Retiree Health Benefits An Introduction to Retiree Health Benefits By Lois Durham

Overview of Retiree Health Benefits The 2013 Annual Conference approved changes to the Retiree Health Insurance program. Introduced and approved the Health Reimbursement Account for future retirees The Conference Medicare Supplement plan became the “grandfathered” plan. Closed all future retiree health benefits to anyone who became members of the Florida Conference after July 1, 2014. Thereby reducing the Florida Conference's future liability.

Overview of Retiree Health Benefits To qualify for future retiree benefits the clergy member must have been enrolled in the Conference health insurance program and serving full time in an Episcopal appointment on 7/1/2014. The “grandfathered” group has the choice of either the HRA or the Medicare supplement plan at the time of retirement. As of July 1, 2014: Clergy who were age 64 or older or, Clergy who were 55 or older with a minimum of 35 years of service

Medicare Supplement Plan Grandfathered Group The Conference provides support to retiring clergy to purchase health insurance when these criteria are met: Enrolled in the Conference health insurance plan on 7/1/2014 A clergyperson must have a minimum of 10 years of service in Florida For those who transferred their membership to the Florida Conference prior to January 1, 2003, all years of service will be credited. If you retire before you are eligible for Medicare, you must purchase your own individual coverage until you reach age 65.

Medicare Supplement Plan A credit of 2% of the Medicare supplement premium cost will be awarded for each year of service – up to a maximum of 80% of the cost. $408 premium for each individual enrolled The Conference funding applies to the clergy’s spouse and will continue for the spouse even if the clergyperson precedes the spouse in death.

Health Reimbursement Account Health Reimbursement Account – New approach to support retiree health benefits Provides an annual amount based on age and years of service at the time of retirement.

Health Reimbursement Accounts It’s not an insurance program, but a financial reimbursement plan funded entirely by the Conference. The HRA is an employer-sponsored plan that can be used to pay premium expenses and… Out-of-pocket medical expenses, such as deductibles, coinsurance and pharmacy expenses.

HRA Fundamentals The Conference will make an annual contribution to your individual account that is a specific dollar amount based on age and years of service at retirement. You choose which out-of-pocket qualified medical expenses you would like to submit for reimbursement. Unused account balances will be rolled over to the following plan year as long as you remain enrolled in the plan.

HRA Plan Provisions Eligible clergy who complete a minimum of 10 years of service AND are at least age 60 will receive an annual HRA contribution upon retirement. The amount of the annual HRA contribution will vary with the retiree’s age and service at retirement. Clergy couples will be provided individual HRA account contributions based on their own individual age and service at retirement. The CBOPHB will review the HRA contribution schedule every four years to determine if the contributions should be adjusted..

Years of Service Schedule Traditional Medicare Retirement HEALTH REIMBURSEMENT PLAN Years of Service Schedule Effective July 1, 2014 Years of Service Schedule Age 60 Age 61 Age 62 Age 63 Age 64 Traditional Medicare Retirement Age 65+ 10-14 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 15-19 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 20-24 $2,200 $2,300 $2,400 $2,600 $2,700 25-29 $2,500 $2,800 $3,000 $3,100 $3,300 30-34 $2,900 $3,500 $3,700 $3,900 35-39 $3,400 $3,600 $3,800 $4,100 $4,300 $4,500 40+ $4,600 $4,800 Annual HRA contribution is reduced by approximately 5% each year prior to age 65 for early retirement. Married retirees (that are not part of a clergy couple) share HRA contribution with spouse. Surviving spouse’s benefit at retiree’s death is equal to 75% of the retiree’s amount while living - rounded to the nearest $100. The clergyperson’s age on the date of retirement determines the amount of the HRA contribution. Years of service is determined by the General Board of Pension & Health Benefits official Service Record.

Medical Cost in Retirement Medicare Part A & B Medicare Supplement Plan Medigap Insurance Plan Deductibles Co-pay Co-insurance

Other Benefits in Retirement Death Benefits for Clergy and their Spouse Clergy: $20,400 Spouse: $15,300 Surviving Spouse: $10,200