health and prescription premiums.  Grandfathered employees should see the “Information for Grandfathered Faculty and Professional Staff” section near the end of this document for applicable information.

The Emeriti Plan is administered by Emeriti Retirement Health Solutions, in partnership with TIAA-CREF, Aetna, and Savitz.  You may visit  http://www.emeritihealth.org for general information about the Emeriti Plan and details about the Emeriti health plan options.  You may visit www.tiaa-cref.org for information about Emeriti Health Account investment options.

Overview of the Emeriti Plan

The Emeriti Retirement Health Plan provides eligible faculty and professional staff with a convenient, tax-advantaged way to save now for their future health care expenses.  The Emeriti Plan also provides eligible employees and their dependents with access to comprehensive medical, prescription drug, and dental insurance coverage during retirement. 

The Emeriti Plan consists of three primary components:

Emeriti Health Accounts   applicable to non-grandfathered employees: (a) faculty and professional staff employed by the College in an eligible status on December 31, 2012, and under age 55 on December 31, 2012, and (b) those hired in an eligible status after December 31, 2012, regardless of age

The College makes contributions to Emeriti Health Accounts on behalf of eligible members of the faculty and professional staff during their working years.  Faculty and professional staff may also make their own contributions.  Vested funds which have accumulated in an individual’s Emeriti Health Account may be used during retirement, on a tax-free basis, to help pay health plan premiums and other health care expenses.

Emeriti Health Insurance, Prescription Drug, and Dental Plans  applicable to (a) grandfathered faculty and professional staff: those employed in a full-time status by Franklin & Marshall on December 31, 2012, and age 55 or older on December 31, 2012, and (b) to full-time non-grandfathered employees applicable to those who retire(d) on or after January 1, 2013, with the exception of faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012

College retirees and their eligible dependents may enroll in medical, prescription drug, and dental insurance plans administered by Emeriti Retirement Health Solutions.  The College pays a portion of Emeriti health plan premiums on behalf of grandfathered retirees.  Non-grandfathered retirees may use vested funds in their Emeriti Health Account to help pay their premiums.

The Emeriti Reimbursement Benefit

applicable to non-grandfathered faculty and professional staff: (a) faculty and professional staff employed by the College in an eligible status on December 31, 2012, and under age 55 on December 31, 2012, and (b) those hired in an eligible status after December 31, 2012 regardless of age

Retirees of the College may use vested funds in their Emeriti Health Account, on a tax-free basis, to help pay health plan premiums and other eligible health care expenses.  A retiree may request reimbursement from his/her vested Emeriti Health Account balance in order to help pay eligible health care expenses.

Emeriti Health Accounts

applicable to non-grandfathered faculty and professional staff: (a) faculty and professional staff employed by the College in an eligible status on December 31, 2012, and under age 55 on December 31, 2012, and (b) those hired in an eligible status after December 31, 2012 regardless of age

The College makes contributions (effective calendar year 2013) to Emeriti Health Accounts on behalf of eligible members of the faculty and professional staff during their working years.  Employees do not pay federal or state income tax on the contributions the College makes on their behalf, or on any associated investment earnings.  Faculty and professional staff may also make their own contributions on an after-tax basis.

Contributions, and any investment earnings, can be accessed once they “vest” as described below, and following retirement.  Contributions and associated earnings may be accessed on a tax-free basis to help pay health insurance premiums and to receive reimbursement for other eligible health care expenses.

Emeriti Health Accounts are administered by TIAA-CREF.  Faculty and professional staff may designate their contributions to various investment funds available through TIAA-CREF and the Emeriti Plan.  Funds in the Emeriti Health Account are held in a “VEBA Trust”.

Eligibility                                    

The following employees are eligible to receive College-funded contributions to an Emeriti Health Account, if in an eligible status as of January 31 during the year in which the contribution is made.  These groups may also make voluntary contributions to an Emeriti Health Account.  Except as noted, the information below applies only to eligible faculty and professional staff who were under age 55 as of December 31, 2012, or who became employed by the College after December 31, 2012. 

  • Franklin & Marshall faculty and professional staff classified as “full-time”: exempt and non-exempt employees who are appointed to positions designated as full-time by the College and who are authorized and regularly scheduled to work at least 30 hours per week for wages, either for the full fiscal year (12 months) or for 9, 10, or 11 months per year.
  • Faculty members on an approved, shared appointment: two faculty members sharing one full-time faculty position (each faculty member is considered an individual Plan participant while on an approved, shared appointment).
  • Faculty members participating in the Phased Retirement Program or Pre-retirement Leave of Absence Program, if otherwise eligible (i. e., such faculty members will remain eligible for the College’s annual Emeriti Health Account contribution until they fully retire from College service).
  • Employees appointed to full-time temporary positions with the College, including full-time visiting faculty members.
  • Employees appointed to full-time positions by the College which are funded in part or fully through a grant or gift.
  • Full-time employees of the Centennial Conference who work on the Franklin & Marshall campus and are paid through the College’s payroll system.
  • Professional staff appointed to those part-time positions which are authorized by the College, in writing, and budgeted to work 1,000 hours or more for wages per employment year, regardless of age as of December 31, 2012.

Ineligible Employees—The following groups are not eligible to receive College contributions or to make their own contributions to an Emeriti Health Account:

  • “Grandfathered” employees: faculty and professional staff who were employed in a full-time status with Franklin & Marshall on December 31, 2012, and were age 55 or older as of December 31, 2012.  (Grandfathered employees receive a subsidy toward their Emeriti health plan premiums during retirement in lieu of contributions to an Emeriti Health Account.  Such individuals should see the “Information for Grandfathered Faculty and Professional Staff” section near the end of this document.)
  • Part-time employees including part-time athletic coaches (with the exception of professional staff appointed to part-time positions authorized by the College and budgeted to work 1,000 or more hours for wages each year).
  • Temporary “summer workers” even if working a full-time schedule on a temporary basis, and other seasonal or part-time employees.
  • Adjunct faculty members and other part-time faculty members.
  • Employees who retired from full-time College service prior to January 1, 2013, and were later rehired.
  • Faculty members who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012.
  • Independent contractors, consultants, and contracted service employees.
  • Students, student employees, and interns.
  • Non-College employees other than full-time Centennial Conference employees who work on the Franklin & Marshall campus.
  • Unpaid College volunteers including faculty research associates.
  • Employees of the James Street Improvement District.

Additionally, an otherwise eligible employee who is not employed in an eligible status on January 31 of a given year will not receive a College-funded contribution that calendar year.

