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Retiring from Franklin & Marshall

·      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, or www.ssa.gov , for detailed information regarding Social Security benefits.

·      For information about Medicare, or to apply for benefits, call (800) 633-4227 or visit www.medicare.gov.  (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, available on the Human Resources web pages and by contacting the Human Resources office.

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.  Detailed Emeriti health and prescription plan information can be found at www.emeritihealth.org .

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)

Emeriti Plan premiums are available from: http://www.emeritihealth.org/calculator/index.php .

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, available at www.fandm.edu/humanresources/benefits and from 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)

Emeriti Plan premiums are available from: http://www.emeritihealth.org/calculator/index.php

“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 to January 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, at www.fandm.edu/humanresources/Benefits , 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, available from www.fandm.edu/humanresources/Benefits , 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 (www.fandm.edu/humanresources/Benefits),

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 (www.fandm.edu/humanresources/Benefits) 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.  Further details can be found at www.emeritihealth.org .

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 or www.socialsecurity.gov, and Medicare, (800) 633-4227 or www.medicare.gov, 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”.  The current annual limit can be found at www.socialsecurity.gov .

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.  The current limit can be found at www.socialsecurity.gov .  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 at www.socialsecurity.gov/applyonline/ . 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.  Current premiums can be found at www.medicare.gov .

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 Medicare, (800) 633-4227, or visiting www.medicare.gov .

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

  • AARP: (202) 434-2277, www.aarp.org
  • AARP PA Legal Advice Line: (800) 262-5297
  • Emeriti Retirement Health Solutions, (866) 363-7484, www.emeritihealth.org/
  • Emeriti Service Center, (866) 363-7484
  • Medicare: (800) 633-4227, www.medicare.gov
  • National Council on the Aging: www.ncoa.org
  • Office of Aging: 299-7979 or (800) 801-3070
  • Social Security Administration: 291-2168 or (800) 772-1213, www.socialsecurity.gov/applyonline/
  • TIAA-CREF: (800) 842-2776

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.

Eligibility

Faculty members who meet the criteria outlined below are eligible to participate in the Phased Retirement Program:

  1. classified as full-time, benefits-eligible members of the faculty,
  2. tenured,
  3. are at least age 59-1/2 when the Phased Retirement period begins,
  4. are not participating in the Pre-retirement Leave of Absence Program for faculty, and
  5. have completed at least 15 consecutive years of full-time employment with Franklin & Marshall after the age of 40, except as outlined below. 

·      Faculty age 55 and over as of December 31, 2012:  Full-time, tenured faculty members employed by the College on December 31, 2012, and age 55 or over by December 31, 2012, may begin participating in the Phased Retirement Program at age 59-1/2 or older.  Upon full retirement, such faculty members must have completed at least 10 consecutive years of full-time service after age 50 (age 60 or over upon full retirement).

·      Faculty age 50 through 54 as of December 31, 2012:  Full-time, tenured faculty members employed by the College on December 31, 2012, and age 50 through 54 as of December 31, 2012, may begin participating in the Phased Retirement Program at age 59-1/2 or older.  Upon full retirement, such faculty members must have completed at least either 15 consecutive years of full-time College employment after age 40, or 10 consecutive years of full-time service after age 50, whichever occurs first. 

The last year of full-time employment prior to the Phased Retirement period cannot be a year in which a sabbatical or leave of absence is taken.  Faculty members under a Phased Retirement Agreement are not eligible for sabbatical leaves.

Phased Retirement Agreement

An irrevocable Phased Retirement Agreement must be finalized no later than April 15 of the year preceding the last academic year of full-time employment.  This Agreement can be found in the Human Resources public folder in eDisk.

Phased Retirement Period

The maximum period of Phased Retirement is three consecutive academic years.  In exceptional cases, a faculty member may, during the course of the three year Phased Retirement period, with the consent of his/her department and the College, further negotiate his/her teaching load.

Salary

While participating in the Phased Retirement Program, salary will be at an annual rate of twenty percent (20%) of full base salary for each course taught, or, under normal circumstances, 60% of full base salary. Faculty members under a Phased Retirement Agreement are eligible for pro-rated annual salary increases based on the average increment given all faculty in rank.

Benefits

Dental Coverage—Prior to full retirement, faculty members participating in the Phased Retirement Program continue to be eligible for dental coverage per standard College policies, and pay the same premiums offered to active, full-time employees. 

Dental coverage is discontinued upon full retirement.  However, the retired faculty member may elect to continue dental coverage temporarily, generally for up to 18 months, via "COBRA".

Health & Prescription Drug Coverage --  Prior to full retirement, faculty members participating in the Phased Retirement Program continue to be eligible for health and prescription drug coverage per standard College policies, and pay the same premiums offered to active, full-time employees.  

