Retirement Benefits Summary
for BOG 403(b) Retirement Plan Participants
Health Coverage
When an employee retires, he/she is entitled to keep the present health care, dental, and vision coverage under COBRA (Consolidated Omnibus Budget Resolution Act) for 18 months. This act allows the retiree and spouse, if necessary, to pay the State's active group rate, plus a 2% administration fee, in order to maintain continuance of coverage.
- If an employee is already 65 when s/he retires, s/he can enroll in COBRA for the full 18 months as long as s/he is already enrolled in Medicare Part "A".
- Enrollment in Medicare Part "B" is not necessary at this time; however, there are penalties assessed if Part "B" is taken after the initial Medicare enrollment period. (Contact the Benefits Office at 874-2921 or email patv@uri.edu for additional information).
- After COBRA has ended (18 months), the retiree/spouse will be enrolled in the Early Retiree plan until age 65. This covers the retiree/spouse on the same medical plan, but dental and vision riders are not available. This Early Retiree plan will cover 80% of the cost of prescription medication.
- At age 65, the retiree/spouse must be enrolled in Medicare Part "A" & "B" in order to be eligible for one of our "Medicare eligible" plans. Those plans are:
United Plan 65 (Medigap)
United Plan 65 offers NO prescription drug, dental or vision coverage.Secure Horizons Medicare Complete
Secure Horizons Medicare Complete offers some prescription drug coverage, an annual dental and vision exam, but it is an HMO, which means it is Rhode Island-based (primary care physician in Rhode Island is necessary, and would not be available to someone living out-of-state).
- Medicare Part "D"
Medicare Part "D" became available on January 1, 2006. Information is available at www.medicare.gov
Life Insurance
The value of life insurance is based upon the value at age 65. This is called the Frozen Valuation. If an employee retires before age 65, the current salary (rounded up to the next $1,000.00) is the Frozen Valuation.
At retirement, the employee is eligible to keep up with the premiums on Basic coverage only, billed on an annual basis.
- The value at age 65 will drop to 76% of the Frozen Valuation
- age 66, value drops to 52%
- age 67, value drops to 28%
- age 68, value drops to 25% and will never get any lower
Have questions? E-mail Pat Victoria or call her at 874-2921.