Plan Entry Date-- An employee becomes eligible to receive College-funded contributions to his/her Emeriti Health Account as of the date he/she is appointed to an eligible position as outlined above.  However, the College’s contribution is submitted on behalf of each employee only once per year, generally each February.  An employee must be employed by the College in an eligible status, as summarized above, on January 31 to receive the contribution for that calendar year. 

An employee in an eligible status may initiate his/her own contributions, on an after-tax basis, as of the first day of employment in an eligible status.

Date College-funded Contributions are Submitted— The College’s Emeriti Health Account contribution made on behalf of each eligible employee is submitted to Accounts once per year, generally each February.  An employee must be employed in an eligible status, or on an approved leave of absence which provides for continued contributions, as of January 31 to receive the College’s annual contribution to his/her Emeriti Health Account for that year.  Faculty and professional staff who are not eligible as of January 31 but become eligible on a later date, including employees hired in to an eligible status after January 31 and faculty on unpaid leave of absence as of January 31, will receive a College contribution the following calendar year if eligible at that time.

Suspension of College Contributions—The College will continue to make contributions to the Emeriti Health Account of an eligible employee for a total of 25 years (25 annual contributions to an employee’s Emeriti Health Account).  However, contributions may cease earlier in some circumstances.  The College will continue to make contributions to an eligible employee’s Emeriti Health Account on an annual basis until the earlier of:

  1. the date an employee’s full-time employment terminates, including due to retirement, death, or a change to ineligible part-time or adjunct status,
  2. the date a part-time employee is no longer authorized by the College to work 1,000 or more hours per year for wages,
  3. the date an employee is otherwise no longer employed in an eligible status,
  4. the date an employee begins a leave of absence which does not provide for continued contributions (see below),
  5. the date an employee has received contributions for 25 years (25 annual contributions to his/her Emeriti Health Account), or
  6. the date the Plan is terminated by the College or College-funded contributions are suspended.

If one of the events listed above occurs prior to or on January 31, the employee will not receive the College’s contribution which is made following that January 31.

Suspension of Elective Contributions-- Once an employee begins making voluntary contributions, he/she generally remains eligible to continue to make contributions through transfers from a personal savings or checking account to the Emeriti Health Account, even following employment termination.  Faculty, professional staff, and College retirees may contact The Emeriti Service Center, (866) 363-7484, for further information about making elective contributions following termination of employment.

An employee may voluntarily suspend elective contributions at any time, with proper notice to his/her bank and to the Emeriti Service Center, (866) 363-7484.

Leave of Absence— An otherwise eligible member of the faculty or professional staff taking one of the following types of approved leave as of January 31 of a given year will receive a College contribution to his/her Emeriti Health Account for that year:

  1. paid sabbatical, paid Junior Faculty Leave, other paid faculty research leave, or paid professional development leave for an exempt staff member,
  2. an approved, unpaid faculty research leave of 12 months duration or less,
  3. paid short-term disability leave (“sick” leave), paid maternity/paternity leave, or paid family care leave of up to 6 months duration,
  4. paid or unpaid leave per the College’s Family & Medical Leave Policy,
  5. paid vacation,
  6. paid or unpaid military leave, or
  7. approved, unpaid personal leave of 6 months duration or less.

Additionally, a full-time faculty member participating in the Phased Retirement Program or Pre-retirement Leave of Absence Program will remain eligible for the College’s annual Emeriti Health Account contribution until he/she fully retires from College service (if the faculty member was under age 55 as of December 31, 2012, or hired by the College after December 31, 2012).

An employee on one of the following types of leave, or otherwise on inactive employment status as of January 31 of a given year, will not receive the College’s contribution to his/her Emeriti Health Account that year:

  1. unpaid faculty research leave of more than 12 months duration,
  2. long-term disability leave (disability leave of more than 6 months), even if the individual is receiving income benefits through the College’s long-term disability plan, and
  3. unpaid personal leave of more than 6 months duration.

Re-employment-- A former full-time employee will be eligible for a College contribution to his/her Emeriti Health Account upon re-appointment to a full-time or other eligible position.  The former employee’s first contribution will be made at the same time the College makes its annual contribution for all eligible faculty and professional staff (generally in February), if the employee is in an eligible status as of the prior January 31. 

A former full-time employee who is again appointed to an eligible position may initiate elective contributions as of the first of the month following re-appointment. 

An employee who is re-appointed will receive College contributions to his/her Emeriti Health Account for a total of 25 years, and any employer contributions made prior to the original employment termination date will count toward the 25 year limit.

Enrollment

College-funded Contributions—Human Resources will notify Emeriti Retirement Health Solutions and TIAA-CREF of faculty and professional staff who are eligible to receive College contributions to an Emeriti Health Account.  Members of the faculty and professional staff do not need to complete an enrollment form.

Elective Contributions—An eligible employee who wishes to initiate his/her own contributions may do so via automatic monthly deductions from a personal savings or checking account.  To initiate elective contributions, an employee must complete a TIAA-CREF “ACH” enrollment form, available from http://www.tiaa-cref.org/fandm .   (Note: Faculty and professional staff may not contribute through payroll deduction.  However, convenient, automatic deductions from a savings or checking account may be established.)

An employee (or retiree) may also make periodic lump sum contributions to his/her Emeriti Health Account.  An individual who wishes to do so should contact the Emeriti Service Center at (866) 363-7484.

An employee’s first College and/or elective contribution to his/her Emeriti Health Account will be invested, by default, in the age-appropriate TIAA-CREF Lifecycle Fund.  Enrollees may then designate their future contributions, and/or transfer the initial contribution, among the various TIAA-CREF mutual funds available through the College’s Emeriti Plan.  Faculty and professional staff may change the way their contributions are being invested, or transfer current account balances, by calling the Emeriti Service Center at (866) 363-7484, or logging in to the TIAA-CREF web site: www.tiaa-cref.org/fandm.

Elective Contributions During Retirement—During retirement, an individual may continue to make contributions to his/her Emeriti Health Account.  A retired individual may wish to make contributions if contributions can be made far enough in advance of withdrawals to take advantage of potential investment gains.  Contributing during retirement may not work to one’s advantage, however, if contributions will not remain invested for long before they are withdrawn.  Share price and rates of return will vary, and a participant may experience investment earnings or losses when shares are sold to make withdrawals from the Account.

During retirement, a College retiree may call the Emeriti Service Center, at (866) 363-7484, to:

  • Set-up automatic contributions:  A retiree may set-up automatic monthly contributions from a savings or checking account into his/her Emeriti Health Account.
  • Contribute ad hoc lump sums:  A retiree may direct a lump sum contribution(s) from a bank account to his/her Emeriti Health Account.

Emeriti Health Account Contribution Levels

College-funded Contributions-- The College will contribute the same dollar amount in a given year to the Emeriti Health Account of each eligible member of the faculty and professional staff.  The total annual contribution per eligible employee for year 2014 will be $360.50.  The contribution made by the College on behalf of eligible employees may vary from year to year based on budgetary conditions. 