Upon full retirement, a faculty member who has met eligibility requirements as outlined above, and is at least age 60, may enroll in a College-sponsored health and prescription drug plan as outlined below:  

·      Faculty members who signed a Phased Retirement Agreement no later than by December 31, 2012:  Faculty members who signed their Phased Retirement Agreement prior to January 1, 2013, are eligible for coverage upon full retirement through the College’s retiree health and prescription plan currently administered by Highmark Blue Shield, per standard College policies.

Faculty members who complete their Phased Retirement period, and the spouse or same-sex domestic partner, are eligible for health and prescription drug coverage at the same premiums offered to Medicare-enrolled College retirees, regardless of the Medicare-eligibility status of the “phased” faculty retiree or spouse/same-sex domestic partner.   

If a faculty member retires before the end of the agreed-upon Phased Retirement period, he/she will pay health and prescription premiums applicable to non-Medicare-enrolled retirees until enrolled through Medicare Parts A and B.

·      Faculty members who signed a Phased Retirement Agreement on or after January 1, 2013:  Faculty members who sign a Phased Retirement Agreement on or after January 1, 2013, may enroll in a health and prescription plan available through Emeriti Retirement Health Solutions upon full retirement (and at age 60 or older).  Those who retire prior to being eligible for coverage through Medicare (generally age 60 – 64) may enroll in a “pre-65” Emeriti health plan.  Those who retire at age 65 or older and are enrolled in Medicare Parts A and B may enroll in a “post-65” Emeriti health plan. 

“Grandfathered” Faculty Members: The College will pay a portion of Emeriti health and prescription premiums, per standard College policies, for faculty members employed by Franklin & Marshall in a full-time capacity on December 31, 2012, and who were age 55 or older on or before December 31, 2012.  This applies regardless of the Medicare-eligibility status of the Phased Retirement participant upon full retirement. The College will also make its standard subsidy payment on behalf of the faculty retiree’s enrolled spouse or same-sex domestic partner.  The College will fund a portion of Emeriti premiums during the retiree’s lifetime, or until the retiree is no longer enrolled in an Emeriti plan.  The subsidy will be 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. 

The above applies only to those who were employed by Franklin & Marshall in a full-time capacity on December 31, 2012; who were age 55 or older on or before December 31, 2012; and who retire after completing at least 10 consecutive years of full-time College employment after age 50. 

Please note:  The dollar amount of the College-provided subsidy is the same whether a faculty retiree and his/her spouse or same-sex partner enrolls in a pre-65 Emeriti health plan or a post-65 Emeriti health plan.  However, premiums for a pre-65 Emeriti health plan, for retirees and dependents who are not yet enrolled through Medicare A and B, are significantly higher than premiums for a post-65 plan, for those enrolled through Medicare.

If a “grandfathered” faculty member retires before the end of the agreed-upon Phased Retirement period, he/she will pay the full Emeriti health plan premium (with no College subsidy) until enrolled through Medicare Parts A and B.

“Non-grandfathered” Faculty Members:  Phased Retirement participants who do not meet the criteria for grandfathered status (faculty who were under age 55 as of December 31, 2012, or began their College employment after December 31, 2012) will pay full Emeriti health plan premiums upon retirement, if they choose to enroll in an Emeriti plan.  Such individuals may use any vested balance in their Emeriti Health Account to help offset their health care expenses during retirement, per standard provisions of the Emeriti Retirement Health Plan.

Premiums through the College’s Highmark plan can be found at www.fandm.edu/humanresources/article/retiring-from-franklin-and-marshall

Current premiums for the Emeriti health plans can be found by visiting www.emeritihealth.org/ (click on “Tools & Calculators”). 

Retirees and spouses / same-sex domestic partners who are eligible for coverage through Medicare must enroll in Medicare Parts A and B on the earliest possible date to be eligible for health coverage through either the College’s Highmark plan or an Emeriti health plan.  For retirees eligible for Medicare, College-sponsored coverage is considered secondary and will “wrap- around” Medicare coverage.

Flexible Spending Accounts Plan-- During the Phased Retirement period, a faculty member may continue to participate in the Flexible Spending Accounts Plan.  Eligibility to participate is discontinued upon retirement, although a retiree may elect to continue his/her participation in the Medical Expense Reimbursement Account through the end of the calendar year, via “COBRA”.

Life Insurance -- During the Phased Retirement period, life insurance and Accidental Death & Dismemberment coverage will be equal to 1.5 times actual (reduced) salary, up to a maximum coverage level of $100,000. Phased Retirement participants may be able to purchase an individual policy to replace the amount of coverage eliminated. To do so, the Phased Retirement participant must contact the life insurance carrier within 31 calendar days of experiencing a reduction in life insurance coverage.

