Purdue Retirement Program

Road to Retirement A program for Purdue employees approaching retirement.

Purdue University Official Retiree Faculty or Staff members age 55 or more with at least 10 years of service AND Age plus years of service equals or exceeds 70

Purdue University Retirees Association (PURA) Free Membership Monthly luncheons with interesting speakers Trips and tours Campus and community activities Quarterly Newsletter Volunteer Opportunities See the Retiree Brochure and the PURA website for information - www.purdue.edu/retirees

From Work to Retirement -or- Things I Wish I Had Thought About ! Important Considerations Short Range and Long Range Goals Financial Security Legal Security Where to Retire Personal Emotional Needs Family Responsibilities

Benefit Programs for Official Retirees Complimentary A parking permit Fee privileges Staff rates on tickets, recreational facilities Nursing Center services Flu Shots University email address and data network remote facilities

Benefit Programs for Official Retirees Optional participation in University-sponsored group medical & Rx insurance Retiree continuing a Purdue plan can continue to cover Spouse/SSDP/Dependent* Surviving Spouse/SSDP/Dependent* can continue to be covered Optional participation in Group Life Insurance plan to age 65 * Dependent eligibility rules apply

Medical Plan Options Plans are reviewed annually and are subject to change

Medical Plan Coverage Retiree or Spouse/SSDP Under Age 65 Continue on same plans as active faculty and staff until age 65. You pay the full cost. Can change plan during annual open enrollment. At age 65, can join a 65+ Purdue retiree group plan.

2014 Monthly Medical Premiums * Retiree and/or Spouse/SSDP Under Age 65 Single coverage Retiree + Sp/SSDP $587 $1,321 Purdue Health Plan PHP No HSA 1 Single coverage Retiree + Sp/SSDP $519 $1,167 Single coverage Retiree + Sp/SSDP $468 $1,052 PHP No HSA 2 *Tobacco-User Additional Premium $500/person/year 3% discount for annual payment. Billed from Purdue Accounts Receivable.

Medical Plans - Retirees Over Age 65 Definitions Medicare Part A Hospital (Inpatient) - No monthly premium - Paid during working years Medicare Part B Medical (Outpatient) - Sign up at 65 or at full retirement - Base Premium for 2014 is $104.90/month

Definitions - Continued Medicare Part C - Private Insurance Medicare Advantage - PPO, HMO, Private Fee for Service Pay Part B monthly premium + insurance premium Medicare Part D - Prescription Drug Coverage Pay monthly premium to insurance company Parts B, C and D have a Premium Parts B & D have penalty if not joined when eligible Special Enrollment Period (SEP) at retirement

Definitions - Continued Creditable Coverage, Medicare Parts B and D Until retirement have coverage from employer s medical/Rx insurance, as good or better than Medicare Part B and/or Part D penalty may apply if cannot show creditable coverage past age 65 Employer will provide evidence of creditable coverage

Medical Plans 2014 Retirees Over Age 65 PURcare Supplement (incl. Vision) and Prescription Drug Supplement to Medicare Parts A and B through UnitedHealthcare Excellent Nationwide coverage See any doctor or use any provider that accepts Medicare for medically necessary coverage Includes Medicare Part D prescription drug coverage International coverage for illness/accident Extra coverage above individual plans (e.g. Hospital, Skilled Nursing)

Medical Plans 2014 Retirees Over Age 65 UnitedHealthcare Group Medicare Advantage PPO Medicare Part C private insurance A type of Medicare Advantage Plan approved by Medicare Nation-wide PPO network Out of Network - any Medicare doctor or facility that will accept payment from the plan Payment to provider is the same reimbursement as Medicare Includes medical/hospital and Part D prescription coverage

Important Retirement Decision! Group Health Plan Eligibility Official Retiree, Qualifying Spouse/SSDP Enrolled in Medicare Part A & B Age 65 (PURcare) If you re age 65 with Medicare and choose an individual health insurance plan, you will not be eligible to return to a Purdue retiree group plan.