Elective Contributions—An employee’s own contributions to the Emeriti Health Account may not exceed 100% of net (after-tax) pay; there are no other limits on the amount that can be contributed per year by an employee. 

The College’s contributions to an individual’s Emeriti Health Account are not designed to cover all his/her health care expenses during retirement.  Therefore, faculty and professional staff are strongly encouraged to save now for their future health care expenses by making their own contributions to an Emeriti Health Account and/or to their TIAA-CREF retirement account.  Careful planning is necessary; contributions to the Emeriti Health Account cannot ordinarily be accessed or withdrawn during employment.  Loans cannot be taken from Emeriti Health Account accumulations.  Additionally, funds from the Emeriti Health Account may be used during retirement exclusively to help pay health insurance premiums and to reimburse oneself or an eligible tax-dependent for other eligible medical expenses.  Accumulated funds cannot be accessed from the Emeriti Health Account during retirement to pay general living expenses.

Tax Treatment of Contributions to the Emeriti Health Account

College Contributions—Per current federal regulations, employees do not pay income tax on the contributions the College makes on their behalf to the Emeriti Health Account.  Employees also do not pay income tax on any investment earnings. 

Vested funds may be accessed on a tax-free basis during retirement and used by the College retiree or his/her eligible dependents to help pay certain health care expenses such as health insurance premiums, Medicare premiums, long-term care insurance premiums, co-payments and deductibles, and various health, vision, and dental care expenses that are not reimbursed through an insurance plan.  A College retiree’s eligible dependents typically are the retiree’s legally-recognized spouse and children through age 18, or age 23 if a full-time student. 

A domestic partner and children through age 25 may be enrolled in an Emeriti health plan as dependents of a College retiree.  However, funds in the Emeriti Health Account cannot be accessed on a tax-free basis to pay health care expenses on behalf of an individual who does not qualify as a dependent of a retiree per federal regulations.

Elective Contributions—Any contributions an employee makes to his/her Emeriti Health Account must be contributed after the employee has paid income tax on the earnings.  However, any investment earnings grow tax-free, and no income tax is withheld from Account accumulations when accessed during retirement to help pay eligible health care expenses.
 

Vesting / Accessing Emeriti Health Account Accumulations

An individual’s Emeriti Health Account balance may be accessed:

  1. after the Account balance has “vested” as described below, 
  2. following retirement or termination of College employment, and
  3. at age 55 or older. 

Vesting of College-funded Contributions—The balance in an employee’s Emeriti Health Account attributable to College contributions will vest once the individual has completed 15 consecutive years of full-time employment with Franklin & Marshall College in an eligible status after the age of 40 (as early as age 55).  

For full-time faculty and professional staff appointed to 9, 10, or 11-month per year positions, completion of an academic year is considered a year of service as long as the individual worked 1,000 hours or more.  A year of full-time, temporary employment will count as a year of service toward the vesting requirement for an otherwise eligible employee.  For purposes of the Emeriti Plan, a year of service toward the vesting requirement will also be credited if a part-time staff employee is authorized and budgeted to work, and actually works, 1,000 hours or more for wages during his/her 12-month employment year.  

Faculty and Professional Staff Employed on December 31, 2012— For vesting purposes, eligible faculty and professional staff employed by Franklin & Marshall as of December 31, 2012, have been credited with their full, consecutive years of eligible employment with the College completed after the age of 40. 

The Accounts of faculty and professional staff employed by Franklin & Marshall on a full-time basis on December 31, 2012, and who were age 50 through 54 as of December 31, 2012, will vest the earlier of completion of 15 consecutive years of full-time employment with the College after the age of 40 (age 55 or later), or upon completion of 10 consecutive years of full-time employment after the age of 50 (age 60 or later).  Grandfathered employees – those employed by the College and age 55 or over as of December 31, 2012 - will not have Accounts and should see the “Information for Grandfathered Faculty and Professional Staff” section below.

Forfeiture of College-funded ContributionsAn individual whose employment with Franklin & Marshall terminates, for any reason, before his/her Emeriti Health Account balance vests will permanently forfeit all College-funded contributions and associated investment gains, except as noted in the “Changes in Employment Status / Re-employment” section below.  Unlike with the TIAA-CREF Retirement Plan, an individual does not “own” College-funded contributions to the Emeriti Health Account until the account balance has vested as described above.

Changes in Employment Status / Re-employment—For vesting purposes, years of service completed after age 40 must be consecutive.  However, a former member of the faculty or professional staff will be credited with his/her prior, full consecutive years of College employment in an eligible status completed after age 40, if re-appointed to a full-time or other eligible position within 5 years (60 months) of the prior termination date or date of transfer to part-time status.  Partial years of service completed after age 40 and prior to a break in service will not be counted. 

Although a former employee who is rehired will be credited with his/her prior years of eligible employment completed after age 40, actual time spent in non-College employment, and time spent in an ineligible employment status, will not count as time worked for vesting purposes.

The Emeriti Health Account balance of a re-employed member of the faculty or professional staff will be restored, if he/she is re-hired in an eligible status within 5 years (60 months) of the prior termination date.  However, any investment gains that would have been credited if the individual had remained employed by the College cannot be applied.

Break in Service—All prior eligible College service is disregarded for vesting purposes if a former employee is re-appointed to a full-time or other eligible position more than 5 years (more than 60 months) from the termination date or date he/she transferred to part-time employment status.  In this case, the employee’s Emeriti Health Account balance will vest upon completion of 15 continuous years of College employment in an eligible status after age 40, following the date of re-appointment to an eligible position.  The employee’s prior Emeriti Health Account balance attributable to College contributions will be forfeited if the break in service is longer than 5 years.  This section does not apply if an employee terminates after becoming vested and is later re-appointed. 

Part-time Employment—Any period of part-time College service (i.e., employment in a position classified as part-time and authorized and budgeted for less than 1,000 work hours per employment year); service as an adjunct or part-time faculty member; service as an unpaid volunteer or research associate; student employment; or service in another ineligible status is not counted for purposes of vesting.

Leave of Absence— The following leaves will count as “time worked” for vesting purposes, as outlined below:

Sabbatical or Research Leave:  An approved, paid faculty sabbatical or research leave; an unpaid research leave of up to 12 months; and a paid professional development leave for an exempt member of the professional staff will count as time worked for vesting purposes, if the leave occurs at age 40 or later.  

Family & Medical Leave:  All time off work per provisions of the federal Family & Medical Leave Act and the College’s Family & Medical Leave Policy, whether with or without pay, will count as time worked for vesting purposes, if the leave occurs at age 40 or later.

