Benefit Changes for Faculty Upon Retirement

Shawn Foley

You will be an MIT Retiree if, when you leave the Institute, you are age 55 or older, and have completed 10 years of MIT Retirement Plan eligible service after age 45. The following is a summary of your Massachusetts Institute of Technology Health and Welfare Retiree Benefits.

Cost of Health Coverage at Retirement

As we announced to the MIT community on June 16, 2003, MIT implemented a new method of determining MIT's and retiree's share of the cost of retiree health coverage beginning January 1, 2004. You are not affected by the change if you were born before July 1, 1930 and were retirement plan eligible, or were born before July 1, 1940 and completed 10 years of retirement plan eligible service before July 1, 1995.

Health Insurance at Retirement

As an MIT Retiree, you, your spouse/partner covered by an MIT Plan at the time of your retirement, and eligible dependents qualify to elect to participate in one of MIT's health insurance plans. Your coverage options are dependent upon your age at retirement.

Health Insurance If You Retire Before Age 65

If you retire before age 65 and are not enrolled in Medicare Part A (Hospital Coverage) and Part B (Medical Coverage), you will continue to be covered by one of the health plans available to active MIT employees.

If your eligible spouse/partner is under age 65 at the time of your retirement, your spouse/partner will remain in an active MIT health plan. Retirees and spouses/partners without dependent children will change from family coverage to two individual plans.

If you have dependent children on your family plan, the plan coverage will continue as family coverage until you and/or your spouse turns age 65 or your unmarried, dependent child is eligible for coverage through an employer or other group health plan or the end of the month they turn age 25, whichever occurs first.

Health Insurance If You Retire On or After Age 65

If you retire on or after age 65, Medicare Parts A and B will become your primary insurance. You may add to that coverage by choosing one of the MIT Group Medicare supplement plans. MIT currently offers several Medicare supplement plans:

1. Indemnity Supplement Plan – MIT Group Medex Plan

2. HMO Supplement Plans – Managed Blue for Seniors & Tufts Medicare Complement

3. Medicare HMO Plans – First Seniority & Secure Horizons

Note: In most cases, under the MIT Group Medex Plan, you may continue to use the MIT Medical Department for your services.

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If Your Spouse/Partner is Age 65 or Older When You Retire

If your spouse/partner is age 65 or older when you retire and not actively working or receiving coverage through another employer or group health plan, and your spouse/partner has Medicare Parts A and B coverage, your spouse will be eligible for coverage through one of the MIT Group Medicare Supplement Plans. Your spouse/partner is not obligated to have the same supplemental coverage as you and may elect any one of the plans available.

Cost of Health Insurance Effective 1/1/2004 – Under Age 65

Any cost will be deducted from your MIT pension check or you will be billed monthly.

MIT's share of the cost of coverage will be based on your years of retirement plan eligible service with the Institute after age 45. The percentage will be based on the full monthly cost of the Plan.

• MIT's share will equal 50% for retirees with 10 years of such service after age 45;
• MIT's share will increase 2 percentage points for each additional year of such service beyond the initial 10 years of required service to a maximum of 70% for retirees with 20 or more years of such service after age 45; and
• Partial years of such service will be prorated at .167% per month.

Over Age 65

Any cost for you and your eligible spouse/partner, will be deducted from your pension check or you will be billed monthly.

Cost sharing for retiree health plans:

• MIT's share will equal a percentage of the cost of MIT Group MEDEX Plan.
• This percentage will be based on your years of retirement plan eligible service after age 45, will be prorated for partial years, and is identical to the percentages that apply to retirees under age 65, as explained above.
• You will pay the remainder of the cost of your coverage.
• The dollar amount MIT pays will change as the cost of MIT Group MEDEX Plan changes.

The chart illustrates the Institute's and retiree's cost sharing by years of service.

For More Information

Please contact the Benefits Office by e-mail at rthealthchanges@mit.edu or by telephone at (617) 452-3694 from 9:00 a.m. to 5:00 p.m. The office is located in E19-215. The office at Lincoln Laboratory is located at LL-A-128; the number is (781) 981-7055. Details of the plan changes can be found at http://web.mit.edu/hr/benefits/retire_prep_health.html.

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