Thoughts from those that have gone before me regarding whether it was was or would have been wise to "buy" their health benefits when being surplussed? Was it worth it being in your early 50's? The cost is significant.
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There is a X** (X may be a Y or N)
YVOb here.... I had no idea they left it ambiguous for some people. What a cop-out. Pathetic really.
You could call Benefits Center, but be warned...I've heard of employees getting different answers talking to different people. If you get an answer you don't think is correct, call back and speak to another rep.
Your best bet is to review the 'Retirement' Medical SPD on the Benefits website. It's spelled out in black & white there, and they can't get around that unless they change the plan.
@mxt+15phVYOb - Thank you!
For Mgmt, if you look on your 2020 Your Total Rewards statement, they added a new section this year that tells you if you qualify for medical subsidy discounts, or if you have to pay 100% full cost of coverage.
I see that it says, "If you terminate employment and are eligible for retiree medical coverage, would you also be eligible for any available company subsidy toward the cost of that retiree medical coverage?" There is a X** (X may be a Y or N)
The ** refers to a notation stating benefits could change at any time.
Management Transitional Program(MTP) does not change your pension calculation. If your medical benefit is not subsidized, 50% of severance pay does not buy you anything except retiree discount of T services.
Also remember each surplus can supersede the current spd. There is sometimes language that you have to agree to to receive the severance. So if you are surplussed read the small print in the documents you receive. Had a friend get burned on this. I would not take the MR75 offer.
MR75 gives you basically nothing
I somewhat agree with this. MR75 lets you participate in the company retirement medical plans, which you MAY or MAY NOT qualify for the subsidized discount. Barely enough life insurance to pay for your burial. And you get 30% off your wireless service. Thats about it. The discount on video products is so pathetic as to be nonexistent.
MR75 gives you basically nothing
How do you find out what benefits you get with the Rule of 75? Some said above the SPD but there doesn't appear to be anything in there related to healthcare or subsidized health benefits.
The Life Changes estimator on the Benefits site only works if you are close to retirement eligibility. Otherwise you get an error message telling you to call the Benefits Center.
For Mgmt, if you look on your 2020 Your Total Rewards statement, they added a new section this year that tells you if you qualify for medical subsidy discounts, or if you have to pay 100% full cost of coverage.
Or, go to the Benefits website, pull up the plan documents, and at the bottom of the page you will find the 'Retirement' Medical SPD. This is different from the current employee Medical SPD. The Retirement version has several tables that list whether you qualify for the subsidized benefits based on your legacy company and hire date.
As for whether is valuable to bridge the 24month gap if you do qualify for the subsidy, but are not yet MR75 eligible, it depends on your situation. If you are planning on getting another job, then retirement benefits might not matter as much, in which case the severance pay might be a better option...especially if it takes time to find a new job, or if you have to take a pay cut. If you can be covered on a spouse's plan, then I say take the severance money and screw the 'retirement' benefits.
" The difference between pension vested and in service pension can be almost double. For instance if you meet that number in Dec of this year and run the calculation leaving now your pension will be about half of what it is in after Dec. "
Not everyone's pension is calculated the same way. Some do not see those significant jumps at various milestones along the way (like myself for instance).
The buy up to retirement is may be more beneficial if getting to the rule of 75 number gets you a bigger pension payout. The difference between pension vested and in service pension can be almost double. For instance if you meet that number in Dec of this year and run the calculation leaving now your pension will be about half of what it is in after Dec. If that difference is 100K you should give up severance to get bigger pension payout. Remember if your severance is 40K for say 6 months of pay and you take this to get 20k instead, you will pay tax on the 40k. If your tax rate is 25% you will pay 10K in taxes on the 20K you do receive.
Why are you retiring in your early 50s, go out and get another job with medical benefits. Medical cost are so high even working for less pay but having good medical is worth it.
No, No, and No
There is nothing unique about the benefits you receive when you meet M75. They are the same benefits you would receive as a retiree.
I tried to find the SPD to give you the oath to get there - but could not quickly locate it. These HR related sites are cumbersome at best.
How do you find out what benefits you get with the Rule of 75? Some said above the SPD but there doesn't appear to be anything in there related to healthcare or subsidized health benefits.
Click on the life changes and then retirement or leaving the company...something like that. You will need to read the links and drill in to get to your situation.
How do you find out what benefits you get with the Rule of 75? Some said above the SPD but there doesn't appear to be anything in there related to healthcare or subsidized health benefits.
"Make sure you qualify for the company subsidized health benefits".
This ^^^. Many management personnel do not. I hit MR 75 last year (50 and 25). I called and spoke with a benefits representative to confirm that I do qualify for the subsidy (trying to navigate those SPD's is challenging for sure). All of that said, as you know the high deductible management medical coverage plans are not cheap to begin with, and you'll contribute significantly more as a retiree. I am fortunate to be covered on my spouse's company medical plan (better and cheaper), but I wanted to confirm that if something happened to their employment, as a T retiree, I would be eligible to pick up medical coverage here.
maybe the id–t who referenced Obamacare didn't realize some states have hiked their premium around 50% y/y.
I assume you are referring to the option to sacrifice 1/2 of your severance in exchange for purchasing up to two years of service to meet the MR75.
Make sure you qualify for the company subsidized health benefits. Meeting MR75 does not automatically entitle you to health benefits. There have been many discussions on this board covering at his topic. They can be found using this site name in a Google search. But, everyone’s situation is different, consult the SPD docs on Fidelity to discover what you are eligible for. Many folks are surprised to find out they are eligible for nothing more than discount on services.
Make sure you know what benefits you are getting. This company is made up of so many varied purchased entities that not everyone gets the same benefits when hitting rule of 75. In some cases The befits you get can be worse than you would get by just being a Costco member.
buying indie insurance is way too expensive for anyone without a source of income – no matter what.
your best hope is that you live in a state that has actually embraced and funded Obamacare. that way you can get coverage and, if unemployed, can manage to get some (if not all) of the cost supplemented.
those of you facing this dilemma in a red-state that opposed Obamacare are going to be hurting in a big way.