Military Leave:  All approved time off work up to 60 months, whether with or without pay, to perform service in the Uniformed Services will count as time worked for vesting purposes, if the leave occurs at age 40 or later.

Paid Disability Leave:  An approved, paid disability leave (“sick” leave), maternity/paternity leave, and family care leave of up to 6 months will count as time worked for vesting purposes, if the leave occurs at age 40 or later. 

Personal or Unpaid Leave:  An approved personal leave or other approved, unpaid leave of 6 months duration or less will count as time worked for vesting purposes, if the leave occurs after age 40. 

The following leaves will not count as “time worked” for vesting purposes, as outlined below:

Extended Unpaid Research Leave:  If an unpaid faculty sabbatical or research leave extends for more than 12 consecutive months, the leave period starting with the beginning of the 13th month will not count as time worked for vesting purposes. 

Extended Disability or Personal Leave:  If an authorized disability leave, maternity/paternity or family care leave, or personal leave of absence extends for more than 6 consecutive months, the leave of absence period starting with the beginning of the 7th month will be disregarded / will not count as time worked for vesting purposes.  This applies to extended disability leave, even when the employee is eligible for or receiving benefits through the College’s long-term disability insurance plan.  

Leave of More than 5 Years: If an employee’s entire leave of absence period, even if approved, extends for more than 5 years (more than 60 consecutive months), the entire leave period will not count as time worked, and all College employment completed before the leave will be disregarded for vesting purposes. 

Vesting of Elective Contributions— The contributions an employee makes to his/her Emeriti Health Account on a voluntary basis, and any associated investment earnings, are always considered fully and immediately vested.  An employee’s elective contributions may be accessed by the employee following termination of employment and at age 55 or later.  Up to $5,000 in account accumulations may be accessed after employment termination but prior to age 55.

Unvested Balances

As noted above, if employment with Franklin & Marshall terminates, either voluntarily or involuntarily, prior to the date an employee’s Emeriti Health Account balance vests, or if an employee ceases to be employed in an eligible status prior to vesting, the total balance (contributions plus any investment gains) in the Account attributable to College-funded contributions will be permanently forfeited by the individual.  The balance returns to the College and is used to offset the College’s future Emeriti Plan expenses.

As indicated above, if an employee is re-appointed to an eligible employment status within 5 years of the termination date, prior years of eligible College employment completed after age 40 will count for purposes of vesting.  Additionally, an individual’s prior Emeriti Health Account balance will be restored per provisions in the Plan document.  The years away from Franklin & Marshall will not count as time worked for vesting purposes. 

Balances Upon Death

Once an employee’s Emeriti Health Account vests, the balance may be used at age 55 or older, following retirement or employment termination, to help pay eligible health care expenses.  When a College retiree dies, his/her tax-dependents, as defined by IRS regulations and as previously designated by the College retiree, may use any remaining Account balance to offset their eligible health care expenses.  Emeriti Health Account balances may only be used by tax-dependents to offset their eligible health care expenses.  

If a balance remains in the Account after all a College retiree’s eligible tax-dependents pass away, the balance reverts to the College’s Emeriti Plan.  Any remaining balance attributable to College contributions is used by the College to pay future Plan expenses.  Any remaining balance attributable to a deceased retiree’s elective contributions is divided equally among other College employees who have a balance in their Emeriti Health Account attributable to their own elective contributions.

Investment Options

College and elective contributions to Emeriti Health Accounts are held in tax-advantaged trusts called “VEBA’s” (Voluntary Employee Beneficiary Association).  Contributions accumulate on a tax-free basis; a College employee does not pay income tax on the contributions the College makes on his/her behalf, or on any investment gains  (an employee’s own contributions are contributed on an after-tax basis, although any investment gains are tax-free). 

TIAA-CREF provides investment, administrative, and recordkeeping services for the Emeriti Health Accounts.  Participants may invest contributions to their Emeriti Health Account in various TIAA-CREF funds.  Detailed information about fund options and performance can be obtained by logging in to the TIAA-CREF web site at www.TIAA-CREF.org.

As noted above, an employee’s initial College and/or elective contribution is invested, by default, in an age-appropriate TIAA-CREF Lifecycle Fund.  Emeriti Health Account participants can then designate College contributions and their own elective contributions among the available TIAA-CREF funds via TIAA-CREF’s web site, www.TIAA-CREF.org.  Participants may also call the Emeriti Service Center at (866) EMERITI or (866) 363-7484 to designate their contributions among the available investment options.  Participants may change the way future contributions will be invested, or transfer accumulations, by logging in to www.TIAA-CREF.org. or contacting the Emeriti Service Center.

Default Option If an individual fails to elect how his/her Emeriti Health Account contributions will be invested, contributions will remain invested, by default, in an age-appropriate TIAA-CREF Lifecycle Fund.

Investments in Emeriti Health Accounts are subject to investment gains and losses.  Share prices will vary, and a participant may experience investment earnings or losses when shares are sold to access funds from the Emeriti Health Account.  Before investing in any mutual fund, an individual should carefully consider its investment objectives, risks, charges, and expenses.  Employees are encouraged to read the fund’s prospectus carefully before investing.  A prospectus may be obtained through the TIAA-CREF web site (www.TIAA-CREF.org). 

Faculty and professional staff may meet with a TIAA-CREF representative to discuss Emeriti investment options and their own savings objectives.  TIAA-CREF representatives visit campus several times per year; faculty and professional may call TIAA-CREF, at (800) 732-8353, to schedule an on-campus appointment.

Use of the Emeriti Health Account During Retirement

During retirement, an individual may use the vested funds – contributions plus any investment earnings – which have accumulated in his/her Emeriti Health Account to help pay premiums, deductibles, co-payments, coinsurance, and other out-of-pocket health care expenses.  Funds may be accessed by a College retiree on a tax-free basis; no income tax is payable when funds are accessed to help offset eligible health care expenses for the retiree, his/her spouse, and other eligible tax-dependents. 

In order to access funds that have accumulated in one’s Emeriti Health Account, the individual must:

  1. have a “vested” Account balance prior to or on the date College employment terminates,
  2. have retired or terminated full-time employment with the College, and
  3. be at least age 55.

Emeriti Health Accounts are designed to help faculty and professional staff save for their health care expenses during retirement.  Per federal regulations, individuals may not make withdrawals while employed or take loans against their Emeriti Health Account balance.  Account balances cannot be accessed prior to vesting; prior to retirement or termination of full-time employment; and prior to age 55 except in very limited circumstances as follows:

  • Up to $5,000 of a former employee’s elective contributions may be accessed following employment termination but prior to age 55, with any remaining balance being available after age 55. 
  • Vested Account accumulations may be available prior to employment termination or age 55 due to special circumstances such as terminal illness or catastrophic medical expense.  Employees should contact the Emeriti Service Center for details.

