HR 406 Retirement: Non-Union Employees
Retirement: Non-Union Employees
TriMet provides compensation, active employee benef...
Retiree Health Plan Vesting
Non-union employees hired after May 1, 2009 will be eligible for retiree health benefits at
re...
Defined Benefit Pension Plan: The TriMet Defined Benefit Pension Plan for Management and
Staff Employees (“DB Plan”) is cl...
The spouse or domestic partner of Tier 3 retirees are not eligible for the bus pass.
What happens to my retiree health ins...
subject to the eligibility rules as active non-union employees and as outlined in HR-120, Benefits
Eligibility.
How are be...
Other Benefits
If you participate in the voluntary life insurance program, you can arrange with Standard
Insurance Company...
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Hr 406 retirement_-_non_union

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Hr 406 retirement_-_non_union

  1. 1. HR 406 Retirement: Non-Union Employees Retirement: Non-Union Employees TriMet provides compensation, active employee benefits, and retirement benefits for all employees as part of its total compensation package. Non-union employees hired on or after April 27, 2003 participate in a defined contribution retirement plan. Non-union employees hired prior to April 27, 2003, were provided an opportunity to select their plan participation. In April 2003, non-union employees were allowed the following choices: 1) Continue in the Defined Benefit Pension Plan. 2) Freeze their Defined Benefit Pension Plan as of April 27, 2003 and begin participating in the Defined Contribution Retirement Plan. 3) Convert the value of their Defined Benefit Pension Plan to the Defined Contribution Retirement Plan and continue participation in the Defined Contribution Retirement Plan. Because this retirement plan election had no effect upon their retiree health care benefit eligibility, for purposes of this policy, all such individuals are considered to be in Tier 1. Eligible retirees also may qualify for post-employment health plan coverage (medical, dental, vision, life insurance and prescription coverage). TriMet reviews its total compensation package regularly to help ensure TriMet is competitive with the market and can recruit and retain highly competent employees. TriMet employees are eligible for post-employment benefits based upon the following tiers that are based upon date of hire. Tier 3 – Hired on or after May 1, 2009 Defined Contribution Retirement Plan: Non-union employees are eligible to participate in the Defined Contribution Retirement Plan upon employment. An employee is vested upon 36 months of credited service or for the following reasons: Reach age 62 Suffer a disability Your death while employed. A vested participant may rollover his/her benefit or elect a distribution at termination of employment, regardless of age but should seek competent tax advice regarding the tax consequences of the decision. (Please see the Summary Plan Description for additional information regarding the plan.)
  2. 2. Retiree Health Plan Vesting Non-union employees hired after May 1, 2009 will be eligible for retiree health benefits at retirement but shall pay the entire cost of the coverage(s) provided by TriMet. The retiree will be eligible for TriMet group rates. When the New Employee becomes eligible for coverage under Medicare, TriMet will not make further retiree health care benefits available. TriMet retains the right, at any time, to modify health care benefits, plan design, and cost sharing for all active and retired employees. The eligibility requirements for Tier 3 Retiree Health Plan Vesting: Age requirement: Separate from TriMet service at or after age 55. Service requirement: Ten (10) years of credited service as a non-union employee. Tier 2 – Hired from April 27, 2003 through April 30, 2009 Defined Contribution Retirement Plan: Non-union employees are eligible to participate in the Defined Contribution Retirement Plan upon employment. An employee is vested upon 36 months of credited service or for the following reasons: Reach age 62 Suffer a disability Your death while employed. A vested participant may rollover his/her benefit or elect a distribution at termination of employment, regardless of age but should seek competent tax advice regarding the tax consequences of the decision. (Please see the Summary Plan Description for additional information regarding the plan.) Retiree Health Plan Vesting Subject to future health care benefits, plan design, and cost-sharing adjustments for active employees, currently active TriMet non-union employees who satisfy the service and age requirements for eligibility will, as of their separation date, be eligible to receive the same health care benefits, plan design, and cost-sharing that are received by active TriMet non-union employees. TriMet retains the right, at any time, to modify health care benefits, plan design, and cost sharing for all active and retired employees. The eligibility requirements for Tier 2 Retiree Health Plan Vesting: o Age requirement: Separate from TriMet service at or after age 55. o Service requirement: Ten (10) years of credited service as a non-union employee. Tier 1 – Hired prior to April 27, 2003
  3. 3. Defined Benefit Pension Plan: The TriMet Defined Benefit Pension Plan for Management and Staff Employees (“DB Plan”) is closed to all new participants. Vesting for non-union employees currently participating in the DB Plan: Age requirement: Separate from TriMet service at or after age 55 with an actuarial reduction at or after age 62 with no reduction in benefit. Service requirement: Five (5) years of credited service as a non-union employee. Retiree Health Plan Vesting Subject to future health care benefits, plan design, and cost-sharing adjustments for active employees, currently active TriMet non-union employees who satisfy the service and age requirements for eligibility will, as of their separation date, be eligible to receive the same health care benefits, plan design, and cost-sharing that are received by active TriMet non-union employees. TriMet retains the right, at any time, to modify health care benefits, plan design, and cost sharing for all active and retired employees. The eligibility requirements for Tier 1 Retiree Health Plan Vesting: o Age requirement: Retire from TriMet service at or after age 55 o Service requirement: Five (5) years of credited service as a non-union employee. Frequently Asked Questions What is the definition of a retiree? A non-union employee who leaves TriMet employment is considered retired if he/she has met the following two requirements: Age: 55 or greater Service: Prior to April 27, 2003 requires 5 years of service; On or after April 27, 2003 requires 10 years of service An employee may retire after many years in the workforce, but not does meet the definition of a TriMet retiree unless they are age 55 and meet the service requirements listed above. Who is eligible for a bus pass? Notwithstanding any other provision of this policy, a person is eligible for a retiree’s bus pass when they leave TriMet’s employment at age 55 or older and have at least10 years of credited service. Is my spouse or domestic partner eligible for a bus pass? The spouse or domestic partner of Tier 1 and Tier 2 retirees are eligible for the bus pass.
