The current Post-Employment Benefit Policy expires June 30, 2009. After working on the policy for about five months, the Board of Directors has decided to continue to offer a Post-Employment Benefit. Click here to read the new Post-Employment Benefit that will take effect July 1, 2009, and click here to read the policy that will be in effect until June 30, 2009. The Board will review the policy annually. Below you will find a general question and answer section that may help answer some of your questions on how the policy will apply to you.
Question: What are the changes between the current post-employment benefit and the new benefit adopted by the Board to be effective July 1, 2009?
Answer:
a) The age of eligibility will change from age 58 to age 60. The years of service will remain unchanged.
b) The agency’s contribution towards insurance premiums will be the cost of the single medical insurance coverage. The current contribution is the full amount the agency is currently contributing toward health and dental coverage.
c) Many early retirees have double coverage under a spouse. The new post-employment benefit will provide an option for eligible employees to receive $300/month in a flex benefit account if they waive coverage with Heartland.
d) The agency policy adds partners as beneficiaries.
Question: I want to take advantage of the post-employment benefit this year (June 2009). Will that policy be changed in any way?
Answer: No, the terms of post-employment benefit for those who apply by December 1, 2008, remain the same. The employee must have completed a minimum of 15 consecutive years of full-time service or 20 years of full-time and part-time service, the last consecutive five years being full-time. They must reach their 58th birthday by June 30 of their final fiscal year of employment. For qualified employees, the agency agrees to pay the same coverage for monthly health and dental rates as was in effect during the employee’s last year of employment.
Question: Who is eligible for the post-employment benefit effective July 1, 2009?
Answer: The years of service are not changing. Those eligible are employees who have a minimum of 15 consecutive years of full-time employment with the agency and who reach their 60th birthday by June 30 of their final fiscal year of employment and employees who have 20 years of regular half- or full-time employment, with the last five consecutive years being full-time.
Question: What benefit will an eligible employee receive under the new policy which is effective July 1, 2009?
Answer: The agency will pay the cost of single medical and prescription drug insurance coverage at the rate of the highest cost medical insurance plan which was in effect during the employee’s last year of employment. (This year that would be the cost of the single zero deductible plan).
Question: What if I need family coverage under the new policy effective July 1, 2009?
Answer: If you are covered with family insurance at the time the Board accepts your application for the post-employment benefit, you may continue family coverage. However, you will be responsible for paying the difference between the single and family premium. If you do not have family coverage at the time of your post-employment application, you will not be permitted to add it at a later time.
This year the Board approved the addition of a Health Reimbursement Arrangement (HRA). Any dollars in your HRA could be used to cover the additional cost of premiums for the first five years after your retirement.
Question: What if my spouse is younger than I am? May they continue on Heartland’s insurance after I turn 65?
Answer: If they were covered under your policy, they can remain on our insurance at their own expense, until they reach age 65 or are eligible for other insurance, including Medicare.
Question: I have coverage under my spouse’s health plan. May I keep double coverage under the new policy effective July 1, 2009?
Answer: Yes, you may keep double coverage. However, you may be interested in another option. If you can demonstrate that you are covered under your spouse’s medical plan, the agency will contribute into a flex spending account in your name, $300/month (less fees) for use towards insurance premiums or out-of-pocket medical expenses. However, once you leave the Heartland health plan you cannot re-enroll at a later date.
Question: Who should I contact if I have questions?
Answer: Your questions may be directed to Kathy Martin, benefits specialist, at kmartin@aea11.k12.ia.us.
If you qualify for the current benefit, you will be receiving a letter from Human Resources by the end of October giving specific instructions on how to apply. All applications for the early retirement post-employment benefit as it is currently written must be received by the Benefits Office no later than December 1, 2008.
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