Assets which have accumulated in an individual’s Emeriti Health Account can be used:

  • To help pay Emeriti health plan premiums during retirement and/or
  • To receive reimbursement, through the Emeriti Reimbursement Benefit, for any qualifying medical expenses incurred, after termination of employment, by the College retiree and his/her spouse or other eligible tax-dependent.  Per federal regulations, eligible expenses currently include Emeriti health, prescription, and dental insurance premiums; health plan deductibles, co-payments, and co-insurance; Medicare premiums; vision, dental, and hearing costs; long-term care insurance or at-home medical care; and premiums for other pre- or post-65 retiree health insurance.  Eligible dependents generally include a retiree’s legal spouse and children through age 18, or through age 23 if a full-time student (although a domestic partner and children through age 25 may enroll, as dependents of a College retiree, in an Emeriti health plan).

The funds in one’s Emeriti Health Account can be used to pay eligible health expenses during the College retiree’s lifetime, and until the last of the retiree’s eligible tax-dependents, as defined by federal regulations, dies or no longer qualifies as a dependent.

Funds in the Emeriti Health Account can be used exclusively to help offset eligible health care expenses, and may not be used for general living expenses.

Paying Emeriti Health, Prescription, and/or Dental Premiums-- During retirement, an individual who has enrolled in an Emeriti health, prescription, and/or dental plan will have assets automatically withdrawn from his/her Emeriti Health Account to pay premiums.  Retirees do not pay income tax on the funds they use from their Emeriti Health Account to pay their health insurance premiums.  An individual enrolled in an Emeriti plan may also pay premiums through electronic funds transfer from a personal savings or checking account if his/her Emeriti Health Account balance is insufficient.

Receiving Reimbursement for Other Health Care Expenses—A retired employee may access funds in his/her Emeriti Health Account to receive reimbursement for other eligible health care expenses by filing a claim or using a debit card as described in the “Emeriti Reimbursement Benefit” section below.

Coordination with the Health Reimbursement Account-- College employees who enroll in the PPO Health Plan $1000 receive contributions from the College to a Health Reimbursement Account (H.R.A.).  Those who retire with a balance in the H.R.A. may use these funds to receive reimbursement for qualified medical expenses.  A College retiree may use funds from both his/her Emeriti Health Account and the H.R.A., although an individual must deplete all assets in the H.R.A. prior to using the Emeriti Health Account reimbursement feature, and cannot be reimbursed for the same expense from both accounts.

Administrative Fees

During Employment—The College currently pays recordkeeping fees on behalf of each member of the faculty and professional staff with an Emeriti Health Account, during their active employment.

During Retirement— Retired / terminated employees are charged monthly recordkeeping and administrative fees.  Fees are deducted from a retired / terminated employee’s Emeriti Health Account.  Current fees can be found at www.emeritihealth.org/.

Investment Fees

Fees and expenses associated with the TIAA-CREF investment options will apply to all Emeriti Health Account holders, and will automatically be deducted from rates of return.  

Education

Representatives from TIAA-CREF generally visit campus several times per year to provide faculty and professional staff with the opportunity to discuss their retirement needs and goals.  A TIAA-CREF representative can help those with an Emeriti Health Account develop an individualized savings strategy.  Faculty and staff members may call TIAA-CREF, (800) 732-8353, to schedule an on-campus appointment.

Additional College-funded Contributions through the Grantor Trust

applicable to non-grandfathered Franklin & Marshall employees employed in a full-time status on December 31, 2012: faculty and professional staff employed in regularly-budgeted full-time College positions on December 31, 2012, and under age 55 as of December 31, 2012

Following implementation of the Emeriti Plan, the College made an additional, one-time contribution for each eligible, full-time member of the Franklin & Marshall faculty and professional staff through a “Grantor Trust” account.  Members of the faculty and professional staff who were:

  1. actively employed by Franklin & Marshall in a regularly-budgeted, full-time College position on December 31, 2012, and
  2. under age 55 as of December 31, 2012

received this one-time additional contribution to their Emeriti Health Account / Grantor Trust. 

An employee on one of the following types of leave, or otherwise on inactive employment status as of December 31, 2012, was not eligible to receive a Grantor Trust contribution:

  1. unpaid faculty research leave of more than 12 months duration,
  2. long-term disability leave (disability leave of more than 6 months), even if the individual is receiving income benefits through the College’s long-term disability plan, and
  3. unpaid personal leave of more than 6 months duration.

An employee’s Grantor Trust account accumulations vest in the same manner as College contributions to the VEBA Trust: upon completion of 15 continuous years of full-time College employment after age 40 (as early as age 55).  The Grantor Trust accounts of faculty and professional staff employed on a full-time basis on December 31, 2012, and who were age 50 through 54 as of December 31, 2012, will vest the earlier of completion of 15 continuous years of full-time employment with the College after the age of 40, or 10 consecutive years of full-time employment after the age of 50.  For vesting purposes, faculty and professional staff employed by Franklin & Marshall on a full-time basis on December 31, 2012, were credited with their prior full years of employment with the College after the age of 40. 

College-funded contributions made through the Grantor Trust are invested in the same manner an employee’s Emeriti Health Account / VEBA Trust contributions are invested.  A member of the faculty or professional staff may make investment elections and changes, and transfer funds between investment funds, through the TIAA-CREF web site www.tiaa-cref.org/fandm.

Vested accumulations in an employee’s Grantor Trust may be used during retirement to help pay premiums through an Emeriti health insurance, prescription drug, and/or dental plan; to pay premiums for another fully-insured health plan; and/or to help pay Medicare premiums.  Unlike funds that accumulate through the VEBA Trust, vested Grantor Trust accumulations may not be used for reimbursement of other qualified medical expenses.

If an employee has an unvested Grantor Trust balance upon employment termination, all funds are forfeited by the individual.

Emeriti Health, Prescription Drug, and Dental Plans

applicable to (a) grandfathered faculty and professional staff: those employed in a full-time status by Franklin & Marshall on December 31, 2012, and age 55 or older by December 31, 2012, and (b) to full-time non-grandfathered employees

applicable to those who retire(d) on or after January 1, 2013, with the exception of faculty who signed a Phased Retirement or Pre-retirement Leave of Absence Agreement by December 31, 2012

Upon retirement, eligible members of the faculty and professional staff may enroll in health, prescription drug, and dental plans administered by Emeriti Retirement Health Solutions.  Emeriti offers health insurance, prescription drug, and dental plans (“Emeriti health plans”) to retired employees, their spouses or domestics partners, and their eligible children through age 25. 