  4. 4. The spouse or domestic partner of Tier 3 retirees are not eligible for the bus pass. What happens to my retiree health insurance if I have a break in service? If you leave TriMet employment and are rehired by TriMet, previous years of service may apply toward years of credited service for vesting in the Non-union health plan. The following conditions must be met: The break in service is less than three years; and The duration of the break is less than the employee’s total length of service before the break. If both of these conditions are met, the policy in effect when the employee is rehired will be applied. If both conditions are not met, credited service begins with the new hire date. To receive credit for previous employment, the employee must have worked in a regular full- time, regular part-time or limited term position at TriMet. Note: The employee does not receive credited service for the break-in-service period. RETIREMENT PLANNING We encourage all employees to plan their retirement well in advance. Thoughtful retirement planning can reward you with financial security and the freedom to enjoy personal interests and loved ones. One planning opportunity lies with your deferred compensation plan, which allows employees to build retirement savings with pre-tax dollars through payroll deduction. Contribution limits are set by federal law and adjust annually. Please contact the Pension and Retirement Office in Finance for current annual limits. Employees age 50 and above have higher annual limits. These higher limits also may be adjusted annually. A catch-up provision allows employees in the calendar years they turn age 59, 60 and 61 to contribute a larger amount. Call the Pension and Retirement Office in Finance for information. Employees should call their deferred compensation carrier to discuss options when they retire. You can leave your money where it is, roll it over to an IRA, or develop a distribution payout plan that meets your individual needs. You will want to consider payment amounts and dates of distribution. Health Benefits for Retirees Subject to the Retiree Health Plan Vesting Policy, health benefits (medical, dental, vision, life insurance and prescription coverage) continue through your retirement. Dependent eligibility is
  5. 5. subject to the eligibility rules as active non-union employees and as outlined in HR-120, Benefits Eligibility. How are benefits determined if my spouse or domestic partner is an employee or retiree of TriMet? If you and your spouse/domestic partner both work for (or retired from) TriMet, you may not be enrolled as an employee/retiree and as a dependent on a TriMet-administered medical, hospital, prescription drug, dental and vision plan. If dual enrollment elections are submitted, TriMet will automatically eliminate dual coverage as follows: For any Non Union employee who is covered both as an employee and as a dependent of another TriMet employee or retiree’s coverage, coverage as a dependent will be terminated. For eligible dependents that are associated with two different TriMet Non Union employees/retirees, the dependent(s) will be covered by the employee who covered the dependent(s) first based on date of enrollment, unless you notify the TriMet Benefits department otherwise. How do I waive my health benefit coverage? Retirees are allowed to waive coverage for themselves and/or their dependents upon certifying during open enrollment that they are eligible for coverage under the District’s plans, but are covered under medical, hospital, prescription drug, dental and vision insurance from another plan sponsor, including Medicare. An employee who waives eligible coverage under this provision will receive $250 per month as taxable income as appropriate. A retiree who loses coverage under another plan sponsor must inform the District; loss of alternate coverage disqualifies them from receiving this incentive. Upon loss of coverage, the retiree will be allowed to reenroll in the District’s plans for which they are eligible. For non-union employees hired before May 1, 2009: As soon as the retiree, spouse or domestic partner is first eligible for Medicare, he/she must select Medicare Parts A & B to be eligible for continued health benefits from TriMet. When you become eligible for Medicare as a retiree, Medicare is your primary insurer for medical costs and your TriMet medical plan is secondary. The TriMet plan continues to cover dental, vision, and prescription costs as outlined in the plan. The health coverage for the surviving spouse or domestic partner and qualified dependents of a retiree will continue past the retiree's death for 10 years. For non-union employees hired on or after May 1, 2009: Retiree health coverage terminates when the retiree becomes eligible for Medicare. If a retiree dies, health coverage for the surviving spouse or domestic partner and qualified dependents of the retiree will continue with the entire cost of coverage paid by the respective survivor and such coverage shall cease on the earlier of: (a) 10 years after the retiree’s death, or (2) the date the surviving spouse, domestic partner, or qualified dependent becomes eligible for Medicare.
  6. 6. Other Benefits If you participate in the voluntary life insurance program, you can arrange with Standard Insurance Company to convert voluntary (supplemental) life insurance by arranging to pay premiums within 30 days of your termination. Other benefits (except the bus pass and a reduced group life insurance benefit) cease at retirement. The remainder of this section explains the actions and decisions required of you immediately before retirement.

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