Upon full retirement, life insurance coverage will equal 25% of what the coverage amount would have been immediately prior to retirement if not participating in the Phased Retirement Program.

Long-term Disability -- Coverage under the Long-term Disability Plan will continue, with the amount paid in the event of total disability equal to 60% of the faculty member's actual (reduced) base monthly salary immediately preceding the disability.

Per standard College policies, long-term disability coverage is discontinued at full retirement.

Retirement Plan -- The College will make its normal retirement contribution on behalf of the faculty member, based on actual (reduced) base monthly salary received during the Phased Retirement period.  Phased Retirement participants may make elective, pre-tax contributions to the Retirement Plan through salary reduction.

Faculty members participating in the Phased Retirement Program who are at least age 60 may begin receiving distributions – both from their own contributions and College contributions - from their retirement account prior to full retirement, if they choose.  Phased Retirement participants may also rollover a portion or all of their retirement account balance during the Phased Retirement period.

Upon full retirement, retirement savings may be withdrawn, rolled over to an Individual Retirement Account (IRA), or left invested in the College's Retirement Plan, subject to federal regulations and standard Plan provisions.

Education Benefits -- Faculty members participating in the Phased Retirement Program continue to be eligible for education assistance benefits, including benefits offered to eligible dependents, per standard College policies.

Outside Employment

While under a Phased Retirement Agreement, a faculty member may accept outside employment up to 40% of full-time.

Faculty Status

Participants in this Phased Retirement Program will continue to be active faculty members, with a full vote in faculty meetings. However, faculty members under this Agreement will not be eligible to serve as a department chair or hold other academic positions that require full-time service.

Full Retirement

A faculty member under a Phased Retirement Agreement must fully retire from the College at the end of the Phased Retirement period. The College will rely on this in planning for its academic staffing, including the employment of additional faculty. A faculty member may retire before the end of the Phased Retirement period by providing one year's notice to the Office of the Provost. 

Faculty interested in additional information regarding the Phased Retirement Program, and those who wish to initiate a Phased Retirement Agreement, should contact the Office of the Provost.

Information about benefits available to retired College employees is available at www.fandm.edu/humanresources/Benefits.

This Phased Retirement Program may be amended, modified, or terminated by the College at any time. Such amendment, modification, or termination will not affect faculty members who have already signed a Phased Retirement Agreement.

Emeriti Retirement Health Plan - for those who retire after 12/31/2012

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

The full terms of the College’s Emeriti Plan will be described in a Summary Plan Description, which will be available from www.fandm.edu/humanresources/Benefits.  The Summary Plan Description will include important details about the Emeriti Plan, including eligibility, coverage, and exclusions. 

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

a)    faculty and professional staff who retired prior to January 1, 2013, and

b)    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 www.fandm.edu/humanresources/Benefits 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 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:

1.     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.

2.     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.

3.     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:

a)    the date an employee’s full-time employment terminates, including due to retirement, death, or a change to ineligible part-time or adjunct status,

b)    the date a part-time employee is no longer authorized by the College to work 1,000 or more hours per year for wages,

c)     the date an employee is otherwise no longer employed in an eligible status,

d)    the date an employee begins a leave of absence which does not provide for continued contributions (see below),

e)    the date an employee has received contributions for 25 years (25 annual contributions to his/her Emeriti Health Account), or

f)     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:

a)    paid sabbatical, paid Junior Faculty Leave, other paid faculty research leave, or paid professional development leave for an exempt staff member,

b)    an approved, unpaid faculty research leave of 12 months duration or less,

c)     paid short-term disability leave (“sick” leave), paid maternity/paternity leave, or paid family care leave of up to 6 months duration,

d)    paid or unpaid leave per the College’s Family & Medical Leave Policy,

e)    paid vacation,

f)     paid or unpaid military leave, or

g)    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:

a)    unpaid faculty research leave of more than 12 months duration,

b)    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

c)     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 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 Contributions-- An 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:

1.     To help pay Emeriti health plan premiums during retirement.

and/or

2.     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:

a)    unpaid faculty research leave of more than 12 months duration,

b)    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

c)     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 see the Emeriti Health Insurance and Prescription Drug Program Summary Plan Description, available from http://www.fandm.edu/humanresources/benefits and the Human Resources office, or 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:

a.     if retiring after completing at least 10 consecutive years of full-time employment with Franklin & Marshall after the age of 50,

and

b.    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.

For a "Medicare & You" publication from the Centers for Medicare and Medicaid Services, please click HERE .