“Post-65” Emeriti plans are available to College retirees and spouses / domestic partners who are retired and enrolled in Medicare Parts A and B. 

“Pre-65” Emeriti plans are available to College retirees from age 60 through 64 who are not yet enrolled through Medicare; to spouses or partners under age 65 and not yet enrolled through Medicare; and to a retiree’s children through age 25.  

The Emeriti plans are underwritten through Aetna Life Insurance Company.  Plan benefits, coverage levels, covered services, participant-paid premiums, co-payments, deductibles, and other plan features are not “locked in” and are subject to change at the discretion of Aetna and Emeriti Retirement Health Solutions.

Eligibility

Retirees of the College—Full-time members of the faculty and professional staff, and faculty members on an approved, shared full-time appointment, are eligible to enroll in an Emeriti health, prescription drug, and dental plan upon retirement.  The following requirements must be met to enroll in an Emeriti health plan during retirement:

  1. The individual must be at least age 55 when College employment terminates,
  2. The individual’s College-funded contributions to the Emeriti Health Account must have vested, as described above, prior to or on the employment termination date, and
  3. The College retiree must be at least age 60 upon enrolling in an Emeriti health plan.

Eligibility for Grandfathered Employees—Faculty and professional staff employed by Franklin & Marshall on a full-time basis on December 31, 2012, and who were age 55 or older as of December 31, 2012, may enroll in an Emeriti health plan upon retirement and at age 60 or older, after completing at least 10 consecutive years of full-time College employment after the age of 50.  Additional information for grandfathered faculty and professional staff is included below.

Eligible Dependents—For purposes of enrollment in an Emeriti health plan, eligible dependents include a College retiree’s:

  1. legally-recognized spouse, or same-sex or opposite-sex domestic partner and
  2. children through age 25, and permanently disabled children.

Coverage through an Emeriti health plan is available for the life of a College retiree and his/her spouse or domestic partner.  The spouse or domestic partner of a College retiree may remain covered through an Emeriti health plan in the event the College retiree passes away prior to the spouse / partner. 

Dependent children of a College retiree may remain covered through a “pre-65” Emeriti health plan through age 25.  Adult children age 26 and older may not be enrolled, with the exception of permanently disabled children as described in the Summary Plan Description.

Note: Although a domestic partner and children through age 25 may enroll in an Emeriti health plan as dependents of a College retiree, a domestic partner and children age 23 and older are generally not considered the tax-dependents of a retiree.  Therefore, per federal regulations, Emeriti Health Account accumulations generally may not be used to offset premiums and other health care expenses for a domestic partner and older adult children.  Emeriti health plan premiums for a non-tax-dependent may be paid from assets in the retiree’s personal savings or checking account.

Post-65 Emeriti Plans for Retirees and Spouses Enrolled through Medicare

Retired faculty and professional staff who meet the years of service requirements outlined above and who are age 65 or older may enroll in an Emeriti post-65 health plan.  College retirees must be enrolled in Medicare Parts A and B to enroll in an Emeriti post-65 health plan.  The Emeriti post-65 health plans coordinate coverage with Medicare, and Medicare will be the retiree’s primary insurance. 

The spouse or domestic partner of a College retiree may enroll in a post-65 Emeriti plan if he/she is enrolled in Medicare Parts A and B.

Emeriti post-65 plans offer:

  • Preventive care
  • Catastrophic coverage
  • A choice of Medicare-approved Part D prescription drug plans
  • Coverage throughout the United States for any health care provider or facility that accepts Medicare
  • A plan option which provides urgent and emergency coverage for up to six months while traveling abroad
  • The ability to choose among several health insurance and prescription drug plan options

A College retiree may elect to enroll in a post-65 Emeriti health insurance and prescription drug plan; a health insurance, prescription drug, and dental plan; just a basic (“low” option) prescription drug plan, or a low option prescription drug plan and a dental plan.

Retirees may change their benefit elections generally once per year during the Emeriti Open Enrollment period.

Pre-65 Emeriti Plans for Retirees Age 60 through 64

Retired faculty and professional staff who meet the years of service requirements outlined above and are between the age of 60 and 64 may enroll in an Emeriti pre-65 health plan.  Premiums for pre-65 Emeriti plans are significantly higher than premiums for the post-65 plans that coordinate coverage with Medicare.  Those contemplating retiring prior to age 65 are advised to carefully consider the health insurance premiums they will pay until enrolled through Medicare and eligible for a post-65 plan.

A pre-age 65 spouse or domestic partner may also enroll in a pre-65 Emeriti plan.  A spouse or partner under age 60 may enroll in a pre-65 Emeriti plan, as long as the College retiree is at least age 60 and enrolled in an Emeriti pre-or-post-65 health plan.
 

Retirees Age 55 through 59

Faculty and professional staff who retire between age 55 and 59 may enroll in an Emeriti health plan once they reach age 60, if they had a vested Emeriti Health Account balance as of the employment termination date.  Or, they may wait until age 65 to enroll in a post-65 Emeriti plan that coordinates coverage with Medicare.  There is no option for a College retiree to enroll in an Emeriti health or prescription plan prior to age 60, or to be covered through the College’s standard health plan, administered by Highmark Blue Shield, after retiring.  An under-age-60 College retiree may choose to purchase an individual policy until age 60 and use his/her vested Emeriti Health Account balance to help pay the premiums.

Enrollment Period

Typically, an eligible retiree may only enroll in an Emeriti health, prescription, or dental plan 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.

Generally, a retiree’s spouse or domestic partner and children may only enroll in an Emeriti health plan during the same 90 calendar day period that applies to the College retiree, if they are eligible for coverage at that time.

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 retired; may enroll in an Emeriti pre-65 health plan while still employed; or may wait to enroll in a post-65 Emeriti health plan once enrolled in Medicare Parts A and B.  An employed spouse / partner may not enroll in a post-65 Emeriti plan until retirement and until enrolled in Medicare Parts A and B.

Dependents may only be enrolled in an Emeriti health, prescription, or dental plan if the College retiree is also enrolled.  Coverage for a dependent ordinarily ends if the College retiree terminates his/her coverage.  However, an otherwise eligible dependent may remain enrolled in an Emeriti health plan following the College 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, spouses / partners, and other eligible dependents 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, please call the Emeriti Service Center at 1-866-EMERITI (1-866-363-7484).

Enrollment Process

Upon retirement, a College retiree and his/her eligible dependents may enroll in an Emeriti health plan by calling the Emeriti Service Center at 1-866-EMERITI (1-866-363-7484).  As noted above, the retiree and his/her eligible dependent(s) must enroll before the end of their one-time 90 day enrollment period. 