PURcare Senior Supplement PURcare premium for 2014 is $262.94/month/person A decrease of $5.38 from the 2013 premium Veterans with Rx coverage from VA ($181.53) $300 annual deductible (Medicare Parts A and B) Once satisfied, plan pays 100% of Medicare allowed amounts for rest of year $150 annual Vision benefit with no deductible

2014 PURcare Prescription Plan Prescription drug coverage Exceeds coverage required under Medicare Part D legislation Open formulary (FDA approved, medically necessary) No gap in coverage (donut hole) No step therapy Few prior authorizations or limited quantities

2014 PURcare Prescription Plan Part D prescription drug coverage Open Formulary No deductible You pay the lesser of: 50% co-insurance locally (30 or 90 day supply) 45% co-insurance by mail order (90 day supply) Or the 2014 maximum co-pay Tier 1 $10 /mo. retail or $20/mail order Tier 2 $45/mo. retail or $90/mail order Tier 3-4 $95/mo. retail or $180/mail order No cost after $4,550 out of pocket in 2014

PURcare Vision Benefit A vision rider of $150 per year for expenses not allowed by Medicare No Network, use any provider No 12 month waiting period requirement May use for frames, lenses, second pair of glasses, refraction Not for refraction/glasses after cataract surgery

2014 Group Medicare Advantage PPO UnitedHealthcare Medicare Advantage PPO Premium is $198.56 per person per month for medical/hospital and prescription drug coverage Office co-pay of $15 for primary and $25 for specialist In-patient hospital co-pay is $200/day $3000 Annual Maximum Out-of-Pocket for medical/hospital Prescription co-pays do not count toward out-of-pocket max

2014 Group Medicare Advantage PPO Prescription Drug Coverage Defined formulary (not all drugs covered) Drug tier determines cost - $4, $28, $58, 33% Tier 1 generic drugs are covered during the Gap you pay only your co-pay. Step therapy, prior approval and limited quantities on some covered drugs

Plan Comparison PURcare Higher monthly premium ($262.94) Lower yearly out-of-pocket costs for hosp./medical ($300) Broader Rx coverage with few restrictions and no gap in coverage 100% Rx coverage during catastrophic phase Medicare Advantage PPO Lower monthly premium ($198.56) Higher yearly out-of-pocket costs for hosp./medical ($3000) More limited Rx coverage, but with coverage of Tier 1 generics in the gap More Rx restrictions and some cost during catastrophic phase

Additional Benefits for Both Plans SilverSneakers Newtone, Curves, Ismail Center, Snap Fitness, YMCA Coming Soon! Cordova Recreational Sports Center Over 10,000 participating clubs nationwide NurseLine Optum Discount

Why a Purdue Retiree Group Plan? Purdue HR staff assigned to help you Not age rated premiums do not increase with age No yearly re-enrollment for Supplement or Part D Rx Better benefits than most individual plans offer PURA Benefits Committee works on your behalf to negotiate best possible plans

Message from PURA Benefits Committee PURA believes that prudent retiree health insurance decisions should be determined by value, service and dependability. Your health insurance is important to your well-being and peace of mind. Choosing an insurance plan on the basis of price alone can be risky and costly.

Life Insurance

Life Insurance Under Age 65 You are eligible to: Continue Basic Term Life (1.5x Salary) and Additional Term Life all or part by paying the full cost Continue all or part of coverage for dependents Port (extend) Accidental Death & Dismemberment coverage for you and/or your dependents

Cost Example: Age 63 Salary, $30,000 Current Basic Term Coverage of $45,000 = $29.70/month (paid by Purdue at 1.5 x Salary) Current Additional Coverage of $60,000 = $39.60/month (paid by you at 2x salary)

Life Insurance age 65 - 69 You are eligible to: Convert Basic Term Life (1.5x Salary) to an individual policy with Minnesota Life by paying the full cost Cost is dependent upon age and amount of coverage Port (extend) Additional Term Life by paying the full cost Cost is dependent upon age and amount of coverage

Cost Example: Age 66 Salary, $30,000 Current Basic Term Coverage of $45,000 = $236.92/month (paid by Purdue at 1.5 x Salary) Current Additional Coverage of $60,000 = $128.40/month (paid by you at 2x salary)

Life Insurance age 70+ If you have ported (extended) your Additional Term Life coverage up to this point, or if you are retiring past age 70, you are guaranteed conversion of the Basic/Additional Term Life coverage. You can keep this coverage for life by paying the full cost. Cost is based on age and coverage amount.

Cost Example: Age 72 Salary, $30,000 Current Basic Term Coverage of $45,000 = $329.93/month (paid by Purdue at 1.5 x Salary) Current Additional Coverage of $60,000 = $439.90/month (paid by you at 2x salary)

Retirement Should be a Reward for a Job Well Done!

Questions? Thank you for attending. Kate LaMar Human Resources klamar@purdue.edu