Retirement 101 An Overview of Lifetime Health Benefits

For Clovis Unified Employees

RETIREMENT 101
FOR EMPLOYEES OF CLOVIS UNIFIED SCHOOL DISTRICT

Provisions of Board Policy 4154, 4254, 4354

Retiree Lifetime Health Agreement Benefits of the Lifetime Health Agreement Required Years of Service
Age Requirements Retirement Requirements Medicare Requirements Premium Calculations Premium Payments Other Options

			

Board Policy 4154, 4254, 4354

Located at: https://tinyurl.com/CUSDHealth BenefitsBP

Outlines the policies set forth by the CUSD Governing Board and the changes made over the years regarding the District’s Health & Welfare Benefits Plan and the Retiree Lifetime Health Agreement.

BENEFITS OF THE LIFETIME HEALTH AGREEMENT

Same primary insurance coverage as active employees for the retiree and eligible dependents that are enrolled at the time of retirement until eligible for Medicare (65 years old or sooner if disabled).

Secondary/supplemental insurance coverage for the retiree and eligible dependents once Medicare eligible.

Coverage available for life with paid premiums.

Lifetime coverage extended to the Spouse should Retiree pre-decease Spouse

5 years continued coverage under Dental and Vision plans OR until the Retiree turns 65, whichever comes first.

Hire Date

Prior to
September 1, 2007

Hire Date

After
September 1, 2007
	Employed 15 years with Clovis Unified WITH benefits

Retirement with STRS/PERS

55 years of age except in the case of disability retirement with PERS/STRS

Employed 30 years with Clovis Unified WITH benefits

Retirement with STRS/PERS

62.5 years of age except in the case of disability retirement with PERS/STRS

Required Years of Service Age Requirement
STRS/PERS Retirement Requirement

MEDICARE REQUIREMENTS

Retiree and eligible dependents enrolled on the Retiree plan must enroll into Medicare Part A and Part B when eligible (65 years old or sooner if disabled)

Medicare Part A = Hospitalization services

Medicare Part B = Professional services such as office visits, laboratory, x-ray, etc. Medicare Part B Premiums vary based on individual/joint income.
$134 reduction in premium once a retiree/spouse goes on Medicare

The cost of Medicare Part A & B are paid for by the Retiree/Dependent

Medicare will become effective for the Retiree/Dependent on the 1st of the month in which the Retiree/Dependent turns 65. At that time Medicare will become the primary insurance, The Clovis Unified School District Health Plan will become secondary and the retiree’s monthly premium will be adjusted accordingly.

Board Policy 4154, 4254, 4354 : Rate Determination

“If the health insurance claims paid for retirees and retiree dependents (certificated and classified) exceed ten percent (10%) of the total claims paid in any year (July through June), and the retiree desires to continue in the District’s Health and Welfare Benefits Plan, the District will assess retirees a monthly fee to be based on the amount exceeded by all retirees divided into twelve (12) equal payments August through July of the following year.”

 Fiscal Year – July 1st – June 30th

 Final claims amount received by July 15th

 Rates Calculated & letter to Retiree by 1st week in August  New rates effective September 1st

Premium Calculations

Bridging the gap for an Employee Retiring before Qualifying Age (55 or 62) or has not yet retired with STRS/PERS

Hire Date

Prior to
September 1, 2007
	Employed 15 years with Clovis Unified WITH benefits

Retirement with STRS/PERS

55 years of age except in the case of disability retirement with PERS/STRS
	
Hire Date

After
September 1, 2007
	Employed 30 years with Clovis Unified WITH benefits

Retirement with STRS/PERS

62.5 years of age except in the case of disability retirement with PERS/STRS

If an employee meets the years of service with benefits requirement but has not met the age requirement and/or has not retired with STRS/PERS they may elect to enroll into the Self Paid Retiree plan to bridge the gap until all requirements are met making them eligible for the District Paid Lifetime Health Agreement.

Other Options: Self Paid Retiree Plan

OTHER OPTIONS: SELF PAID RETIREE PLAN

Sameprimary insurancecoverage asactive employees for theeligible retiree and eligibledependents enrolled at timeof retirement.

Secondary/supplemental insurance coverage for the eligibleretiree and eligible dependents onceMedicare eligible.

Coverage available to bridge gap between separation of employment and enrollment in Lifetime Health Agreement Plan.

5 years of dental and vision or until retiree reaches 65, whichever is longer is offered up front in this plan while bridging gap.

2023/24 District Paid Retiree Rates	2023/24 Self Paid Retiree Rates

CLASSIFICATION OF RETIREE

Retiree Only; Zero Medicare Retiree Only; with Medicare
Retiree plus One; zero on Medicare

DISTRICT RATE

$391.36 $226.46
$782.72

CLASSIFICATION OF RETIREE

Retiree Only; Zero Medicare Retiree Only; with Medicare
Retiree plus One; Zero Medicare

SELF PAY RATE

$723.45 $624.75
$1,459.50

Retiree plus One; one on Medicare	$617.82	Retiree plus One; one on Medicare	$1,348.20

Retiree plus One; two on Medicare

Retiree plus Two or More; Zero on Medicare Retiree plus Two or more; one on Medicare Retiree plus Two or more; two on Medicare
Retiree plus Two or more; three on Medicare

$452.92 $1,174.08 $1,009.18 $844.28

$679.38

Retiree plus One; two on Medicare

Family Coverage

$1,298.85

$2,016.00

COBRA (Consolidated Omnibus Budget Reconciliation Act)

Coverage available for 18 months with paid premiums

COBRA Rate is Composite – Covers employee and all eligible dependents on plan when the plan terminates.
Premiums processed by HealthNow Administrative Services (HNAS)
Payment may be made by Payment Coupon or with Automatic Withdrawal

Other Options: COBRA/Self Paid Comparison

2023/24 COBRA RATES
	
HEALTH
	$ 485.00 – Single Coverage $1,270.00 – Employee Plus 1 or More
	
DENTAL
	$	94.35 – Employee Plus 1 or More
	
VISION
	$	17.85 – Employee Plus 1 or More

2023/24 Self Paid Retiree Rates
	
Classification of Retiree
	Self Pay Rate
	
Retiree Only; Zero Medicare
	$723.45
	
Retiree Only; With Medicare
	$624.75
	
Retiree Plus One; Zero Medicare
	$1,459.50
	
Retiree Plus One; One on Medicare
	$1,348.20
	
Retiree Plus One; Two on Medicare
	$1,298.85
	
Family Coverage
	$2,016.00

Questions?

Contact the Clovis Unified Benefits Department at
559-327-9125