The College’s Human Resources office is not able to enroll College retirees in an Emeriti health plan; the Emeriti Service Center must be contacted directly by the retired member of the faculty or staff.

A retiree must call the Emeriti Service Center, at (866) 363-7484, to report any changes in dependent status due to marriage, birth or adoption, divorce, death, or age of children. 

Opting-out of Emeriti Coverage

A retiree or spouse / partner who elects not to enroll in an Emeriti plan when first eligible may then never enroll unless he/she experiences a qualifying life event that results in loss of other health coverage. 

A College retiree and spouse / partner may choose to enroll in only the “low” option Emeriti prescription plan and, therefore, retain his/her ability to enroll in an Emeriti health or dental plan at a later date.

Premiums

During retirement, College retirees pay the full premium charged by the insurer for their health, prescription, and dental coverage and that of any enrolled dependents.  Retirees may use the vested funds in their Emeriti Health Account to help pay these premiums.  (The College provides a subsidy for “grandfathered” retirees and the spouse or same-sex domestic partner as summarized in the “Information for Grandfathered Faculty and Professional Staff” section below.)

A College retiree who has enrolled in an Emeriti health, prescription, and/or dental plan will have assets automatically withdrawn from his/her Emeriti Health Account to pay premiums for him/herself and covered dependents.  An individual enrolled in an Emeriti plan may also pay premiums through electronic funds transfer from a savings or checking account. 

Upon enrollment in an Emeriti health or prescription plan, the enrollee will be required to set-up electronic funds transfers from his/her savings or checking account to the Emeriti Health Account.  If there is an insufficient balance in a retiree’s Emeriti Health Account to pay his/her health plan premiums, an electronic funds transfer will be initiated, by the Plan administrator, from the retiree’s designated personal savings or checking account to his/her Emeriti Health Account.  Retired individuals are to contact the Emeriti Service Center, at (866) EMERITI or (866) 363-7484, to enroll and to set-up electronic funds transfers.

College retirees and their dependents who are enrolled in post-65 Emeriti health plans will pay Medicare Part B premiums in addition to Emeriti premiums.

Detailed information about current Emeriti health, prescription, and dental plan options; coverage; premiums; deductibles; and co-payments is available at www.emeritihealth.org.  Questions about coverage may be directed to the Emeriti Service Center at (866) 363-7484.
 

Emeriti Reimbursement Benefit  

applicable to non-grandfathered faculty and professional staff: (a) faculty and professional staff employed by the College in an eligible status on December 31, 2012, and under age 55 as of December 31, 2012, and (b) those hired in an eligible status after December 31, 2012 regardless of age

Through the Emeriti Reimbursement Benefit, a retiree may receive reimbursement from his/her vested Emeriti Health Account balance (funds in the VEBA Trust only) for eligible health care expenses that are not reimbursed through another insurance plan.  Funds in a retiree’s Emeriti Health Account can be accessed on a tax-free basis if the individual:

  1. has retired or terminated full-time employment with the College,
  2. had a vested Account balance, as described above, prior to or on the date College employment terminated,
  3. is at least age 55,
  4. has moved some or all assets to the Money Market account.

A College retiree can be reimbursed for qualified medical expenses incurred after termination of employment, including:

  • Insurance deductibles, coinsurance, and co-payments
  • Vision, dental or hearing care expenses
  • Long-term care insurance premiums
  • Long-term care services associated with nursing facilities or in-home health care services
  • Various medical devices
  • Health insurance premiums
  • Medicare premiums

A retiree can use the Emeriti Reimbursement Benefit to receive tax-free reimbursement for his/her health care expenses, and those of the legally-recognized spouse, dependent children through age 18, or age 23 if a full-time student, and other dependent relatives who meet the federal definition of a tax-dependent. 

If funds in a retiree’s Emeriti Health Account are used to offset premiums or other eligible health care expenses for a non-dependent domestic partner, the retiree will be assessed income tax on the value of the benefits provided to the non-dependent partner.   The value of the benefit provided to the non-dependent partner is considered taxable income to the College retiree, per federal regulations.  As federal regulations are complex, individuals are advised to contact the Emeriti Service Center with any questions.

College contributions designated to the “Grantor Trust” for full-time faculty and professional staff hired by December 31, 2012, may only be used to help pay premiums through an Emeriti health plan, another fully-insured medical plan, or Medicare and may not be used to receive reimbursement for other health care expenses.

Eligibility

Retired members of the faculty and professional staff who have a vested Emeriti Health Account balance are eligible to participate in the Emeriti Reimbursement Benefit. 

Grandfathered faculty and professional staff - those employed by the College on a full-time basis as of December 31, 2012, and age 55 or older as of December 31, 2012 - are not eligible to participate in the Emeriti Reimbursement Benefit.

Claims for Reimbursement

After an eligible health care expense has been incurred (following termination of employment), and if the expense is not covered through any insurance plan, a retiree may submit a claim for reimbursement from his/her Emeriti Health Account.  Emeriti Retirement Health Solutions will provide information regarding submitting claims.  Reimbursement will be made to the retiree from his/her vested assets in the Emeriti Health Account.  The retiree will need to pay his/her health care provider.

Information for Grandfathered Faculty and Professional Staff

Members of the faculty and professional staff who were:

  1. employed by Franklin & Marshall on December 31, 2012, in a regularly-budgeted College position classified as full-time, and
  2. age 55 or older on or before December 31, 2012,

comprise a “grandfathered” group for purposes of the Emeriti Plan.  Emeriti Plan provisions for grandfathered faculty and professional staff are generally consistent with (although not the same as) health plan provisions for those who retired prior to implementation of the Emeriti Plan. 

Grandfathered faculty and professional staff do not receive contributions from the College to an Emeriti Health Account during their working years.  Instead, the College pays a portion of their Emeriti health and prescription drug premiums during retirement, once the retiree is enrolled through Medicare and a “Post-65” Emeriti health plan.  The College also pays a portion of Emeriti premiums for retired members of the faculty who retired through the Phased Retirement Program.  Faculty and professional staff eligible for this benefit are those who:

(a) were employed in a full-time position with Franklin & Marshall on December 31, 2012;

(b) were age 55 or older by December 31, 2012;

(c) retire at age 60 or older after completing at least 10 consecutive years of full-time employment with Franklin & Marshall after age 50; and

(d) either enroll in Medicare Parts A and B and an Emeriti “Post-65” health plan, or retired through the Phased Retirement Program for faculty and enroll in an Emeriti “Pre-65” (non-Medicare eligible) health plan or an Emeriti Post-65 health plan.

The College funds a portion of Emeriti health and prescription premiums during the retiree’s lifetime, or until the retiree is no longer enrolled in an Emeriti health and/or prescription plan. 

If a grandfathered retiree’s spouse or same-sex domestic partner is enrolled in an Emeriti plan, the College provides its subsidy for the spouse or same-sex partner.  The subsidy is provided for the retiree’s spouse or same-sex domestic 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.

A grandfathered retiree and his/her spouse or same-sex domestic partner must enroll in an Emeriti health or prescription plan in order to receive the College-paid subsidy; the subsidy is not provided if a retiree or dependent elects to enroll in a non-College-sponsored health plan.
 

Eligibility

Grandfathered faculty and professional staff are eligible to enroll in an Emeriti health insurance and prescription drug 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.

Eligible Dependents-- The legally-recognized spouse or same-sex or opposite-sex domestic partner of a College retiree may enroll in an Emeriti health plan, as well as children through age 25. 

The College pays its subsidy on behalf of the grandfathered College retiree and his/her legally-recognized spouse or same-sex domestic partner.  A College retiree may use assets in his/her savings or checking account to pay premiums on behalf of other enrolled dependents.

If a grandfathered retiree passes away before his/her spouse or partner, the spouse / partner may remain covered through an Emeriti health and prescription plan for life.  However, the College subsidy will end upon the retiree’s death, and the spouse or partner will then pay the full Emeriti premium. 

Retirement at Age 65 or Older— The College pays a portion of the Emeriti health and prescription premium for each grandfathered, Medicare-enrolled retiree; the College retiree must be enrolled in Medicare Parts A and B in order to receive the College’s subsidy, except as noted below in the “Phased Retirement” section.  The College also pays its subsidy on behalf of a Medicare-enrolled retiree’s spouse or same-sex domestic partner, regardless of the Medicare-eligibility status of the spouse or same-sex partner. 

Medicare-enrolled retirees and Medicare-enrolled spouses and partners pay Medicare Part B premiums in addition to Emeriti premiums.

Retirement Prior to Age 65— Although a non-Medicare-eligible retiree may enroll in an Emeriti health plan as early as age 60, the College-paid subsidy will not begin until the retiree is enrolled through Medicare Parts A and B except as noted below.  Grandfathered retirees age 60 through 64 who are not yet eligible for coverage through Medicare pay the full premium for their health and prescription drug coverage, and for that of the spouse or partner regardless of the spouse or partner’s Medicare-eligibility status.  Once a grandfathered College retiree is enrolled through Medicare Parts A and B and a post-65 Emeriti plan, the College will pay a portion of the premium for both the retiree and the spouse or same-sex domestic partner.  

Phased Retirement Program for Faculty (applicable to faculty members who sign a Phased Retirement Agreement or Pre-retirement Agreement after December 31, 2012)— 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, and faculty who retire through the Pre-retirement Leave of Absence Program.  The College’s monthly subsidy equals that which is provided on behalf of Medicare-eligible grandfathered retirees.  The College also makes its subsidy payment on behalf of the faculty retiree’s spouse or same-sex domestic partner. 

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. 

Emeriti premiums vary based on the plan elections an individual makes, and based on the individual’s zip code, age, and Medicare-eligibility status.  However, the College provides the same subsidy to all eligible, grandfathered retirees and on behalf of the enrolled spouse or same-sex domestic partner.  Therefore, depending on the health and prescription elections an individual makes, where he/she resides, age, and 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 same-sex partner are responsible for paying the remainder of their premiums not funded by the College. 

The College-paid subsidy is held in a VEBA account on behalf of each grandfathered retiree.  The retiree may use the funds in his/her account exclusively to help pay monthly Emeriti health and/or prescription premiums.

If dental coverage is elected, the retiree and spouse or partner pays 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.

Note:  If a 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 or same-sex partner will equal considerably less than 70% of the total Emeriti premium for a pre-65 health plan.  This is because the pre-65 Emeriti premiums are substantially higher than premiums for post-65 plans which supplement coverage provided through Medicare.  Similarly, the College-paid subsidy equals considerably less than 70% of the total premium for an under-age-65 faculty member who retired through the Phased Retirement Program and is enrolled in a pre-65 Emeriti plan.

Recordkeeping Fees—During retirement, the College pays recordkeeping fees, associated with the College-paid subsidy, on behalf of grandfathered faculty and professional staff (those employed by the College in a full-time capacity as of December 31, 2012, and age 55 or older as of December 31, 2012).

How to Enroll

Upon retirement, a College retiree and his/her spouse or domestic partner may enroll in an Emeriti health plan by calling the Emeriti Service Center at 1-866-EMERITI (1-866-363-7484).  The retiree and eligible dependents have a one-time 90 day period during which to enroll.

The College’s Human Resources office is not able to enroll College retirees in an Emeriti health or prescription plan; the Emeriti Service Center must be contacted directly by the retired member of the faculty or staff.

A retiree and his/her eligible dependent(s) must enroll before the end of their one-time 90 day enrollment period.  A retiree, spouse or partner, or other eligible dependent who elects not to enroll in an Emeriti plan when first eligible may then never enroll unless he/she experiences a qualifying life event that results in loss of other health coverage. 

A College retiree and spouse or partner may choose to enroll in only the “low” option Emeriti prescription plan and, therefore, retain their ability to enroll in an Emeriti health or dental plan at a later date.

Paying Emeriti Health Plan Premiums

A VEBA account will be established for each grandfathered retiree.  This account will hold the College-paid subsidy made on behalf of each eligible retiree and his/her spouse or same-sex domestic partner.  The Plan administrator will automatically pay premiums on the retiree’s behalf using funds available in the VEBA. 

Each retiree will be required to authorize automatic transfers from a personal savings or checking account so that additional funds can be transferred to the VEBA account, as the College’s subsidy is not intended to cover the full cost of Emeriti health plan coverage.  Retirees are to call the Emeriti Service Center, at the same time they enroll in an Emeriti health plan, to authorize transfers.  Funds will then be automatically withdrawn from the retiree’s personal savings or checking account on a monthly basis so that his/her Emeriti health plan premiums are paid in a timely manner. 

Detailed information about current Emeriti health, prescription, and dental plan options; coverage; premiums; deductibles; and co-payments is available at www.emeritihealth.org.  (Premiums posted through the Emeriti web site do not reflect the subsidy the College pays on behalf of grandfathered retirees.)  Information is also available in the Human Resources public eDisk folder.

Questions about coverage may be directed to the Emeriti Service Center at (866) 363-7484.   

Franklin & Marshall College retains the right, in its sole discretion, to modify, suspend, or terminate the Emeriti Retirement Health Plan and other benefit plans at any time.  A modification or termination will not impact an individual’s vested benefits.

To access the form to initiate a voluntary contribution, by personal check, to your existing Emeriti Health Account, please click here:  Form.